Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 31

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 31
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2023, we have
acquired three Asian food brand companies in the U.S. including Nona Lim and Yai’s Thai. Looking forward, we will continue to identify
targets but to the extent permitted due to our recurring losses from operations and an accumulated deficit, we will evaluate and opportunistically
execute on strategic joint ventures (JV), potential investments and acquisition opportunities across the value-chain with a focus
on supplementing and/or complementing our existing products, sales channels, customer-base and/or allow us to optimize our existing
brand marketing and sales channel management capabilities. There can be no assurances that we will be successful in generating revenues
internationally. For example, our M&A strategy may not identify M&A candidates and acquisitions that are completed may not be
successfully integrated into our operations and may not produce significant international revenues. Apart from executing acquisitions
with considerations paid through share exchanges, we will consider raising funds from investors to have an option to acquire companies
through a mixture of cash and equity.

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Our Strategies – Bitcoin Treasury

We have adopted a corporate
treasury strategy that includes acquiring and holding bitcoin as a principal reserve asset. Consistent with practices observed among leading
companies that integrate digital assets into their capital management, our approach reflects a long-term commitment to bitcoin as a store
of value and a hedge against macroeconomic uncertainties and inflation.

We believe that bitcoin possesses
unique attributes—scarcity, durability, divisibility, and global accessibility—that make it a suitable asset for capital preservation.
Accordingly, we allocate a significant portion of our excess capital resources to bitcoin purchases, intending to hold such digital assets
indefinitely. The treasury strategy is guided by a disciplined framework emphasizing accumulation at attractive valuations, risk management
through diversification of capital sources, and adherence to robust custody and security protocols.

Our treasury management includes
periodic purchases executed through open-market transactions and, where appropriate, settlement of financing arrangements in bitcoin to
increase holdings efficiently.

We employ institutional-grade
custodial solutions to safeguard bitcoin holdings, ensuring compliance with regulatory requirements and industry best practices. Internal
controls related to digital asset management are overseen by senior management and subject to audit and risk management reviews.

We acknowledge the volatility
inherent in bitcoin and accordingly incorporates risk assessment as a central component of our treasury approach. While we seek capital
appreciation and inflation hedge characteristics of bitcoin, we consider market conditions and liquidity when timing acquisitions or financing
activities.

This strategy aligns with
our