Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066342
Chunk: 156

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 156
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 could decline. If one or more of these analysts cease coverage of us or fail to publish reports covering us regularly, we
could lose visibility in the market, which in turn could cause our stock price or trading volume to decline and result in the loss of
all or a part of your investment in us.

Recently introduced economic substance legislation of the Cayman Islands may impact us and our operations.

The Cayman Islands, together with several other
non-European Union jurisdictions, has recently introduced legislation aimed at addressing concerns raised by the Council of the European
Union as to offshore structures engaged in certain activities which attract profits without real economic activity. With effect from January 1,
2019, the International Tax Co-operation (Economic Substance) Act (Revised), or the Substance Law, and issued Regulations and Guidance
Notes came into force in the Cayman Islands introducing certain economic substance requirements for “relevant entities” which
are engaged in certain “relevant activities,” which in the case of exempted companies incorporated before January 1,
2019, will apply in respect of financial years commencing July 1, 2019 and onwards. A “relevant entity” includes
an exempted company incorporated in the Cayman Islands, as is DDC Cayman; however, it is anticipated that our Company may remain out of
scope of the legislation or else be subject to more limited substance requirements. Although it is presently anticipated that the Substance
Law will have little material impact on us and our operations, as the legislation is new and remains subject to further clarification
and interpretation, it is not currently possible to ascertain the precise impact of these legislative changes on us and our operations.

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USE OF PROCEEDS</div>

Except as described in any
prospectus supplement and any free writing prospectus in connection with a specific offering, we currently intend to use the net proceeds
from the sale of the securities offered under this prospectus to fund the development and commercialization of our projects and the growth
of our business, primarily working capital, and for general corporate purposes. We may also use a portion of the net proceeds to acquire
or invest in technologies, products and/or businesses that we believe will enhance the value of our Company, although we have no current
commitments or agreements with respect to any such transactions as of the date of this prospectus. We have not determined the amount of
net proceeds to be used specifically for the foregoing purposes. As a result, our management will have broad discretion in the allocation