Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072148
Chunk: 130

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 130
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, or to establish variable interest entities in the PRC, which may materially and adversely affect our business, financial condition
and results of operations. In light of the various requirements imposed by PRC regulations on loans to and direct investment in PRC entities
by offshore holding companies, we cannot assure you that we will be able to complete the necessary registration or obtain the necessary
approval on a timely basis, or at all. If we fail to complete the necessary registration or obtain the necessary approval, our ability
to make loans or equity contributions to our PRC subsidiary may be negatively affected, which could materially and adversely affect our
PRC subsidiary’ liquidity and its ability to fund its working capital and expansion projects and meet its obligations and commitments.

Our business may be materially and adversely affected if any of our PRC subsidiaries declare bankruptcy or become subject to a dissolution or liquidation proceeding.

The Enterprise Bankruptcy
Law of the PRC, or the Bankruptcy Law, came into effect on June 1, 2007. The Bankruptcy Law provides that an enterprise will be liquidated
if the enterprise fails to settle its debts as and when they fall due, but its assets are insufficient to clear such debts or it becomes
demonstrably insolvent.

Our PRC subsidiary holds certain
assets that are important to our business operations. If our PRC subsidiary undergoes a voluntary or involuntary liquidation proceeding,
unrelated third-party creditors may claim rights to some or all of these assets, thereby hindering our ability to operate our business,
which could materially and adversely affect our business, financial condition and results of operations.

According to SAFE’s
Notice on Further Improving and Adjusting Foreign Exchange Administration Policies for Direct Investment, effective on December 17,
2012, and the Provisions for Administration of Foreign Exchange Relating to Inbound Direct Investment by Foreign Investors, effective
on May 13, 2013, if any of our PRC subsidiaries undergoes a liquidation proceeding, prior approval from SAFE for remittance of foreign
exchange to our shareholders abroad is no longer required, but we still need to conduct a registration process with the SAFE local branch.
It is not clear whether “registration” is a mere formality or involves the kind of substantive review process undertaken by
SAFE and its relevant branches in the past.

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Fluctuations in exchange rates could adversely affect our business and the value of our securities.

Changes in the value of the
RMB against the U.S. dollar