Company: DDC
Filing Date: 2025-10-24
Form Type: F-1
Source: 0001213900-25-102214
Chunk: 34

Company: DDC Enterprise Ltd
Filing Date: 2025-10-24
Form: F-1
Chunk 34
---
 and disclosure controls and procedures; maintain and improve our information technology systems and procedures; and expand, train and manage our employee base. We may not be able to effectively manage this expansion in any one or more of these areas, and any failure to do so could significantly harm our business, financial condition and results of operations. Growing our business rapidly may make it difficult for us to adequately predict the expenditures we will need to make in the future. If we do not make the necessary overhead expenditures to accommodate our future growth, we may not be successful in executing our growth strategy, and our results of operations would suffer. We have incurred net loss in the past, and we may not be able to achieve or maintain profitability in the future. We incurred net loss of RMB122.2 million, RMB162.0 million, RMB157.0 million (US$21.5 million), and a net profit of RMB37.1 million (US$5.2 million) in 2022, 2023, 2024 and for the six months ended June 30, 2025. We cannot assure you that we will be able to generate net profits or positive cash flow from operating activities in the future. Our ability to achieve and maintain profitability will depend in large part on our ability to maintain or increase our operating margin, either by growing our revenues at a rate faster than our costs and operating expenses increase, or by reducing our costs and operating expenses as a percentage of our net revenues. We also expect to continue to make significant future expenditures related to the continuous development and expansion of our business, including: •acquisitions of new businesses and products and the ongoing working capital needs of those businesses and products; •investments in our product development team and research and development team and in the development of new products; •investments in sales and marketing, enlarging our customer base and promoting market awareness of our brands and products; •investments in expansion of our online and offline distribution channels in a measured manner; •investment in enhancing data and information technology and improving operating efficiency, including improving the efficiency in supply chain management, warehouse management and inventory control; and •incurring costs associated with general administration, including legal, accounting and other expenses related to being a public company 20 As a result of these significant expenses, we will have to generate sufficient revenue to remain profitable in future periods. We may not generate sufficient revenue for a number of reasons, including potential lack of demand for our products, increasing competition, challenging macro -economicenvironment