Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 62

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 62
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89.4 million and RMB112.9 million (US$15.5 million) in the fiscal years ended December 31,
2022, 2023 and 2024 respectively. Management uses the adjusted EBITDA, non-GAAP financial measures, in evaluating our operating results
and for financial and operational decision-making purposes.

For the years ended December
31, 2022, 2023 and 2024, we incurred an adjusted EBITDA with loss of RMB37.5 million, RMB38.6 million and RMB25.4 million (US$3.5 million)
respectively. For details, please refer to section “Non-GAAP Financial Measure”.

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; |

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| ● | 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. |

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-economic environment, the ramifications of the COVID-19 pandemic, as well as other risks discussed elsewhere in this prospectus. If we fail to sustain or increase profitability, our business and results of operations could be adversely
affected.

Our historical financial conditions and