Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 19

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 3
Chunk 19
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 involving us, our products,
our raw materials, our directors, our management team, our competitors or our industry could materially and adversely impact our business
and results of operations.

The food industry in China
and the United States is particularly sensitive to concerns over food safety and quality related issues and can be materially and adversely
affected by negative publicity or news reports, whether accurate or not, regarding food safety and quality and public health concerns.
Any such negative publicity on our industry, whether targeting us in particular or not, could materially harm our brand, business and
results of operations. Complaints or claims against us, if any, even if without any sufficient evidence, could force us to divert our
resources, which may adversely affect our business, operations and financial performance.

We operate in a highly competitive industry.
Failure to compete effectively could adversely affect our market share, growth and profitability.

We operate in the food industry
in China and the United States, in particular the RTC and RTE food industry, which is highly competitive, and the competition may further
intensify. Some of our competitors, may have been in their respective businesses longer than we have and may have substantially greater
financial, research and development and other resources than us. We also cannot assure you that our current or potential competitors will
not market products comparable or superior to those we provide or adapt more quickly to evolving industry trends or changing market demand.
Our competitors in certain regional markets may also benefit from raw material sources or production facilities that are closer to these
markets. It is also possible that there will be a consolidation trend in the RTC, RTE and plant-based food industry, integration of upstream
and downstream businesses or alliances among competitors; and as a result, our competitors may rapidly acquire significant market share.
Any of these events may cause our market share, business and results of operations to be adversely affected.

Furthermore, competition may
cause our competitors to substantially increase their advertising and promotional activities or to engage in irrational or predatory pricing
behavior. We cannot guarantee that our marketing efforts will be sufficient to compete with our competitors. An increase in competition
could require us to continue to increase our promotion and advertising expenses, which might place pressure on our margins and affect
our profitability. Additionally, competition may result in price reductions, reduced margins and loss of market shares for us, any of
which could have an adverse impact on our results of operations. We also cannot assure you that our competitors will not actively engage
in activities, whether legal or illegal, designed to undermine our brands and product