Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 32

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 32
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 spending patterns, (ii) consumer
preferences and tastes, (iii) consumer income, (iv) consumer perceptions of and confidence in our product quality and food safety,
and (v) consumer lifestyle. Any change in consumer demand for our products or the occurrences of catastrophic events may have an
adverse impact on our product sales, which may in turn lead to inventory obsolescence, decline in inventory value or inventory write-off.

We may not be able to adequately protect
our intellectual property, which could adversely affect our business and operations.

We regard our trademarks, copyrights, domain names, know-how, patents,
and similar intellectual property as critical to our success, and we rely on a combination of intellectual property laws and contractual
arrangements, including confidentiality and non-compete agreements with our employees and others, to protect our proprietary rights As
of December 31, 2024, we had registered 279 trademarks, 1 copyright of works and 5 computer software copyrights in China, including three
registered trademarks in Hong Kong. We may fail to own or apply for key trademarks in a timely fashion, or at all. For example, several
logos we have used for years cannot be registered as trademarks in certain trademark categories in China because a company unaffiliated
to us has pre-emptively registered similar logos as trademarks in such categories. As a result, we have been and will not be able to use
such logos in areas covered by such trademark categories. Such company complained to the Market Supervision Bureau for the trademark infringement
of DDC Shanghai, and DDC Shanghai has already applied for the invalidations of these trademarks at the State Intellectual Property Office,
or the SIPO, as well as indicted a series of related administrative actions which have been already accepted by the court. As the trademarks
under the legal proceeding are not relevant to our main business and we have adopted timely steps to make enough adjustments to relevant
business, including stopped using them in any public place, the unavailability of these trademarks would not materially and adversely
affect our business. If such third party actually use such trademarks in product or service similar to us in the future, consumers may
be confused and associate any quality issue on the products and services such third party provides with us, which will have an adverse
impact on our brand image. We may become an attractive target for certain copycat websites that attempt to cause confusion or diversion
of traffic from us in the future because of our brand recognition as a food-related content-driven lifestyle brand