Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072148
Chunk: 107

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 107
---
 overall effect of
legislation over the past four decades has significantly enhanced the protections afforded to various forms of foreign investment in China.
However, China has not developed a fully integrated legal system, and recently enacted laws, rules and regulations may not sufficiently
cover all aspects of economic activities in China or may be subject to significant degrees of interpretation by PRC regulatory agencies.
In particular, because these laws, rules and regulations are relatively new, and because of the limited number of published decisions
and the nonbinding nature of such decisions, and because the laws, rules and regulations often give the relevant regulator significant
discretion in how to enforce them, the interpretation and enforcement of these laws, rules and regulations involve uncertainties and can
be inconsistent and unpredictable. In addition, the PRC legal system is based in part on government policies and internal rules, some
of which are not published on a timely basis or at all, and which may have a retroactive effect. As a result, we may not be aware of our
violation of these policies and rules until after the occurrence of the violation.

Any administrative and court
proceedings in China may be protracted, resulting in substantial costs and diversion of resources and management attention. Since PRC
administrative and court authorities have significant discretion in interpreting and implementing statutory and contractual terms, it
may be more difficult to evaluate the outcome of administrative and court proceedings and the level of legal protection we enjoy than
in more developed legal systems. These uncertainties may impede our ability to enforce the contracts we have entered into and could materially
and adversely affect our business, financial condition and results of operations.

In addition, the Opinions
jointly issued by the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council
on July 6, 2021 called for strengthened regulation over illegal securities activities and supervision of overseas listings by China-based
companies and propose to take effective measures. As of the date of the Annual Report, no official guidance and related implementation
rules have been issued in relation to these recently issued opinions and the interpretation and implementation of the Opinions remain
unclear at this stage.

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On December 28, 2021, the
Cyberspace Administration of China (the “CAC”), and 12 other relevant PRC government authorities published the amended Cybersecurity
Review Measures, which came into effect on February 15, 2022. The final Cybersecurity Review Measures provide that a