Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 75

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 75
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minated by us or our user communities were deemed by the PRC government to
violate any content restrictions, we would not be able to continue displaying such content and could become subject to penalties, including
confiscation of income, fines, suspension of business and revocation of required licenses, which could materially and adversely affect
our business, financial condition and results of operations.

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The outcome of any claims,
investigations and proceedings is inherently uncertain, and in any event, defending against these claims could be both costly and time-consuming
and could significantly divert the efforts and resources of our management and other personnel. An adverse determination in any such litigation
or proceedings could cause us to pay damages, legal fees and other costs, as well as limit our ability to conduct business or require
us to change the manner in which we operate. Even if such assertions against us are unsuccessful, they may cause us to lose existing and
future business and incur reputational harm and substantial legal fees.

Failure to successfully operate our information systems and implement new technology effectively could disrupt our business or reduce our profitability.

We increasingly rely on information
technology systems to process, transmit and store information in relation to our operations. A portion of the communications between our
personnel and our suppliers, distributors and consumers depends on information technology. Our information technology systems may be vulnerable
to interruption due to a variety of events beyond our control, including but not limited to, natural disasters, telecommunications failures,
computer viruses, hackers and other security issues. Any such interruption to our information technology system could disrupt our operations
and negatively impact our production and ability to fulfill sales orders, which could have an adverse effect on our business, financial
condition and results of operations.

In addition, we may from time
to time implement, modify and upgrade our information technology systems and procedures to support our growth and the development of our
e-commerce business. These modifications and upgrades could require substantial investment and may not improve our profitability at a
level that outweighs their costs, or at all.

Our success depends on the continuing efforts of our senior management team and key personnel and our business may be harmed if we lose their services and cannot timely find proper candidates for substitution.

Our current business performance
and future success depend substantially on the abilities and contributions of our senior management members, including our founder, Ms.
Norma Ka Yin Chu, all of our executive directors and other key personnel with industry expertise, know-how or experience in areas such
as research and development,