Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072148
Chunk: 61

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 61
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 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 results of operations are not representative of our future performance. We may be unable to effectively manage our future growth and expansion, and may not achieve growth in revenue and profit. If we are unable to manage our growth effectively, we may not be able to capitalize on new business opportunities and our business and financial results may be materially and adversely affected.

We have experienced growth
and plan to further expand in the future including through acquisitions. For the year ended December 31, 2024, we recorded RMB273.3 million
(or US$37.4 million) in total revenue compared to RMB205.5 million for the year ended December 31, 2023, representing a 33.0% increase.
Subsequent to December 31, 2024, we completed one acquisitions. Assuming the acquisition had taken place on 1 January 2024, the unaudited
pro forma revenue of the Company for the year ended December 31, 2024 would be RMB276.5 million (or US$111.2 million). For the year ended
December 31, 2024, our gross margin increased to 28.7% versus 25.0% for the year ended December 31, 2023.

Our ability to further increase
our research and development capabilities, selling and marketing capacity is critical to supporting our stable and continuous business
growth, which involves additional costs and uncertainties. In addition, to manage and support our growth, we must improve our existing
operational and administrative systems as well as our financial and management controls. Our continued success also depends on our ability
to recruit, train and retain qualified management personnel as well as other administrative and sales and marketing personnel, particularly
when we expand into new markets. We also need to continue to manage our relationships with our suppliers and customers. All of these endeavors
will require substantial management resources. As a result, our revenue and results of operations in future may fluctuate