Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 107

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 107
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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 “network platform
operator” that possesses personal information of more than one million users and seeks a listing in a foreign country must apply
for a cybersecurity review. Further, the relevant PRC governmental authorities may initiate a cybersecurity review against any company
if they determine certain network products, services or data processing activities of such company affect or may affect national security.
Through the contractual arrangements with Weishi, DDC Shanghai had collected and possessed personal information of more than one million
users. After the contractual arrangements with Weishi were terminated in April 2022, DDC Shanghai still have been possessing this amount
of personal information which are stored in mainland China. For purposes of the Cybersecurity Review Measures, we have applied for and
completed the cybersecurity review with respect to our proposed overseas listing pursuant to the Cybersecurity Review Measures.

As there remains significant
uncertainty in the interpretation and enforcement of relevant PRC cybersecurity laws and regulations, we cannot assure you that we would
not become subject to enhanced cybersecurity review or investigations launched by PRC regulators in the future. Any failure or delay in
the completion of the cybersecurity review procedures or any other non-compliance with the related laws and regulations may result in
rectification, fines or other penalties, including suspension of business, website closure, removal of our app from the relevant app stores,
and revocation of prerequisite licenses, as well as reputational damage or legal proceedings or actions against us, which may have material
adverse effect on our business, financial condition or results of operations.

On February 17, 2023, the
CSRC issued the Trial Measures which became effective on March 31, 2023. On the same date, the CSRC circulated the Guidance Rules and
Notice on the CSRC’s official website which became effective on March 31, 2023. Under the Trial Measures, either direct or indirect
overseas offering and listing by domestic companies shall fulfill the filing procedure with the CSRC with submitting relevant materials.
Any overseas offering and listing made by an issuer that meets both the following conditions will be determined as indirect: (1) 50% or
more of the issuer’s operating revenue, total profit, total assets or net assets as documented in its audited consolidated financial
statements for the most recent accounting year is accounted for by