Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 64

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 64
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 any difficulty in expanding
our distributors and sales network, our growth prospects may be adversely affected, which could in turn have a material and adverse effect
on our business, financial condition and results of operations.

Our future growth may result
from improving our research and development capabilities, introducing new products, expanding our sales and distribution network and entering
new markets or new sales channels. Our ability to achieve growth will be subject to a range of factors, including:

| ● | expanding our sales network; |

| ● | enhancing our research and development capabilities; |

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| ● | hiring and training qualified personnel; |

| ● | controlling our costs and maintaining sufficient liquidity; |

| ● | prioritizing our financial and management controls in an efficient and effective manner; |

| ● | exercising effective quality control; |

| ● | managing our various suppliers and leveraging our purchasing power; |

| ● | maintaining our high food-safety standards; and |

| ● | strengthening our existing relationships with distributors. |

We face increased risks when
we enter new markets, or enter new sales channels, including social media and e-commerce channels. New markets and sales channels may
have different regulatory requirements, competitive conditions, consumer preferences and different spending patterns from our existing
markets and sales channels. Consumers in new markets and sales channels are likely to be unfamiliar with our brands and products and we
may need to build or increase brand awareness in the relevant markets and sales channels by increasing investments in advertising and
promotional activities than we originally planned. We may find it more difficult in new markets to hire, train and retain qualified employees
who share our business philosophy and culture. In addition, we may have difficulty in finding reliable suppliers with adequate supplies
of raw materials meeting our quality standards or distributors with efficient distribution networks. As a result, any products we introduce
in new markets may be more expensive to produce and/or distribute and may take longer to reach expected sales and profit levels than in
our existing markets, which could affect the viabilities of these new operations or our overall profitability.

We also sell our products
to major e-commerce platforms and online distributors. Our development of the e-commerce channel depends on many factors, most of which
are beyond our control, including: the trust and confidence level of China’s online consumers, as well as changes in consumer consumption
patterns, tastes and preferences; the growth of internet usage in China; and the development of fulfillment, payment and other ancillary
services associated with e-commerce sales. Any