Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 6

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 6
---
 leading economies, including the United States and China.
There have been concerns over unrest and terrorist threats in the Middle East, Europe and Africa and over the conflicts involving Ukraine,
Syria and North Korea. There have also been concerns on the relationship among China and other Asian countries, which may result in or
intensify potential conflicts in relation to territorial disputes, and the trade disputes between the United States and China. The
ongoing trade tensions between the United States and China may have tremendous negative impact on the economies of not merely the
two countries concerned, but the global economy as a whole. It is unclear whether these challenges and uncertainties will be contained
or resolved, and what effects they may have on the global political and economic conditions in the long term. Our international market
expansion strategy may be hindered if these challenges and uncertainties persist.

If we are unable to expand our business
to international markets successfully, our business and results of operations would be adversely affected.

To the extent permitted due
to our recurring losses from operations and an accumulated deficit, we have begun to expand our business internationally in the United
States. and Southeast Asia through online and offline sales channels, including accessing overseas markets through third-party e-commerce
platforms and local distributors. However, we may not be able to expand our business as we planned. For example, we may not be able to
identify e-commerce platforms or local distributors with sufficient resources and strong local ties to collaborate with us, which would
negatively affect our strategy to expand our business to international markets.

Expanding our business outside
the PRC also involves certain risks and uncertainties, such as our ability to obtain adequate funding for development and expansion costs,
identify strategic markets globally, identify locations with large consumer base and commercial potential, obtain the required licenses,
permits and approvals, and recruit and retain talents with sufficient experience. Any risks and uncertainties listed above, either individually
or in aggregate, might delay or fail our plan to expand our business overseas at manageable cost levels.

In addition to the above factors,
our overseas expansions face additional difficulties and challenges. We have limited experience operating in overseas markets and may
face competition from major, established competitors in these markets. These competitors usually have more experience and resources for
their business operations in those markets. In addition, the real estate, employment and labor, transportation and logistics, regulatory,
and other operating requirements in these markets differ significantly from those in China. Moreover, a number of factors could have an
adverse impact on our operating results if our