Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 57

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 3
Chunk 57
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 concentration of undertaking if certain thresholds
are triggered. In addition, the security review rules issued by the MOFCOM that became effective in September 2011 specify that mergers
and acquisitions by foreign investors that raise “national defense and security” concerns and mergers and acquisitions through
which foreign investors may acquire de facto control over domestic enterprises that raise “national security” concerns are
subject to strict review by the MOFCOM, and the rules prohibit any activities attempting to bypass a security review, including by structuring
the transaction through a proxy or contractual control arrangement. In the future, we may grow our business by acquiring complementary
businesses. Complying with the requirements of the above-mentioned regulations and other relevant rules to complete such transactions
could be time consuming, and any required approval processes, including obtaining approval from the MOFCOM or its local counterparts may
delay or inhibit our ability to complete such transactions. It is unclear whether our business would be deemed to be in an industry that
raises “national defense and security” or “national security” concerns. However, the MOFCOM or other government
agencies may publish explanations in the future determining that our business is in an industry subject to the security review, in which
case our future acquisitions in the PRC, including those by way of entering into contractual control arrangements with target entities,
may be closely scrutinized or prohibited. Our ability to expand our business or maintain or expand our market share through future acquisitions
would as such be materially and adversely affected.

If approval by the China Securities Regulatory
Commission and other PRC governmental authorities provided under the M& A rules is required in connection with offerings of our securities,
we cannot predict whether we will be able to obtain such approval. We completed the CSRC filing in November 2023 for our IPO. However,
there is no guarantee that we will continue to comply with additional filing requirements, if any, in the future.

The M& A Rules include,
among other things, provisions that purport to require that an offshore special purpose vehicle formed for the purpose of an overseas
listing of securities in a PRC company obtain the approval of the CSRC and the MOFCOM, prior to the listing and trading of such special
purpose vehicle’s securities on an overseas stock exchange. Substantial uncertainty remains regarding the scope and applicability
of the M& A Rules to offshore special purpose vehicles. As at the date of this annual report, we believe that CSRC’s approval
under the M& A Rules is