Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 9

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 9
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ations and lead to various adverse consequences, including decreased sales
and consumer boycotts. Also, we may face customer complaints or negative publicity about us, our products, our management, our business
partners or the KOLs we collaborate with from time to time, which may adversely affect our brand, reputation and business and diminish
the appeal of our brand to consumers. Certain of such negative publicity may come from malicious harassment or unfair acts by third parties
or our competitors, which are beyond our control.

Damage to our reputation or
the reputations of our business partners or loss of consumer confidence for any of these or other reasons could have a material adverse
effect on our results of operations and financial condition, as well as require additional resources to rebuild our brand and reputation.

Our products are subject to food safety
standards and the failure to satisfy such mandated food safety standards would have a material and adverse effect on our business, results
of operations and prospects.

Our products are subject to
food safety standards in China, the United States and Canada. To comply with the applicable food safety laws and regulations, new food
product shall be submitted to the applicable regulatory authorities for food safety inspections and sale of product is prohibited if relevant
product is uninspected or fails to pass the inspection. Failure to satisfy such mandated food safety standards would delay the launch
of our new products and may cost us additional resources in time, capital and human power to modify the product to comply with the food
safety standards, which may have a material and adverse effect on our business, results of operations and prospects.

After we launch the products,
our products are still subject to those mandated food safety standards. We have adopted internal procedures to run tests on our launched
products from time to time to make sure they comply with the mandated food safety standards. However, there can be no assurance that we
could satisfy such standards at all times. In the event that our products fail to continue to satisfy the mandated food safety standards,
we are required to stop selling such products and may need to initiate callbacks for those products. In addition, we may be subject to
negative publicity for such failure. Moreover, as the food safety is crucial to our business, the customers’ confidence in our brand
may be impaired. As a result, our reputation, brand image, business, results of operations may be materially and adversely affected.

We may be subject to claims under consumer
protection laws, including health and safety claims and product liability claims, if people are harmed by the products sold