Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 56

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 56
---
to our proprietary internal and customer data may also be obtained through inadequate use of security controls. We may incur significant
costs in protecting against cyberattacks, and if an actual or perceived breach of security occurs to our systems or a third party’s
systems, we could be required to expend significant resources to mitigate the breach of security and to address matters related to any
such breach, including notifying users or regulators. Any of such incidents may also harm our reputation and adversely affect our business
and results of operations. In addition, we may be subject to negative publicity about our security and privacy policies, systems, or measurements
from time to time.

Any failure to prevent or
mitigate security breaches, cyber-attacks or other unauthorized access to our systems or disclosure of our customers’ data, including
their personal information, could result in loss or misuse of such data, interruptions to our service system, diminished customer experience,
loss of customer confidence and trust, impairment of our technology infrastructure, and harm our reputation.

As of the date of the
Annual Report, on the basis that there exists no outstanding inquiry, notice, warning, or sanctions in relation to our data security
and data protection, we believe we are in compliance of PRC laws and regulations in material aspects in relation to data security
and data protection.

<div align='center'>29</div>

However, in anticipation of
the strengthened implementation of cybersecurity laws and regulations and the continued expansion of our business, we face potential risks
of being required to comply with higher cybersecurity standards. If we are not able to comply with the cybersecurity and data privacy
requirements in a timely manner, or at all, we may be subject to government enforcement actions and investigations, rectification, fines,
penalties, suspension of our non-compliant operations, or removal of our app from the relevant application stores, among other sanctions,
which could materially and adversely affect our business and results of operations.

If the content we produce and distribute through online social and content platforms, or content available on our website, is deemed to violate laws or regulations, our business and results of operations may be materially and adversely affected.

We produce and distribute
professionally generated food and cooking related content on third party online social and content platforms such as Weixin, Kuaishou,
Bilibili, and RED to promote healthy lifestyle, to improve our brand awareness and to generate consumers interest in our products. Under
PRC laws, we are required to monitor content we produce and distribute for items that are factually incorrect,