Company: DDC
Filing Date: 2025-10-24
Form Type: F-1
Source: 0001213900-25-102214
Chunk: 136

Company: DDC Enterprise Ltd
Filing Date: 2025-10-24
Form: F-1
Chunk 136
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, 2025, our sales and marketing expenses were RMB 2.5 million (US$0.4million), which is RMB 9.7 million for the six months ended June 30, 2024. For the six months ended June 30, 2025, our general and administrative expenses were RMB 14.3 million (US$2.0 million), which is RMB 33.6 million for the six months ended June 30, 2024. The decrease in expenses is primarily attributable to the strategic scaling back of U.S. operations and the effective implementation of cost control measures in China. 78 Key Factors Affecting Our Results of Operations There are several macro and microeconomic factors that contributed to the growth of our business, specifically the RTC, RTH, RTE and plant -basedproduct and service markets in China and the United States. These include (but are not limited to): •China’s rapid economic growth and urbanization, which has resulted in an increase in per capita annual disposable income; •China’s investments in its technological infrastructure and increase in internet and mobile subscriber penetration rates; •Favorable domestic social, governmental, and economic reforms centered on promoting a healthier lifestyle and life -choices; and •Broader shift in consumer preferences, trends, and purchasing behavior to convenience without compromising on quality and/or nutritional value. Unfavorable changes in any of the above factors could adversely affect demand for our products and/or services and impact our results of operations. There are specific internal and external factors that could impact our results of operations. These include (but are not limited to): Sales Strategy— We rely on both growing our own “DayDayCook” branded product sales and private label product sales. This combined strategy was prompted by the need to (i) improve our competitiveness in the RTC, RTH, RTE and plant -basedmeat food sectors, (ii) expand DayDayCook own -brandedin the market by new acquisition with more scope of offline distributors and (iii) improve the overall margin profile of the business. We expect growth for the DayDayCook own -brandedproduct to outpace private -labelproduct sales. This shift will require us to plan, develop, and successfully execute on multi -channelsales, marketing, and distribution strategy. Long -Term Consumer Trends and Demand— As the China RTC market is expected to benefit from a shift in customer taste and preferences to convenient cooking and meal options, the RTC market is expected to grow to R