Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 149

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 149
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 testing and possible remediation.
To comply with the requirements of being a reporting company under the Exchange Act, we will need to upgrade our information technology
systems, implement additional financial and management controls, reporting systems and procedures and hire additional accounting and finance
staff. If we or, if required, our auditor is unable to conclude that our internal control over financial reporting is effective, investors
may lose confidence in our financial reporting and the trading price of our Class A Ordinary Shares may decline.

We and our independent registered
public accounting firm identified one material weakness in our internal control over financial reporting as of December 31, 2024. The
material weakness identified is our lack of sufficient accounting personnel with appropriate U.S. GAAP knowledge to prepare financial
statements in accordance with U.S. GAAP and SEC reporting requirements. Neither we nor our independent registered public accounting firm
undertook a comprehensive assessment of our internal control under the Sarbanes-Oxley Act of 2002 for purposes of identifying and reporting
any weakness in our internal control over financial reporting. Had we performed a formal assessment of our internal control over financial
reporting or had our independent registered public accounting firm performed an audit of our internal control over financial reporting,
additional material weaknesses or control deficiencies may have been identified.

We are working to remediate
the material weakness and are taking steps to strengthen our internal control over financial reporting through the development and implementation
of processes and controls over the financial reporting process. See “Management’s Discussion and Analysis of Financial Condition
and Results of Operations — Internal Control Over Financial Reporting.” However, we cannot assure you that these
measures will significantly improve or remediate the material weakness described above.

We cannot assure you that
there will not be additional material weaknesses or any significant deficiencies in our internal control over financial reporting in the
future. Any failure to maintain internal control over financial reporting could severely inhibit our ability to accurately report our
financial condition, results of operations or cash flows. If we are unable to conclude that our internal control over financial reporting
is effective, or if our independent registered public accounting firm determines we have a material weakness or significant deficiency
in our internal control over financial reporting once that firm begin its reviews under Section 404 of the Sarbanes-Oxley Act of 2002,
investors may lose confidence in the accuracy and completeness of our financial reports, the market price of our Class A Ordinary Shares
could decline, and we could be subject to sanctions or investigations by the NYSE, the SEC or