Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 73

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 73
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 results of operations.

In addition, we may from time
to time implement, modify and upgrade our information technology systems and procedures to support our growth and the development of our
e-commerce business. These modifications and upgrades could require substantial investment and may not improve our profitability at a
level that outweighs their costs, or at all.

Our success depends on the continuing efforts of our senior management team and key personnel and our business may be harmed if we lose their services and cannot timely find proper candidates for substitution.

Our current business performance
and future success depend substantially on the abilities and contributions of our senior management members, including our founder, Ms.
Norma Ka Yin Chu, all of our executive directors and other key personnel with industry expertise, know-how or experience in areas such
as research and development, manufacturing, sales, marketing, financial management, human resources and risk management. If any member
of our senior management is unable or ceases to serve in his or her present position, we may not be able to find replacement in a timely
basis due to local conditions. As a result, our business may be disrupted, our management quality may deteriorate and our results of operations
may be materially and adversely affected. In addition, if any member of our senior management team joins a competitor or forms a competing
business, we may lose trade secrets and business know-how as a result. Competition for experienced management in our industry is intense,
and the pool of qualified candidates is limited. We may not be able to retain the services of our senior management or attract and retain
additional high quality senior executives in the future. Moreover, we rely on our sales personnel to effectively operate our retail network.
As we expand our operations, we may not be able to retain such skilled sales personnel at a reasonable cost and our business and results
of operations may be materially and adversely affected.

Our performance depends on favorable labor relations with our employees, and any deterioration in labor relations, shortage of labor or material increase in wages may have an adverse effect on our results of operation.

Our success depends on our
ability to hire, train, retain and motivate our employees. We consider favorable labor relations as a significant factor that can affect
our performance, and any deterioration of our labor relations could cause labor disputes, which could result in disruption of production
and operations.

Since the reform and opening
up, China has experienced rapid economic growth, which has resulted in significantly increased labor costs. Average labor wages are expected
to increase. In addition, we may need to increase our