Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 89

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 3
Chunk 89
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, directors and principal shareholders purchase or sell our Class A Ordinary Shares. In addition, foreign private issuers
are not required to file their annual report on Form 20-F until one hundred twenty (120) days after the end of each fiscal year,
while U. S. domestic issuers that are accelerated filers are required to file their annual report on Form 10-K within seventy-five
(75) days after the end of each fiscal year. Foreign private issuers also are exempt from Regulation Fair Disclosure, aimed
at preventing issuers from making selective disclosures of material information. As a result of the above, you may not have the same protections
afforded to shareholders of companies that are not foreign private issuers.

If we lose our status as a
foreign private issuer, we would be required to comply with the Exchange Act reporting and other requirements applicable to U. S. domestic
issuers, which are more detailed and extensive than the requirements for foreign private issuers. We may also be required to make changes
in our corporate governance practices in accordance with various SEC and NYSE rules. The regulatory and compliance costs to us under U. S. securities
laws if we are required to comply with the reporting requirements applicable to a U. S. domestic issuer may be significantly higher
than the cost we would incur as a foreign private issuer. As a result, we expect that a loss of foreign private issuer status would increase
our legal and financial compliance costs and would make some activities highly time consuming and costly. We also expect that if we were
required to comply with the rules and regulations applicable to U. S. domestic issuers, it would make it more difficult and expensive
for us to obtain and maintain directors’ and officers’ liability insurance, and we may be required to accept reduced coverage
or incur substantially higher costs to obtain coverage. These rules and regulations could also make it more difficult for us to attract
and retain qualified members of our board of directors.

As a foreign private issuer, we are permitted
to adopt certain home country practices in relation to corporate governance matters that differ significantly from NYSE corporate governance
listing standards. These practices may afford less protection to shareholders than they would enjoy if we complied fully with corporate
governance listing standards.

As a foreign private issuer,
we are permitted to take advantage of certain provisions in the NYSE rules that allow us to follow our home country law for certain governance
matters. Certain corporate governance practices in our home country, the Cayman Islands, may