Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 66

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 66
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 fires, natural disasters, weather, manufacturing problems, epidemic, crop failure, strikes, transportation
interruptions, or government regulation. A failure of supply could also occur due to suppliers’ financial difficulties, including
insolvency. Changing suppliers may require long lead time. We may not be able to locate alternative suppliers in sufficient quantities,
of suitable quality, or at an acceptable price. Continued supply disruptions could exert pressure on our costs, and we cannot assure you
that all or part of any increased costs can be passed along to our customers in a timely manner or at all, which could negatively affect
our business, overall profitability and financial performance.

To mitigate the potential
impact of COVID-19 (and future pandemics) and other business disruptions (e.g. geopolitical or trade conflicts, natural disasters, or
cybercrime etc), we have taken and will continue to take proactive steps to diversify our supply chain, moving away from single-sourcing
to a network of diverse, alternative, pre-qualified suppliers of raw materials needed to produce one or more of our products. This approach
allows us to secure more favorable commercial terms with our existing suppliers and also reduces the risk of business disruption at one
or more stages of the E2E supply chain.

Our business segments, products,
lines of service, projects, or operations have not been materially impacted by supply chain disruptions.

The development of online sales network and marketing activities may not meet expectations, or we may fail to manage the coordination of our offline and online sales channels, which may adversely affect our operation results.

As online and social media
platforms continue to grow in popularity, any significant growth in our sales through online sales channels in the future may give rise
to competition between offline and online sale channels. If we fail to balance the marketing efforts or optimize product mix and pricing
strategies among our online and offline sales channels, or otherwise fail to effectively manage the integration of these channels, the
competition among these channels may adversely affect our business, financial condition and results of operations.

We expect to further enhance
our online strategies and increase sales from our online channels. However, we may not be able to maintain a high growth rate of our online
sales, and if we fail to manage the continuous development of our online sales, our business, financial condition and results of operations
may be adversely affected.

Our online sales depend on the proper operation of third-party online platforms and any serious interruptions of these platforms could adversely affect our operations.

The development of sales through
third