Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 69

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 69
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our customers, which may have a material adverse effect on our business, results of operations and financial condition.

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We are subject to PRC Advertising Law and related regulations, rules and measures applicable to advertising.

Certain amounts of our revenue
are derived from online advertising services. In July 2016, the former State Administration for Industry and Commerce promulgated
the Interim Administrative Measures on Internet Advertising, or the Internet Advertising Measures, effective in September 2016, pursuant
to which internet advertisements are defined as any commercial advertising that directly or indirectly promotes goods or services through
internet media in any form including paid-for search results. Under the Internet Advertising Measures, our online advertising services
may constitute internet advertisement. On February 25, 2023, the SAMR issued Administrative Measures for Internet Advertising, or the
Internet Advertising Administrative Measures, which became effective on May 1, 2023, and replaced the Interim Measures for the Administration
of Internet Advertising which became effective on September 1, 2016. According to the Internet Advertising Administrative Measures, the
provisions of the Advertising Law and the Internet Advertising Administrative Measures shall apply to commercial advertising for direct
or indirect marketing goods or services in the form of text, image, audio, video, or other means through websites, web pages, Internet
apps, or other Internet media within the territory of PRC. Our online advertising may be subject to the Internet Advertising Administrative
Measures.

PRC advertising laws, rules
and regulations require advertisers, advertising operators and advertising distributors to ensure that the content of the advertisements
they prepare or distribute is fair and accurate and is in full compliance with applicable law. For the year ended December 31, 2022, 2023
and 2024, 0.5%, 0.4% and 0.1% of our revenues were derived from advertising service. Violation of these laws, rules or regulations may
result in penalties, including fines, confiscation of advertising fees and orders to cease dissemination of the advertisements. In circumstances
involving three or more illegal acts within two years or other serious violations, a fine of not less than five times but not more
than ten times the advertising expense or a fine of not less than RMB1,000,000 but not more than RMB2,000,000 shall be imposed, and the
PRC government may revoke a violator’s business license and revoke the advertisement examination and approval documents and