Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 99

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 4
Chunk 99
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 traffic to our stores through more and closer collaborations; (ii) improve our ability to aggressively penetrate non-tier 1
cities and (iii) accelerate the growth of our paid customer base. In addition, we will continue to improve our sales and marketing
capabilities and leverage the internet and various social media platforms to build brand awareness in non-Tier 1 cities in China.
We will also engage content and social media marketing providers and platforms to drive an increase in average order value (“ AOV”),
repeat purchases, and to attract net-new users to our platform.

Continue to innovate and expand product
offerings

We expect consumer demand
for RTH, RTC, RTE and plant-based meal products to not only persist, but to grow at an accelerated rate. We plan to leverage our deep
industry expertise, data-informed consumer insights, and predictive analytics to identify meaningful consumer trends and then partner
with and solicit product feedback from our customers to optimize and expand on our existing product portfolio. We are committed to strengthening
our R& D and product development capabilities to improve our ability to innovate more effectively within our core product categories.

Mergers and Acquisitions (“ M& A”)
Strategy

M& A is a key growth strategy
going forward for the Company in order for us to execute on the multi-brand strategy and also further diversify away from brand concentration
risks and into markets outside of China. Historically, virtually all of our sales have been in China. For example, our international (meaning
outside of China) sales were zero in 2021 and 2022 and accounted for 4.21% of our total revenue for the year ended December 31, 2023.
M& A is an important part of our strategy to establish our footprint and sales channel internationally. We are actively looking at
potential targets with revenues in the U. S., Europe, Australia, SE Asia, and Middle East. As a group, we are targeting to have international
sales to account for up to 30% of total revenue in 2024 and around 50% in 2025. Since July 2023, we have acquired three Asian food brand
companies in the U. S. including Nona Lim, Yai’s Thai, and Omsom. Looking forward, we will continue to identify targets but to the
extent permitted due to our recurring losses from operations and an accumulated deficit, we will evaluate and opportunistically execute
on strategic joint ventures (JV), potential investments and acquisition opportunities