Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072148
Chunk: 63

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 63
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 in
our existing markets, which could affect the viabilities of these new operations or our overall profitability.

We also sell our products
to major e-commerce platforms and online distributors. Our development of the e-commerce channel depends on many factors, most of which
are beyond our control, including: the trust and confidence level of China’s online consumers, as well as changes in consumer consumption
patterns, tastes and preferences; the growth of internet usage in China; and the development of fulfillment, payment and other ancillary
services associated with e-commerce sales. Any failure to respond to trends and consumer requirements in the e-commerce channel may adversely
affect our sales and our business and growth prospects in this sales channel.

Additionally, our expansion
plans and business growth could strain our managerial, operational and financial resources. Our ability to manage future growth will depend
on our ability to continue to implement and improve operational, financial and management information systems on a timely basis and to
expand, train, motivate and manage our workforce. We cannot assure you that our personnel, systems, procedures and controls will be adequate
to support our future growth. Failure to effectively manage our expansion may lead to increased costs and reduced profitability and may
adversely affect our growth prospects. In addition, as we expand our operations, we may encounter regulatory, personnel and other difficulties
that may also increase our costs of operations.

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We depend on a stable and adequate supply of raw materials which are subject to price volatility and other risks. Inadequate or interrupted supply and price fluctuation for raw materials and packaging materials could adversely affect our profitability.

We source a majority of our
products from suppliers located in China and the United States, and our suppliers source raw materials and packaging materials within
China and the United States. Raw materials used within the production process include, for example, meat, rice, oil, soy beans, starch
and sugar. To date, inflationary pressures have not materially impacted the cost of sourcing our products. However, raw materials and
packaging materials are subject to price volatility caused by external factors, such as commodity price fluctuations, changes in supply
and demand, logistics and processing costs, our bargaining power with suppliers, inflation, and governmental regulations and policies.
Our production volume, quality of products and profit margins may be adversely affected. There is no assurance that raw material costs
will not increase significantly in the future. As is customary in our industry, we typically are not able to immediately pass raw material
price