Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 128

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 128
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 foreign exchange capital at their discretion,
but continued to prohibit FIEs from using the Renminbi fund converted from their foreign exchange capitals for (i) expenditure beyond
their business scopes or prohibited by the laws and regulations of the state, (ii) directly or indirectly investing in securities
unless otherwise provided by laws and regulations, (iii) providing entrusted loans in RMB (except where the business scope permits),
repaying loans between non-financial enterprises (including advances from third parties) or repaying RMB loans from bank that have been
transferred to third parties, (iv) paying the related expenses of purchasing real estate not for self-use except for foreign-invested
real estate enterprises. Violations of these Circulars could result in severe monetary or other penalties. These restrictions were reiterated
and replaced by SAFE Circular 16, the Circular on Policies for Reforming and Regulating the Control over Foreign Exchange Settlement under
the Capital Account, which was promulgated and implemented by the SAFE on June 9, 2016. According to SAFE Circular 16, the foreign exchange
receipts under the capital account of a domestic institution shall be used pursuant to the principle of authenticity and self-use within
its business scope. The foreign exchange receipts under the capital account of a domestic institution and the Renminbi funds obtained
from foreign exchange settlement may be used by the domestic institution for expenditures under the current account within its business
scope or the expenditure under the capital account permitted by laws and regulations. Such receipts and funds of the domestic institutions
shall not be used for the following purposes: (i) directly or indirectly used for payment beyond the business scope of the enterprises
or the payment prohibited by relevant laws and regulations; (ii) directly or indirectly used for investment in securities or other investments
than principal-secured products of banks unless otherwise provided by relevant laws and regulations; (iii) directly or indirectly used
for granting the granting of loans to non-affiliated enterprises, with the exception that such granting is expressly permitted in the
business license; and (iv) used for construction or purchase of real estate for purpose other than self-use (exception applies for real
estate enterprises). Where there is any contractual agreement on the use scope of receipt under the capital account between a domestic
institution and other parties involved, the domestic institution shall not use such receipts and funds beyond the scope.

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SAFE Circular 19 and SAFE
Circular 16 may significantly limit our ability to use Renminbi