Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 16

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 3
Chunk 16
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, could result in loss or misuse of such data, interruptions to our service system, diminished customer experience,
loss of customer confidence and trust, impairment of our technology infrastructure, and harm our reputation.

As of the date of this annual
report, on the basis that there exists no outstanding inquiry, notice, warning, or sanctions in relation to our data security and data
protection, we believe we are in compliance of PRC laws and regulations in material aspects in relation to data security and data protection.

However, in anticipation of
the strengthened implementation of cybersecurity laws and regulations and the continued expansion of our business, we face potential risks
of being required to comply with higher cybersecurity standards. If we are not able to comply with the cybersecurity and data privacy
requirements in a timely manner, or at all, we may be subject to government enforcement actions and investigations, rectification, fines,
penalties, suspension of our non-compliant operations, or removal of our app from the relevant application stores, among other sanctions,
which could materially and adversely affect our business and results of operations.

If the content we produce and distribute
through online social and content platforms, or content available on our website, is deemed to violate laws or regulations, our business
and results of operations may be materially and adversely affected.

We produce and distribute
professionally generated food and cooking related content on third party online social and content platforms such as Weixin, Kuaishou,
Bilibili, and RED to promote healthy lifestyle, to improve our brand awareness and to generate consumers interest in our products. Under
PRC laws, we are required to monitor content we produce and distribute for items that are factually incorrect, socially destabilizing,
obscene or defamatory, and promptly take actions with respect to such content items. Sometimes, it is arguable as to whether a piece of
information is factually incorrect or involved other types of illegality, and it may be difficult to determine the type of content that
may result in liability to us. If we are found to be liable, we may be subject to fines, revocation of our relevant licenses and other
administrative and civil actions, which may interrupt our business. We have implemented measures to review content in light of the relevant
laws and regulations before any of them is published. However, such procedures may not prevent all illegal or impropriate contents from
being distributed, especially content created during living streaming by KOLs we collaborate with.

We currently utilize third-party suppliers
for our products.