Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 49

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 49
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resources and incur additional time delays to comply with the applicable rules, and our business operations will be affected materially
and any such action could cause the value of our securities to significantly decline or be worthless.

Further, any actions by the
PRC government to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based
issuers could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the
value of such securities to significantly decline or be worthless. We could be subject to regulation by various political and regulatory
entities, including various local and municipal agencies and government sub-divisions. The Company may incur increased costs necessary
to comply with existing and newly adopted laws and regulations or penalties for any failure to comply.

We are not aware of PRC laws
and regulations in force explicitly requiring that our Group or our PRC subsidiaries to obtain permission from PRC authorities to issue
securities to foreign investors (by DDC Cayman). There is no guarantee that we will continue to comply with additional filing requirements,
if any, in the future. Any new policies, regulations, rules, actions or laws by the PRC government may subject us to material changes
in operations, which could significantly limit or completely hinder our ability to offer or continue to offer securities to investors
and cause the value of our securities to significantly decline or become worthless.

There are significant legal and other obstacles
to obtaining information needed for shareholder investigations or litigation outside China or otherwise with respect to foreign entities.

We conduct most of our business
operations in China, and a majority of our directors and employees are based in China, which is an emerging market. The SEC, U. S. Department
of Justice and other authorities often have substantial difficulties in bringing and enforcing actions against non-U. S. companies
and non-U. S. persons, including company directors and officers, in certain emerging markets, including China. Additionally, our public
shareholders may have limited rights and few practical remedies in emerging markets where we operate, as shareholder claims that are common
in the United States, including class action securities law and fraud claims, generally are difficult to pursue as a matter of law
or practicality in many emerging markets, including China. For example, in China, there are significant legal and other obstacles to obtaining
information needed for shareholder investigations or litigation outside China or otherwise with respect to foreign entities. Although
the local authorities in China may establish a regulatory cooperation mechanism with the securities regulatory authorities of another