Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066342
Chunk: 65

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 65
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 and adversely affected.

Our business is subject to
governmental supervision and regulation by the relevant PRC governmental authorities, including but not limited to the State Council,
the SAMR, the Ministry of Commerce(“MOFCOM”), the State Internet Information Office, the General Administration of Customs
and other governmental authorities in charge of the relevant services provided by us. These government authorities promulgate and enforce
regulations that cover various aspects of the operation of food products and e-commerce, etc., including entry into these industries,
scope of permitted business activities, licenses and permits for various business activities, and restriction on foreign investments.
Violations of regulations may lead to the imposition of significant penalties which may affect our business, operations, reputation and
financial prospects. In respect of the food industry, in particular, any violation of the relevant laws, rules and regulations may result
in penalties and, under certain circumstances, lead to criminal prosecution.

We have obtained food operation
licenses to operate our general business activities currently conducted in China, except for Quanzhou Weishi Food Co., Limited which does
not hold any assets or operations and we are in the process of applying for relevant food operation licenses for it. In addition, SH Lashu
have been filed for record as consignee or consignor of import and export goods. However, we cannot assure you that we can successfully
renew these licenses in a timely manner or that these licenses are sufficient to conduct all of our present or future business.

New laws and regulations may
be adopted from time to time, and substantial uncertainties exist regarding interpretation and implementation of current and future PRC
laws and regulations applicable to our business operations. For example, in August 2018, the SCNPC promulgated the E-Commerce Law,
which took effect in January 2019. We have to cooperate with e-commerce platforms and be in full compliance with E-Commerce Law in
order to continue to operate on those e-commerce platforms. We cannot assure you that our current business activities will not be found
in violation of any future laws and regulations or any of the laws and regulations currently in effect due to changes in the relevant
authorities’ interpretation of these laws and regulations.

If we fail to adapt to any
new regulatory requirement or any competent government authority considers that we operate our business operation without any requisite
license, permit or approval, or otherwise fails to comply with applicable regulatory requirements, we may be subject to administrative
actions and penalties against us, including fines, confiscation of