Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 139

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 139
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 or increase the costs for relocating our business premises.

We leased our business premises
from third parties who either own the properties or lease the properties from the ultimate property owner. Some of our lessors were unable
to provide us with copies of title certificates or documents evidencing the authorization or consent of the owners of such properties.
Where the lessors do not have the proper legal right to lease the properties, the corresponding lease agreements may be deemed invalid.
Furthermore, some properties may not be designated for commercial use. If we are not adequately indemnified by the lessors for our related
losses, our business may be adversely affected. Some of the properties we lease from the third parties have been mortgaged by the owners
prior to leasing to us. We may not be able to continue using such properties if the mortgage is foreclosed. In addition, under the PRC
law, failure to register a lease agreement with the local housing bureau may result in the risk that we may not be able to continue to
occupy the relevant properties if the lease is challenged by third parties. Our lease agreements generally require the lessor to make
such registrations, however, as of the date of the Annual Report, the lease agreements relating to certain of our business premises had
not been duly registered by the relevant lessors. Accordingly, if these lessors do not have the appropriate titles to the properties or
necessary approvals from the ultimate owners or fail to make the requisite registrations, or if the mortgage over the leased properties
is foreclosed, we may be unable to continue to operate the affected properties or incur additional costs for relocating our business premises.

The recent enactment of the Holding Foreign Companies Accountable Act may result in de-listing of our securities.

Over the past decade, U.S. SEC
and PCAOB and the Chinese counterparts, namely, the China Securities Regulatory Commission, or the CSRC, and PRC Ministry of Finance have
been in an impasse over the ability of the PCAOB to have access to the audit work papers and inspect the audit work of China based accounting
firms, including our auditor. In May 2013, the PCAOB entered into a Memorandum of Understanding on Enforcement Cooperation (the “MOU”)
with the CSRC, and the PRC Ministry of Finance, which establishes a cooperative framework between the parties for the production and exchange
of audit documents relevant to investigations undertaken by the PCAOB, the CSRC or the PRC Ministry of Finance in the United States
and the