Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 11

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 3
Chunk 11
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 not spread by our products. We also face risks related to health epidemics.
Past occurrences of epidemics or pandemics, depending on their scale of occurrence, have caused different degrees of damage to the national
and local economies in China. An outbreak of any epidemics or pandemics in China may adversely affect the local economy and willingness
to spend in local areas and result in a decrease in the number of our customers in such areas. Any of the above may cause material disruptions
to our operations, which in turn may materially and adversely affect our financial condition and results of operations, and may continue
to affect the demand for our products, our business operations and financial conditions. Our operations are also vulnerable to natural
disasters and other catastrophic events, including wars, terrorist attacks, earthquakes, typhoons, fires, floods, extreme high temperature
events, power failures and shortages, water shortages, information system failures, and similar events that may or may not be foreseeable.

Our business could be materially
and adversely affected by the outbreaks of contagious diseases such as Severe Acute Respiratory Syndrome, or SARS, influenza A (including
H1N1, H7N9 and H10N8), Ebola and COVID-19 that spread across China and the world in recent years. In the future, if a contagious
disaster occurs in the regions where we operate, our operations may be materially and adversely affected as a result of loss of personnel,
damages to property or decreased demand for our products.

In addition, if any of our
employees is infected or affected by any severe infectious diseases, it could adversely affect or disrupt our business operations as we
may be required to close our production facilities to prevent the spread of the disease. If any of such diseases occur, our ability to
operate our facilities may be restricted and we may have to incur substantial additional expenses for the well-being of our employees.
The spread of any severe infections disease in China or the United States may also affect the operations of our suppliers, distributors
and customers, causing delivery disruptions, which could in turn adversely affect our operating results.

We may be liable for improper collection,
use or appropriation of personal information provided by our customers.

Our business involves collecting
and retaining large volumes of customer data, including personal information as our various information technology systems enter, process,
summarize and report such data. We also maintain information about various aspects of our operations. The integrity and protection of
our customer and company data is critical to our business. Our customers expect