Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 4

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 3
Chunk 4
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-eat (“ RTE”) and plant-based meal products in China and the United States
is continuously evolving and may not grow as quickly as expected, or at all, which could negatively affect our business and prospects.

Our business and prospects
depend on the continuous development and growth of the markets for RTC, RTH, RTE and plant-based meal products in China and the United
States. The growth and development of these markets are impacted by numerous factors and subject to uncertainties that are beyond our
control, such as the macroeconomic environment, per capita spending, consumers’ interest, consumers’ purchasing frequency,
demand for RTH, RTC, RTE and plant-based meal products from consumers in lower tier cities, regulatory changes, technological innovations,
cultural influences and changes in tastes and preferences. We cannot assure you that the market will continue to grow as rapidly as it
has in the past, in ways that are consistent with other markets, or at all. If the markets for RTH, RTC, RTE and plant-based meal products
in China and the United States do not grow as quickly as expected or at all, or if we fail to benefit from such growth by successfully
implementing our business strategies, our business and prospects may be negatively affected.

We are actively expanding our business outside
the PRC, where we may be subject to increased business, regulatory, and economic risks that could materially adversely affect our business,
financial condition, results of operations, and prospects. A severe or prolonged downturn in the PRC or global economy could also materially
and adversely affect our business, results of operations and financial condition.

Through 2023, we conducted
our operations primarily in China, but we expect to continue to expand our business in the United States and Southeast Asia in hopes
of widening our customer base. Any new markets or countries into which we attempt to expand into and sell our products may not be receptive.
For example, we may not be able to expand further in some overseas markets if we are not able to adapt our products to fit the needs of
prospective customers in those markets or if we are unable to satisfy certain country- and industry-specific laws or regulations. In addition,
future international expansion will also require considerable management attention and the investment of significant resources while subjecting
us to new risks and increasing certain risks that we already face, including risks associated with:

  recruiting and retaining talented and capable employees outside the PRC, including employees who speak multiple languages and come from a wide variety of different cultural backgrounds and cust...  

  maintaining