Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 30

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 30
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M&A is a key growth strategy
going forward for the Company in order for us to execute on the multi-brand strategy and also further diversify away from brand
concentration risks and into markets outside of China. Historically, virtually all of our sales have been in China. For example, our
international (meaning outside of China) sales was zero in 2022 and accounted for 4.21% and 10.14% of our total revenue for the year
ended December 31, 2023 and December 31, 2024. M&A is an important part of our strategy to establish our footprint and sales channel
internationally. We are actively looking at potential targets with revenues in the U.S., Europe, Australia, SE Asia, and Middle East.
Since July 2023, we have acquired three Asian food brand companies in the U.S. including Nona Lim and Yai’s Thai. Looking forward,
we will continue to identify targets but to the extent permitted due to our recurring losses from operations and an accumulated deficit,
we will evaluate and opportunistically execute on strategic joint ventures (JV), potential investments and acquisition opportunities
across the value-chain with a focus on supplementing and/or complementing our existing products, sales channels, customer-base and/or
allow us to optimize our existing brand marketing and sales channel management capabilities. There can be no assurances that we will
be successful in generating revenues internationally. For example, our M&A strategy may not identify M&A candidates and acquisitions
that are completed may not be successfully integrated into our operations and may not produce significant international revenues. Apart
from executing acquisitions with considerations paid through share exchanges, we will consider raising funds from investors to have an
option to acquire companies through a mixture of cash and equity.

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Our Strategies – Bitcoin Treasury

We have adopted a corporate
treasury strategy that includes acquiring and holding bitcoin as a principal reserve asset. Consistent with practices observed among leading
companies that integrate digital assets into their capital management, our approach reflects a long-term commitment to bitcoin as a store
of value and a hedge against macroeconomic uncertainties and inflation.

We believe that bitcoin possesses
unique attributes—scarcity, durability, divisibility, and global accessibility—that make it a suitable asset for capital preservation.
Accordingly, we allocate a significant portion of our excess capital resources to bitcoin purchases, intending to hold such digital assets
indefinitely. The treasury strategy is guided by a disciplined framework emphasizing accumulation