Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072148
Chunk: 154

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 154
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 be or become a PFIC will also depend, in part, on the composition and classification
of our income, including the relative amounts of income generated by and the value of assets of our strategic investment business as compared
to our other businesses. Because there are uncertainties in the application of the relevant rules, it is possible that the Internal Revenue
Service, or the IRS, may challenge our classification of certain income and assets as non-passive which may result in our being or becoming
a PFIC in the current or subsequent years. In addition, the composition of our income and assets will also be affected by how, and
how quickly, we use our liquid assets and the cash raised in our initial public offering. If we determine not to deploy significant amounts
of cash for active purposes, our risk of being a PFIC may substantially increase. Because there are uncertainties in the application of
the relevant rules and PFIC status is a factual determination made annually after the close of each taxable year, there can be no assurance
that we will not be a PFIC for the current taxable year or any future taxable year.

If we are a PFIC in any taxable
year, a U.S. Holder (as defined in “Taxation — United States Federal Income Tax Considerations”)
may incur significantly increased United States income tax on gain recognized on the sale or other disposition of our Class A Ordinary
Shares and on the receipt of distributions on our Class A Ordinary Shares to the extent such gain or distribution is treated as an “excess
distribution” under the United States federal income tax rules and such holder may be subject to burdensome reporting requirements.
Further, if we are a PFIC for any year during which a U.S. Holder holds our Class A Ordinary Shares, we will generally continue to
be treated as a PFIC for all succeeding years during which such U.S. Holder holds our Class A Ordinary Shares. For more information
see “Taxation — United States Federal Income Tax Considerations — Passive Foreign Investment Company Rules.”

Investors should consult their
own tax advisors regarding all aspects of the application of the PFIC rules to the Class A Ordinary Shares.

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We may lose our foreign private issuer status in the future, which could result in significant additional costs and expenses.

As discussed above, we are
a foreign private issuer, and therefore, we are not required to comply with all of the periodic disclosure and current reporting requirements
of the Exchange Act. The determination of foreign private issuer status