Company: DDC
Filing Date: 2025-10-24
Form Type: F-1
Source: 0001213900-25-102214
Chunk: 43

Company: DDC Enterprise Ltd
Filing Date: 2025-10-24
Form: F-1
Chunk 43
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 efficiencies. In the event that our investments and acquisitions are not successful, our results of operations and financial condition may be materially and adversely affected. We rely on third-party logistics companies to deliver our products. Any delivery delay, improper handling of goods or increase in transportation costs of our logistic service providers could adversely affect our business and results of operations. If the third-party logistics business is interrupted, we may not have sufficient resources to support our product transportation and face the risk of rising transportation prices. We engage logistics service providers to store and transport products to our customers. For the year ended December 31, 2022, 2023, 2024 and for the six months ended June 30, 2025, our fulfilment expenses were RMB10.6 million, RMB7.3 million, RMB8.0 million (US$1.1 million) and RMB2.9 million (US$0.4 million), respectively, which represented 5.9%, 3.6%,2.9% and 2.6% of our total revenue, respectively. The vast majority of our products are delivered by trucks or trains. The services provided by our logistics service providers may be suspended or cancelled due to unforeseen events, which could cause interruption to the sales or delivery of our products. In addition, delivery delays may occur for various reasons beyond our control, including improper handling by our logistics service providers, labor disputes or strikes, acts of war or terrorism, outbreaks of epidemics, earthquakes and other natural disasters. The majority of our product transportation was provided by independent third -partylogistics service providers. Disputes with or a termination of our contractual relationships with one or more of our logistics companies could result in delayed delivery of products or increased costs. There can be no assurance that we can continue or extend relationships with our current logistics companies on terms acceptable to us, or that we will be able to establish relationships with new logistics companies or expand our logistics team to ensure accurate, timely and cost -efficientdelivery services. If we are unable to maintain or develop good relationships with logistics companies or expand our logistics team to cover new territories, it may inhibit our ability to offer products in sufficient quantities, on a timely basis, or at prices acceptable to our customers. In addition, as we do not have any direct control over these logistics companies, we cannot guarantee their quality of services. If there is any delay in delivery, damage to products or any other issue, our sales and brand image may be affected.