Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066342
Chunk: 138

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 138
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 having a ‘non-inspection’
year under a process to be subsequently established by the SEC.

<div align='center'>74</div>

On December 23, 2022, the
Accelerating Holding Foreign Companies Accountable Act, was signed into law, which reduced the number of consecutive non-inspection years
required for triggering the prohibitions under the HFCAA from three years to two years, thus reducing the time period before
which our securities may be prohibited from trading or delisted. The enactment of the HFCAA and other efforts to increase U.S. regulatory
access to audit work papers could cause investor uncertainty for affected issuers, including us, and the market price of the share could
be adversely affected as uncertainty remains over whether there will be a compromise solution. In the worst case, our Class A Ordinary
Shares could be delisted if we were unable to cure the situation to meet the PCAOB inspection requirement in time.

On December 2, 2021,
the SEC adopted final rules implementing the HFCAA. On a rolling basis, the SEC will identify issuers with auditors that the PCAOB
is unable to inspect or investigate completely because of non-US governmental restrictions. If an issuer is identified for three consecutive years,
the SEC will publish an order prohibiting the trading of the issuer’s securities on a U.S. stock exchange and the U.S. over-the-counter
market. If the SEC identifies us for three consecutive years as an issuer with auditors that the PCAOB is unable to inspect or investigate
completely because of non-US governmental restrictions, under the HFCAA, our securities may be prohibited from being traded on a national
securities exchange or in the over-the-counter trading market in the United States. Pursuant to the HFCAA, the PCAOB issued a Determination
Report on December 16, 2021, which found that the PCAOB is unable to inspect or investigate completely registered public accounting
firms headquartered in mainland China or Hong Kong, a Special Administrative Region of the PRC, because of a position taken by one
or more authorities in the PRC or Hong Kong. In addition, the PCAOB’s report identified the specific registered public accounting
firms which are subject to these determinations. Our registered public accounting firm, KPMG Huazhen LLP, is headquartered in mainland
China or Hong Kong and was identified in this report as a firm subject to the PCAOB’s determination.

On Aug. 26, 2022, the PCAOB