Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072148
Chunk: 68

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 68
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 may
result in penalties, including fines, confiscation of advertising fees and orders to cease dissemination of the advertisements. In circumstances
involving three or more illegal acts within two years or other serious violations, a fine of not less than five times but not more
than ten times the advertising expense or a fine of not less than RMB1,000,000 but not more than RMB2,000,000 shall be imposed, and the
PRC government may revoke a violator’s business license and revoke the advertisement examination and approval documents and refuse
to accept its application for advertisement examination within one year. Complying with these requirements and any penalties or fines
for any failure to comply may significantly reduce the attractiveness of our platform and increase our costs and could have a material
adverse effect on our business, financial condition and results of operations.

In addition, for advertising
content related to specific types of products and services, advertisers, advertising agencies and advertising distributors must confirm
that the advertisers have obtained requisite government approvals, including the advertiser’s operating qualifications, proof of
quality inspection of the advertised products, and, with respect to certain industries, government approval of the content of the advertisement
and filing with the local authorities. Pursuant to the Internet Advertising Administrative Measures, we are required to take steps to
monitor the content of advertisements displayed by us. This requires considerable resources and time, and could significantly affect the
operation of our business, while at the same time also exposing us to increased liability under the relevant laws, rules and regulations.
The costs associated with complying with these laws, rules and regulations, including any penalties or fines for our failure to so comply
if required, could have a material adverse effect on our business, financial condition and results of operations. Any further change in
the classification of our online advertising and other related services by the PRC government may also significantly disrupt our operations
and materially and adversely affect our business and prospects.

Our acquisition activities and other strategic transactions may present managerial, integration, operational and financial risks, which may prevent us from realizing the full intended benefit of the acquisitions we undertake.

We have in the past and may
continue to seek acquisitions that we believe strengthen our competitive position in our key segments and geographies or accelerate our
ability to grow into adjacent product categories and channels and emerging markets or which otherwise fit our strategies.

In addition, investments and
acquisitions could result in distraction of management from current operations, greater than expected liabilities and expenses, unidentified
issues not discovered in our due