Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 5

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 5
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registered public
accounting firms headquartered in mainland China and Hong Kong in 2022, and the PCAOB Board vacated its previous determinations that the
PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong.
It is possible when the PCAOB may reassess its determinations in the future, and it could determine that it is still unable to inspect
or investigate completely registered public accounting firms in mainland China and Hong Kong. On December 23, 2022 the Accelerating Holding
Foreign Companies Accountable Act (“AHFCAA”) was enacted, which amended the HFCAA by requiring the SEC to prohibit an issuer’s
securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead
of three. On December 29, 2022, a legislation entitled “Consolidated Appropriations Act, 2023” (the “Consolidated Appropriations
Act”), was signed into law by President Biden. The Consolidated Appropriations Act contained, among other things, an identical provision
to AHFCAA, which reduces the number of consecutive non-inspection years required for triggering the prohibitions under the Holding Foreign
Companies Accountable Act from three years to two. Whether the PCAOB will continue to be able to satisfactorily conduct inspections of
PCAOB-registered public accounting firms headquartered in mainland China and Hong Kong is subject to uncertainty and depends on a number
of factors out of our, and our auditor’s, control. The PCAOB is continuing to demand complete access in mainland China and Hong
Kong moving forward and is already making plans to resume regular inspections in early 2023 and beyond, as well as to continue pursuing
ongoing investigations and initiate new investigations as needed. The PCAOB has indicated that it will act immediately to consider the
need to issue new determinations with the HFCAA if needed, without having to wait another year to reassess its determinations. In the
future, if there is any regulatory change or step taken by PRC regulators that does not permit our auditor to provide audit documentations
located in China or Hong Kong to the PCAOB for inspection or investigation, or the PCAOB expands the scope of the determination so that
we are subject to the HFCAA, as the same may be amended, you may be deprived of the benefits of such inspection which could result in
limitation or restriction to our access to the U.S. capital