Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066342
Chunk: 55

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 55
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 timeframes required by
us to meet the needs of our customers. If our major or sole suppliers terminate their agreement with us, or do not supply products to
us in a timely manner or in sufficient quantities, our business and results of operations will be adversely affected.

We believe that there are
a limited number of competent, high-quality suppliers in the industry that meet our quality and control standards, and as we seek to obtain
additional or alternative supply arrangements in the future, or alternatives to bring this manufacturing capability in-house, there can
be no assurance that we would be able to do so on satisfactory terms, in a timely manner, or at all. Therefore, the loss of one or more
suppliers, any disruption or delay at a supplier or any failure to identify and engage a supplier for products could delay, postpone or
reduce production of products, which could adversely affect our business, results of operations and financial condition.

Our growth may be limited if we are unable to expand our distribution channels and secure additional retail space for our products.

Our results will depend on
its ability to drive revenue growth, in part, by expanding the distribution channels for our products and the number of products carried
by each retailer. Our ability to do so, however, may be limited by an inability to secure additional retail space for our products. Retail
space for RTH, RTC, RTE and plant-based meal products is limited and is subject to competitive and other pressures, and there can be no
assurance that retail stores will provide sufficient space to enable us to meet our growth objectives.

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We rely in part on third-party distributors to place our products into the market and we may not be able to control our distributors.

We rely in part on third-party
distributors to sell our products. Similarly, our recent U.S. acquisitions rely almost entirely on offline distributors. Purchases by
distributors account for the substantial majority of our sales. For the year ended December 31, 2023, 2022 and 2021, our offline consumer
product sales accounted for 84.6%, 60.9% and 20.9% of our revenue respectively. As we sell and distribute our products through distributors,
any one of the following events could cause fluctuations or declines in our revenue and could have an adverse effect on our financial
condition and results of operations:

| ● | reduction, delay or cancelation of orders from one or more of our distributors; |

| ●