Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 147

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 147
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 Ordinary Shares that are authorized but
have not been issued, may be dilutive to the voting power of holders of Class A Ordinary shares. Additionally, at our special stockholder
meeting in November 2024, our shareholders authorized our Board of Directors to complete a reverse split of our Class A Ordinary Shares
within one year from shareholder approval within a range of zero reverse split to a reverse split of 1 for 25, as determined by our Board.
However, we will not split the Class B Ordinary Shares. This measure will increase the relative voting power of the Class B Ordinary Shares
and reduce the relative voting power of the Class A Ordinary Shares. As a result of the dual-class share structure and the concentration
of ownership, the holder of the Class B Ordinary shares has and will continue to have considerable influence over matters such as decisions
regarding mergers and consolidations, election of directors and other significant corporate actions. The holder may take actions that
are not in the best interest of us or our other shareholders. This concentration of ownership may discourage, delay or prevent a change
in control of our company, which could have the effect of depriving our other shareholders of the opportunity to receive a premium for
their shares as part of a sale of our company and may reduce the price of our Class A Ordinary Shares. This concentrated control will
limit your ability to influence corporate matters and could discourage others from pursuing any potential merger, takeover or other change
of control transactions that holders of Class A Ordinary Shares may view as beneficial.

Our shares have traded under $5.00 per Class A Ordinary Share and thus could be known as a penny stock, subject to certain exceptions. Trading in penny stocks has certain restrictions and these restrictions could negatively affect the price and liquidity of our Class A Ordinary Shares.

Our stock has in the past
and may continue in the future to trade below $5.00 per share. As a result, our stock could be known as a “penny stock”, subject
to certain exceptions, which is subject to various regulations involving disclosures to be given to you prior to the purchase of any penny
stock. The SEC has adopted regulations which generally define a “penny stock” to be any equity security that has a market
price of less than $5.00 per share, subject to certain exceptions. Depending on market fluctuations, our Class A Ordinary Shares could
be considered to be a “penny stock”, subject to certain exceptions. A penny stock is subject to rules that impose additional
sales practice requirements