Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072148
Chunk: 142

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 142
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 of two consecutive years, trading in our securities may be prohibited under the HFCAA and an
exchange may determine to delist our securities. The delisting of our securities, or the threat of such securities being delisted, may
materially and adversely affect the value of your investment.

In addition, on August 6,
2020, the President’s Working Group on Financial Markets, or PWG, released a report recommending that the SEC take steps to implement
the five recommendations, including enhanced listing standards on U.S. stock exchanges with respect to PCAOB inspection of accounting
firms. This would require, as a condition to initial and continued listing on a U.S. stock exchange, PCAOB access to work papers
of the principal audit firm for the audit of the listed company. The report permits the new listing standards to provide for a transition
period until January 1, 2022 for listed companies, but would apply immediately to new listings once the necessary rulemakings and/or
standard-setting are effective. It is unclear if and when the SEC will make rules to implement the recommendations proposed in the PWG
report, especially in light of its ongoing rulemaking pursuant to the HFCAA. Any of these factors and developments could potentially
lead to a material adverse effect on our business, prospects, financial condition and results of operations.

Proceedings instituted by
the SEC against Chinese affiliates of the “big four” accounting firms could result in financial statements being determined
to not be in compliance with the requirements of the Exchange Act. In December 2012, the SEC instituted administrative proceedings
against the “big four” PRC-based accounting firms, including our former independent registered public accounting firm, alleging
that these firms had violated U.S. securities laws and the SEC’s rules and regulations thereunder by failing to provide to
the SEC the firms’ audit work papers with respect to certain PRC-based companies that are publicly traded in the United States.
On January 22, 2014, the administrative law judge, or the ALJ, presiding over the matter rendered an initial decision that each of
the firms had violated the SEC’s rules of practice by failing to produce audit papers and other documents to the SEC. On February 6,
2015, the four China-based accounting firms each agreed to a censure and to pay a fine to the SEC to settle the dispute and avoid suspension
of their ability to practice before the SEC and audit U.S.-listed companies. The settlement required the firms to follow detailed procedures