Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 54

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 54
---
,
penalties, suspension of our non-compliant operations, or removal of our app from the relevant application stores, among other sanctions,
which could materially and adversely affect our business and results of operations.

If the content we produce and distribute through online social and content platforms, or content available on our website, is deemed to violate laws or regulations, our business and results of operations may be materially and adversely affected.

We produce and distribute
professionally generated food and cooking related content on third party online social and content platforms such as Weixin, Kuaishou,
Bilibili, and RED to promote healthy lifestyle, to improve our brand awareness and to generate consumers interest in our products. Under
PRC laws, we are required to monitor content we produce and distribute for items that are factually incorrect, socially destabilizing,
obscene or defamatory, and promptly take actions with respect to such content items. Sometimes, it is arguable as to whether a piece of
information is factually incorrect or involved other types of illegality, and it may be difficult to determine the type of content that
may result in liability to us. If we are found to be liable, we may be subject to fines, revocation of our relevant licenses and other
administrative and civil actions, which may interrupt our business. We have implemented measures to review content in light of the relevant
laws and regulations before any of them is published. However, such procedures may not prevent all illegal or impropriate contents from
being distributed, especially content created during living streaming by KOLs we collaborate with.

We currently utilize third-party suppliers for our products. Loss of these suppliers could harm our business and impede growth.

The termination of a supplier
relationship may leave us with periods during which it has limited or no ability to manufacture certain products. An interruption in,
or the loss of operations at, any of these manufacturing facilities, which may be caused by work stoppages, production disruptions, product
quality issues, disease outbreaks or pandemics (such as the recent coronavirus (COVID-19) pandemic), acts of war, terrorism, fire, earthquakes,
weather, flooding or other natural disasters, could delay, postpone or reduce production of our products, which could adversely affect
our business, results of operations and financial condition until the interruption is resolved or an alternate source of production is
secured. Moreover, we are exposed to concentration risks of heavy reliance on our major suppliers, and for some of our brands sole suppliers.
There is no assurance that our suppliers