Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066342
Chunk: 112

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 112
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 in China, and a majority of our directors and employees are based in China, which is an emerging market. The SEC, U.S. Department
of Justice and other authorities often have substantial difficulties in bringing and enforcing actions against non-U.S. companies
and non-U.S. persons, including company directors and officers, in certain emerging markets, including China. Additionally, our public
shareholders may have limited rights and few practical remedies in emerging markets where we operate, as shareholder claims that are common
in the United States, including class action securities law and fraud claims, generally are difficult to pursue as a matter of law
or practicality in many emerging markets, including China. For example, in China, there are significant legal and other obstacles to obtaining
information needed for shareholder investigations or litigation outside China or otherwise with respect to foreign entities. Although
the local authorities in China may establish a regulatory cooperation mechanism with the securities regulatory authorities of another
country or region to implement cross-border supervision and administration, the regulatory cooperation with the securities regulatory
authorities in the Unities States has not been efficient in the absence of a mutual and practical cooperation mechanism. According to
Article 177 of the PRC Securities Law which became effective in March 2020, no foreign securities regulator is allowed to directly
conduct investigation or evidence collection activities within the territory of the PRC. Accordingly, without the consent of the
competent PRC securities regulators and relevant authorities, no organization or individual may provide the documents and materials relating
to securities business activities to foreign securities regulators.

As a result, our public shareholders
may have more difficulty in protecting their interests in the face of actions taken by management, members of the board of directors or
controlling shareholders than they would as public shareholders of a company incorporated in, or that is based primarily in, the United States.

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PRC regulations relating to the establishment of offshore special purpose companies by PRC residents may subject our PRC resident beneficial owners or our PRC subsidiaries to liability or penalties, limit our ability to inject capital into our PRC subsidiaries, limit our PRC subsidiaries’ ability to increase their registered capital or distribute profits to us, or may otherwise adversely affect us.

In July 2014, the SAFE
promulgated the Circular on Relevant Issues Concerning Foreign Exchange Control on Domestic Residents’ Offshore Investment and Financing
and Roundtrip Investment through Special Purpose Vehicles, or SAFE Circular 37. SAFE Circular 37 requires PRC residents (including P