Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 196

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 196
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ulated deadline, it may be subject to a fine ranging from one to three
times the amount overdue. According to the Regulations on Management of Housing Fund, an enterprise that fails to make housing fund contributions
may be ordered to rectify the noncompliance and pay the required contributions within a stipulated deadline; otherwise, an application
may be made to a local court for compulsory enforcement.

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Regulations in Relation to Foreign Exchange

Regulations on Foreign Currency Exchange

Pursuant to the Foreign
Exchange Administration Regulations, as amended on August 5, 2008, Renminbi is freely convertible for current account items, including
the distribution of dividends, interest payments, trade and service-related foreign exchange transactions, but not for capital account
items, such as direct investments, loans, repatriation of investments and investments in securities outside of China, unless prior approval
is obtained from SAFE and prior registration with SAFE is made.

SAFE promulgated the Notice
of the State Administration of Foreign Exchange on Reforming the Administration of Foreign Exchange Settlement of Capital of Foreign
Invested Enterprises (“SAFE Circular 19”), effective on June 1, 2015. SAFE further promulgated the Notice of the State Administration
of Foreign Exchange on Reforming and Standardizing the Foreign Exchange Settlement Management Policy of Capital Account (“SAFE
Circular 16”), effective on June 9, 2016, which, among other things, amend certain provisions of Circular 19. According to SAFE
Circular 19 and SAFE Circular 16, the flow and use of the Renminbi capital converted from foreign currency denominated registered capital
of a foreign-invested company is regulated such that Renminbi capital may not be used for business beyond its business scope or to provide
loans to persons other than affiliates unless otherwise permitted under its business scope. Violations of SAFE Circular 19 or SAFE Circular
16 could result in administrative penalties.

In 2012, SAFE promulgated
the Circular of Further Improving and Adjusting Foreign Exchange Administration Policies on Foreign Direct Investment (“Circular
59”), as amended in May 2015. Pursuant to Circular 59, the opening of various special purpose foreign exchange accounts, the reinvestment
of RMB proceeds by foreign investors in the PRC and remittance of foreign exchange profits and dividends by a foreign-invested enterprise
to its foreign shareholders no longer require the approval or verification of SAFE.

SAFE also promulgated the
Circular on Printing and Distributing the Pro