Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 102

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 102
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, which may adversely affect our business, financial condition
and results of operations.

| 52 |

On October 23, 2019, the
SAFE promulgated the Notice of the State Administration of Foreign Exchange on Further Promoting the Convenience of Cross-border Trade
and Investment, or the “SAFE Circular 28,” which, among other things, allows all foreign-invested companies to use Renminbi
converted from foreign currency-denominated capital for equity investments in China, as long as the equity investment is genuine, does
not violate applicable laws, and complies with the negative list on foreign investment.

In light of the various requirements
imposed by PRC regulations on loans to and direct investment in PRC entities by offshore holding companies, we cannot assure you that
we will be able to complete the necessary government registrations or obtain the necessary government approvals on a timely basis, if
at all, with respect to future loans made by us to WFOE or with respect to future capital contributions made by us to WFOE. If we fail
to complete such registrations or obtain such approvals, our ability to use the proceeds we receive from our initial public offering and
to capitalize or otherwise fund our PRC operations may be negatively affected, which could materially and adversely affect our liquidity
and our ability to fund and expand our business.

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

In July 2014, 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,” to replace the Notice on Relevant Issues Concerning
Foreign Exchange Administration for Domestic Residents’ Financing and Roundtrip Investment Through Offshore Special Purpose Vehicles,
or “SAFE Circular 75,” which ceased to be effective upon the promulgation of SAFE Circular 37. SAFE Circular 37 requires PRC
residents (including PRC individuals and PRC corporate entities) to register with SAFE or its local branches in connection with their
direct or indirect offshore investment activities. SAFE Circular 37 is applicable to our shareholders who are PRC residents and may be
applicable to any offshore acquisitions that we make in the future.