Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 82

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 82
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 system. The classification of data is based on
its importance in economic and social development, as well as the degree of harm expected to be caused to national security, public interests,
or legitimate rights and interests of individuals or organizations if such data is tampered with, destroyed, leaked, or illegally acquired
or used. The security assessment mechanism was also included in the Personal Information Protection Law (the “Personal Information
Protection Law”), which was promulgated in August of 2021 and became effective on November 1, 2021, for the Chinese government
to supervise certain cross-border transfers of personal information.

We expect that these data
protection and transfer laws and regulations will receive greater attention and focus from regulators going forward, and the VIE will
face uncertainty as to whether the VIE’s efforts to comply with evolving obligations under data protection, privacy and security
laws in China and the United States will be sufficient.

Any failure or perceived failure by the VIE to comply with applicable laws and regulations could result in reputational damage or proceedings or actions against the VIE by governmental entities, individuals or others. These proceedings or actions could subject the VIE to significant civil or criminal penalties and negative publicity, result in the delayed or halted transfer or confiscation of certain personal information, result in the suspension of ongoing trials or ban on initiation of new trials, require the VIE to change its business practices, increase its costs and materially harm our business, prospects, financial condition and results of operations. In addition, our current and future relationships with customers, suppliers and other third parties could be negatively affected by any proceedings or actions against the VIE or current or future data protection obligations imposed on them under applicable law, including Cyber Security Law. In addition, a data breach affecting personal information, or a failure to comply with applicable requirements could result in significant management resources, legal and financial exposure and reputational damage that could potentially have a material adverse effect on the VIE’s business and results of operations.

Furthermore, on February
24, 2023, the CSRC revised the Provisions on Strengthening the Management of Confidentiality and Archives Related to the Overseas Issuance
of Securities and Overseas Listing by Domestic Companies which were issued in 2009. The revised Archives Rules came into effect on March
31, 2023 together with the Trial Measures. As is consistent with the Trial Measures, the revised Archives Rules will expand their application
to cover indirect overseas offering and listing, by stipulating that a domestic company which