Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 42

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 42
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 with the VIE, its founders and owners, also represented an untested area of law within the Cayman Islands. As such, we are unaware
as to the ability to enforce such contract matters in applicable courts and jurisdictions. Thus, we face many challenges in enforcing
our arrangements, due to the vast uncertainties and potential jurisdictional limitations.

There is also no statutory
enforcement in the Cayman Islands of judgments obtained in the United States, although the courts of the Cayman Islands will in certain
circumstances recognize and enforce a foreign judgment, without any re-examination or re-litigation of matters adjudicated upon, provided
such judgment meets certain requirements. See “Enforceability of Civil Liabilities” later in this prospectus for additional
information.

If the PRC government determines that the contractual arrangements constituting part of the VIE structure do not comply with PRC regulations, or if these regulations change or are interpreted differently in the future, we may be unable to assert our contractual rights over the assets of the VIE, and our Ordinary Shares may decline in value or become worthless.

According to our PRC counsel,
the VIE Agreements are not in violation of any prohibitive provisions of the current applicable PRC Laws, however, the relevant PRC regulatory
authorities have broad discretion in determining whether the VIE structure violates PRC laws. Accordingly, the PRC regulatory authorities
may take a view that is contrary to, or otherwise different from, the above opinion of our PRC legal counsel.

If our corporate structure
and contractual arrangements are deemed by the relevant regulators that have competent authority, to be illegal, either in whole or in
part, we may lose the consolidated VIE, which conducts our business operations, holds significant intellectual property assets and accounts
for all of our revenues to date, and have to modify such structure to comply with regulatory requirements. However, there can be no assurance
that we can achieve this without material disruption to our business. Further, if our corporate structure and contractual arrangements
are found to be in violation of any existing or future PRC laws or regulations, the relevant regulatory authorities would have broad
discretion in dealing with such violations, including:

| · | revoking our business and operating licenses for the VIE and WFOE;                  |
| · | levying fines on the VIE and WFOE;                                                  |
| · | confiscating income that they deem to be obtained through illegal operations;       |
| · | discontinuing or restricting business