Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 46

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 46
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 M&A Rules require that among other things, that the Ministry of Commerce, or MOFCOM, be notified
in advance of any change of control transaction in which a foreign investor acquires control of a PRC domestic enterprise and involves
the following circumstances: (i) any important industry is concerned; (ii) such transaction involves factors that impact or
may impact national economic security; or (iii) such transaction will lead to a change of control of a domestic enterprise which
holds a famous trademark or PRC time-honored brand. The M&A Rules also requires offshore special purpose vehicles that are controlled
by PRC companies or individuals and that have been formed for overseas listing purposes through acquisitions of PRC domestic interest
held by such PRC companies or individuals, to obtain the approval of CSRC prior to publicly listing their securities on an overseas stock
exchange.

Under the current PRC laws
and regulations, we do not expect that this offering will trigger MOFCOM pre-notification under the above-mentioned circumstances. However,
the application of the M&A Rules remains unclear. If CSRC approval is required, it is uncertain whether it would be possible
for us to obtain the approval, and any failure to obtain or delay in obtaining CSRC approval for this offering would subject us to sanctions
imposed by the CSRC and other PRC regulatory agencies. According to our PRC counsel, Global Law Office, based on their understanding
of the current PRC laws, rules and regulations that the CSRC’s approval under the M&A Rules may not be required for our proposed
initial public offering and proposed listing on Nasdaq, given that: (i) the CSRC currently has not issued any definitive rule or
interpretation concerning whether offerings like ours in this prospectus are subject to this regulation, and (ii) we did not establish
our China subsidiary through merger with or acquisition of PRC domestic companies as defined in the M&A Rules.

However, our PRC counsel
has further advised us that there remains some uncertainty as to how the M&A Rules will be interpreted or implemented in the
context of an overseas offering and its opinions summarized above are subject to any new laws, rules and regulations or detailed
implementations and interpretations in any form relating to the M&A Rules. We cannot assure you that relevant PRC government agencies,
including the CSRC, would reach the same conclusion that we do.

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In addition, with respect
to foreign investments that affect or may affect the national security, a