Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 89

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 89
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 more difficult to evaluate the effectiveness of these accounting firms’ audit procedures or quality control
procedures as compared to auditors outside of China that are subject to the PCAOB inspections, which could cause existing and potential
investors in issuers operating in China to lose confidence in such issuers’ procedures and reported financial information and the
quality of financial statements.

On December 15, 2022, the
PCAOB released a statement confirming it has secured complete access to inspect and investigate registered public accounting firms headquartered
in mainland China and Hong Kong, and it issued the 2022 HFCAA Determination Report to vacate its precious determinations to the contrary.
The PCAOB is continuing to demand complete access, and it will act immediately to reconsider such determinations should China obstruct,
or otherwise fail to facilitate the PCAOB’s access, at any time.

Our auditor, TPS, an independent
registered public accounting firm headquartered in Sugar Land, Texas, issues the audit report included in this prospectus, is currently
subject to PCAOB inspections, and has been inspected by the PCAOB on a regular basis.

Further developments related
to the HFCAA could add uncertainties to our offering. We cannot assure you what further actions the SEC, the PCAOB or the stock exchanges
will take to address these issues and what impact such actions will have on companies that have significant operations in the PRC and
have securities listed on a U.S. stock exchange (including a national securities exchange or over-the-counter stock market). In addition,
any additional actions, proceedings or new rules resulting from these efforts to increase U.S. regulatory access to audit information
could create uncertainty for investors, the market price of our Ordinary Shares could be adversely affected, and we could be delisted
if we and our auditor are unable to meet the PCAOB inspection requirement. Such a delisting would substantially impair your ability to
sell or purchase our Ordinary Shares when you wish to do so, and would have negative impact on the price of our shares.

| 48 |

Under the PRC laws, the approval of and the filing with the CSRC or other PRC government authorities may be required in connection with this offering and our listing with Nasdaq as well as any of our future offerings and listings in an overseas market, and, if required, we cannot predict whether or for how long we will be able to obtain such approval or complete such filing.

Regulations on Mergers and
Acquisitions of Domestic Enterprises by Foreign Investors, or the M&A Rules