Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 6

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 6
---
 subsidiaries and through contractual arrangements with
a variable interest entity (VIE) based in China. This structure involves unique risks to investors. The VIE structure is used to provide
investors with exposure to foreign investment in China-based companies where Chinese law prohibits direct foreign investment in the operating
companies. Investors may never hold equity interests in the Chinese operating company. Chinese regulatory authorities could disallow
this structure, which would likely result in a material change in our operations and/or pose a material change in the value of the securities
we are seeking to registering for sale in this offering. The value of our securities could significantly decline or become worthless.

We currently have not maintained
any cash management policies that dictate the purpose, amount and procedure of fund transfers among our Cayman Islands holding company,
our subsidiaries, the VIE, and investors. Rather the funds can be transferred in accordance with the applicable laws and regulations.
See “Prospectus Summary – Cash Transfers and Dividend Distribution.” See also the consolidated financial statements
of Zerolimit Technology Holding Co. Ltd. and Subsidiaries attached to this prospectus. We may require additional capital resources in
the future and we may seek to issue additional equity or debt securities or obtain new or expanded credit facilities, which could subject
us to operating and financing covenants, including requirements to maintain a certain amount of cash reserves. See “Risk Factors – Risks Related to Doing Business in the PRC – Governmental control of currency conversion may limit our ability to utilize our revenues, transfer or distribute cash to and from our subsidiaries and to and from WFOE and the VIE effectively and affect the value your investment.”

In the last several years,
the Securities and Exchange Commission has issued guidance regarding the obligations of companies based in, or with a majority of their
operations in, the PRC. Recently, in the context of rules applicable under the HFCAA, we may additional compliance and disclosure requirements.
We are not owned or controlled by any foreign government entities; nor are any of our shares held or controlled by any such entities.
Our governing and organizational documents, such as an articles of incorporation or the equivalent, do not contain any charters or mandates
on behalf of the Chinese Communist Party. We have disclosed throughout this prospectus material risks related to the role of the government
of the PRC in the operations of PRC-based companies and operations, including disclosures about any material impacts that intervention
or control by the PRC could have with respect to our operations, our business