Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 323

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 323
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:--|--------------------------------:|
| VAT refund received        |     | $ |                         447,451 |     | $ |                         483,001 |
| Other government subsidies |     |   |                           2,999 |     |   |                          51,409 |
| Total                      |     | $ |                         450,450 |     | $ |                         534,410 |

20. Risks and Concentration

| a) | Interest rate 
 risk          |

Interest rate risk is the risk that the fair
value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s
interest rate risk arises primarily from short-term borrowings. Borrowings issued at variable rates and fixed rates expose the Company
to cash flow interest rate risk and fair value interest rate risk respectively.

| F-30 |

| b) | Concentration  
 of credit risk |

Financial instruments that potentially subject
the Company to significant concentrations of credit risk consist primarily of cash. As of September 30, 2024 and 2023, $105,706 and $1,641,922
were deposited with financial institutions located in the PRC, respectively. The management believes that these financial institutions
are of high credit quality, and management also continually monitors the financial institutions’ credit worthiness.

The Company is also exposed to risk from its
accounts receivable and other receivables. These assets are subjected to credit evaluations. An allowance has been made for estimated
unrecoverable amounts which have been determined by reference to past default experience and the current economic environment.

A majority of the Company’s expense transactions
are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in
RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to
be transacted only by authorized financial institutions at the exchange rates set by the People’s Bank of China (“PBOC”).
Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory
bodies which require certain supporting documentation in order to process the remittance.

The Company’s functional currency is the
RMB, and its consolidated financial statements are presented in U.S. dollars. The RMB depreciated by 2.8% in the year ended December
31, 2023. The RMB depreciated by