Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 97

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 97
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 currency out of China. Shortages in availability of foreign currency may then restrict the ability
of WFOE to remit sufficient foreign currency to our offshore entities to pay dividends or make other payments or otherwise to satisfy
our foreign-currency-denominated obligations. The renminbi is currently convertible under the “current account,” which includes
dividends and trade and service-related foreign exchange transactions, but not under the “capital account,” which includes
foreign direct investment and foreign currency debt, including loans we may secure for our onshore subsidiary. Currently, WFOE may purchase
foreign currency for settlement of “current account transactions,” including payment of dividends to us, without the approval
of the SAFE, by complying with certain procedural requirements. However, the relevant Chinese governmental authorities may limit or eliminate
our ability to purchase foreign currencies in the future for current account transactions. The Chinese government may continue to strengthen
its capital controls, and additional restrictions and substantial vetting processes may be instituted by SAFE for cross-border transactions
falling under both the current account and the capital account. Any existing and future restrictions on currency exchange may limit our
ability to utilize revenues generated in renminbi to fund our business activities outside of China or pay dividends in foreign currencies
to holders of our securities. Foreign exchange transactions under the capital account remain subject to limitations and require approvals
from, or registration with, SAFE and other relevant Chinese governmental authorities. This could affect our ability to obtain foreign
currency through debt or equity financing for our subsidiaries.

In response to the persistent
capital outflow and the RMB’s depreciation against the U.S. dollar, the People’s Bank of China and the SAFE have implemented
a series of capital control measures, including stricter vetting procedures for China-based companies to remit foreign currency for overseas
acquisitions, dividend payments and shareholder loan repayments. For instance, the People’s Bank of China issued the Circular on
Further Clarification of Relevant Matters Relating to offshore RMB Loans Provided by Domestic Enterprises, or the PBOC Circular 306, on
November 22, 2016, which provides that offshore RMB loans provided by a domestic enterprise to offshore enterprises that it holds
equity interests in shall not exceed 30% of the domestic enterprise’s ownership interest in the offshore enterprise. The PBOC Circular
306 may constrain WFOE’s ability to provide offshore loans to us. The PRC government may continue to strengthen its capital controls
and WFOE’s dividends and other distributions may