Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 197

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 197
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visions on Foreign Exchange Administration over Domestic Direct Investment by Foreign Investors
and the Supporting Documents in May 2013, as amended in October 2018 and December 2019. The Circular specifies that the administration
by SAFE or its local branches over direct investment by foreign investors in the PRC shall be conducted by way of registration and banks
shall process foreign exchange business relating to the direct investment in the PRC based on registration information provided by SAFE
and its branches.

In February 2015, SAFE promulgated
the Notice on Further Simplifying and Improving the Foreign Exchange Management Policies for Direct Investment (“SAFE Circular
13”), which took effect on June 1, 2015 and was amended in December 2019. SAFE Circular 13 delegates the power to enforce the foreign
exchange registration in connection with inbound and outbound direct investments under relevant SAFE rules from local branches of SAFE
to banks, further simplifying the foreign exchange registration procedures for inbound and outbound direct investments.

On January 26, 2017, SAFE
issued the Notice on Improving the Examination of Authenticity and Compliance to Further Promote Foreign Exchange Control (“SAFE
Circular 3”), which stipulates several capital control measures with respect to the outbound remittance of profit from domestic
entities to offshore entities, including:

| · | under                                                                                      
 the principle of genuine transaction, banks shall check board resolutions regarding profit 
 distribution, the original version of tax filing records and audited financial statements; 
 and                                                                                        |
| · | domestic                                                                                   
 entities shall hold income to account for previous years’ losses before remitting the      
 profits.                                                                                   |

Moreover, pursuant to SAFE
Circular 3, domestic entities shall make detailed explanations of the sources of capital and utilization arrangements, and provide board
resolutions, contracts and other proof when completing the registration procedures in connection with an outbound investment.

| 123 |

Regulation of Dividend Distributions

The principal regulations
governing distribution of dividends of foreign-invested enterprises include the PRC Company Law, the Foreign Investment Law of the PRC,
and the Implementing Rules. Under these laws and regulations, foreign-invested enterprises in China may pay dividends only out of their
accumulated after-tax profits, if any, determined in accordance with PRC accounting standards and regulations.

In addition, enterprises
in China are required to allocate at least 10% of their respective accumulated profits each year, if any, to fund certain reserve funds
until these reserves have reached 50% of the registered