Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 316

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 316
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     | Consideration |          |
|:-------------------------------------|:----|:---------------------------|-----------:|:----|:--------------|---------:|
| Zerolimit Digital Technology Limited |     |                            | 36,505,000 |     | $             | 3,650.50 |
| Zerolimit Excellence Limited         |     |                            |  5,500,000 |     |               |   550.00 |
| Zerolimit Power Limited              |     |                            |  5,500,000 |     |               |   550.00 |
| Zerolimit Virtue Limited             |     |                            |  2,495,000 |     |               |   249.50 |
| Total                                |     |                            | 50,000,000 |     | $             | 5,000.00 |

The shares are presented on a retroactive basis
to reflect the stock split.

16. Statutory surplus reserves

The Company is required to make appropriations
to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income
determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory
surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve
is equal to 50% of the entity’s registered capital. Appropriations to the discretionary surplus reserve are made at the discretion
of the Board of Directors. The statutory surplus reserve as determined pursuant to PRC statutory laws totaled approximately $271,127
as of September 30, 2024.

17. Restricted assets

The Company’s ability to pay dividends is
primarily dependent on the Company receiving distributions of funds from its subsidiary. Relevant PRC statutory laws and regulations permit
payments of dividends by the PRC subsidiaries only out of its retained earnings, if any, as determined in accordance with PRC accounting
standards and regulations. The Company’s restricted assets are US$3,892,301 and US$3,621,174 as of September 30, 2024 and 2023,
respectively. The results of operations reflected in the accompanying consolidated financial statements prepared in accordance with U.S.
GAAP differ from those reflected in the statutory financial statements of the PRC entities.

The PRC entities are required to set aside at
least 10% of