Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 68

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 68
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 collection policies for distributors with good credit standing.
We now offer distributors a credit term of approximately 30 days. Agreements with distributors include terms for acceptable methods of
payment, the dates payments are due, and other payment terms. Additionally, we have strengthened comprehensive monitoring and control
over accounts receivable throughout the entire process, from pre-sale to in-process and post-sale stages, while maintaining close communication
with distributors. This helps to ensure the smooth and timely receipt of payments. Any failure to manage the VIE’s accounts payable
and accounts receivable may have a material adverse effect on our business, financial condition, and results of operations.

Economic recessions could have a significant, adverse impact on our business.

The VIE’s revenues
are generated from sales of products and services in China and the VIE anticipates that revenues from such sales will continue to constitute
its sole source of revenues in the near future. The VIE’s sales and earnings can also be affected by changes in the general economy
of China.

The distributed technology
industry historically has experienced cyclical fluctuations in financial results due to economic recession, downturns in business cycles
of customers, interest rate fluctuations, and other economic factors beyond the VIE’s control. Deterioration in the economic environment
subjects the VIE’s business to various risks, which may have a material and adverse impact on the VIE’s operating results
and cause the VIE to not reach its long-term growth goals. A downturn in the economy could affect the discretionary spending power of
customers and, in turn, depress the number of orders for the VIE’s products, which would have a material adverse effect on our business,
financial condition and results of operations.

Any disruption of the operation of the VIE could materially and adversely affect the VIE’s business and results of operations.

Currently, the VIE’s
software products are primarily produced at its office located in Shenzhen, China. Natural disasters or other unanticipated catastrophic
events, including storms, fires, explosions, earthquakes, terrorist attacks and wars, as well as changes in governmental planning for
the land where the VIE’s office is located, could significantly impair the VIE’s ability to manufacture software products
and operate its business. Catastrophic events could also destroy inventories of hardware. The occurrence of any catastrophic event could
result in the temporary or long-term closure of the facility and may severely disrupt the VIE’s business operations.

In addition, the VIE’s
office and its suppliers’ factories