Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 76

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 76
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functions of the VIE’s manufacturing
facilities, as well as adversely affect its business, financial condition, and results of operations.

The VIE’s success depends on its technology research and development talents (“R&D Talents”), and the VIE cannot assure their retention.

The VIE’s success
partly depends upon the retention of its R&D Talents. The VIE has a R&D Talents team comprised of 23 employees as of September
30, 2024. There can be no assurance that the existing R&D Talents will be adequate or qualified to carry out the VIE’s strategies,
or that the VIE will be able to hire or retain new R&D Talents to carry out its strategies. The loss of one or more of the R&D
Talents, or the failure to attract and retain additional R&D Talents, could have a material adverse effect on our business, financial
condition and results of operations.

In addition, if the VIE fails
to establish a competitive incentive mechanism in terms of career prospects, salary, benefits and working environment, it may face the
risk of instability in the R&D Talents team, which could adversely affect its long-term development.

If the VIE is not able to maintain and enhance its brands and increase market awareness of the VIE, or effectively develop and expand its marketing and sales capabilities, then the VIE’s ability to attract new customers may be harmed and our business, results of operations and financial condition may be adversely affected.

We believe that maintaining
and enhancing the “Zerolimit,” “Zhenglian” and “ZDAN” brand identities (the “Brands”)
and increasing market awareness of the aforementioned brands and the market awareness of the VIE and its capabilities, is critical to
achieving widespread acceptance of its products and solutions. It is important also for the VIE to strengthen its relationships with its
existing distributors and customers and to motivate its distributors and attract new customers. The successful promotion of the Brands
will depend largely on the VIE’s continued marketing efforts, the VIE’s ability to continue to offer high quality products
and services, the VIE’s ability to maintain relationships with suppliers, distributors, and customers, and the VIE’s ability
to be thought leaders in the distributed technology market and the VIE’s ability to successfully differentiate its products and
services from those of its competitors. The VIE’s brand promotion and thought leadership activities may not be successful or yield
increased revenues