Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 86

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 86
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Risks Related to Doing Business in the PRC

Changes in the PRC’s economic, political or social conditions, as well as government policies, could have an adverse effect on our business and operations and the value of our Ordinary Shares.

All of our operations are
conducted through the VIE located in China. Accordingly, our business, financial condition, results of operations and prospects may be
influenced to a significant degree by political, economic, social conditions and government policies in China generally. While the Chinese
economy has experienced significant growth over the past decades, growth has been uneven, both geographically and among various sectors
of the economy. Any adverse changes in economic conditions in China, in the policies of the PRC government or in the laws and regulations
in China could have a material adverse effect on the overall economic growth of China. Such developments could adversely affect our business
and operating results, lead to reduction in demand for the products of the VIE and adversely affect our competitive position. The PRC
government has implemented various measures to encourage economic growth and guide the allocation of resources. Some of these measures
may benefit the overall Chinese economy, but may have a negative effect on us. In addition, in the past the PRC government has implemented
certain measures, including interest rate adjustment, to control the pace of economic growth. These measures may affect our business
and operating results.

Furthermore, our Company,
the VIE, and our investors may face uncertainty about future actions by the government of China that could significantly affect the VIE’s
financial performance and operations, including the enforceability of the contractual arrangements that constitute the VIE Agreements.
We cannot assure you that the PRC government will not initiate possible governmental actions or scrutiny to us, which could substantially
affect our operation and the value of our Ordinary Shares may depreciate quickly.

There are uncertainties regarding the interpretation and enforcement of PRC laws, rules and regulations.

All of the VIE’s operations
are conducted in the PRC, and are governed by PRC laws, rules and regulations. The PRC legal system is a civil law system based on written
statutes and prior court decisions may not be cited for reference. The PRC government authorities may strengthen oversight and control
over offerings that are conducted overseas and/or foreign investment in China-based issuers like us. Such actions taken by the PRC government
authorities may intervene or influence the VIE’s operations at any time, which are beyond our