Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 95

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 95
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 On December 26, 2019, the PRC State Council
approved the Implementation Rules of Foreign Investment Law, which came into effect on January 1, 2020. The PRC Foreign Investment
Law and its Implementation Rules embody an expected PRC regulatory trend to rationalize its foreign investment regulatory regime
in line with prevailing international practice and the legislative efforts to unify the corporate legal requirements for both foreign
and domestic investments. However, since the PRC Foreign Investment Law is relatively new, substantial uncertainties exist with respect
to its interpretation and implementation and future actions with respect to such laws and regulations promulgated thereunder could significantly
limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to
significantly decline or become worthless.

The PRC Foreign Investment
Law specifies that foreign investments shall be conducted in line with the “negative list” issued by the State Council. A
foreign invested enterprise under PRC law, or an FIE, would not be allowed to make investments in prohibited industries in the “negative
list,” while the FIE must satisfy certain conditions stipulated in the “negative list” for investment in restricted
industries. Although the decentralized distributed technology industry, in which the VIE operates, is currently not subject to the foreign
investment restrictions or prohibitions set forth on the “negative list,” it is uncertain whether the decentralized distributed
technology industry will be subject to the “negative list” to be issued in the future. There are uncertainties as to how the
PRC Foreign Investment Law would be further interpreted and implemented. We cannot assure you that the interpretation and implementation
of the PRC Foreign Investment Law made by the relevant governmental authorities in the future will not materially impact the viability
of our current corporate structure, corporate governance and business operations in any aspect.

We may rely on dividends and other distributions on equity paid by WFOE to fund any cash and financing requirements we may have, and any limitation on the ability of WFOE to make payments to us and any tax we are required to pay could have a material adverse effect on our ability to conduct our business.

We are a Cayman Islands holding
company and may rely on dividends and other distributions on equity from WFOE for our cash requirements, including the funds necessary
to pay dividends and other cash distributions to our shareholders and for servicing of any debt we may incur. WFOE’s ability to
distribute dividends in turn depends on the payment it receives from the V