Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 171

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 171
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 channels to resell the products to end-users.

While we do not possess
all of the details regarding the end-users or the particular projects utilizing our software products, we generally categorize our end-users
as individuals or enterprises who seek access to the distributed network and leverage our software products to create decentralized applications,
or DApps, for their specific needs. DApps are applications that operate on a decentralized network, often utilizing blockchain or other
decentralized technologies. DApps differ from traditional centralized applications in key ways, including decentralization, open source
code, decentralized storage, autonomy and governance.

Adopting a distribution
model is advantageous for rapidly reaching end-users through the sales network of distributors, creating sales scale, and concurrently
establishing firewall between the Company and end-user data through the distributor channel.

We typically enter into
purchase agreements with our distributors, which specify the cooperation scope, payment terms, rights and obligations of both parties,
restrictive covenants, delivery terms, refunds or replacements, breach and termination, and dispute resolutions. The distributors make
payment to us in accordance with the agreed-upon terms and then leverage their sales networks to sell our software products to end-users.
After the payment has been received from the distributors, our software products are delivered in accordance with the contractual obligations
in the purchase agreements to the distributors through an activation code. The distributors subsequently deliver the software products
to end-users by sharing this activation code. We do not deliver software products directly to any end-user.

Our distributors are considered
our customers. As of September 30, 2024 and September 30, 2023, we had 35 and 28 distributors in China, respectively. These distributors
cover 9 provinces and 11 municipalities in China, including Guangdong, Chongqing, Zhejiang, Hainan, Hubei, Liaoning, Shandong, Sichuan,
and Hebei.

Our distributors normally
do not disclose to us the detailed information of the end-users or any specific project the software products are being used in. We only
collect basic registration information of the end-users for after-sales service purposes. Additionally, we work together with distributors
to provide after-sales support and maintenance services.

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Suppliers

When developing software
component tools, we require support for the development and testing networks for distributed development. This involves the procurement
of hardware devices and the purchase of data center services for online operations. Additionally, for the nodes we develop (such as the