Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 138

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 138
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 in WFOE and (3) WFOE is exclusively engaged
in the business of managing the operations of Zhenglian Shenzhen. The Company controls Zhenglian Shenzhen through contractual agreements,
which are described under “Corporate History and Structure — The VIE Agreements.”

Pursuant to PRC laws, each
entity formed under PRC law shall have certain business scope registered at the Administration for Market Regulation or its local counterpart.
As such, WFOE’s business scope is to primarily engage in business development, technology service, technology consulting, intellectual
property service and business management consulting. Since the sole business of WFOE is to provide Zhenglian Shenzhen with technical
support, consulting services and other management services relating to its day-to-day business operations and management in exchange
for a consulting fee solely at WFOE’s discretion and can be the net income of Zhenglian Shenzhen, such business scope is necessary
and appropriate under the PRC laws. Zhenglian Shenzhen, on the other hand, has been granted a business scope different from WFOE to enable
it to provide distributed network technology solutions.

The VIE Agreements

We are a holding company
incorporated in the Cayman Islands and not a Chinese operating company. As a holding company with no material operations of our own,
the majority of our operations are conducted through the VIE in the PRC pursuant to the VIE Agreements. The VIE Agreements were entered
into by and among WFOE, the VIE, and the VIE’s shareholders and include the following agreements: Powers of Attorney, Equity Interest
Pledge Agreement, Exclusive Consulting and Services Agreement, Exclusive Option Agreement, and a Spousal Consent Letter. Due to the PRC
legal restrictions on foreign ownership in certain internet-related businesses we may explore and operate in the future. We control and
receive the economic benefits of the VIE’s business operations through the VIE Agreements, and we consolidate the VIE for accounting
purposes only because we met the conditions under U.S. GAAP to consolidate the VIE. Pursuant to the VIE Agreements, the VIE shall pay
service fees in an amount equivalent to all of its net income to WFOE, while WFOE has the power to direct the activities of the VIE that
can significantly impact the VIE’s economic performance, has the obligation to absorb the expected losses of the VIE, and has the
right to receive substantially all of the economic benefits