Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 82

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 82
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Committee of the National People’s Congress of the People’s Republic of China (“SCNPC”) promulgated the Data Security
Law of the People’s Republic of China (the “Data Security Law”) on June 10, 2021, which became effective September 1,
2021. The Data Security Law imposes data security and privacy obligations on entities and individuals carrying out data processing activities
and introduces a data classification and hierarchical protection system. The classification of data is based on its importance in economic
and social development, as well as the degree of harm expected to be caused to national security, public interests, or legitimate rights
and interests of individuals or organizations if such data is tampered with, destroyed, leaked, or illegally acquired or used. The security
assessment mechanism was also included in the Personal Information Protection Law (the “Personal Information Protection Law”),
which was promulgated in August 2021 and became effective November 1, 2021, for the Chinese government to supervise certain cross-border
transfers of personal information.

We expect that these data
protection and transfer laws and regulations will receive greater attention and focus from regulators going forward, and the VIE will
face uncertainty as to whether the VIE’s efforts to comply with evolving obligations under data protection, privacy and security
laws in China and the United States will be sufficient.

Any failure or perceived
failure by the VIE to comply with applicable laws and regulations could result in reputational damage or proceedings or actions against
the VIE by governmental entities, individuals or others. These proceedings or actions could subject the VIE to significant civil or criminal
penalties and negative publicity, result in the delayed or halted transfer or confiscation of certain personal information, require the
VIE to suspend or modify certain business activities, require the VIE to change its business practices, increase its costs and materially
harm our business, prospects, financial condition and results of operations. In addition, our current and future relationships with customers,
suppliers and other third parties could be negatively affected by any proceedings or actions against the VIE or current or future data
protection obligations imposed on them under applicable law, including the Cyber Security Law. In addition, a data breach affecting personal
information, or a failure to comply with applicable requirements could result in significant management resources, legal and financial
exposure and reputational damage that could potentially have a material adverse effect on the VIE’s business and results of operations.

Furthermore, on February
24, 202