Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 63

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 63
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 Hubei, Liaoning, Shandong, Sichuan, and Hebei.

Although the VIE’s
current sales and distribution channels are sufficient to satisfy the current business needs, it might become insufficient to meet demand
if the VIE continues to grow its business. If the VIE’s planned efforts to expand its direct sales force and distribution channels
are not effective, its ability to execute on its business plan and to realize continued growth will be impaired.

The VIE may face competition from, and the VIE may be unable to compete successfully against, new entrants and established companies with greater resources.

The VIE’s industry
is competitive and rapidly evolving and includes many companies both domestically and internationally. The VIE faces increasing competitive
pressures to grow its business in order to maintain its competitive position, and the VIE may encounter competition from, and lose customers
to, other companies with design, technological and manufacturing capabilities similar to them. In addition to the risk posed by the quantitative
effect of the entry of new competitors, some of the VIE’s potential competitors may also have greater name recognition, greater
operating revenues, larger customer bases, longer customer relationships, and greater financial, technical, personnel and marketing resources
than the VIE. If the VIE is unsuccessful in competing with its competitors for its existing and prospective customers’ business,
the VIE’s financial condition and results of operation may be adversely affected.

Increased competition may
further reduce the VIE’s market share and profitability and require the VIE to increase its sales and marketing efforts and capital
commitment in the future, which could negatively affect the VIE’s results of operations. Although the VIE is continuously growing
its customer base, there is no assurance that the VIE will be able to continue to do so in the future against current or future competitors,
and such competitive pressures may have a material adverse effect on the VIE’s business, financial condition, and results of operations.

The continuing development of VIE’s products depends upon its strong working relationships with its distributors.

The research, development,
marketing, and sales of the VIE’s products and the development of new and improved products and services and future products and
services depend upon the VIE’s working relationships with its distributors. See “Research and Development.” The VIE
relies on its distributors to provide them with feedback from the end-users, which can then be used to continue development of the VIE’s
software products and hardware.

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