Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 6

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 6
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 based in China. This structure involves unique risks to investors. The VIE structure
is used to provide investors with exposure to foreign investment in China-based companies where Chinese law prohibits direct foreign
investment in the operating companies. Investors may never hold equity interests in the Chinese operating company. Chinese regulatory
authorities could disallow this structure, which would likely result in a material change in our operations and/or pose a material change
in the value of the securities we are seeking to registering for sale in this offering. The value of our securities could significantly
decline or become worthless. If the PRC government determines that the VIE structure does not comply with applicable laws and regulations,
we may lose the ability to consolidate the financial results of the PRC operating entity, which could have a material adverse effect
on our financial position and results of operations.

We currently have not maintained
any cash management policies that dictate the purpose, amount and procedure of fund transfers among our Cayman Islands holding company,
our subsidiaries, the VIE, and investors. Rather the funds can be transferred in accordance with the applicable laws and regulations.
See “Prospectus Summary – Cash Transfers and Dividend Distribution.” See also the consolidated financial statements
of Zerolimit Technology Holding Co. Ltd. and Subsidiaries attached to this prospectus. We may require additional capital resources in
the future and we may seek to issue additional equity or debt securities or obtain new or expanded credit facilities, which could subject
us to operating and financing covenants, including requirements to maintain a certain amount of cash reserves. See “Risk Factors – Risks Related to Doing Business in the PRC – Governmental control of currency conversion may limit our ability to utilize our revenues, transfer or distribute cash to and from our subsidiaries and to and from WFOE and the VIE effectively and affect the value your investment.” In the absence of formal cash management policies, there may be increased risks related to free
movement of funds between entities, particularly given PRC regulatory controls on currency conversion and capital outflows.

In the last several years,
the Securities and Exchange Commission has issued guidance regarding the obligations of companies based in, or with a majority of their
operations in, the PRC. Recently, in the context of rules applicable under the HFCAA, we may have additional compliance and disclosure
requirements. We are not owned or controlled by any foreign government entities, nor are any of our shares held or controlled by any such
entities. Our governing and organizational documents, such as