Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 31

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 31
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. We do not expect to pay dividends in the foreseeable future after this offering. In the future, cash proceeds raised
from overseas financing activities, including this offering, may be transferred by us to WFOE via capital contribution or shareholder
loans, as the case may be.

While we have no current
intention of paying dividends, should we decide in the future to do so, as a holding company, our ability to pay dividends and meet other
obligations depend upon the receipt of dividends or other payments from our operating subsidiaries or the VIE. In addition, our operating
subsidiaries and the VIE, from time to time, may be subject to restrictions on their ability to make distributions to us, including as
a result of restrictive covenants in loan agreements, restrictions on the conversion of local currency into U.S. dollars or other hard
currency and other regulatory restrictions as discussed below. If future dividends are paid in RMB, fluctuations in the exchange rate
for the conversion of RMB into U.S. dollars may reduce the amount received by U.S. stockholders upon conversion of the dividend payment
into U.S. dollars.

Chinese regulations currently
permit the payment of dividends only out of accumulated profits as determined in accordance with Chinese accounting standards and regulations.
Our subsidiaries and VIE in China are also required to set aside a portion of their after tax profits according to Chinese accounting
standards and regulations to fund certain reserve funds. Currently, our subsidiaries and VIE in China are the only sources of revenues
or investment holdings for the payment of dividends. If they do not accumulate sufficient profits under Chinese accounting standards
and regulations to first fund certain reserve funds as required by Chinese accounting standards, we will be unable to pay any dividends.

Under Cayman Islands law,
a Cayman Islands company may pay a dividend on its shares out of either profit or share premium amount, provided that in no circumstances
may a dividend be paid if this would result in the company being unable to pay its debts due in the ordinary course of business. If we
determine to pay dividends on any of our Ordinary Shares in the future, as a holding company, we will rely on dividends and other distributions
on equity from the VIE to WFOE in accordance with the VIE agreements for cash requirements, including the funds necessary to pay dividends
and other cash contributions to our shareholders.

According to the Foreign
Investment Law of the PRC and its implementing rules, which jointly established the legal framework for the administration of