Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 182

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 182
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including pension, unemployment insurance, childbirth insurance, work-related injury insurance, medical insurance, and housing insurance.
We are required under PRC law to make contributions from time to time to employee benefit plans for PRC-based full-time employees at
specified percentages of the salaries, bonuses, and certain allowances of such employees, up to a maximum amount specified by the local
governments in China.

Legal Proceedings

We may from time to time
be subject to various legal or administrative claims and proceedings arising from the ordinary course of business. Litigation or any
other legal or administrative proceeding, regardless of the outcome, is likely to result in substantial cost and diversion of our resources,
including our management’s time and attention.

From time to time, the VIE
is subject to legal proceedings, investigations and claims incidental to the conduct of our business. The inherent uncertainty of litigation
exists and could produce adverse results in these and other matters. Except as described below, there are no other pending legal proceedings
in which the VIE is currently involved.

The VIE has a contract dispute
with one of its previous suppliers, Youwei. The VIE sued Youwei on March 23, 2023 in connection with a cooperative purchasing agreement
and a relevant supplementary agreement (the “Youwei Purchase Agreements”) between Youwei and the VIE in Shenzhen Qianhai
Cooperation Zone People’s Court (“Qianhai Court”). The VIE claimed that Youwei failed to provide the VIE with the customized
mobile phones that meet the VIE’s specified requirements in accordance with the Youwei Purchase Agreements. The VIE has claimed
a total refund of approximately $0.162 million and all compensation of approximately $0.927 million. In June of 2023, Youwei filed a
counterclaim against the VIE. As of September 30, 2024, the case was still pending the court’s judgement. We do not believe this
legal proceeding will have any material adverse effect on the VIE’s operation in China. As of September 30, 2024 and 2023, the
Company was not aware of any other litigation or lawsuits against it.

We conduct our business in China through the VIE. The former description of our business is a description of the business of the VIE. For avoidance of doubt, all references in the prior section to the terms “our,” “us,” “we,” or “Company” refer to the VIE. See “ Corporate History and Structure