Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 100

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 100
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 used to pay dividends to our Company.

However, approval from or
registration with appropriate government authorities is required where Renminbi is to be converted into foreign currency and remitted
out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. As a result, we need to obtain
SAFE approval to use cash generated from the operations of our China subsidiary and VIE to pay off their respective debt in a currency
other than Renminbi owed to entities outside China, or to make other capital expenditure payments outside China in a currency other than
Renminbi.

The PRC government has imposed
restrictive foreign exchange policies. and stepped-up scrutiny of major outbound capital movement including overseas direct investment.
More restrictions and substantial vetting processes have been put in place by SAFE to regulate cross-border transactions falling under
the capital account. If any of our shareholders regulated by such policies fails to satisfy the applicable overseas direct investment
filing or approval requirement timely or at all, they may be subject to penalties from the relevant PRC authorities. The PRC government
may at its discretion further restrict access in the future to foreign currencies for current account transactions. If the foreign exchange
control system prevents us from obtaining sufficient foreign currencies to satisfy our foreign currency demands, we may not be able to
pay dividends in foreign currencies to our shareholders, including holders of the Ordinary Shares.

PRC regulation of loans to and direct investment in the VIE by offshore holding companies and governmental control of currency conversion may delay us from using the proceeds of this offering or to make loans or additional capital contributions to WFOE, which could materially and adversely affect our liquidity and our ability to fund and expand our business.

Any funds we transfer to
WFOE, either as a shareholder loan or as an increase in registered capital, are subject to approval by or registration with relevant governmental
authorities in China. According to the relevant PRC regulations on Foreign Investment Enterprises (“FIEs”) in China, capital
contributions to our China subsidiary are subject to the information report with the MOFCOM or their respective local branches and registration
with a local bank authorized by the SAFE. In addition, any foreign loan procured by WFOE cannot exceed statutory limits and is required
to be registered with SAFE or its respective local branches. Any medium or long-term loan to be provided by us to the VIE must be registered
with the National Development and Reform Commission, or “NDRC,” and the SAFE or its local branches. We may