Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 64

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 64
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 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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Distributors assist the
VIE in marketing and sales, as well as collecting customers’ feedback and advice related to the VIE products. If the VIE cannot
maintain strong working relationships with its distributors and continue to receive their advice and input, the development, improvement
and marketing of the VIE’s products could suffer, which could have a material adverse effect on our business, financial condition
and results of operations.

Technological changes may adversely affect the sales of the VIE’s products and may cause its products to become obsolete.

The distributed technology
market is characterized by extensive research and development and rapid technological changes. Technological progress or new developments
in the distributed technology industry or technological changes in other industries could adversely affect the demand and consequently
sales of the VIE’s products and services. For example, new hardware innovations could render our software applications which make
certain assumptions based on current hardware standards inoperable or handicapped and could require significant development on our part
to adapt to such changes in technology and new industry developments. The VIE’s products and services could also be rendered obsolete
due to future innovations by its competitors, all of which would have a material adverse effect on the VIE’s business, financial
condition, and results of operations.

Consolidation in the decentralized distributed technology industry could have an adverse effect on the VIE’s revenues and results of operations.

Distributed technology companies
may consolidate to create new companies with greater market power. If companies in the decentralized distributed technology industry
consolidates, competition to provide goods and services to industry participants will become more intense. These industry participants
may use their market power to negotiate price concessions or reductions for their products making them more desirable than the VIE’s
products. If the VIE reduces its prices because of consolidation in the decentralized distributed technology industry, the VIE’s
revenues would decrease accordingly, which