Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 63

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 63
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 If the VIE’s supply of certain services is disrupted or delayed, there can be no assurance that additional
supplies or services can serve as adequate replacements or that supplies will be available on terms that are favorable to the VIE, if
at all. Moreover, even if the VIE can identify adequate replacements on substantially similar terms, its business could be adversely affected
until those efforts were completed. Any disruption or delay in the supply of the VIE’s hardware components could limit the ability
of the VIE to fulfill orders or service or replace products, or cause other constraints on the VIE’s operations that could damage
its customer relationships.

If the VIE is unable to build and maintain a sufficient sales and distribution network to meet increasing demand for its products, the VIE’s ability to execute on its business plan as outlined in this prospectus will be impaired.

The VIE’s distributors
refer to those individuals or entities who purchase our products and distribute them in the region designated in our purchase agreements
with them or through offline and online channels to resell our products to end users. As of September 30, 2024, we had 35 distributors
in China. These intermediaries cover 9 provinces and 11 municipalities in China, including Guangdong, Chongqing, Zhejiang, Hainan, Hubei,
Liaoning, Shandong, Sichuan, and Hebei.

Although the VIE’s
current sales and distribution channels are sufficient to satisfy the current business needs, they may become insufficient to meet demand
if the VIE continues to grow its business. If the VIE’s planned efforts to expand its direct sales force and distribution channels
are not effective, its ability to execute on its business plan and to realize continued growth will be impaired.

The VIE may face competition from, and the VIE may be unable to compete successfully against, new entrants and established companies with greater resources.

The VIE’s industry
is competitive and rapidly evolving and includes many companies both domestically and internationally. The VIE faces increasing competitive
pressures to grow its business in order to maintain its competitive position, and the VIE may encounter competition from, and lose customers
to, other companies with design, technological and manufacturing capabilities similar to its own. In addition to the risk posed by the
quantitative effect of the entry of new competitors, some of the VIE’s potential competitors may also have greater name recognition,
greater operating revenues, larger customer bases, longer customer relationships,