Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 100

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 100
---
 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, 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
not be able to complete such registrations on a timely basis, with respect to future capital contributions or foreign loans by us to
WFOE. If we fail to complete such registrations, our ability to use the proceeds of this offering, and to capitalize our PRC operations
may be negatively affected, which could adversely affect our liquidity and our ability to fund and expand our business.

On March 30, 2015,
the SAFE promulgated the Circular on Reforming the Management Approach Regarding the Foreign Exchange Capital Settlement of Foreign-Invested
Enterprises, or SAFE Circular 19, which took effect on June 1, 2015. SAFE Circular 19 launched a nationwide reform of the administration
of the settlement of the foreign exchange capitals of FIEs and allows FIEs to settle their foreign exchange capital at their discretion,
but continues to prohibit FIEs from using the Renminbi fund converted from their foreign exchange capital for expenditure beyond their
business scopes, providing entrusted loans or repaying loans between nonfinancial enterprises. The SAFE issued the Circular on Reforming
and Regulating Policies on the Control over Foreign Exchange Settlement of Capital Accounts, or SAFE Circular 16, effective in June 2016.
Pursuant to SAFE Circular 16, enterprises registered in China may also convert their foreign debts from foreign currency to Renminbi
on a self-discretionary basis. SAFE Circular 16 provides