Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 98

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 98
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 “beneficial owner” of the dividends. If WFOE declares and distributes profits to us, such payments will be subject
to withholding tax, which will increase our tax liability and reduce the amount of cash available to our Company.

Cayman Islands is a party
to a double tax treaty entered with the United Kingdom in 2010 but is otherwise not party to any double tax treaties that are applicable
to any payments made to or by the Company.

Fluctuations in exchange rates could have a material adverse impact on our results of operations and the value of your investment.

The conversion of the Renminbi
into foreign currencies, including U.S. dollars, is based on rates set by the People’s Bank of China. The Renminbi has fluctuated
against the U.S. dollar, at times significantly and unpredictably. The value of the Renminbi against the U.S. dollar and other currencies
may fluctuate and is affected by, among other things, changes in political and economic conditions in China and by China’s foreign
exchange policies, among other things. We cannot assure you that Renminbi will not appreciate or depreciate significantly in value against
the U.S. dollar in the future. It is difficult to predict how market forces or the PRC or U.S. government policy may impact the exchange
rate between the Renminbi and the U.S. dollar in the future.

Significant fluctuation
of the Renminbi may have a material adverse effect on your investment. For example, to the extent that we need to convert U.S. dollars
into Renminbi for our operations, appreciation of the Renminbi against the U.S. dollar would have an adverse effect on the Renminbi amount
we would receive from the conversion. Conversely, if we decide to convert our Renminbi into U.S. dollars for the purpose of making payments
for dividends on our Ordinary Shares or for other business purposes, appreciation of the U.S. dollar against the Renminbi would have
a negative effect on the U.S. dollar amount available to us.

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Very limited hedging options
are available in China to reduce our exposure to exchange rate fluctuations. To date, we have not entered into any material hedging transactions
in an effort to reduce our exposure to foreign currency exchange risk. While we may decide to enter into hedging transactions in the
future, the availability and effectiveness of these hedges may be limited, and we may not be able to adequately hedge