Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 28

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 28
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 would likely result in a material change in our operations and,
as a result, the value of our Ordinary Shares may depreciate significantly or become worthless. For a description of our corporate structure
and VIE contractual arrangements, see “Corporate History and Structure.” See also “Risk Factors – Risks Related to Our Corporate Structure.”

In the opinion of Global
Law Office, our PRC legal counsel, the VIE Agreements are not in violation of any prohibitive provisions of the current applicable PRC
Laws, however, the relevant PRC regulatory authorities have broad discretion in determining whether the VIE structure violates PRC laws.
Accordingly, the PRC regulatory authorities may take a view that is contrary to, or otherwise different from, the above opinion of our
PRC legal counsel. We are also subject to the risks of uncertainty about any future actions of the PRC government in this regard that
could disallow the VIE structure, which would likely result in a material change in our operations and a complete hindrance of our ability
to offer or continue to offer our securities to investors and the value of our Ordinary Shares may depreciate significantly or become
worthless. See “Risk Factors — Risks Related to Our Corporate Structure — We
rely on contractual arrangements with the VIE and the VIE Shareholders for a large portion of our business operations. And “Risk Factors — Risks Related to Our Corporate Structure — If the PRC government determines that the contractual arrangements constituting part of the VIE structure do not comply with PRC regulations, or if these regulations change or are interpreted differently in the future, we may be unable to assert our contractual rights over the assets of the VIE and its subsidiary, and our Ordinary Shares may decline in value or become worthless.”

Summary of Risk Factors

We face various legal and
operation risks and uncertainties as we have substantial operations in China. The PRC government has significant authority to exert influence
on the ability of a China-based company, like the VIE, to conduct its business, accept foreign investments or list on U.S. stock exchanges.
For example, we face risks associated with regulatory approvals of offshore offerings, anti-monopoly regulatory actions, cybersecurity
and data privacy, as well as issues that can arise if the PCAOB is unable to perform an inspection on our registered public accounting
firm. Any such action, once taken by the PRC government, could cause the value of our securities to significantly decline or in extreme
circumstances, become worthless. The operational