Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 102

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 102
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 government registrations or obtain the necessary government approvals on a timely
basis, if at all, with respect to future loans made by us to WFOE or with respect to future capital contributions made by us to WFOE.
If we fail to complete such registrations or obtain such approvals, our ability to use the proceeds we receive from our initial public
offering and to capitalize or otherwise fund our PRC operations may be negatively affected, which could materially and adversely affect
our liquidity and our ability to fund and expand our business.

PRC regulations relating to the establishment of offshore special purpose companies by PRC residents may subject our PRC resident beneficial owners or WFOE to liability or penalties, limit our ability to inject capital into WFOE, limit WFOE’s ability to increase its registered capital or distribute profits to us, or may otherwise adversely affect us.

In July 2014, SAFE promulgated
the Circular on Relevant Issues Concerning Foreign Exchange Control on Domestic Residents’ Offshore Investment and Financing and
Roundtrip Investment Through Special Purpose Vehicles, or SAFE Circular 37, to replace the Notice on Relevant Issues Concerning Foreign
Exchange Administration for Domestic Residents’ Financing and Roundtrip Investment Through Offshore Special Purpose Vehicles, or
SAFE Circular 75, which ceased to be effective upon the promulgation of SAFE Circular 37. SAFE Circular 37 requires PRC residents (including
PRC individuals and PRC corporate entities) to register with SAFE or its local branches in connection with their direct or indirect offshore
investment activities. SAFE Circular 37 is applicable to our shareholders who are PRC residents and may be applicable to any offshore
acquisitions that we make in the future.

Under SAFE Circular 37,
PRC residents who make, or have prior to the implementation of SAFE Circular 37 made, direct or indirect investments in offshore special
purpose vehicles, or SPVs, will be required to register such investments with SAFE or its local branches. In addition, any PRC resident
who is a direct or indirect shareholder of an SPV is required to update its filed registration with the local branch of SAFE with respect
to that SPV, to reflect any material change. If our shareholders who are PRC residents or entities fail to make the required registration
or to update the previously filed registration, WFOE may be prohibited from distributing their profits and any proceeds from any reduction
in capital, share transfer or liquidation to us, and we may be restricted in our ability to contribute additional capital to WFOE