Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 80

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 80
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 of the service providers with which
the VIE shares confidential information with grows, the VIE could be exposed to increased risk of breaches in security and other illegal
or fraudulent acts, including cyberattacks. The evolving nature of such threats, in light of new and sophisticated methods used by criminals
and cyberterrorists, including computer viruses, malware, phishing, misrepresentation, social engineering and forgery, is making it increasingly
challenging to anticipate and adequately mitigate these risks.

The VIE is likely in the
future to be subject to these types of attacks. If the VIE is unable to avert these attacks and security breaches, the VIE could be subject
to significant legal and financial liabilities, its reputation would be harmed and the VIE could sustain substantial revenue loss from
lost sales and customer dissatisfaction. The VIE may not have the resources or technical sophistication to anticipate or prevent rapidly
evolving types of cyber-attacks. Cyber-attacks may target the VIE, its suppliers, customers or other participants, or the network infrastructure
on which the VIE depends. Actual or anticipated attacks and risks may cause the VIE to incur significantly higher costs, including costs
to deploy additional personnel and network protection technologies, train employees, and engage third-party experts and consultants.
As the VIE does not carry cybersecurity insurance, the VIE will not be able to mitigate such risks to any third party. Cybersecurity breaches would
not only harm the VIE’s reputation and business, but also could materially decrease its revenue and net income.

The VIE’s failure to comply with data protection laws and regulations could lead to government enforcement actions and significant penalties against the VIE, and adversely impact its operating results.

Regulatory authorities in
China have implemented and are considering a number of legislative and regulatory proposals concerning data protection. For example,
the Cyber Security Law of the People’s Republic of China (the “Cyber Security Law”), which became effective in June
2017, created China’s first national-level data protection regime for “network operators,” which may include all organizations
in China that provide services over the internet or other information network.

Under the Cyber Security
Law, the transmission of certain personal information and important data outside of China is only permitted upon the completion of a
security assessment conducted by or as determined by the Chinese government. Certain draft regulations, including the Measures for Security
Assessment for Cross-border Transfer of Personal Information and Important Data, published in 2017, and the Measures for Security Assessment
for Cross-border