Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 29

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 29
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 risks associated with being based in and having operations in China also apply to operations
in Hong Kong. With respect to the legal risks associated with being based in and having operations in China, the laws, regulations and
discretion of the governmental authorities in China discussed in this prospectus are expected to apply to entities and businesses in
mainland China, rather than to entities or businesses in Hong Kong which operate under a different set of laws from those of mainland
China.

Investing in the Ordinary
Shares involves significant risks. You should carefully consider all of the information set forth in this prospectus before making an
investment in the Ordinary Shares. Below please find a summary of risks and uncertainties we face, organized under relevant headings.
These risks are discussed more fully in the section titled “Risk Factors.”

| 13 |

Risks Related to Our Corporate Structure

| · | We rely on contractual arrangements by and between WFOE, the VIE and                                                                     
 the VIE Shareholders for our business operations. (see page 23 of this prospectus);                                                      |
| · | Numerous uncertainties exist regarding the status of the rights of the Cayman Islands holding companies,                                 
 including with respect to our Company’s contractual arrangements with the VIE, its founders and owners, and accordingly, we              
 face significant challenges in enforcing these contractual agreements due to legal uncertainties and jurisdictional limits.              |
| · | 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 our Ordinary Shares may decline         
 in value or become worthless (see page 23 of this prospectus);                                                                           |
| · | The VIE Shareholders may have actual or potential conflicts of interest                                                                  
 with us, which may materially and adversely affect our business and financial condition (see page 23 of this prospectus);                |
| · | We may lose the ability to use and enjoy assets held by the VIE that                                                                     
 are material to the operation of our business if the entity goes bankrupt or becomes subject to a dissolution or liquidation proceeding  
 (see page 25 of this prospectus);                                                                                                        |
| · | Contractual arrangements in relation to the VIE may be subject to scrutiny                                                               
 by the PRC tax authorities and they may determine that we or the VIE owe additional taxes, which could negatively affect our