Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 162

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 162
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of the Ordinary Shares would be able to claim the benefit of income tax treaties or agreements entered into between China and other countries
or areas.

In April 2018, the Ministry
of Finance, or “MOF,” and State Administration of Taxation, or “SAT,” jointly promulgated the Circular of the
MOF and the SAT on Adjustment of Value-Added Tax Rates, or “Circular 32,” according to which: (i) for VAT taxable sales or
imports of goods originally subject to VAT rates of 17% and 11% respectively, such tax rates were adjusted to 16% and 10%, respectively;
and (ii) for exported goods originally subject to a tax rate of 17% and an export tax refund rate of 17%, the export tax refund rate was
adjusted to 16%. Circular 32 became effective on May 1, 2018 and superseded existing provisions which were inconsistent with Circular
32.

Pursuant to the Announcement
on Relevant Policies for Deepening Value-Added Tax Reform, which was promulgated by MOF, SAT and the General Administration of Customs
on March 20, 2019, where: (i) for VAT taxable sales or imports of goods originally subject to VAT rates of 16%, such tax rates shall
be adjusted to 13%; (ii) for exported goods originally subject to a tax rate of 16% and an export tax refund rate of 16%, the export
tax refund rate shall be adjusted to 13%.

We are also subject to VAT
at a rate of approximately 13% on the software Zhenglian Shenzhen sell to its customers, less any deductible VAT we have already paid
or borne. We are also subject to surcharges on VAT payments in accordance with PRC law.

Quantitative and Qualitative Disclosures about Market Risk

Foreign Exchange Risk

Substantially all of our
revenues and all of our expenses are denominated in RMB. In our consolidated financial statements, our financial information that uses
RMB as the functional currency has been translated into U.S. dollars. Any significant revaluation of the Renminbi may materially and
adversely affect our results of operations and financial position reported in Renminbi when translated into U.S. dollars, and the value
of, and any dividends payable, in U.S. dollars.

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RMB is not freely convertible
into foreign currencies. All foreign exchange transactions take place either through the Peoples