Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 68

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 68
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 economic environment
subjects the VIE’s business to various risks, which may have a material and adverse impact on the VIE’s operating results
and cause the VIE to not reach their long-term growth goals. A downturn in the economy could affect the discretionary spending power
of customers and, in turn, depress the number of orders for the VIE’s products, which would have a material adverse effect on our
business, financial condition and results of operations.

Any disruption of the operation of the VIE could materially and adversely affect the VIE’s business and results of operations.

Currently, the VIE’s
software products are primarily produced at its office located in Shenzhen, China. Natural disasters or other unanticipated catastrophic
events, including storms, fires, explosions, earthquakes, terrorist attacks and wars, as well as changes in governmental planning for
the land where the VIE’s office are located could significantly impair the VIE’s ability to manufacture software products
and operate its business. Catastrophic events could also destroy inventories of hardware. The occurrence of any catastrophic event could
result in the temporary or long-term closure of the facility and may severely disrupt the VIE’s business operations.

In addition, VIE’s
office and their suppliers’ factories are subject to environmental inspections and regulations. As of the date of this prospectus,
we cannot assure you that all the factories and offices are in strict compliance with such environmental inspections and regulations
based on our knowledge. If such facilities fail to rectify and pass the environmental inspections or comply with relevant environmental
requirements relating to production activities in a timely manner, they may be subject to fines, rectification, suspension and closure,
which may materially and adversely affect the production at the VIE’s office and in turn may impact its business. In the event
of any changes in the PRC laws and/or regulations and/or government policies on environmental protection and more stringent requirements
are imposed on the VIE’s and its suppliers, the VIE may have to incur extra costs and expenses to comply with such requirements
and the VIE’s business and results of operations may be adversely affected.

Furthermore, the VIE’s
facilities are located on leased properties. Though such leases are renewable upon expiration, the VIE’s ability to renew existing
leases upon their expiration is crucial to the VIE’s production activities, operations and profitability. If the VIE is unable
to negotiate for a renewal of the relevant leases, the VIE may be forced to relocate its production bases and it