Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 40

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 40
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 we may have to incur substantial costs and expend additional
resources to enforce such arrangements. For example, if the VIE Shareholders refuse to transfer their equity interest in the VIE to us
or our designee if we exercise the purchase option pursuant to the VIE Agreements, or if they otherwise act in bad faith toward us, then
we may have to take legal actions to compel them to perform their contractual obligations. In addition, if any third parties claim
any interest in such shareholders’ equity interests in the VIE, our ability to exercise shareholders’ rights or foreclose
the share pledge according to the contractual arrangements may be impaired. If these events or other disputes between the VIE Shareholders
and third parties were to impair our contractual relationship with the VIE, our ability to consolidate the financial results of the VIE
for accounting purposes would be affected, which would in turn result in a material adverse effect on our business, operations and financial
condition.

All of the VIE Agreements
are governed by and interpreted in accordance with PRC law, and disputes arising from the VIE Agreements between us and the VIE will be
resolved through arbitration in China. These disputes do not include claims arising under United States federal securities law and thus
the arbitration provisions do not prevent our shareholders from pursuing claims under United States federal securities law. The relevant
PRC regulatory authorities have broad discretion in determining whether the VIE structure violates PRC laws and regulations. Therefore
there are substantial uncertainties regarding the interpretation and application of the current and future PRC Laws, rules and regulations
related to the validity and enforcement of VIE Agreements. As a result, uncertainties in the legal system could limit our ability to enforce
the VIE Agreements. There remain significant uncertainties regarding the ultimate outcome of such arbitration should legal action become
necessary. In addition, under PRC law, as long as the award does not violate the Arbitration Law, the award is final, which means parties
cannot appeal the arbitration results in courts, and if the losing parties fail to carry out the arbitration awards within a prescribed
time limit, the prevailing parties may only enforce the arbitration awards in PRC courts through arbitration award enforcement proceedings,
which would require additional expenses and delay. In the event we are unable to enforce the VIE Agreements, or if we suffer significant
delays or other obstacles in the process of enforcing the VIE Agreements, our ability to conduct business may be negatively affected.

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Numerous uncertainties