Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 62

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 62
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services, devices, or software component materials to the VIE, which in turn, may cause delay or failure to manufacture and ship ordered
products to customers, resulting in damage to the VIE’s customer relationships. If the VIE is unable to adequately address the
impact of the interruptions of operations of their third-party suppliers, the VIE’s business operations and financial results may
be materially and adversely affected.

| 34 |

Although the VIE believes
that it could establish alternate sources from other suppliers, there can be no assurance that such replacement suppliers will provide
the hardware equipment, services, devices, or software component materials that are needed by the VIE in the quantities requested, at
the quality required, or at the prices that the VIE is willing to pay. Any shortage in such hardware equipment, services, devices, or
software component materials, deficiency in quality or any increase in prices could adversely affect the VIE’s reputation, financial
conditions and results of operations.

The VIE does not have long-term contracts with its hardware product suppliers and the suppliers can reduce order quantities or terminate their sales to the VIE.

The VIE does not have long
term contracts with its suppliers. If the VIE’s supply of certain services is disrupted or delayed, there can be no assurance that
additional supplies or services can serve as adequate replacements or that supplies will be available on terms that are favorable to
the VIE, if at all. Moreover, even if the VIE can identify adequate replacements on substantially similar terms, its business could be
adversely affected until those efforts were completed. Any disruption or delay in the supply of the VIE’s hardware components could
limit the ability of the VIE to fulfill orders or service or replace products, or cause other constraints on the VIE’s operations
that could damage its customer relationships.

If the VIE is unable to build and maintain a sufficient sales and distribution network to meet increasing demand of its products, the VIE’s ability to execute on its business plan as outlined in this prospectus will be impaired.

The VIE’s distributors refer to those individuals or entities who purchase our products and distribute them in the region designated in our purchase agreements with them or through offline and online channels to resell our products to end users. As of September 30, 2024, we had 35 distributors in China. These intermediaries cover 9 provinces and 11 municipalities in China, including Guangdong, Chongqing, Zhejiang, Hainan,