Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 177

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 177
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 a timely manner, and signing strategic agreements.

The Company also maintains long-term
and positive cooperation with its suppliers through means such as making timely payments and signing strategic agreements.

The Company has fostered good relationships
with various levels of government through measures which include developing technology in line with policy advocacy, actively applying
for corporate qualifications and research projects, proactively engaging in discussions with government-enterprises, and conducting legal
and compliant tax operations.

| § | Research                      
 and development capabilities. |

Our research and development team consisted
of 23 and 31 talented researchers, programmers, and engineers, representing approximately 55% and 57% of its total workforce as of
September 30, 2024 and September 30, 2023, respectively. Our team of experts includes individuals with a range of backgrounds and
expertise, many of whom have graduated from the top universities in the country.

| 109 |

Our Strategies

We intend to further achieve
growth by pursuing the following strategies:

Continue to invest in research and development.

As we grow our industry
and service area expertise, we intend to leverage the knowledge accumulated over the years of our operation and the result of significant
investment in research and development to more effectively address business-specific needs. In addition, we plan to continue investing
in research and development.

Expand our sales and distribution network.

We intend to expand our
distribution network to penetrate new geographic markets in the PRC, further gaining market share in existing markets and accessing a
broader range of end-users.

Enhance our ability to attract, incentivize and retain talented professionals.

We believe our success greatly
depends on our ability to attract, incentivize, and retain talented professionals. With a view to improving our competitive advantage
in the market, we plan to implement a series of initiatives to attract additional and retain mid- to high-level personnel, including
formulating a market-oriented employee compensation structure and implementing a standardized multilevel performance review mechanism.

Research and Development

We
allocate a portion of our operating expenses to research and development, the maintenance
of existing products. We capitalized $0.012 million and $0.59 million of research and
development expenditure for the fiscal years ended September 30, 2024 and 2023, respectively.
We also incurred research and development expenses of $0.047 million and $0.12 million for
the fiscal years ended September 30, 2024 and 2023, respectively. Our allocation of resources
towards innovation has fostered