Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 163

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 163
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 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’ Bank of China (“PBOC”)
or other authorized financial institutions at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other
regulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts.
The value of RMB is subject to changes in central government policies and to international economic and political developments affecting
supply and demand in the China Foreign Exchange Trading System market.

Interest Rate Risk

Our exposure to interest
rate risk primarily relates to the short-term and long-term borrowings we have entered with a bank. We have not been exposed to material
risks due to changes in interest rates. An increase, however, may raise the cost of any debt we have now or in the future.

Inflation Risk

Our costs and expenses
may also be affected by China’s inflation level. Since our inception, inflation in China has not materially impacted our
results of operations. According to the National Bureau of Statistics of China, the year-over-year percent changes in the consumer
price index for 2021, 2022 and 2023 were increases of 0.9% 2.0% and 0.2%, respectively. Although we have not in the past been
materially affected by inflation since our inception, we can provide no assurance that we will not be affected in the future by
higher rates of inflation in China.

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<div align='center'>BUSINESS</div>

We conduct our business and operations in China through the VIE. The following description of our business is a description of the business of the VIE. For avoidance of doubt, all references in this section to the terms “our,” “us,” “we,” or “Company” refer to the VIE. See “Corporate History and Structure — The VIE Agreements” for a summary of the contractual arrangements and “Risk Factors — Risks Related to Our Corporate Structure” for certain risks related to the