Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 96

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 96
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MB or any foreign currency, and any entity or
individual shall not illegally restrict such transfer in terms of the currency, amount and frequency. According to the Company Law of
the PRC and other Chinese laws and regulations, WFOE may pay dividends only out of its accumulated profits as determined in accordance
with Chinese accounting standards and regulations. In addition, WFOE is required to set aside at least 10% of its accumulated after-tax
profits, if any, each year to fund a certain statutory reserve fund, until the aggregate amount of such fund reaches 50% of its registered
capital. Where the statutory reserve fund is insufficient to cover any loss WFOE incurred in the previous financial year, its current
financial year’s accumulated after-tax profits shall first be used to cover the loss before any statutory reserve fund is drawn
therefrom. Such statutory reserve funds and the accumulated after-tax profits that are used for covering the loss cannot be distributed
to us as dividends. At its discretion, WFOE may allocate a portion of its after-tax profits based on Chinese accounting standards to
a discretionary reserve fund. Any limitation on the ability of WFOE to distribute dividends or other payments to us could materially
and adversely limit our ability to grow, make investments or acquisitions that could be beneficial to our businesses, pay dividends or
otherwise fund and conduct our business.

| 51 |

Renminbi is not freely convertible
into other currencies. As result, any restriction on currency exchange may limit the ability of WFOE to use its potential future renminbi
revenues to pay dividends to us. The Chinese government imposes controls on the convertibility of renminbi into foreign currencies and,
in certain cases, the remittance of currency out of China. Shortages in availability of foreign currency may then restrict the ability
of WFOE to remit sufficient foreign currency to our offshore entities for our offshore entities to pay dividends or make other payments
or otherwise to satisfy our foreign-currency-denominated obligations. The renminbi is currently convertible under the “current
account,” which includes dividends and trade and service-related foreign exchange transactions, but not under the “capital
account,” which includes foreign direct investment and foreign currency debt, including loans we may secure for our onshore subsidiary.
Currently, WFOE may purchase foreign currency for settlement of “current account transactions,” including payment of dividends
to us, without the approval of the SAFE”) by complying with certain procedural requirements. However, the relevant Chinese governmental
author