Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 35

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 35
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 holding company, the Company may also rely on dividends and other distributions on equity paid by its subsidiary in Hong Kong, Zerolimit
HK, and the consolidated VIE in China, Zhenglian Shenzhen, for its cash and financing requirements.

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Current PRC regulations permit
the Company’s indirect PRC subsidiaries to pay dividends to the Company only out of their accumulated profits, if any, as determined
in accordance with Chinese accounting standards and regulations. In addition, each of the Company’s subsidiaries in China is required
to set aside at least 10% of their respective after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches
50% of its registered capital. Although the statutory reserves can be used, among other ways, to increase the registered capital and
eliminate future losses in excess of retained earnings of the respective companies, the reserve funds are not distributable as cash dividends
except in the event of liquidation.

The PRC government also imposes
controls on the conversion of RMB into foreign currencies and the remittance of currencies out of the PRC. Therefore, the Company may
experience difficulties in completing the administrative procedures necessary to obtain and remit foreign currency for the payment of
dividends from profits, if any. Furthermore, if the Company’s subsidiaries in the PRC incur debt on their own accord in the future,
the instruments governing the debt may restrict the Company’s ability to pay dividends or to make other payments. If the Company
or its subsidiaries are unable to receive all of the revenues from their operations through the current VIE Agreements, the Company may
be unable to pay dividends on the Ordinary Shares.

In order for the Company
to pay dividends to its shareholders, the Company will rely on payments made from Zhenglian Shenzhen to WFOE, pursuant to VIE Agreements
between them, and the distribution of such payments to Zerolimit HK as dividends from WFOE. Dividends from WFOE to its foreign non-resident
enterprise are subject to a 10% withholding tax, unless the foreign enterprise investor’s jurisdiction of incorporation has a tax
treaty with China that provides for a reduced rate of withholding tax.

The Company intends to keep
any future earnings to re-invest in and finance the expansion of its business. Thus, the Company does not currently anticipate that any
cash dividends will be paid or any assets will be transferred in the foreseeable future. As of the date of the prospectus