Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 318

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 318
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 interest rate risk and fair value interest rate risk respectively.

| F-30 |

| b) | Concentration of credit risk |

Financial instruments that potentially subject
the Company to significant concentrations of credit risk consist primarily of cash. As of September 30, 2024 and 2023, $105,706 and $1,641,922
were deposited with financial institutions located in the PRC, respectively. The management believes that these financial institutions
are of high credit quality, and management also continually monitors the financial institutions’ credit worthiness.

The Company is also exposed to risk from its accounts
receivable and other receivables. These assets are subjected to credit evaluations. An allowance has been made for estimated unrecoverable
amounts which have been determined by reference to past default experience and the current economic environment.

A majority of the Company’s expense transactions
are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in
RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be
transacted only by authorized financial institutions at the exchange rates set by the People’s Bank of China (“PBOC”).
Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory
bodies which require certain supporting documentation in order to process the remittance.

The Company’s functional currency is the
RMB, and its consolidated financial statements are presented in U.S. dollars. The RMB depreciated by 2.8% in the year ended December 31,
2023. The RMB depreciated by 8.57% in the year ended December 31, 2022 and appreciated by 2.29% in the year ended December 31, 2021 from
December 31, 2020 to December 31, 2021. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange
rate between the RMB and the U.S. dollar in the future. The change in the value of the RMB relative to the U.S. dollar may affect its
financial results reported in the U.S. dollar terms without giving effect to any underlying changes in its business or results of operations.
Currently, the Company’s assets, liabilities, revenues and costs are denominated in RMB.

To the extent that the Company needs