Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 71

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 71
---
 to provide the VIE with competitive
advantages. In addition, there can be no assurance that: (i) all of the VIE’s intellectual property rights will be adequately
protected; or (ii) the VIE’s intellectual property rights will not be challenged by third parties or found by a judicial authority
to be invalid or unenforceable. Intellectual property protection may not be sufficient in China. Confidentiality agreements may be breached
by counterparties, and there may not be adequate remedies available to the VIE for any such breach. Accordingly, the VIE may not be able
to effectively protect its intellectual property rights or to enforce its contractual rights in China. In addition, policing any unauthorized
use of the VIE’s intellectual property is difficult, time-consuming and costly and the steps the VIE has taken may be inadequate
to prevent the misappropriation of its intellectual property.

| 38 |

In the event that the VIE
resorts to litigation to enforce its intellectual property rights, such litigation could result in substantial costs and a diversion of
its managerial and financial resources. We can provide no assurance that the VIE will prevail in such litigation. In addition, the VIE’s
trade secrets may be leaked or otherwise become available to, or be independently discovered by, its competitors. Any failure in protecting
or enforcing the VIE’s intellectual property rights could have a material adverse effect on our business, financial condition and
results of operations.

Changes in U.S. and international trade policies, particularly with regard to China, may adversely impact the VIE’s business and operating results.

The U.S. government has
recently made statements and taken certain actions that may lead to potential changes to U.S. and international trade policies, including
recently imposed tariffs affecting certain products manufactured in China. It is unknown whether and to what extent new tariffs (or other
new laws or regulations) will be adopted, or the effect that any such actions would have on the VIE or its industry and customers. If
the VIE plans to sell its products internationally in the future, any unfavorable government policies on international trade, such as
capital controls or tariffs, may affect the demand for the VIE’s products, impact the competitive position of the VIE’s products
or prevent the VIE from being able to sell products in certain countries. If any new tariffs, legislation and/or regulations are implemented,
or if existing trade agreements are renegotiated or, in particular, if the U.S. government takes retali