Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 103

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 103
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Under SAFE Circular 37, PRC
residents who make, or have prior to the implementation of SAFE Circular 37 made, direct or indirect investments in offshore special purpose
vehicles, or “SPVs,” will be required to register such investments with SAFE or its local branches. In addition, any PRC resident
who is a direct or indirect shareholder of an SPV is required to update its filed registration with the local branch of SAFE with respect
to that SPV, to reflect any material change. If our shareholders who are PRC residents or entities fail to make the required registration
or to update the previously filed registration, WFOE may be prohibited from distributing their profits and any proceeds from any reduction
in capital, share transfer or liquidation to us, and we may be restricted in our ability to contribute additional capital to WFOE.

We have requested PRC residents
who we know hold a direct or indirect interest in the Company to make the necessary applications, filings and registrations as required
under SAFE Circular 37, and we have confirmed that all of these shareholders have completed the initial foreign exchange registrations
with relevant banks. We cannot assure you, however, that all of these individuals will continue to make the required filings or updates
in a timely manner, or at all. We can provide no assurance that we are or will in the future continue to be informed of the identities
of all PRC residents holding a direct or indirect interest in our Company. Any failure or inability by such individuals to comply with
SAFE regulations may subject us to fines or legal sanctions, restrict our cross-border investment activities, and limit WFOE’s ability
to distribute dividends to us. As a result, our business operations and our ability to make distributions to you could be materially and
adversely affected.

In addition, on February 13,
2015, SAFE promulgated a Notice on Further Simplifying and Improving Foreign Exchange Administration Policy on Direct Investment, or “SAFE
Notice 13,” which became effective on June 1, 2015. Under SAFE Notice 13, applications for foreign exchange registration of
inbound foreign direct investments and outbound overseas direct investments, including those required under SAFE Circular 37, will be
filed with qualified banks instead of SAFE. The qualified banks will directly examine the applications and accept registrations under
the supervision of SAFE.

Furthermore, it is unclear
how these regulations, and any future regulation concerning offshore or cross-border transactions, will be interpreted, amended and implemented
by the