Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 53

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 53
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 the National People’s Congress of the
PRC has the power to amend the Basic Law, the Basic Law also expressly provides that no amendment to the Basic Law shall contravene the
established basic policies of the PRC regarding Hong Kong. As a result, national laws of the PRC not listed in Annex III of the Basic
Law do not apply to our Hong Kong subsidiary. However, there is no assurance that our Hong Kong subsidiary will not become subject to
PRC laws or regulations as a result of any significant change in the current political arrangements between mainland China and Hong Kong
or any other unforeseeable reasons, in which event our Hong Kong subsidiary could be subject to similar government controls on the convertibility
of foreign currency and the remittance of currency out of Hong Kong as described above.

As a result of the above,
to the extent cash in the business is in mainland China or Hong Kong or business may be conducted by a mainland China or Hong Kong entity,
such funds or assets may not be available to fund operations or for other use outside of mainland China or Hong Kong, as applicable,
due to interventions in or the imposition of restrictions and limitations on the ability of us, our subsidiaries, or the VIE by the competent
government to the transfer of cash.

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Risks Related to Our Business

The VIE’s operating history may not be indicative of its future growth or financial results and the VIE may not be able to sustain its historical growth rates, which may adversely affect the market price of our Ordinary Shares.

The VIE’s operating
history may not be indicative of its future growth or financial results. There is no assurance that the VIE will be able to grow its
revenues in future periods. The VIE’s growth rates may decline for any number of possible reasons, and some of them are beyond
its control, including decreasing demand for its software and hardware solutions, increasing competition, declining growth of the decentralized
distributed technology industry in general, emergence of alternative business models, or changes in government policies or general economic
conditions. The VIE expects that its distributors will continue to expand their sales networks to increase its users and provide service
and convenience to them. However, the execution of the VIE’s expansion plan is subject to uncertainty and the VIE may not grow
at the rate management of the VIE expects for the reasons stated above. If the VIE’s growth rates decline, investors’ perceptions
of our business and prospects may be adversely affected and the market