Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 43

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 43
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 operations in China;                          |
| · | imposing conditions or requirements with which we may not be able to                
 comply;                                                                             |
| · | requiring us to change our corporate structure and contractual arrangements;        |
| · | restricting or prohibiting our use of the proceeds from the overseas                
 offering to finance our consolidated VIE’s business and operations in China; and or |
| · | taking other regulatory or enforcement actions that could be harmful                
 to our business.                                                                    |

Furthermore, new PRC laws,
rules and regulations may be introduced to impose additional requirements that may be applicable to our corporate structure and
contractual arrangements. The occurrence of any of these events could materially and adversely affect our business, financial condition
and results of operations and the market price of our Ordinary Shares. In addition, if the imposition of any of these penalties or a
requirement to restructure our corporate structure causes us to lose the rights to direct the activities of the VIE or our right to receive
their economic benefits for accounting purposes, we would no longer be able to consolidate the financial results of the VIE into our
consolidated financial statements for accounting purposes, which may cause the value of our securities to significantly decline or even
become worthless.

| 24 |

The VIE Shareholders may have actual or potential conflicts of interest with us, which may materially and adversely affect our business and financial condition.

Pursuant to the VIE Agreements,
the VIE shall pay service fees in an amount equivalent to all of its net income to WFOE, and WFOE has the power to direct the activities
of the VIE, which can significantly impact the VIE’s economic performance, and WFOE has the right to receive substantially all
of the economic benefits of the VIE. Such contractual arrangements are designed so that the operations of the VIE are solely for the
benefit of WFOE and, ultimately, our Company. As such, under U.S. GAAP, our Company is deemed to have a controlling financial interest
in, and be the primary beneficiary of, the VIE for accounting purposes and is required to consolidate the VIE. We refer to the VIE Shareholders
as its nominee shareholders because, although they remain the holders of equity interests on record in the VIE, pursuant to the terms
of the Powers of Attorney, each such VIE Shareholder has irrevocably authorized our Company to exercise his, her or its rights as a shareholder
of the VIE. As