Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 323

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 323
---
 distributed network and its construction method                                 |     |                          | 32,534 |
| Total             |     |                                                                                   |     | $                        | 40,533 |

| F-32 |

On Oct 24, 2024, the Company obtained $712,494
borrowings from Industrial and Commercial Bank of China Limited Shenzhen Hi-Tech Park South Branch with an interest rate of 2.75%. The
loan was guaranteed by Guangdong Financing Re Guarantee Co., Ltd.

On Nov 15, 2024, the Company obtained $646,945
borrowings from China Guangfa Bank Co., Ltd. Shenzhen Branch with an interest rate of 3.6%.

The term of the borrowings shall not exceed one
year.

23. Condensed financial information of the parent company

The Company’s PRC subsidiaries are restricted
in their ability to transfer a portion of their net assets to the Company. Payment of dividends by entities organized in the PRC are
subject to limitations, procedures and formalities. Regulations in the PRC currently permit payments of dividends only out of accumulated
profits as determined in accordance with accounting standards and regulations in the PRC. The Company’s PRC subsidiaries are also
required to set aside at least 10% of its after-tax profit based on PRC accounting standards each year to its statutory reserves account
until the accumulative amount of such reserves reaches 50% of its respective registered capital. The aforementioned reserves can only
be used for specific purposes and are not distributable as cash dividends.

In addition, the Company’s operations and
revenues are conducted and generated in the PRC, all of the Company’s revenue being earned and currency received is denominated
in RMB. RMB is subject to the foreign exchange control regulation in China, and, as a result, the Company may be unable to distribute
any dividends outside of China due to PRC foreign exchange control regulations that restrict the Company’s ability to convert RMB
into USD.

Regulation S-X requires that the condensed financial
information of registrant shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated
net assets as of the end of the most recently completed fiscal year. For purposes of the above test, restricted net assets of consolidated
subsidiaries shall mean that amount of the registrant’s proportionate share of net assets of consolidated subsidiaries (after intercompany
eliminations), which, as of the end of the most recent fiscal year, may not