Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 103

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 103
---
 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 relevant government authorities. For example, we may be subject to a more stringent review and approval process with respect to
our foreign exchange activities, such as remittance of dividends and foreign-currency-denominated borrowings, which may adversely affect
our financial condition and results of operations. In addition, if we decide to acquire a PRC domestic company, we cannot assure you
that we or the owners of such company, as the case may be, will be able to obtain the necessary approvals or complete the necessary filings
and registrations required by the foreign exchange regulations. This may restrict our ability to implement our acquisition strategy and
could adversely affect our business and prospects.

| 54 |

It may be difficult for overseas regulators to conduct investigations or collect evidence within China.

There are significant legal
and other obstacles to providing information needed for regulatory investigations or litigation initiated outside China. Although the
authorities in China may establish a regulatory cooperation mechanism with the securities regulatory authorities of another country or
region to implement cross-border supervision and administration, such cooperation with the securities regulatory authorities in the United
States may not be efficient in the absence of mutual and practical cooperation mechanism. Furthermore, according to Article 177
of the PRC Securities Law, or Article 177, which became effective in March 2020, no overseas securities regulator is allowed to
directly conduct investigations or evidence collection activities within the territory of the PRC. While detailed interpretation of or
implementation rules under Article 177 have yet to be promulg