Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 107

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 107
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 are not allowed to provide documents or materials related to securities business activities
to foreign agencies without prior consent from the securities regulatory authority of the PRC State Council and the competent departments
of the PRC State Council. While detailed interpretation of or implementing rules under Article 177 have yet to be promulgated, the inability
for an overseas securities regulator to directly conduct investigation or evidence collection activities within China may further increase
difficulties faced by you in protecting your interests.

Increases in labor costs in the PRC may adversely affect the VIE’s business and profitability and failure to comply with PRC labor laws may subject the VIE to penalties.

China’s economy has
experienced increases in labor costs in recent years. China’s overall economy and the average wage in China are expected to continue
to grow. The average wage levels for the VIE’s employees have also increased in recent years. The VIE expects that its labor costs,
including wages and employee benefits, will continue to increase. Unless the VIE is able to pass on these increased labor costs to its
clients by increasing prices for its products and/or services, the VIE’s profitability and results of operations may be materially
and adversely affected.

In addition, the VIE has
been subject to stricter regulatory requirements with respect to labor contracts with its employees and the payment of various statutory
employee benefits, including pensions, housing fund deposits, medical insurance, work-related injury insurance, unemployment insurance,
and maternity insurance to designated government agencies for the benefit of their employees. Pursuant to the PRC Labor Contract Law,
or the “Labor Contract Law,” that became effective in January 2008 and its amendments that became effective in July 2013
and its implementing rules that became effective in September 2008, employers are subject to stricter requirements in terms of signing
labor contracts, minimum wages, paying remuneration, determining the term of employees’ probation, and unilaterally terminating
labor contracts. In the event that the VIE decides to terminate some of its employees or otherwise changes its employment or labor practices,
the Labor Contract Law and its implementation rules may limit the VIE’s ability to effect those changes in a desirable or
cost-effective manner, which could adversely affect the VIE’s business and results of operations.

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Companies operating in China
are required by PRC labor-related laws and regulations to pay various statutory employee benefits, including pensions insurance, medical
insurance, work-related injury insurance, unemployment insurance, maternity insurance and housing provident