Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 95

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 95
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technology industry will be subject to the “negative list” to be issued in the future. There are uncertainties as to how
the PRC Foreign Investment Law would be further interpreted and implemented. We cannot assure you that the interpretation and implementation
of the PRC Foreign Investment Law made by the relevant governmental authorities in the future will not materially impact the viability
of our current corporate structure, corporate governance and business operations in any aspect.

We may rely on dividends and other distributions on equity paid by WFOE to fund any cash and financing requirements we may have, and any limitation on the ability of WFOE to make payments to us and any tax we are required to pay could have a material adverse effect on our ability to conduct our business.

We are a Cayman Islands
holding company and we may rely on dividends and other distributions on equity from WFOE for our cash requirements, including the funds
necessary to pay dividends and other cash distributions to our shareholders and for services of any debt we may incur. WFOE’s ability
to distribute dividends in turn depends on the payment it receives from the VIE as service fees pursuant to certain contractual arrangements
among WFOE, the VIE and the VIE Shareholders entered into to comply with certain restrictions under PRC law on foreign investment.
For more information on such contractual arrangements, see “Corporate History and Structure — the VIE Agreements.”

According to the Foreign
Investment Law of the PRC and its implementing rules, which jointly established the legal framework for the administration of foreign-invested
companies, a foreign investor may, in accordance with other applicable laws, freely transfer into or out of China its contributions,
profits, capital earnings, income from asset disposal, intellectual property rights, royalties acquired, compensation or indemnity legally
obtained, and income from liquidation, made or derived within the territory of China in RMB or any foreign currency, and any entity or
individual shall not illegally restrict such transfer in terms of the currency, amount and frequency. According to the Company Law of
the PRC and other Chinese laws and regulations, WFOE may pay dividends only out of its accumulated profits as determined in accordance
with Chinese accounting standards and regulations. In addition, WFOE is required to set aside at least 10% of its accumulated after-tax
profits, if any, each year to fund a certain statutory reserve fund, until the aggregate amount of such fund reaches 50% of its registered
capital. Where the statutory reserve fund