Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 98

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 98
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 be subjected to tighter scrutiny in the future. Any limitation on the ability of
WFOE to pay dividends or make other distributions to us could materially and adversely limit our ability to grow, make investments or
acquisitions that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business.

Under the Enterprise Income
Tax Law and related regulations, dividends, interests, rent or royalties payable by a foreign invested enterprise, such as WFOE, to any
of its foreign non-resident enterprise investors, and proceeds from any such foreign enterprise investor’s disposition of assets
(after deducting the net value of such assets) are subject to a 10% withholding tax, unless the foreign enterprise investor’s jurisdiction
of incorporation has a tax treaty with China that provides for a reduced rate of withholding tax. Undistributed profits earned by foreign-invested
enterprises prior to January 1, 2008 are exempted from any withholding tax. The Cayman Islands, where our Company is incorporated, does
not have such a tax treaty with China. Hong Kong has a tax arrangement with China that provides for a 5% withholding tax on dividends
subject to certain conditions and requirements, such as the requirement that the Hong Kong resident enterprise own at least 25% of the
PRC enterprise distributing the dividend at all times within the 12-month period immediately preceding the distribution of dividends and
be a “beneficial owner” of the dividends. If WFOE declares and distributes profits to us, such payments will be subject to
withholding tax, which will increase our tax liability and reduce the amount of cash available to our Company.

The Cayman Islands is a party
to a double tax treaty entered into with the United Kingdom in 2010 but is otherwise not party to any double tax treaties that are applicable
to any payments made to or by the Company.

Fluctuations in exchange rates could have a material adverse impact on our results of operations and the value of your investment.

The conversion of the Renminbi
into foreign currencies, including U.S. dollars, is based on rates set by the People’s Bank of China. The Renminbi has fluctuated
against the U.S. dollar, at times significantly and unpredictably. The value of the Renminbi against the U.S. dollar and other currencies
may fluctuate and is affected by, among other things, changes in political and economic conditions in China and by China’s foreign
exchange policies, among other things. We cannot assure