Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 99

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 99
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for dividends on our Ordinary Shares or for other business purposes, appreciation of the U.S. dollar against the Renminbi would have
a negative effect on the U.S. dollar amount available to us.

| 52 |

Very limited hedging options
are available in China to reduce our exposure to exchange rate fluctuations. To date, we have not entered into any material hedging transactions
in an effort to reduce our exposure to foreign currency exchange risk. While we may decide to enter into hedging transactions in the
future, the availability and effectiveness of these hedges may be limited, and we may not be able to adequately hedge our exposure or
at all. In addition, our currency exchange losses may be magnified by PRC exchange control regulations that restrict our ability to convert
Renminbi into foreign currency.

Governmental control of currency conversion may limit our ability to utilize our revenues effectively and affect the value of your investment.

The PRC government imposes
controls on the convertibility of the Renminbi into foreign currencies and, in certain cases, the remittance of currency out of China.
We receive all of our revenues in Renminbi. Under our current corporate structure, our Cayman Islands holding company may rely on dividend
payments from our China subsidiary to fund any cash and financing requirements we may have. Under existing PRC foreign exchange regulations,
payments of current account items, including profit distributions, interest payments and trade and service-related foreign exchange transactions,
can be made in foreign currencies without prior approval of State Administration of Foreign Exchange, or SAFE, by complying with certain
procedural requirements. Specifically, under the existing exchange restrictions, without prior approval of SAFE, cash generated from
the operations of our China subsidiary in China may be used to pay dividends to our Company.

However, approval from or
registration with appropriate government authorities is required where Renminbi is to be converted into foreign currency and remitted
out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. As a result, we need to obtain
SAFE approval to use cash generated from the operations of our China subsidiary and VIE to pay off their respective debt in a currency
other than Renminbi owed to entities outside China, or to make other capital expenditure payments outside China in a currency other than
Renminbi.

The PRC government has imposed
restrictive foreign exchange policies. and stepped-up scrutiny of major outbound capital movement including overseas direct investment.
More restrictions and substantial vetting process are put in place by