Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 321

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 321
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 of September 30, 2023                         |     | —   |     | —   |     | —   |     | —   |     | 15% |     | 19% |     | 34% |     | 16% |     | 16% |     | — |

| F-31 |

| d) | VIE risk |

Under the Contractual Agreements with the consolidated
VIE, the Company has the power to direct activities of the consolidated VIE and VIE’s subsidiaries through the Company’s relevant
PRC subsidiaries and can have assets transferred freely out of the consolidated VIE and VIE’s subsidiaries without restrictions.
Therefore, the Company considers that there is no asset of the consolidated VIE that can only be used to settle obligations of the respective
consolidated VIE, except for the registered capital of the consolidated VIE amounting to $2,953,991 as of September 30, 2024. Since the
consolidated VIE and VIE’s subsidiaries are incorporated as limited liability companies under the PRC Law, creditors of the consolidated
VIE and VIE’s subsidiaries do not have recourse to the general credit of the Company.

The Company believes that the Company’s
relevant PRC subsidiaries’ Contractual Arrangements with the consolidated VIE and the Equity Shareholders are in compliance with
PRC laws and regulations, as applicable, and are legally binding and enforceable. However, uncertainties in the PRC legal system could
limit the Company’s ability to enforce these Contractual Arrangements.

In addition, if the current structure or any
of the Contractual Arrangements were found to be in violation of any existing or future PRC law, the Company may be subject to penalties,
which may include, but not limited to, cancellation or revocation of the Company’s business and operating licenses and being required
to restructure the Company’s operations or terminate the Company’s operating activities. The imposition of any of these or
other penalties may result in a material and adverse effect on the Company’s ability to conduct its operations. In such case, the
Company may not be able to operate or control the VIE, which may result in deconsolidation of the VIE.

21. Commitments and contingencies

From time to time, the Company may become involved
in various lawsuits and legal proceedings, which arise in the ordinary course of business. Litigation is subject to inherent uncertainties,
and an adverse result in these