Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 23

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 23
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 list on U.S. exchanges.

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As advised by our PRC counsel,
(1) PRC governmental authorities have significant discretion in interpreting and implementing statutory provisions. If our or VIE’s
business is identified by the PRC government authorities as falling under the category of "critical information infrastructure operators
purchasing network products and services that may impact or potentially impact national security", then we need to comply with the
obligations regarding cybersecurity review. In that case, any failure or delay in the completion of the cybersecurity review procedures
or any other non-compliance with applicable laws and regulations may result in fines, suspension of business or other penalties, as well
as reputational damage or legal proceedings or actions against us, which may have a material adverse effect on our business, financial
condition or results of operations; (2) we are subject to the Trial Measures for filing procedures with the CSRC; and (3) since these
statements and regulatory actions by the PRC government are newly published and there exists uncertainty with respect to their requirements
and implementation, it is uncertain what the potential impact such modified or new laws and regulations will have on our or the VIE’s
daily business operation, the ability to accept foreign investments and listing on U.S. stock exchanges. As of the date of this prospectus,
we have prepared the filing application materials required by the Trial Measures, however, we cannot assure you that we will be able
to complete such filings with the CSRC pursuant to the Trial Measures in a timely manner or even at all. Any failure by us to comply
with such filing requirements under the Trial Measures may result in an order to rectify, warnings and fines against us and could materially
hinder our ability to offer or continue to offer our securities.

The Standing Committee of
the National People’s Congress (the “SCNPC”) or other PRC regulatory authorities may in the future promulgate laws,
regulations or implementing rules that require our Company, or the VIE to obtain regulatory approval from Chinese authorities before
listing in the U.S. Although as of the date of this prospectus, the Company and the VIE have not been involved in any investigations
on cybersecurity review initiated by any PRC regulatory authority, nor has any of them received any inquiry, notice or sanction in such
respect, it is uncertain whether or when we might be required to obtain permission from any PRC governmental authority to list our shares
overseas, and even if such permission is obtained,