Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 322

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 322
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 China (“PBOC”).
Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory
bodies which require certain supporting documentation in order to process the remittance.

The Company’s functional currency is the
RMB, and its consolidated financial statements are presented in U.S. dollars. The RMB depreciated by 2.8% in the year ended December
31, 2023. The RMB depreciated by 8.57% in the year ended December 31, 2022 and appreciated by 2.29% in the year ended December 31, 2021
from December 31, 2020 to December 31, 2021. It is difficult to predict how market forces or PRC or U.S. government policy may impact
the exchange rate between the RMB and the U.S. dollar in the future. The change in the value of the RMB relative to the U.S. dollar may
affect its financial results reported in the U.S. dollar terms without giving effect to any underlying changes in its business or results
of operations. Currently, the Company’s assets, liabilities, revenues and costs are denominated in RMB.

To the extent that the Company needs to convert
U.S. dollars into RMB for capital expenditures and working capital and other business purposes, appreciation of RMB against U.S. dollar
would have an adverse effect on the RMB amount the Company would receive from the conversion. Conversely, if the Company decides to convert
RMB into U.S. dollar for the purpose of making payments for dividends, strategic acquisition or investments or other business purposes,
appreciation of U.S. dollar against RMB would have a negative effect on the U.S. dollar amount available to the Company.

| c) | Concentration              
 of customers and suppliers |

The following tables summarized the information
about the Group’s concentration of customers and suppliers for the years ended September 30, 2024 and 2023 or as of September
30, 2024 and 2023, respectively:

| Revenues, customer concentration                 
 risk                                             
 Year ended September 30, 2024                    
 Year ended September 30, 2023                    |     | A   
 11% 
 —   |     | B   
 11% 
 —   |     | C   
 10% 
 —   |     | D   
 —   
 —   |