Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 94

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 94
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 other regulatory procedures for
our prior offshore offerings, we may be unable to obtain a waiver of such approval requirements, if and when procedures are established
to obtain such a waiver.

Any uncertainties or negative publicity regarding such approval requirement could materially and adversely affect our business, prospects, financial condition, reputation, and the trading price of our securities.

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Uncertainties exist with respect to the interpretation and implementation of newly enacted PRC Foreign Investment Law and its Implementation Rules and how they may impact the viability of our current corporate structure, corporate governance, and operations.

We have been advised by
our PRC counsel that on March 15, 2019, the PRC National People’s Congress approved the PRC Foreign Investment Law (the “FIL”),
which came into effect on January 1, 2020 and replaced the trio of existing laws regulating foreign investment in China, namely,
the Sino-foreign Equity Joint Venture Enterprise Law, the Sino-foreign Cooperative Joint Venture Enterprise Law, and the Wholly Foreign-invested
Enterprise Law, together with their implementation rules and ancillary regulations. On December 26, 2019, the PRC State Council
approved the Implementation Rules of Foreign Investment Law, which came into effect on January 1, 2020. The PRC Foreign Investment
Law and its Implementation Rules embody an expected PRC regulatory trend to rationalize its foreign investment regulatory regime
in line with prevailing international practice and the legislative efforts to unify the corporate legal requirements for both foreign
and domestic investments. However, since the PRC Foreign Investment Law is relatively new, substantial uncertainties exist with respect
to its interpretation and implementation and future actions with respect to such laws and regulations promulgated thereunder could significantly
limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to
significantly decline or become worthless.

The PRC Foreign Investment
Law specifies that foreign investments shall be conducted in line with the “negative list” issued by the State Council. A
foreign invested enterprise under PRC law, or an FIE, would not be allowed to make investments in prohibited industries in the “negative
list,” while the FIE must satisfy certain conditions stipulated in the “negative list” for investment in restricted
industries. Although the decentralized distributed technology industry, in which the VIE operates is currently not subject to the foreign
investment restrictions or prohibitions set forth on the “negative list,” it is uncertain whether the decentralized