Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 81

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 81
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 personal information and important data outside of
China.

On December 8, 2022, the
Ministry of Industry and Information Technology of China promulgated the Administrative Measures for Data Security in the Field of Industry
and Information Technology (for Trial Implementation) effective from January 1, 2023, which regulate the data processing activities in
the field of industry and information technology conducted within the territory of the PRC. Under the foregoing measures, “data
in the field of industry and information technology” includes industrial data, telecommunications data and radio data; among others,
“industrial data” means data produced and collected in the course of research and development, design, production and manufacturing,
business management, operating maintenance, and platform operation in various sectors and fields of industry. A data processor in the
field of industry and information technology in the PRC shall submit its catalogue of important data and core data to the local
industrial regulatory department for recordation. For transmission of such important data and core outside of China, a security assessment
of cross-border data transfer shall be conducted in accordance with the applicable laws and regulations.

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In addition, the Standing
Committee of the National People’s Congress of the People’s Republic of China (“SCNPC”) promulgated the Data
Security Law of the People’s Republic of China (the “Data Security Law”) on June 10, 2021, which became effective on
September 1, 2021. The Data Security Law imposes data security and privacy obligations on entities and individuals carrying out data
processing activities and introduces a data classification and hierarchical protection system. The classification of data is based on
its importance in economic and social development, as well as the degree of harm expected to be caused to national security, public interests,
or legitimate rights and interests of individuals or organizations if such data is tampered with, destroyed, leaked, or illegally acquired
or used. The security assessment mechanism was also included in the Personal Information Protection Law (the “Personal Information
Protection Law”), which was promulgated in August of 2021 and became effective on November 1, 2021, for the Chinese government
to supervise certain cross-border transfers of personal information.

We expect that these data
protection and transfer laws and regulations will receive greater attention and focus from regulators going forward, and the VIE will
face uncertainty as to whether the VIE’s efforts to comply with evolving obligations under data protection, privacy and security
laws in China and the