Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 194

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 194
---
 the day following the lapse of one month from the date
of establishment of the employment relationship to the day prior to the execution of the written employment contract. The Labor Contract
Law and its implementation rules also require compensation to be paid upon certain terminations, which significantly affects the cost
of reducing workforce for employers. In addition, if an employer intends to enforce a non-compete provision in an employment contract
or non-competition agreement with an employee, it has to compensate the employee on a monthly basis during the term of the restriction
period after the termination or expiry of the labor contract. Employers in most cases are also required to provide severance payment to
their employees after their employment relationships are terminated.

Enterprises in China are
required by PRC laws and regulations to participate in certain employee benefit plans, including social insurance funds, namely a pension
plan, a medical insurance plan, an unemployment insurance plan, a work-related injury insurance plan and a maternity insurance plan,
and a housing provident fund, and contribute to the plans or funds in amounts equal to certain percentages of salaries, including bonuses
and allowances, of the employees as specified by the local government from time to time at locations where they operate their businesses
or where they are located. According to the Social Insurance Law, an employer that fails to make social insurance contributions may be
ordered to pay the required contributions within a stipulated deadline and be subject to a late fee. If the employer still fails to rectify
the failure to make social insurance contributions within the stipulated deadline, it may be subject to a fine ranging from one to three
times the amount overdue. According to the Regulations on Management of Housing Fund, an enterprise that fails to make housing fund contributions
may be ordered to rectify the noncompliance and pay the required contributions within a stipulated deadline; otherwise, an application
may be made to a local court for compulsory enforcement.

| 120 |

Regulations in Relation to Foreign Exchange

Regulations on Foreign Currency Exchange

Pursuant to the Foreign
Exchange Administration Regulations, as amended on August 5, 2008, Renminbi is freely convertible for current account items, including
the distribution of dividends, interest payments, trade and service-related foreign exchange transactions, but not for capital account
items, such as direct investments, loans, repatriation of investments and investments in securities outside of China, unless prior approval
is obtained from SAFE and prior registration with SAFE is made.

SAFE promulgated the Notice
of the State