Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 75

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 75
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future impact on the results of operations of the VIE will depend on, to a large extent, future developments and new information that
may emerge regarding the duration and severity of the COVID-19 pandemic and the actions taken by government authorities and other entities
to contain the spread or treat its impact, almost all of which are beyond our and the VIE’s control. Given the general slowdown
in economic conditions globally and volatility in the capital markets, we cannot assure you that we will be able to maintain the growth
rate we have experienced or projected. We will continue to closely monitor the situation throughout 2023 and beyond.

The VIE is also vulnerable
to natural disasters and other calamities. The VIE cannot assure you that it is adequately protected from the effects of fire, floods,
typhoons, earthquakes, power loss, telecommunications failures, break-ins, war, riots, terrorist attacks, or similar events. Any of the
foregoing events may give rise to interruptions, damage to the VIE property, delays in production, breakdowns, system failures, technology
platform failures, or internet failures, which could cause the loss or corruption of data or malfunctions of the VIE’s manufacturing
facilities, as well as adversely affect its business, financial condition, and results of operations.

The VIE’s success depends on its technology research and development talents (“R&D Talents”), and the VIE cannot assure their retention.

The VIE’s success
partly depends upon the retention of its R&D Talents. The VIE has a R&D Talents team comprised of 23 employees as of September
30, 2024. There can be no assurance that the existing R&D Talents will be adequate or qualified to carry out the VIE’s
strategies, or that the VIE will be able to hire or retain new R&D Talents to carry out its strategies. The loss of one or more of
the R&D Talents, or the failure to attract and retain additional R&D Talents, could have a material adverse effect on our business,
financial condition and results of operations.

In addition, if the VIE
fails to establish a competitive incentive mechanism in terms of career prospects, salary, benefits and working environment, they may
face the risk of instability in the R&D Talents team, which could adversely affect their long-term development.

If the VIE is not able to maintain and enhance its brands and increase market awareness of the VIE, or effectively develop and expand its