Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 86

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 86
---
 affect our business
and operating results, lead to reduction in demand for the products of the VIE and adversely affect our competitive position. The PRC
government has implemented various measures to encourage economic growth and guide the allocation of resources. Some of these measures
may benefit the overall Chinese economy, but may have a negative effect on us. In addition, in the past the PRC government has implemented
certain measures, including interest rate adjustment, to control the pace of economic growth. These measures may affect our business
and operating results.

Furthermore, our Company,
the VIE, and our investors may face uncertainty about future actions by the government of China that could significantly affect the VIE’s
financial performance and operations, including the enforceability of the contractual arrangements that constitute the VIE Agreements.
We cannot assure you that the PRC government will not initiate possible governmental actions or scrutiny to us, which could substantially
affect our operation and the value of our Ordinary Shares may depreciate quickly.

There are uncertainties regarding the interpretation and enforcement of PRC laws, rules and regulations.

All of the VIE’s operations
are conducted in the PRC, and are governed by PRC laws, rules and regulations. The PRC legal system is a civil law system based on written
statutes and prior court decisions may not be cited for reference. The PRC government authorities may strengthen oversight and control
over offerings that are conducted overseas and/or foreign investment in China-based issuers like us. Such actions taken by the PRC government
authorities may intervene or influence the VIE’s operations at any time, which are beyond our control. Therefore, any such action
may adversely affect our or the VIE’s operations and could completely limit or hinder our ability to offer or continue to offer
securities to you and cause the value of such securities to significantly decline or become worthless.

In 1979, the PRC government
began to promulgate a comprehensive system of laws, rules and regulations governing economic matters in general. The overall effect of
legislation over the past four decades has significantly enhanced the protections afforded to various forms of foreign investment in
China. However, the recently enacted laws, rules and regulations in China may not sufficiently cover all aspects of economic activities
in China or may be subject to significant degrees of interpretation by PRC regulatory agencies. In particular, because these laws, rules
and regulations are relatively new, and because of the limited number of published decisions and the nonbinding nature of such decisions,