Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 85

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 85
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 enterprise for PRC tax purposes. However, the tax resident status of an enterprise is subject to determination
by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term “de facto management body.”
If the PRC tax authorities determine that Zerolimit Cayman is a PRC resident enterprise for enterprise income tax purposes, we may be
required to withhold a 10% withholding tax from interest or dividends we pay to our noteholders and shareholders that are non-resident
enterprises, including the holders of our Ordinary Shares. In addition, non-resident enterprise noteholders and shareholders (including
holders of our Ordinary Shares) may be subject to PRC tax at a rate of 10% on gains realized on the sale or other disposition of the
Ordinary Shares, if such income is treated as sourced from within the PRC. Furthermore, if we are deemed a PRC resident enterprise, dividends
paid to our non-PRC individual shareholders (including the holders of Ordinary Shares) and any gain realized on the transfer of the Ordinary
Shares by such shareholders may be subject to PRC tax at a rate of 20% (which, in the case of dividends, may be withheld at source by
us). These rates may be reduced by an applicable tax treaty, but it is unclear whether non-PRC shareholders of our Company would be able
to claim the benefits of any tax treaties between their country of tax residence and the PRC in the event that we are treated as a PRC
resident enterprise. Any such tax may reduce the returns on your investment in the Ordinary Shares.

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Risks Related to Doing Business in the PRC

Changes in the PRC’s economic, political or social conditions, as well as government policies, could have an adverse effect on our business and operations and the value of our Ordinary Shares.

All of our operations are
conducted through the VIE located in China. Accordingly, our business, financial condition, results of operations and prospects may be
influenced to a significant degree by political, economic, social conditions and government policies in China generally. While the Chinese
economy has experienced significant growth over the past decades, growth has been uneven, both geographically and among various sectors
of the economy. Any adverse changes in economic conditions in China, in the policies of the PRC government or in the laws and regulations
in China could have a material adverse effect on the overall economic growth of China. Such developments could adversely