Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 102

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 102
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 beneficial owners or WFOE to liability or penalties, limit our ability to inject capital into WFOE, limit WFOE’s ability to increase its registered capital or distribute profits to us, or may otherwise adversely affect us.

In July 2014, SAFE promulgated
the Circular on Relevant Issues Concerning Foreign Exchange Control on Domestic Residents’ Offshore Investment and Financing and
Roundtrip Investment Through Special Purpose Vehicles, or SAFE Circular 37, to replace the Notice on Relevant Issues Concerning Foreign
Exchange Administration for Domestic Residents’ Financing and Roundtrip Investment Through Offshore Special Purpose Vehicles, or
SAFE Circular 75, which ceased to be effective upon the promulgation of SAFE Circular 37. SAFE Circular 37 requires PRC residents (including
PRC individuals and PRC corporate entities) to register with SAFE or its local branches in connection with their direct or indirect offshore
investment activities. SAFE Circular 37 is applicable to our shareholders who are PRC residents and may be applicable to any offshore
acquisitions that we make in the future.

Under SAFE Circular 37,
PRC residents who make, or have prior to the implementation of SAFE Circular 37 made, direct or indirect investments in offshore special
purpose vehicles, or SPVs, will be required to register such investments with SAFE or its local branches. In addition, any PRC resident
who is a direct or indirect shareholder of an SPV is required to update its filed registration with the local branch of SAFE with respect
to that SPV, to reflect any material change. If our shareholders who are PRC residents or entities fail to make the required registration
or to update the previously filed registration, WFOE may be prohibited from distributing their profits and any proceeds from any reduction
in capital, share transfer or liquidation to us, and we may be restricted in our ability to contribute additional capital to WFOE.

We have requested PRC residents
who we know hold a direct or indirect interest in the Company to make the necessary applications, filings and registrations as required
under SAFE Circular 37, and we have confirmed that all of these shareholders have completed the initial foreign exchange registrations
with relevant banks. We cannot assure you, however, that all of these individuals may continue to make the required filings or updates
in a timely manner, or at all. We can provide no assurance that we are or will in the future continue to be informed of identities of
all PRC residents holding a direct or indirect interest in our Company. Any failure or