Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 322

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 322
---
 from Industrial
and Commercial Bank of China Limited Shenzhen Hi-Tech Park South Branch with interest rate of 2.75%, the loan was guaranteed by Guangdong
Financing Re Guarantee Co., Ltd.

On Nov 15, 2024, the Company obtained $646,945 borrowings from China
Guangfa Bank Co., Ltd. Shenzhen Branch with interest rate of 3.6%.

The term of the borrowings shall not exceed one
year.

23. Condensed financial information of the parent company

The Company’s PRC subsidiaries are restricted
in their ability to transfer a portion of their net assets to the Company. Payment of dividends by entities organized in the PRC are subject
to limitations, procedures and formalities. Regulations in the PRC currently permit payments of dividends only out of accumulated profits
as determined in accordance with accounting standards and regulations in the PRC. The Company’s PRC subsidiaries are also required
to set aside at least 10% of its after-tax profit based on PRC accounting standards each year to its statutory reserves account until
the accumulative amount of such reserves reaches 50% of its respective registered capital. The aforementioned reserves can only be used
for specific purposes and are not distributable as cash dividends.

In addition, the Company’s operations and
revenues are conducted and generated in the PRC, all of the Company’s revenue being earned and currency received is denominated
in RMB. RMB is subject to the foreign exchange control regulation in China, and, as a result, the Company may be unable to distribute
any dividends outside of China due to PRC foreign exchange control regulations that restrict the Company’s ability to convert RMB
into USD.

Regulation S-X requires that the condensed financial
information of registrant shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated
net assets as of the end of the most recently completed fiscal year. For purposes of the above test, restricted net assets of consolidated
subsidiaries shall mean that amount of the registrant’s proportionate share of net assets of consolidated subsidiaries (after intercompany
eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form
of loans, advances or cash dividends without the consent of a third party. The condensed parent company financial statements have been
prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the Company’s