Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 104

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 104
---
ated, the inability for an overseas securities regulator to directly
conduct investigations or evidence collection activities within China may further increase difficulties faced by you in protecting your
interests. See also “Risk Factors — Risks related to this Offering and the Ordinary Shares — You may face difficulties in protecting your interests, and your ability to protect your rights through U.S. courts may be limited, because we are incorporated under Cayman Islands law” for risks associated with investing in us as a Cayman Islands company.”

The M&A Rules and certain other PRC regulations establish complex procedures for some acquisitions of Chinese companies by foreign investors, which could make it more difficult for us to pursue growth through acquisitions in China.

Among other things, the
M&A Rules adopted by six PRC regulatory agencies in 2006 and amended in 2009, established additional procedures and requirements
that could make merger and acquisition activities by foreign investors more time consuming and complex. Such regulation requires, among
other things, that the Ministry of Commerce be notified in advance of any change-of-control transaction in which a foreign investor takes
control of a PRC domestic enterprise or a foreign company with substantial PRC operations, if certain thresholds under the Provisions
on Thresholds for Prior Notification of Concentrations of Undertakings, issued by the State Council in 2008, are triggered. Moreover,
the Anti-Monopoly Law promulgated by the Standing Committee of National People’s Congress, which became effective in 2008, requires
that transactions which are deemed concentrations and involve parties with specified turnover thresholds must be cleared by State Administration
for Market Regulation, or the SAMR, the successive authority of MOFCOM, before they can be completed. In addition, the security review
rules issued by the State Council that became effective in September 2011 specify that mergers and acquisitions by foreign
investors that raise “national defense and security” concerns and mergers and acquisitions through which foreign investors
may acquire de facto control over domestic enterprises that raise “national security” concerns are subject to strict review
by the Ministry of Commerce, and the rules prohibit any activities attempting to bypass a security review, including by structuring
the transaction through a proxy or contractual control arrangement. In the future, we may grow our business by acquiring complementary
businesses, which may be subject to SAMR merger review. Complying with the requirements of the above-mentioned regulations and other
relevant rules to complete such transactions could be time consuming, and any required approval processes, including obtaining