Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 124

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 124
---
 require significant attention from our senior management and could divert attention away
from the day-to-day management of our operating business, which could adversely affect our business, financial conditions and results
of operations.

The obligation to disclose information publicly may put us at a disadvantage to competitors that are private companies.

Upon effectiveness of the
registration statement of which this prospectus forms a part, we will be a public company in the United States. As a public company,
we will be required to file periodic reports with the SEC upon the occurrence of matters that are material to our Company and shareholders.
Although we may be able to attain confidential treatment of some of our developments, in some cases, we will need to disclose material
agreements or results of financial operations that we would not be required to disclose if we were a private company. Our competitors
would be able to gain access to this information, which would otherwise be confidential. This may give them advantages in competing with
our Company. Similarly, as a U.S. public company, we will be governed by U.S. laws that our competitors, which are mostly private companies
in the PRC, are not required to follow. To the extent that compliance with U.S. laws increases our expenses or decreases our competitiveness
against such companies, our public company status could affect our results of operations.

Cayman Islands economic substance requirements may have an effect on our business and operations.

Pursuant to the International
Tax Cooperation (Economic Substance) Act, 2018 of the Cayman Islands, or the ES Act, that came into effect on January 1, 2019, a
“relevant entity” is required to satisfy the economic substance test set out in the ES Act. Our Company is deemed to be a
“relevant entity” since it is an exempted company incorporated in the Cayman Islands. Based on our Cayman Islands counsel’s
current interpretation of the ES Act, we believe that our Company is a pure equity holding company since it only holds equity participation
in other entities and only earns dividends and capital gains. Accordingly, for so long as our Company is a “pure equity holding
company,” it is only subject to the minimum substance requirements, which require us to (i) comply with all applicable filing
requirements under the Companies Act; and (ii) have adequate human resources and adequate premises in the Cayman Islands for holding
and managing equity participations in other entities. However, there can be no assurance that we will not be subject to more requirements
under the