Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 33

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 33
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 which includes
dividends and trade and service-related foreign exchange transactions, but not under the “capital account,” which includes
foreign direct investment and foreign currency debt, including loans we may secure for our onshore subsidiary. Currently, WFOE may purchase
foreign currency for settlement of “current account transactions,” without the approval of the State Administration of Foreign
Exchange of China (“SAFE”) by complying with certain procedural requirements. However, the relevant Chinese governmental
authorities may limit or eliminate our ability to purchase foreign currencies in the future for current account transactions. The Chinese
government may continue to strengthen its capital controls, and additional restrictions and substantial vetting processes may be instituted
by SAFE for cross-border transactions falling under both the current account and the capital account. Any existing and future restrictions
on currency exchange may limit our ability to utilize revenues generated in renminbi to fund our business activities outside of China
or pay dividends in foreign currencies to holders of our securities. Foreign exchange transactions under the capital account remain subject
to limitations and require approvals from, or registration with, SAFE and other relevant Chinese governmental authorities. This could
affect our ability to obtain foreign currency through debt or equity financing for our subsidiaries. See “Risk Factors — Risks Related to Doing Business in the PRC — We may rely on dividends and other distributions on equity paid by WFOE to fund any cash and financing requirements we may have, and any limitation on the ability of WFOE to make payments to us and any tax we are required to pay could have a material adverse effect on our ability to conduct our business.” For a detailed
discussion of the Chinese legal restrictions on the payment of dividends and our ability to transfer cash within our organization. See
“Risk Factors — Risks Related to Our Corporate Structure — Government control of currency conversion and transfers of funds may limit our ability to utilize revenues, remit dividends, make distributions or otherwise transfer cash among our subsidiaries and the VIE effectively, which may affect the value of your investment. In addition, if we are considered a
PRC tax resident enterprise for tax purposes, any dividends we pay to our overseas shareholders may be regarded as China-sourced income
and, as a result, may be subject to PRC withholding tax at a rate of up to 10.0%.

In order for us to pay dividends
to our shareholders, we will rely on payments made from the VIE to WFOE in accordance with the VIE Agreements, and the distribution of
payments from WFO