Zerolimit Technology Holding IPO: Will Zero-Tech's Digital Turf Enable a Breakthrough in the US Market?

During the first half of 2025, while the Hong Kong IPO market was lively, Chinese enterprises listed on the US market showed an active trend. According to statistics, there were 45 successful listings in the United States, accounting for 22% of the US IPO market, surpassing last year's 30 companies. Among them, 40 companies went public through IPOs, 4 De-SPAC, and 1 OTC listing. Excluding the 4 De-SPAC and 1 OTC listing, Chinese enterprises listed on the US market raised approximately $8.7 billion in the first half of 2025, with a growth rate that exceeds expectations. It is clear that the US market still has attention and investment interest in Chinese enterprises.

Recently, another Chinese enterprise submitted its IPO application to the US Securities and Exchange Commission (SEC), preparing to list on the US stock market.

Zhitong Caijing APP obtained information that Zerolimit Technology Holding (Zerolimit Technology Holding) has filed its initial public offering (IPO) application with the SEC, with a ticker symbol of "ZDAN". The company plans to issue 200,000 shares at $4 per share, raising $800 million. According to the proposed price, Zerolimit Technology Holding's market value would reach approximately $2.08 billion.

Stable Performance

According to the prospectus, Zerolimit Technology Holding was established in 2017 in Shenzhen as a digital economy distributed application service provider. The company is committed to providing comprehensive solutions for global users during their transition to the new generation of the Internet, and providing digital solutions for government, enterprises, and all industries. Its distributed network infrastructure software products can enable high-efficiency construction of distributed networks or migration of existing centralized applications to distributed networks. The application fields include digital governance, distributed online education, distributed search engines, distributed e-commerce, digital asset platforms, food traceability, IoT, smart manufacturing, etc.

The company primarily generates revenue through the sale of software products to distributors and contract services. As of 2024 and 2023, the company had 35 and 28 distributors in China, respectively. Currently, sales have expanded to 9 provinces and 11 cities in China.

From a performance perspective, the company's stable growth rate over the past two years is evident. As of September 30, 2023 and 2024, the company achieved revenue of $418.7 million and $438.1 million, respectively, with a year-on-year increase of 5%; net profit also increased by 7% to $252.3 million and $271.1 million, respectively, with a year-on-year increase of 7%. Both core financial indicators have achieved stable growth.

By product line, the cloud data node software is the company's main revenue source. According to reports, it is a basic toolkit for building distributed networks, capable of converting devices into network nodes. As a core module, it can run specific tasks independently or integrate with other software. Each node is equivalent to a miniature server that provides storage and computing capabilities, supporting user participation in developing distributed networks.

During the reporting period, revenue from this business continued to grow, achieving $490.3 million and $531.2 million, respectively, accounting for 86.3% and 89.9%, respectively.

At the same time, the company's database node software and hardware business also benefited from new product launches in 2025, generating revenue of $12.3 million.

However, the sales of smart metaverse boxes and decentralized application software declined during the reporting period. Specifically, the revenue of the smart metaverse box business fell to $3.7 million from $14.3 million in 2024, accounting for only 0.6% of total revenue; the revenue of the decentralized application software business fell to $43.4 million from $63.5 million in 2024, accounting for only 7.4% of total revenue.

Policy-driven Growth

The stable performance and industry growth are inseparable.

As the backbone force leading the implementation of national innovation strategies, digital economy has received increasing market attention in recent years. Data as a production factor can foster and drive the development of new industries, new business models, and new technologies, promoting high-quality digital economic development. Digital transformation also became an inevitable path for modern cities to achieve high-quality development.

As the concept of "Smart City" was proposed in 2008, it gradually took shape in 2012. In February 2023, the country launched a national plan to build a digital China and promote intelligent development strategies, clearly defining building a digital China as an important engine for promoting Chinese-style modernization and building the country's competitive advantages.

As new-generation information technologies such as big data, artificial intelligence, IoT, cloud computing, etc. are widely applied, China's smart city construction is accelerating. According to reports from the China Industrial Research Institute, the market scale of China's smart city market grew from 15 trillion yuan in 2020 to 36.8 trillion yuan in 2024, with a compound annual growth rate of 25.2%. Analysts at the research institute predict that by 2025, the scale of China's smart city market will reach 45.3 trillion yuan.

In this background, "—城一云" has a huge market space. Huawei is accelerating its layout in the central cloud market, while Zerolimit Technology Holding as a distributed cloud enterprise is also actively laying out.

Zhitong Caijing APP obtained information that from a global perspective, the decentralized and distributed technology market is expected to maintain rapid growth. According to data and predictions released by international research firm International Data Corporation (IDC), the global decentralized and distributed technology market reached $14 billion in 2020. It is expected to reach $189.5 billion by 2024, with a compound annual growth rate of approximately 48% over the forecast period and maintain rapid growth.

Due to the increasing demand for decentralized and secure data storage, computing, and communication solutions, China's decentralized and distributed technology market is still in its early stages but is expected to grow rapidly. According to IDC data and predictions, China's decentralized and distributed technology market reached $6 billion in 2021. It is expected to grow significantly over the next few years, particularly in fields such as intellectual property, healthcare, e-commerce, education, and finance, which require secure and decentralized systems for handling sensitive data, transactions, and supply chain logistics. It is expected that by 2026, China's decentralized and distributed technology market will reach $42.8 billion, with a compound annual growth rate of approximately 32%, showing rapid growth.

However, it is worth noting that there are currently no recognized leading developers or companies in the Chinese market, and Zerolimit Technology Holding as an early participant in the industry may have a first-mover advantage.

In summary, Zerolimit Technology Holding as a distributed technology company with a strong first-half performance has shown certain market potential in the rapidly growing industry. Its core product cloud data node software's stable revenue performance and the company's layout in smart cities and digital transformation provide a foundation for its future development. However, the decentralized technology market is still in its early stages, and the competitive landscape has not yet been shaped, so Zerolimit Technology Holding may need to continue to observe and adapt to challenges.