Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 56

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 56
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 in anticipating or responding to these developments
in a timely manner, or if we do respond, the services or technologies we develop may not be successful in the marketplace. The development
of some of the services and technologies may involve significant upfront investments and the failure of these services and technologies
may result in our being unable to recover these investments, in part or in full. Should we fail to adapt to the rapidly changing IT services
market or if we fail to develop suitable services to meet the evolving and increasingly sophisticated requirements of our customers in
a timely manner, our business and results of operations could be materially and adversely affected.

We might lose business to competitors
that underbid us and might be unable to compete favorably in our highly competitive industry.

Some of customers are government-related or state-owned
enterprises (“SOEs”) with some project awarded through a competitive bidding process in which price is the determining factor,
and we compete against multiple competitors in many of the markets in which we operate. Some of our competitors are larger than us and
are vertically integrated, and competitors larger than us may be able to better exploit economies of scale to receive higher discounts
or rebates. An increase in competition may result in decreases in new project awards to us at acceptable profit margins, and adversely
impact our financial condition, results of operations or liquidity.

We may be forced to reduce the prices
of our services due to increased competition and reduced bargaining power with our customers, which could lead to reduced revenues and
profitability.

The IT industry in China is developing rapidly
and related technology trends are constantly evolving. This results in the frequent introduction of new services and technologies and
significant price competition from our competitors. We may be unable to offset the effect of declining average sales prices through increased
sales volumes and or reductions in our costs. Furthermore, we may be forced to reduce the prices of our services in response to offerings
made by our competitors. Finally, we may not have the same level of bargaining power we have enjoyed in the past when it comes to negotiating
for the prices of our services.

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Adverse changes in the economic environment,
either in China or globally, could reduce our customers’ purchases from us and increase pricing pressure, which could materially
and adversely affect our revenues and results of operations.

The IT services industry is particularly sensitive
to the economic environment, either in China or globally, and tends to decline during general economic downturns. Accordingly, our results
of operations, financial conditions and prospects are