Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 71

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 71
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 financial condition, capital requirements and other factors.
There is no assurance that our board of directors will declare dividends even if we are profitable. The payment of dividends by entities
organized in China is subject to limitations as described herein. Under BVI law, we may only pay dividends provided that the directors
of the Company are satisfied on reasonable grounds that immediately after the dividend the Company will pass the solvency test set out
in section 56 of the BVI Act i.e. the value of the company’s assets exceeds its liabilities and (ii) the company is able to
pay its debts as they fall due; and the realizable value of assets of our Company will not be less than the sum of our total liabilities,
other than deferred taxes as shown on our books of account, and our capital. Pursuant to the Chinese enterprise income tax law, dividends
payable by a foreign investment entity to its foreign investors are subject to a withholding tax of 10%. Similarly, dividends payable
by a foreign investment entity to its Hong Kong investor who owns 25% or more of the equity of the foreign investment entity is subject
to a withholding tax of 5%. The payment of dividends by entities organized in China is subject to limitations, procedures and formalities.
Regulations in China currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting
standards and regulations in China. The transfer to this reserve must be made before distribution of any dividend to shareholders.

Ongoing geopolitical tensions around the world may have a material adverse effect on our business, financial condition, and results of operations.

As a global business, we face risks associated
with heightened tensions in geopolitical and economic relations. Rivalries and sanctions between major powers, including the United States
and China, and unrest, terrorist threats, wars and other conflicts involving Ukraine, the Middle East and elsewhere have created increased
global uncertainty. Such geopolitical tensions, along with trade disputes and regional conflicts, may result in economic instability,
market volatility, and regulatory changes, which could impact our supply chain, operations, and consumer demand. Recently, the United
States has proposed to impose multiple rounds of tariffs on a wide range of goods imported from multiple countries, including China,
and China has responded with retaliatory tariffs. Since February 2025, the U.S. administration has proposed to increase the total tariff
level for imported Chinese goods to 125% and additional tariff increase could be imposed as the trade tension between the two countries
continues to heighten. On