Company: MASK
Filing Date: 2025-11-25
Form Type: F-1
Source: 0001185185-25-001852
Chunk: 10

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-11-25
Form: F-1
Chunk 10
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 of this offering. Under BVI law, a BVI company may pay a dividend on its shares, 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. In order for us to pay dividends to our shareholders, we will rely on the distribution of profits of our Hong Kong subsidiary to our BVI subsidiary, and then to 3e Network. PRC regulations currently permit the payment of dividends only out of accumulated profits, as determined in accordance with accounting standards and PRC regulations. In addition, the Enterprise Income Tax Law and its implementation rules provide that a withholding tax at a rate of 10% will be applicable to dividends payable by Chinese companies to non-PRC-resident enterprises unless reduced under treaties or arrangements between the PRC central government and the governments of other countries or regions where the non-PRC resident enterprises are tax resident. Pursuant to the tax agreement between mainland China and the Hong Kong Special Administrative Region, the withholding tax rate in respect to the payment of dividends by a PRC enterprise to a Hong Kong enterprise may be reduced to 5% from a standard rate of 10%. However, if the relevant tax authorities determine that our transactions or arrangements are for the primary purpose of enjoying a favorable tax treatment, the relevant tax authorities may adjust the favorable withholding tax in the future. Accordingly, there is no assurance that the reduced 5% withholding rate will apply to dividends received by HK 3e Network from Guangzhou Sanyi Network and Guangzhou 3E Network historically. This withholding tax will reduce the amount of dividends we may receive from Guangzhou Sanyi Network and Guangzhou 3E Network historically. Under the current applicable laws and regulations in relation to taxation in Hong Kong, no withstanding tax is levied in Hong Kong in respect of dividends paid by HK 3e Network to its shareholder(s). Any limitation on the ability of our Hong Kong subsidiary to pay dividends or make other distributions to us could materially and adversely limit our ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business. For more details on the relevant information for dividend payments or distributions, see “Prospectus Summary — Dividend Distributions or Assets Transfer among the Holding Company and Subsidiaries”, and “Risk Factors — Risks Related to Doing Business in China — The transfer of funds, dividends and other distributions between