Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 103

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 103
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 laws and
regulations may increase our labor costs as a result.

Mainland China’s overall economy and the
average wage have increased in recent years and are expected to continue to grow. The average wage level for our employees has also
increased in recent years. We expect that our labor costs, including wages and employee benefits, will continue to increase. Unless
we are able to pass on these increased labor costs to our customers who pay for our services, our profitability and results of operations
may be materially and adversely affected. The PRC Labor Contract Law and its implementing rules impose requirements concerning contracts
entered into between an employer and its employees and establishes time limits for probationary periods and for how long an employee can
be placed in a fixed-term labor contract. We cannot assure you that our employment policies and practices do not, or will not, violate
the Labor Contract Law or its implementing rules and that we will not be subject to related penalties, fines or legal fees. If we are
subject to large penalties or fees related to the Labor Contract Law or its implementing rules, our business, financial conditions and
results of operations may be materially and adversely affected. In addition, according to the Labor Contract Law and its implementing
rules, if we intend to enforce the non-compete provision with an employee in a labor contract or non-competition agreement, we have to
compensate the employee on a monthly basis during the term of the restriction period after the termination or ending of the labor contract,
which may cause extra expenses to us. Furthermore, the Labor Contract Law and its implementation rules require certain terminations to
be based upon seniority rather than merit, which significantly affects the cost of reducing workforce for employers. In the event we decide
to significantly change or decrease our workforce in the PRC, the Labor Contract Law could adversely affect our ability to enact such
changes in a manner that is most advantageous to our circumstances or in a timely and cost-effective manner, thus our results of operations
could be adversely affected.

Non-compliance with labor-related laws
and regulations of the PRC and increases in labor costs in the PRC may have an adverse impact on our financial conditions and results
of operation.

We have been subject to stricter regulatory requirements
in terms of entering into labor contracts with our employees and paying various statutory employee benefits, including pensions, housing
fund, medical insurance, work-related injury insurance, unemployment insurance and childbearing insurance to designated government agencies
for the benefit of our employees. Pursuant to the P