Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 101

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 101
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, avoiding or deferring
PRC tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise. However, we and our non-PRC resident
investors may be at risk of being required to file a return and being taxed under Circular 7, and we may be required to expend valuable
resources to comply with Bulletin 37, or to establish that we should not be taxed under Circular 7 and Bulletin 37.

In addition to the uncertainty in how the new resident
enterprise classification could apply, it is also possible that the rules may change in the future, possibly with retroactive effect.
If we are required under the Enterprise Income Tax law to withhold PRC income tax on our dividends payable to our foreign shareholders,
or if you are required to pay PRC income tax on the transfer of our Class A Ordinary Shares under the circumstances mentioned above, the
value of your investment in our Class A Ordinary Shares may be materially and adversely affected. These rates may be reduced by an applicable
tax treaty, but it is unclear whether, if we are considered a PRC resident enterprise, holders of our Class A Ordinary Shares would be
able to claim the benefit of income tax treaties or agreements entered into between mainland China and other countries or areas. Any such
tax may reduce the returns on your investment in our Class A Ordinary Shares.

The M&A Rules and certain other PRC
regulations establish complex procedures for some acquisitions of Chinese companies by foreign investors, which could make it more difficult
for us to pursue growth through acquisitions in China.

The M&A Rules and some other regulations and
rules concerning mergers and acquisitions established additional procedures and requirements that could make merger and acquisition activities
by foreign investors more time consuming and complex, including requirements in some instances that the MOC be notified in advance of
any change-of-control transaction in which a foreign investor takes control of a PRC domestic enterprise. Moreover, the Anti-Monopoly
Law requires that the MOC shall be notified in advance of any concentration of undertaking if certain thresholds are triggered. In addition,
the security review rules issued by the MOC that became effective in September 2011 specify that mergers and acquisitions by foreign
investors that raise “national defense and security” concerns and mergers and acquisitions through which foreign investors
may acquire de facto control over domestic enterprises that raise “national security” concerns are subject to strict review
by the MOC, and the rules prohibit any activities attempting to bypass a security review, including