Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 84

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 84
---
 and business operations.

The State Council has promulgated several notices
since 2000 to launch favorable policies for IT services, such as preferential tax treatments and credit support. Under rules and regulations
promulgated by various PRC government agencies, enterprises that have met specified criteria and are recognized as software enterprises
by the relevant government authorities in China are entitled to preferential treatment, including financing support, preferential tax
rates, export incentives, discretion and flexibility in determining employees’ welfare benefits and remuneration. Software enterprise
qualifications are subject to annual examination. Enterprises that fail to meet the annual examination standards will lose the favorable
enterprise income tax treatment. Enterprises exporting software or producing software products that are registered with the relevant government
authorities are also entitled to preferential treatment including governmental financial support, preferential import, export policies
and preferential tax rates. Companies in China engaging in systems integration are required to obtain qualification certificates from
the Ministry of Industry and Information Technology. Companies planning to set up computer information systems may only retain systems
integration companies with appropriate qualification certificates. Currently the Company does not engage in information system integration
business, therefore the Company is not required to have such qualification certificates. The qualification certificate is subject to review
every two years and is renewable every four years. In 2003, the Ministry of Industry and Information Technology promulgated
the Amended Appraisal Condition for Qualification Grade of Systems Integration of Computer Information to elaborate the conditions for
appraising each of the four qualification grades of systems integration companies. Companies applying for qualification are graded depending
on the scale of the work they undertake. The grades range from Grade 1 (highest) to Grade 4 (lowest) in the scale of the work the respective
companies can undertake. Companies with Grade 3 qualification can independently undertake projects at the medium-scale and small-scale
enterprise level and undertake projects at the large-scale enterprise level in cooperation with other entities. If, and to the extent
we fail to maintain compliance with such applicable rules and regulations, our operations and financial results may be adversely affected.

<div align='center'>41</div>

Recent greater oversight by the CAC over
data security, particularly for companies seeking to list on a foreign exchange, could adversely impact our business and our proposed
offering.

On December 28, 2021, the CAC, together with
12 other governmental departments of the PRC, jointly promulgated the Cybersecurity Review Measures, which became on February 15,