Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 113

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 113
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such funds or assets may not be available due to interventions in or the imposition of restrictions and limitations on the ability of
us and our subsidiaries to transfer funds or assets by the PRC government. Furthermore, there can be no assurance that the PRC government
will not intervene or impose restrictions or limitations on our ability to transfer or distribute cash, which could result in an inability
or prohibition on making transfers or distributions to entities outside of mainland China and Hong Kong and adversely affect our
business.

We may rely on dividends and other distributions
on equity paid by our Hong Kong and PRC subsidiaries to fund any cash and financing requirements we may have, and any limitation
on the ability of our PRC subsidiaries to make payments to us could have a material and adverse effect on our ability to conduct our business.

We may rely principally on dividends and other
distributions on equity from our PRC subsidiaries for our cash requirements, including for services of any debt we may incur.

Our PRC subsidiaries’ ability to distribute
dividends is based upon their distributable earnings. Current PRC regulations permit our PRC subsidiaries to pay dividends to their respective
shareholders only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. In
addition, our PRC subsidiaries are required to draw 10% of their after-tax profits each year, if any, to fund a common reserve, which
may stop drawing their after-tax profits if the aggregate balance of the common reserve has already accounted for over 50 percent of its
registered capital. These reserves are not distributable as cash dividends. If our PRC subsidiaries incur debt on their own behalf in
the future, the instruments governing the debt may restrict its ability to pay dividends or make other payments to us. Any limitation
on the ability of our PRC subsidiaries to distribute dividends or other payments to their respective shareholders 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.

In addition, the Enterprise Income Tax Law and
its implementation rules provide that a withholding tax rate of up to 10% will be applicable to dividends payable by Chinese companies
to enterprises outside of mainland China unless otherwise exempted or reduced according to treaties or arrangements between the PRC central
government and governments of other countries or regions where the enterprises outside of mainland China are incorporated.

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Certain PRC regulations may make