Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 27

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 27
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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. If we determine to pay dividends on any of our Class A Ordinary
Shares in the future, as a holding company, unless we receive proceeds from future offerings, we will be dependent on receipt of funds
from our BVI subsidiary, which will be dependent on receipt of dividends from our Hong Kong subsidiaryin accordance with the laws
and regulations of the PRC and Hong Kong.

Guangzhou Sanyi Network’s ability to distribute dividends are
based upon their distributable earnings. Current PRC regulations permit Guangzhou Sanyi Network to pay dividends to HK 3e Network only
out of their accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. In addition, Guangzhou
Sanyi Network are required to set aside at least 10% of their after-tax profits each year, if any, to fund a statutory reserve until such
reserve reaches 50% of their registered capital. Each of such similar entity in China may also set aside a portion of its after-tax profits
to fund an optional reserve, although the amount to be set aside, if any, is determined at the discretion of such entity’s shareholder.
The reserves can be used to increase the registered capital, cover losses made in past years and enhance the company’s productivity
and expand its business, however a company’s capital reserve shall not be used to cover the company’s losses.

The PRC government also imposes controls on the
conversion of RMB into foreign currencies and the remittance of currencies out of mainland China. Therefore, we may experience difficulties
in completing the administrative procedures necessary to obtain and remit foreign currency for the payment of dividends from our profits,
if any. Further, if our subsidiaries in the PRC incur debt on their own in the future, the instruments governing the debt may restrict
their ability to pay dividends or make other payments.

Our subsidiaries in the PRC generate and retain
cash generated from operating activities and re-invests it in our business. As of the date of this prospectus, our PRC subsidiaries have
not paid any dividends to the offshore companies.

Based on our understanding of the Hong Kong laws and regulations,
as of the date of this prospectus, there is no restriction imposed