Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 98

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 98
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 our ability
to fund and expand our business.

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Governmental control of currency conversion
may limit our ability to use our revenues effectively and the ability of our PRC subsidiaries to obtain financing.

The PRC government imposes control on the convertibility
of the RMB into foreign currencies and, in certain cases, the remittance of currency out of mainland China. We receive a majority of our
revenues in Renminbi, which currently is not a freely convertible currency. Restrictions on currency conversion imposed by the PRC government
may limit our ability to use revenues generated in Renminbi to fund our expenditures denominated in foreign currencies or our business
activities outside mainland China. Under mainland China’s existing foreign exchange regulations, Renminbi may be freely converted
into foreign currency for payments relating to current account transactions, which include among other things dividend payments and payments
for the import of goods and services, by complying with certain procedural requirements. Our PRC subsidiaries are able to pay dividends
in foreign currencies to us without prior approval from the SAFE, by complying with certain procedural requirements. Our PRC subsidiaries
may also retain foreign currency in their respective current account bank accounts for use in payment of international current account
transactions. However, we cannot assure you that the PRC government will not, at its discretion, take measures in the future to restrict
access to foreign currencies for current account transactions.

Conversion of Renminbi into foreign currencies,
and of foreign currencies into Renminbi, for payments relating to capital account transactions, which principally includes investments
and loans, generally requires the approval of SAFE and other relevant PRC governmental authorities. Restrictions on the convertibility
of the Renminbi for capital account transactions could affect the ability of our PRC subsidiaries to make investments overseas or to obtain
foreign currency through debt or equity financing, including by means of loans or capital contributions from us. We cannot assure you
that the registration process will not delay or prevent our conversion of Renminbi for use outside of mainland China.

We may be classified as a “resident
enterprise” for PRC enterprise income tax purposes; such classification could result in unfavorable tax consequences to us and our
non-PRC shareholders.

The Enterprise Income Tax Law provides that enterprises
established outside of mainland China whose “de facto management bodies” are located in mainland China are considered PRC
tax resident enterprises and will generally be subject to the uniform 25% PRC enterprise income tax rate on their global income. In