Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 93

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 93
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 transferor and the transferee may be subject to
penalties under PRC tax laws if the transferee fails to withhold the taxes and the transferor fails to pay the taxes.

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On October 17, 2017, the SAT issued the Announcement
of the State Administration of Taxation on Matters Concerning Withholding of Income Tax of Non-resident Enterprises at Source, or SAT
Bulletin 37, which, among others, repealed the SAT Circular 698 on December 1, 2017. SAT Bulletin 37 further details and clarifies
the tax withholding methods in respect of income of non-resident enterprises. Certain rules stipulated in SAT Bulletin 7 are replaced
by SAT Bulletin 37. Where the non-resident enterprise fails to declare the tax payable pursuant to Article 39 of the PRC Enterprise
Income Tax Law, the tax authority may order it to pay the tax due within required time limits, and the non-resident enterprise shall declare
and pay the tax payable within such time limits specified by the tax authority; however, if the non-resident enterprise voluntarily declares
and pays the tax payable before the tax authority orders it to do so within required time limits, it shall be deemed that such enterprise
has paid the tax in time.

We face uncertainties as to the reporting and other
implications of certain past and future transactions where PRC taxable assets are involved, such as offshore restructuring. Our Company
may be subject to filing obligations or taxed if our company is transferor in such transactions, and may be subject to withholding obligations
if our Company is transferee in such transactions, under SAT Bulletin 7 and SAT Bulletin 37. For transfer of shares in our Company by
investors who are non-PRC resident enterprises, our PRC subsidiaries may be requested to assist in the filing under SAT Bulletin 7 and
SAT Bulletin 37. As a result, we may be required to expend valuable resources to comply with SAT Bulletin 7 and/or SAT Bulletin 37 or
to request the relevant transferors from whom we purchase taxable assets to comply with these circulars, or to establish that our company
should not be taxed under these circulars, which may have a material adverse effect on our financial conditions and results of operations.

PRC regulations relating to the establishment
of offshore special purpose companies by PRC residents may subject our PRC resident shareholders to personal liability and limit our ability
to acquire PRC companies or to inject capital into our