Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 58

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 58
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all. In addition, competition for senior executives and key personnel in our industry is intense, and we may be unable to retain our senior
executives and key personnel or attract and retain new senior executive and key personnel in the future, in which case our business may
be severely disrupted, and our financial conditions and results of operations may be materially and adversely affected. If any of our
senior executives or key personnel joins a competitor or forms a competing company, we may lose customers, suppliers, know-how and key
professionals and staff members to them. Also, if any of our business development managers, who generally keeps a close relationship with
our customers, joins a competitor or forms a competing company, we may lose customers, and our revenues may be materially and adversely
affected. Additionally, there could be unauthorized disclosure or use of our technical knowledge, practices or procedures by such personnel.
Most of our executives and key personnel have entered into employment agreements with us that contain non-competition provisions, non-solicitation
and nondisclosure covenants. However, if any dispute arises between our executive officers and key personnel and us, such non-competition,
non-solicitation and nondisclosure provisions might not provide effective protection to us, especially in China in light of the uncertainties
with China’s legal system.

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Increases in wages for professionals
in China could prevent us from sustaining our competitive advantage and could reduce our profit margins.

Our most significant costs are the salaries and
other compensation expenses for our professionals and other employees. Wage costs for professionals in China are lower than those in more
developed countries and India. However, because of rapid economic growth, increased productivity levels, and increased competition for
skilled employees in China, wages for highly skilled employees in China, in particular middle- and senior-level managers, are increasing
at a faster rate than in the past. We may need to increase the levels of employee compensation more rapidly than in the past to remain
competitive in attracting and retaining the quality and number of employees that our business requires. Increases in the wages and other
compensation we pay our employees in China could reduce our competitive advantage unless we are able to increase the efficiency and productivity
of our professionals as well as the prices we can charge for our services. In addition, any appreciation in the value of the Renminbi
relative to U.S. dollar and other foreign currencies will cause an increase in the relative wage levels in China, which could further