Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 10

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 10
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 subsidiaries have maintained
cash management policies which dictate the purpose, amount and procedure of cash transfers between the entities. Each entity needs to
comply with applicable laws or regulations with respect to transfer of funds, dividends and distributions with other entities. As a holding
company, we may rely on transfer of funds, dividends and other distributions on equity paid by our subsidiaries for our cash and financing
requirements. If any of our subsidiaries incurs debt on its own behalf in the future, the instruments governing such debt may restrict
their ability to pay dividends and our cash and financing requirement may not be fully satisfied.

As of the date of this prospectus, none of
our subsidiaries have made any dividends or distributions to 3e Network, and no dividends or distributions have been made to any
investors by 3e Network or any of its subsidiaries. We intend to keep any future earnings to re-invest in and finance the expansion
of the business of our Hong Kong subsidiaries, and we do not anticipate that any cash dividends will be paid in the foreseeable
future to the U.S. investors immediately following the consummation of this offering. 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. In order for us to pay dividends to our
shareholders, we will rely on the distribution of profits of our Hong Kong subsidiary to our BVI subsidiary, and then to 3e Network.
PRC regulations currently permit the payment of dividends only out of accumulated profits, as determined in accordance with
accounting standards and PRC regulations.

In addition, the Enterprise Income Tax Law and
its implementation rules provide that a withholding tax at a rate of 10% will be applicable to dividends payable by Chinese companies
to non-PRC-resident enterprises unless reduced under treaties or arrangements between the PRC central government and the governments
of other countries or regions where the non-PRC resident enterprises are tax resident. Pursuant to the tax agreement between mainland
China and the Hong Kong Special Administrative Region, the withholding tax rate in respect to the payment of dividends by a PRC
enterprise to a Hong Kong enterprise may be reduced to 5% from a standard rate of 10%. However, if the relevant tax authorities
determine that our transactions or arrangements are for the primary purpose of enjoying a