Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 292

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 292
---
 restrictions on distributable profits.

As a result of these PRC laws
and regulations, the Group’s PRC subsidiary is restricted in its ability to transfer a portion of its net assets to the Company.
As of December 31, 2024 and June 30, 2024, net assets restricted in the aggregate, which include paid-in capital and statutory
reserve of the Group’s PRC subsidiaries, that is included in the Group’s consolidated net assets were approximately US$840,385
and US$810,484, respectively.

10. Employee Defined Contribution Plan

Full time employees of the
Group’s subsidiaries in PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits,
medical care, employee housing fund and other welfare benefits are provided to employees. The related labor regulations of PRC require
that the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries.
The Group has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits were US$54,010
and US$40,575 for the six months ended December 31, 2024 and 2023, respectively., respectively.

11. Concentration of Risk

Credit risk

Financial instruments that
potentially subject the Group to significant concentrations of credit risk consist primarily of cash and cash equivalents, restricted
cash, accounts receivable and due from related parties. As of December 31, 2024, all of the Groups’ cash and cash equivalents
and restricted cash was held by major financial institutions located in PRC. The Group believes that these financial institutions
located in PRC are of high credit quality. For accounts receivable and due from related parties, the Group extends credit based on an
evaluation of the customer’s or other parties’ financial condition, generally without requiring collateral or other security.
In order to minimize the credit risk, the Group delegated a team responsible for credit approvals and other monitoring procedures to ensure
that follow-up action is taken to recover overdue debts. Further, the Group reviews the recoverable amount of each individual receivable
at each balance sheet date to ensure that adequate allowances are made for credit losses. In this regard, the Group considers that the
Group’s credit risk for accounts receivable and due from related parties is significantly reduced.

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3 E NETWORK TECHNOLOGY GROUP LIMITED
NOTES TO INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</div>

11.