Company: MASK
Filing Date: 2025-01-10
Form Type: 424B4
Source: 0001213900-25-002376
Chunk: 30

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-01-10
Form: 424B4
Chunk 30
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% of the capital of the PRC company. However, the 5% withholding tax rate does not automatically apply and certain requirements must be satisfied, including without limitation that (a) the Hong Kong company must be the beneficial owner of the relevant dividends; and (b) the Hong Kong company must directly hold no less than 25% of share ownership in the PRC company during the twelve (12) consecutive months preceding its receipt of the dividends. In current practice, a Hong Kong company must obtain a tax resident certificate (i.e. a Certificate of Hong Kong Resident Status) from the Hong Kong tax authority to apply for the 5% lower PRC withholding tax rate. As the Hong Kong tax authority will issue such a tax resident certificate on a case -by -casebasis, we cannot assure you that we will be able to obtain the tax resident certificate from the relevant Hong Kong tax authority and enjoy the preferential withholding tax rate of 5% under the Comprehensive Double Taxation Arrangement with respect to dividends to be paid by our PRC subsidiaries to their immediate holding company, HK 3e Network. As of the date of this prospectus, we have not applied for the tax resident certificate from the relevant Hong Kong tax authority. HK 3e Network intends to apply for the tax resident certificate when Guangzhou Sanyi Network and Guangzhou 3E Network plan to declare and pay dividends to HK 3e Network. See “Risk Factors —Risks Related to Doing Business in China — We face uncertainty regarding the PRC tax reporting obligations and consequences for certain indirect transfers of the stock of our operating company”on page 45 of this prospectus. Industry Overview The PRC software and information technology service industry (“Software Industry”) displayed a steady development trend in 2023. Statistics from the Operation Monitoring and Coordination Bureau of the PRC Ministry of Industry and Information Technology (the “MIIT”) shows that in 2023, total revenue of the industry surpassed RMB12 trillion with profitability remaining steady and export continuing to grow. More than 380,000 companies in the Software Industry reached the milestone of receiving more than RMB5 million in revenue for their core operations in 2023. Total revenue from the Software Industry was RMB12,325.8 billion, a year -on -yearincrease of 13.4%, the growth rate went up by 2.2% when compared with that of 2022. The total proﬁt of the Software Industry was RMB1,