Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 239

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 239
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 the key assets and records of 3e Network, including
the resolutions and meeting minutes of our board of directors and the resolutions and meeting minutes of our shareholders, are located
and maintained outside the PRC. In addition, we are not aware of any offshore holding companies with a corporate structure similar
to ours that has been deemed a PRC “resident enterprise” by the PRC tax authorities. Accordingly, we believe that 3e Network
and HK 3e Network should not be treated as a “resident enterprise” for PRC tax purposes if the criteria for “de facto
management body” as set forth in SAT Notice 82 were deemed applicable to us. However, as the tax residency status of an enterprise
is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term “de
facto management body” as applicable to our offshore entities, we will continue to monitor our tax status.

The implementation rules of the EIT Law provide
that, (i) if the enterprise that distributes dividends is domiciled in the PRC or (ii) if gains are realized from transferring
equity interests of enterprises domiciled in the PRC, then such dividends or gains are treated as China-sourced income. It is not clear
how “domicile” may be interpreted under the EIT Law, and it may be interpreted as the jurisdiction where the enterprise is
a tax resident. Therefore, if we are considered as a PRC tax resident enterprise for PRC tax purposes, any dividends we pay to our overseas
shareholders which are non-resident enterprises as well as gains realized by such shareholders from the transfer of our shares may be
regarded as China-sourced income and as a result become subject to PRC withholding tax at a rate of up to 10%.

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See “Risk Factors — Risks Relating to Doing Business in the PRC — Under the PRC Enterprise Income Tax Law, we may be classified as a PRC ‘resident enterprise’ for PRC enterprise income tax purposes. Such classification would likely result in unfavorable tax consequences to us and our non-PRC shareholders and have a material adverse effect on our results of operations and the value of your investment.”

Currently, as resident enterprises in the PRC, our PRC subsidiaries
are subject to the enterprise income tax at the rate of 25%, except that, pursuant to the Announcement [2023] No. 12 jointly issued by