Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 97

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 97
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 converted from the foreign currency-denominated capital of
a foreign-invested company may not be directly or indirectly used for purposes beyond its business scope. SAFE promulgated the Notice
of the State Administration of Foreign Exchange on Reforming and Standardizing the Foreign Exchange Settlement Management Policy of Capital
Account, or SAFE Circular 16, effective on June 9, 2016, which reiterates some of the rules set forth in SAFE Circular 19,
but changes the prohibition against using RMB capital converted from foreign currency-denominated registered capital of a foreign-invested
company to issue RMB entrusted loans to a prohibition against using such capital to issue loans to non-associated enterprises. Violations
of SAFE Circular 19 and SAFE Circular 16 could result in administrative penalties. SAFE Circular 19 and SAFE Circular 16 may significantly
limit our ability to transfer any foreign currency we hold, including the net proceeds from this offering, to our PRC subsidiaries, which
may adversely affect our liquidity and our ability to fund and expand our business in mainland China. On October 23, 2019, the SAFE
promulgated the Notice of the State Administration of Foreign Exchange on Further Promoting the Convenience of Cross-border Trade and
Investment, or the SAFE Circular 28, which, among other things, allows all foreign-invested companies to use Renminbi converted from
foreign currency-denominated capital for equity investments in mainland China, as long as the equity investment is genuine, does not violate
applicable laws, and complies with the negative list on foreign investment. However, it is worth noting that the way SAFE and competent
banks carry out SAFE Circular 28 in practice is subject to change and continues to evolve.

In light of the various requirements imposed by
PRC regulations on loans to and direct investment in PRC entities by offshore holding companies, we cannot assure you that we will be
able to complete the necessary government registrations or obtain the necessary government approvals on a timely basis, if at all, with
respect to future loans to our PRC subsidiaries or future capital contributions by us to our wholly foreign-owned subsidiaries in mainland
China. As a result, our ability to provide prompt financial support to our PRC subsidiaries may be subject to change. If we fail to complete
such registrations or obtain such approvals, our ability to use the proceeds we expect to receive from this offering and to capitalize
or otherwise fund our PRC operations may be negatively affected, which could materially and adversely affect our liquidity and