Company: MASK
Filing Date: 2025-12-30
Form Type: F-1
Source: 0001185185-25-002198
Chunk: 175

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-12-30
Form: F-1
Chunk 175
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IAL STATEMENTS 2. Summary of Significant Accounting Policies(cont.)

c) Discontinued Operation

A discontinued operation may
include a component of an entity or a group of components of an entity, or a business or non-profit activity. A disposal of a component
of an entity is required to be reported in discontinued operation if the disposal represents a strategic shift that has (or will have)
a major effect on an entity’s operations and financial results when any of the following occurs: (1) the component of an entity
or group of components of an entity meets the criteria to be classified as held for sale; (2) the component of an entity or group of
components of an entity is disposed of by sale; (3) the component of an entity or group of components of an entity is disposed of other
than by sale (for example, by abandonment or in ad distribution to owners in a spinoff). See note 3 for detail.

d) Reclassification

Certain prior period amounts have
been reclassified to conform with current period presentation in order to reflect the discontinued operations of Guangzhou Sanyi Network
and Guangzhou 3E Network. None of these reclassifications had an impact on reported financial position or cash flows for any of the period
presented.

e) Use of estimates

The preparation of consolidated
financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of these consolidated financial
statements, and the reported amounts of revenue and expenses during the reporting period. The Group continually evaluates these estimates
and assumptions based on the most recently available information, historical experience and various other assumptions that the Group
believes to be reasonable under the circumstances. Significant accounting estimates reflected in the Group’s consolidated financial
statements include but are not limited to estimates and judgments applied in determination of allowance for credit losses, impairment
losses for long-lived assets and valuation allowance for deferred tax assets. Since the use of estimates is an integral component of
the financial reporting process, actual results could differ from those estimates.

f) Foreign currency translation and transactions

The Group’s reporting
currency is US dollars (“US$”). The Group primarily conducts business through its subsidiaries located in Hong Kong, China,
which use Hong Kong dollars as their functional currency. For subsidiaries not located in Hong Kong, China and whose functional currency
is not Hong Kong dollars, the financial statements are translated from their respective functional