Company: MASK
Filing Date: 2025-12-02
Form Type: POS AM
Source: 0001185185-25-001899
Chunk: 249

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-12-02
Form: POS AM
Chunk 249
---
 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$”). The Group primarily conducts business through its subsidiaries located in Hong Kong,
China, which use Hong Kong dollars as their functional currency. For subsidiaries not located in Hong Kong, China and whose functional
currency is not Hong Kong dollars, the financial statements are translated from their respective functional currencies into US$. Assets
and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates
prevailing during each reporting period, and shareholders’ equity is translated at historical exchange rates. Adjustments resulting
from the translation are recorded as a separate component of accumulated other comprehensive income in shareholders’ equity.

The following
table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report, representing
the certified exchange rate published by the People’s Bank of China:

|                                                                  |     | As of June 30, |        |     |      |        |     |      |        |
|                                                                  |     |           2025 |        |     | 2024 |        |     | 2023 |        |
| RMB into US$ for balance sheet items, except for equity accounts |     |                | 7.1636 |     |      | 7.2672 |     |      | 7.2513 |
| HKD into US