Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 146

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 146
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 six months ended December 31, 2024 from US$210 for the six months ended December 31, 2023. We do not have exhibition
and conference service provided during the period as we have focused our efforts to provide software development service.

Cost of revenue

Our cost of revenue comprises mainly of payroll
cost to our IT professionals, direct support staff cost, traveling expenses and software development costs paid to outsourced company.
Cost of revenue decreased by US$362,394 or 19.2% to US$1,528,919 for the six months ended December 31, 2024 from US$1,891,313 for the six months
ended December 31, 2023 as a result of outsourcing part of our development process and conducting high margin business. As a percentage
of revenue, our cost of revenue decreased to 48.9% for the six months ended December 31, 2024 from 63.6% for the six months ended December
31, 2023.

Gross profit

Our gross profit increased by US$526,351, or 49.3%,
to US$1,593,661 for the six months ended December 31, 2024 from US$1,067,310 for the six months ended December 31, 2023. As a percentage of
revenues, our gross margin increased from 35.9% for the six months ended December 31, 2023 to 50.9% for the six months ended December
31, 2024. The increase was due to our effort in selling more higher margin services and reducing our marketing in low margin business.

Selling and marketing expenses

Selling and marketing expenses primarily consisted
of salary and compensation expenses relating to our sales and marketing personnel, and also included entertainment, travel, and other
expenses relating to our marketing activities. Selling and marketing expenses decreased by US$2,085 or 100.0% from US$2,085 for the six months
ended December 31, 2023 to nil for the six months ended December 31, 2024. The decrease was primarily due to the decrease in need of marketing
activities.

<div align='center'>80</div>

Research and development (“R&D”) expenses

R&D expenses primarily consisted of compensation
and benefit expenses relating to our research and development personnel as well as office overhead and other expenses directly relating
to our R&D activities. Our R&D expenses increased