Company: MASK
Filing Date: 2025-12-02
Form Type: POS AM
Source: 0001185185-25-001899
Chunk: 152

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-12-02
Form: POS AM
Chunk 152
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 all of our revenue, expenses, cash and cash equivalents are denominated in HKD currency. HKD is subject to the exchange control regulation in China, and, as a result, we may have difficulty distributing any dividends outside of China due to PRC exchange control regulations that restrict our ability to convert HKD into U.S. dollars. As of June 30, 2025, cash and cash equivalents of approximately HKD2,461,464 (US$313,566), were held by the Group and its subsidiaries in mainland China, and Hong Kong. We would need to accrue and pay withholding taxes if we were to distribute funds from our subsidiaries in China to our offshore subsidiaries. We do not intend to repatriate such funds in the foreseeable future, as we plan to use existing cash balance in PRC for general corporate purposes.

In assessing our liquidity, we monitor and analyze our cash on hand, our ability to generate sufficient revenue sources in the future and our operating and capital expenditure commitments. The Company plans to fund working capital through its operations, bank borrowings and additional capital contribution from shareholders. Our operating cash flow was positive for the year ended June 30, 2025. We have historically funded our working capital needs primarily from operations, advance payments from customers and loans from shareholders. Our working capital requirements are affected by the efficiency of our operations, the volume and dollar value of our sales contracts, the progress or execution on our customer contracts, and the timing of accounts receivable collections.

The following table sets forth a summary of our cash flows for the periods indicated:

|                                                              |     | Year ended June 30, |       2025 |   |     |   |     2024 |   |     |   |     2023 |   |
|:-------------------------------------------------------------|:----|:--------------------|-----------:|:--|:----|:--|---------:|:--|:----|:--|---------:|:--|
| Net cash provided by operating activities                    |     | $                   |     13,832 |   |     | $ |  929,203 |   |     | $ |  901,288 |   |
| Net cash used in investing activities                        |     |                     | (2,952,890 | ) |     |   |        - |   |     |   |  (11,482 | ) |
| Net cash provided by/(used in) financing activities          |     |                     |  3,