Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 150

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 150
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 develop new software tailored to the needs of new customers.

Exhibition and conference services increased by
US$10,661, or 46.2% to US$33,750 for the year ended June 30, 2024 from US$23,089 for the year ended June 30, 2023. This increase was
primarily driven by the recovery of economic activities following the resurgence of COVID-19 cases in Guangdong Province from October
to November 2022. Additionally, there was a higher number of exhibitions and conference events during the year ended June 30,
2024.

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Cost of revenue

Our cost of revenue comprises mainly payroll cost
to our IT professionals, direct support staff cost, traveling expenses and material costs. Cost of revenue increased by US$1,850,980 or
467.0% to US$2,247,340 for the year ended June 30, 2024 from US$396,360 for the year ended June 30, 2023. The cost of revenue increased
due to our efforts to expand the customer base, aligning with the overall growth in revenue. As a percentage of revenue, our cost of revenue
increased to 49.5% for the year ended June 30, 2024 from 23.9% for the year ended June 30, 2023. The increase was due to a higher
number of research projects outsourced by us to third parties, which resulted in a lower profit margin.

Gross profit

Our gross profit increased by US$1,033,486, or 81.3%,
to US$2,304,689 for the year ended June 30, 2024 from US$1,271,203 for the year ended June 30, 2023. As a percentage of revenues,
our gross margin decreased from 76.1% for the year ended June 30, 2023 to 50.5% for the year ended June 30, 2024. The decrease
was due to a higher number of research projects outsourced by us to third parties, which resulted in a lower profit margin.

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$2,070
or