# EDGAR Filing Document

**Accession Number:** 0001993097
**File Stem:** 0001185185-26-002136
**Filing Date:** 2026-5
**Character Count:** 127375
**Document Hash:** 64eb353bd2a94dc61e0aff84fb71afa9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001185185-26-002136.hdr.sgml**: 20260527

**ACCESSION NUMBER**: 0001185185-26-002136

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 99

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260527

**DATE AS OF CHANGE**: 20260527

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** 3 E Network Technology Group Ltd
- **CENTRAL INDEX KEY:** 0001993097
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROGRAMMING SERVICES [7371]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000
- **STATE OF INCORPORATION:** D8
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42466
- **FILM NUMBER:** 261026468

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** NO.118 CONNAUGHT ROAD WEST, 3003-2
- **CITY:** HONG KONG
- **NON US STATE TERRITORY:** HONG KONG
- **PROVINCE COUNTRY:** F4
- **BUSINESS PHONE:** 85236203187

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** NO.118 CONNAUGHT ROAD WEST, 3003-2
- **CITY:** HONG KONG
- **NON US STATE TERRITORY:** HONG KONG
- **PROVINCE COUNTRY:** F4

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934**

**For the month of May 2026**

**Commission file number: 001-42466**

**<u>3 E NETWORK TECHNOLOGY GROUP LIMITED</u>**

(Exact name of registrant as specified in its charter)

**No.118 Connaught Road West, 3003-2**

**Hong Kong, China, 999077**

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form 40-F ☐

On May 27, 2026, 3 E Network Technology Group Limited (the "Company") reported its financial results for the six months ended December 31, 2025 and 2024. A copy of the Company's unaudited interim report for the six months ended December 31, 2025 and 2024 is attached as Exhibit 99.1 hereto, and management's discussion and analysis of financial condition and results of operations for the six months ended December 31, 2025 and 2024 is attached hereto as Exhibit 99.2.

**Exhibit Index**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| **99.1** | **[Unaudited Interim Report for the Six Months Ended December 31, 2025 and 2024](maskex99-1.htm)** |
| **99.2** | **[Management's Discussion and Analysis of Financial Condition and Results of Operations for the Six Months ended December 31, 2025 and 2024](maskex99-2.htm)** |

---

**Signature**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| **3 E Network Technology Group Limited** | **3 E Network Technology Group Limited** |
| **By:** | **/s/ Tingjun Yang** |
| **Name:** | **Tingjun Yang** |
| **Title:** | **Chief Executive Officer, Director** |

---

Date: May 27, 2026

## Exhibit 99.1

?xml version='1.0' encoding='ASCII'?

**Exhibit 99.1**

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | **Pages** |
| [Consolidated Balance Sheets as of December 31, 2025 (Unaudited) and June 30, 2025](#F_001) | F-2 |
| [Consolidated Statements of Income and Comprehensive Income for the Six Months Ended December 31, 2025 and 2024 (Unaudited)](#F_002) | F-3 |
| [Consolidated Statements of Changes in Shareholders' Equity (Unaudited)](#F_003) | F-4 |
| [Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2025 and 2024 (Unaudited)](#F_004) | F-5 |
| [Notes to Consolidated Financial Statements (Unaudited)](#F_005) | F-6 – F-28 |

---

**3 E NETWORK TECHNOLOGY GROUP LIMITED CONSOLIDATED BALANCE SHEETS**

(In US$, except for share and per share data, or otherwise stated)

---

| | | |
|:---|:---|:---|
|  | **As of <br> December 31,<br> 2025** | **As of <br> June 30,<br> 2025** |
| **Assets** | | |
| **Current assets:** | | |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $35284 | $313566 |
| &nbsp;&nbsp;&nbsp;Financial assets held for trading | 2520128 | 2384192 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 4399671 | 3219313 |
| &nbsp;&nbsp;&nbsp;Advance to suppliers, net | 863591 |  |
| &nbsp;&nbsp;&nbsp;Deposits, prepayments and other current assets | 1875559 | 1216589 |
| &nbsp;&nbsp;&nbsp;Due from related parties | 58816 | 58325 |
| &nbsp;&nbsp;&nbsp;Current assets of discontinued operation | - | - |
| **Total current assets** | 9753049 | 7191985 |
| **Non-current assets：** |  |  |
| &nbsp;&nbsp;&nbsp;Long-term investment |  | 625505 |
| &nbsp;&nbsp;&nbsp;Right-of-use asset, net | 263722 |  |
| &nbsp;&nbsp;&nbsp;Deferred tax assets | 32297 |  |
| &nbsp;&nbsp;&nbsp;Other non-current assets | 3313545 | 1537791 |
| &nbsp;&nbsp;&nbsp;Non-current assets of discontinued operation |  |  |
| &nbsp;&nbsp;&nbsp;Total non-current assets | 3609564 | 2163296 |
| **Total assets** | 13362613 | 9355281 |
| **Liabilities and equity** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Lease liability current | $5729 | $- |
| &nbsp;&nbsp;&nbsp;Accounts payable |  | 3000 |
| &nbsp;&nbsp;&nbsp;Due to related parties | 62200 | 1682884 |
| &nbsp;&nbsp;&nbsp;Income taxes payable | 632145 | 544080 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 2536443 | 691306 |
| &nbsp;&nbsp;&nbsp;Current liabilities of discontinued operation | - | - |
| **Total current liabilities** | 3236517 | 2921270 |
| **Non-current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Lease liability, non-current | $259256 | $- |
| &nbsp;&nbsp;&nbsp;Convertible bonds | 1307430 | 1080266 |
| &nbsp;&nbsp;&nbsp;Non-current liabilities of discontinued operation | - | - |
| &nbsp;&nbsp;&nbsp;Total non-current liabilities | 1566686 | 1080266 |
| **Total Liabilities** | 4803203 | 4001536 |
| **Commitments and contingencies** |  |  |
| **Shareholders' equity:** |  |  |
| \*Class A Ordinary Shares ($0.0025 par value; 16,000,000 shares authorized; 904,861 and 450,000 shares issued as of December 31, 2025 and June 30, 2025, respectively; 854,917 and 450,000 shares outstanding as of December 31, 2025 and June 30, 2025, respectively) | 2137 | 1125 |
| \*Class B Ordinary Shares ($0.0025 par value; 4,000,000 shares authorized; 23,200 and 23,200 issued and outstanding as of December 31, 2025 and June 30, 2025, respectively) | 58 | 58 |
| Additional paid-in capital | 5422062 | 2050003 |
| Retained earnings | 3126955 | 3336442 |
| Accumulated other comprehensive income/(loss) | 8198 | (33883) |
| **Total shareholders' equity** | 8559410 | 5353745 |
| **Total liabilities and shareholders' equity** | $**13362613** | $**9355281** |

---

\* After giving effect to the reverse stock split effected on March 16, 2026.

The accompanying notes are an integral part of these consolidated financial statements

**3 E NETWORK TECHNOLOGY GROUP LIMITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME**

(In US$, except for share and per share data, or otherwise stated)

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended<br> December 31,** | **For the Six Months Ended<br> December 31,** |
|  | **2025** | **2024** |
| **Revenue** | $**3724311** | $**1800000** |
| **Cost of revenue** | (2085045) | (826688) |
| **Gross profit** | 1639266 | 973312 |
| **Operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | (1841288) | (39385) |
| &nbsp;&nbsp;&nbsp;Exchange loss | (5829) | (3725) |
| &nbsp;&nbsp;&nbsp;Investment income | (44420) |  |
| &nbsp;&nbsp;&nbsp;Gain on disposal of joint ventures | 174551 |  |
| &nbsp;&nbsp;&nbsp;Fair value gain on financial assets held for trading | 135655 | - |
| **Total operating expenses** | (1581331) | (43110) |
| **Income from operations** |  |  |
| &nbsp;&nbsp;&nbsp;Other income | 10 | 257 |
| &nbsp;&nbsp;&nbsp;Interest expense | (167230) |  |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | (22925) |  |
| **Total other (expenses)/income, net** | (190145) | 257 |
| **(Loss)/Income before income tax** | (132210) | 930459 |
| &nbsp;&nbsp;&nbsp;Income tax expenses | (77277) | (132180) |
| **(Loss)/Income from continuing operation, net of tax** | $(209487) | $798279 |
| **Income from discontinued operation, net of tax (Note 2)** | - | 271048 |
| **Net (loss)/income** | $**(209487)** | $**1069327** |
| **Other comprehensive income/(loss)** |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency translation income/(loss) | 42081 | (12244) |
| **Total comprehensive (loss)/income** | $(167406) | $1057083 |
| **Weighted average number of ordinary shares outstanding:** |  |  |
| &nbsp;&nbsp;&nbsp;Class A Ordinary Shares – Outstanding, basic\* | 564099 | 400000 |
| &nbsp;&nbsp;&nbsp;Class B Ordinary Shares – Issued, diluted\* | 567647 | 400000 |
| **Earnings per ordinary share-Continuing operation** |  |  |
| &nbsp;&nbsp;&nbsp;Class A Ordinary Shares – Basic \* | $(0.37) | $2.00 |
| &nbsp;&nbsp;&nbsp;Class A Ordinary Shares – Diluted\* | (0.37) | 2.00 |
| **Earnings per ordinary share-Discontinued operation** |  |  |
| &nbsp;&nbsp;&nbsp;Class A Ordinary Shares – Basic \* | $- | $0.68 |
| &nbsp;&nbsp;&nbsp;Class A Ordinary Shares – Diluted\* |  | 0.68 |

---

\* After giving effect to the reverse stock split effected on March 16, 2026.

See notes to consolidated financial statements

**3 E NETWORK TECHNOLOGY GROUP LIMITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY** 

(In US$, except for share and per share data, or otherwise stated)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary Shares** | **Ordinary Shares** | **Ordinary Shares** | **Ordinary Shares** | | | | | |
|  | **Number of Class A ordinary share\*** | **Amount** | **Number of Class B ordinary share\*** | **Amount** |<br>**Additional paid-in capital** |<br>**Statutory** <br> reserves** |<br>**(Accumulated deficit) Retained earnings** |<br>**Accumulated other comprehensive (loss)/income** |<br>**Total<br> shareholders'<br> equity** |
|  | | **USD** | | **USD** | **USD** | **USD** | **USD** | **USD** | **USD** |
| **Balance as of July 1, 2024** | **400000** | **1000** | **-** | **-** | **-** | **64474** | **2838715** | **(167671)** | **2736518** |
| Net income |  |  |  |  |  |  | 1069327 |  | **1069327** |
| Transfer to statutory reserve |  |  |  |  |  | 29900 | (29900) |  | **-** |
| Translation changes of foreign currency statements | - | - | - | - | - | - | - | (12244) | **(12244)** |
| **Balance as of December 31, 2024** | **400000** | **1000** | **-** | **-** | **-** | **94374** | **3878142** | **(179915)** | **3793601** |
| **Balance as of July 1, 2025** | **450000** | **1125** | **23200** | **58** | **2050003** | **-** | **3336442** | **(33883)** | **5353745** |
| Conversion of convertible debt into ordinary shares | 364917 | 912 |  |  | 2857159 |  |  |  | **2858071** |
| Share-based Compensation | 40000 | 100 |  |  | 514900 |  |  |  | **515000** |
| Net income |  |  |  |  |  |  | (209487) |  | **(209487)** |
| Translation changes of foreign currency statements | - | - | - | - | - | - | - | 42081 | **42081** |
| **Balance as of December 31, 2025** | **854917** | **2137** | **23200** | **58** | **5422062** | **-** | **3126955** | **8198** | **8559410** |

---

\* After giving effect to the reverse stock split effected on March 16, 2026.

See notes to consolidated financial statements

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

(In US$, except for share and per share data, or otherwise stated)

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended<br> December 31,** | **For the Six Months Ended<br> December 31,** |
|  | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |
| Net (loss)/income | $(209487) | $1069327 |
| Net income from discontinued operation, net of tax |  | 271048 |
| Net (loss)/income from continuing operation | (209487) | 798279 |
| **Adjustment to reconcile net (loss)/income to net cash used in operating activities** |  |  |
| Depreciation and amortization | 299564 |  |
| Amortization of operating lease right-of-use assets | 330 |  |
| Allowance for doubtful accounts | 3423 | 37768 |
| Investment income | (91235) |  |
| Gain disposal of joint ventures | (174551) |  |
| Loss on extinguishment of debt | 22925 |  |
| Share-based compensation expense | 42740 |  |
| Amortization of Convertible Note issuance cost | 167231 |  |
| Deferred Tax | (32232) |  |
| Accounts receivable, net | (1185408) | (2195195) |
| Advance to suppliers, net | (863591) |  |
| Prepaid expenses and other current assets | (23782) | 275836 |
| Accounts payable | (3000) | 798020 |
| Accrued salaries and benefits | 162858 |  |
| Tax payables | 88065 | 132180 |
| Due from related party |  | 1 |
| Amount due to related parties |  | 63000 |
| Other liabilities | 62395 | (250724) |
| Operating lease Liabilities | 935 |  |
| **Net cash used in operating activities from continuing operations** | **(1732820)** | **(340835)** |
| **Net cash provided by operating activities from discontinued operations** | **-** | **730285** |
| **Net cash used in/(provided by) operating activities** | **(1732820)** | **389450** |
| **Cash flows from investing activities** |  |  |
| Deposits on Property and Equipment | (1591667) |  |
| **Net cash used in investing activities from continuing operations** | (1591667) | - |
| **Net cash provided by/(used in) investing activities from discontinued operations** | - | - |
| **Net cash used in investing activities** | **(1591667)** | **-** |
| **Cash flows from financing activities** |  |  |
| Proceeds from issuance of convertible bonds, net of issuance costs | 3051600 |  |
| Proceeds from interest-free loan from a related party | 25000 | 50859 |
| Repayment of interest-free loan to a related party | (25800) | (370541) |
| Deferred IPO cost |  | (35928) |
| **Net cash provided by/ (used in) financing activities from continuing operations** | 3050800 | (355610) |
| **Net cash provided by /used in financing activities from discontinued operations** | - | - |
| **Net cash provided by / (used in) financing activities** | 3050800 | (355610) |
| **Effect of exchange rate changes on cash, cash equivalents and restricted cash** | **(4595)** | **(14059)** |
| Net change in cash, cash equivalents and restricted cash | (278282) | 19781 |
| **Cash, cash equivalents and restricted cash, beginning of the period** | **313566** | **51809** |
| **Cash, cash equivalents and restricted cash, end of the period** | **35284** | **71590** |
| **Less cash, cash equivalents and restricted cash of discontinued operations–end of period** | **-** | **69553** |
| **Cash, cash equivalents and restricted cash of continuing operations–end of period** | **35284** | **2037** |
| **Reconciliation of cash, cash equivalents and restricted cash, beginning of the year** |  |  |
| Cash, cash equivalents | 313566 | 51809 |
| **Reconciliation of cash, cash equivalents and restricted cash, end of year** |  |  |
| Cash, cash equivalents | 35284 | 71590 |
| Restricted cash |  |  |
| **Cash, cash equivalents and restricted cash, end of period** | **35284** | **71590** |
| **Supplemental disclosures of cash flow information:** |  |  |
| Income tax paid | 26272 |  |
| **Supplemental disclosures of non-cash activities:** |  |  |
| Ordinary share issued in connection with conversion of convertible notes payable | 2858071 |  |
| Share-based compensation capitalized in long-term unamortized expenses | 515000 |  |
| Obtaining right-of-use assets in exchange for operating lease liabilities and prepaid expenses | 265771 |  |
| Reclassification of related party payables | 1619884 |  |

---

See notes to consolidated financial statements

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**1.** **Organization** 

3 E Network Technology Group Limited (the "Company" or "3e Network"), was incorporated in the British Virgin Islands, or BVI, on October 6, 2021. The Company, through its subsidiaries (collectively, the "Group"), is primarily engaged in providing business-to-business ("B2B") information technology ("IT") business solutions for enterprises located in Hong Kong. The Group conducts its primary business operations through 3e Network Technology Company Limited ("HK 3e Network"), an indirect wholly-owned subsidiary incorporated in Hong Kong on August 30, 2020. The Company is ultimately controlled by Mr. Joseph Shu Sang Law, our Chairman and Director.

&nbsp;&nbsp;&nbsp;&nbsp;*a.* *<u>Subsidiaries</u>* 

The consolidated financial statements reflect the activities of MASK and each of the following entities:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name of the entity** | **Date of incorporation** | **Percentage of ownership** | **Place of incorporation** | **Principle business activities** |
| **Subsidiaries** |  |  |  |  |
| 3e Network Technology Holdings Limited ("BVI 3e Holdings") | October 8, 2018 | 100% | British Virgin Islands | Investment holding |
| 3e Network Technology Company Limited ("HK 3e Network") | August 30, 2020 | 100% | Hong Kong | Investment holding and sales and marketing |
| Maskmeta Limited ("Maskmeta") | February 25, 2025 | 100% | Hong Kong | Investment holding and sales and marketing |
| Aurora Core Technology Oy("Aurora") | December 18, 2025 | 100% | Finland | Data center construction |
| Guangzhou 3e Network Technology Company Limited ("Guangzhou Sanyi Network")\* | May 26, 2017 | 100% | China | IT consulting and solutions service |
| Guangzhou 3E Network Technology Company Limited ("Guangzhou 3E Network")\* | January 17, 2023 | 100% | China | IT consulting and solutions service |

---

*\** *The Company has disposed the subsidiaries.*

The Group's former mainland China operating entities, Guangzhou Sanyi Network Technology Company Limited ("Guangzhou Sanyi Network") and Guangzhou 3E Network Technology Company Limited ("Guangzhou 3E Network"), disposed of 60% and 100% of their equity interests respectively on March 21, 2025. The Group further sold its remaining 40% equity interest in Guangzhou Sanyi Network on December 25, 2025, completing the full divestment of such mainland China entities.

 

&nbsp;&nbsp;&nbsp;&nbsp;*b.* *<u>Stock Split</u>* 

On January 3, 2024, the Company filed the Amended and Restated Memorandum and Articles of Association ("Amended and Restated Articles") with the Registrar of Corporate Affairs to increase its authorized shares from 50,000 ordinary shares, par value of $1 per share, to 500,000,000 ordinary shares, par value of $0.0001 per share, consisting of (i) 400,000,000 Class A Ordinary Shares, par value of $0.0001, and (ii) 100,000,000 Class B Ordinary Shares, par value of $0.0001. Simultaneously, the Company effectuated a forward split of all issued and outstanding ordinary shares at a ratio of 1-for-10,000, and converted all existing issued and outstanding ordinary shares into Class A Ordinary Shares of the Company at a ratio of 1-for-1. As a result of the forward split, as of December 31, 2025, the Company had 22,621,530 issued Class A Ordinary Shares, of which 21,372,919 were outstanding.

Subsequent to December 31, 2025, on March 16, 2026, the Company effectuated a share consolidation of its Class A Ordinary Shares at a ratio of 25-for-1, with the par value adjusted proportionally. The share consolidation has been retroactively applied to all periods presented in the accompanying condensed consolidated financial statements. After giving effect to the share consolidation, the number of issued Class A Ordinary Shares as of December 31, 2025, has been restated to 904,861 shares, and the number of outstanding Class A Ordinary Shares has been restated to 854,917 shares.

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**2.** **Discontinued Operation and Assets and Liabilities Related to Discontinued Operation** 

Based on a strategic plan, the Company sold Guangzhou Sanyi Network and Guangzhou 3E Network pursuant to an Equity Transfer Agreement made upon HONGKONG TECHFAITH LIMITED. The disposal was completed in the fiscal year ended June 30, 2025, as reported in the annual report.

In accordance with the provisions of ASC 205-20, we determined that the results from operations, assets and liabilities associated with Guangzhou Sanyi Network and Guangzhou 3E Network were to be excluded from our continuing operations and presented as a discontinued operation in our consolidated financial statements. Accordingly, the operating results of Guangzhou Sanyi Network and Guangzhou 3E Network are classified separately under "discontinued operations" on our consolidated statements of operations and comprehensive income/(loss). The assets and liabilities related to the discontinued operations were retroactively classified as assets and liabilities of discontinued operations, while results of operations related to the discontinued operations, including comparatives, were reported as loss from discontinued operations in the consolidated statements of operations.

The aggregated financial results of the discontinued operations, after intercompany elimination, for the six months ended June 30, 2024 are as follows:

---

| | |
|:---|:---|
|  | **For the Six<br> Months Ended**<br> **December 31,**<br>**2024** |
|  | **US$** |
| Net revenue | 1328203 |
| Cost of revenue | (702230) |
| Taxes and other surcharges | (5623) |
| Gross profit | 620350 |
| Operating expenses | (285038) |
| Other income/(expenses).net | 1325 |
| (Loss)/income before income tax | 336637 |
| Income tax expense | (65589) |
| (Loss)/income from discontinued operation, net of income tax | 271048 |

---

**3.** **Summary of Significant Accounting Policies** 

**a)** **Basis of presentation** 

The Group's unaudited consolidated financial statements are prepared and presented in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). In the opinion of the Group, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of December 31, 2025, and its results of operations for the six months ended December 31, 2025 and 2024. Interim results are not necessarily indicative of results to be expected for the full year. Accordingly, these statements should be read in conjunction with the Group's audited financial statements and note thereto as of and for the years ended June 30, 2025 and 2024.

**b)** **Principles of consolidation** 

The Group's consolidated financial statements include the accounts of the Company and its subsidiaries from the dates they were incorporated or acquired. All inter-company transactions and balances have been eliminated upon consolidation.

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**3.** **Summary of Significant Accounting Policies** (cont.)

**c)** **Use of estimates** 

The preparation of unaudited 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.

**d)** **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 Federal Reserve.

---

| | | |
|:---|:---|:---|
|  | **As of December 31,**<br>**2025** | **As of<br> June 30,**<br>**2025** |
| RMB into US$ for balance sheet items, except for equity accounts |  | 7.1636 |
| HKD into US$ for balance sheet items, except for equity accounts | 7.7833 | 7.8499 |
| EUR into US$ for balance sheet items, except for equity accounts | 1.1736 |  |

---

---

| | | |
|:---|:---|:---|
|  | **For the six months ended December 31<br> 2025** | **For the six<br> months <br> ended December 31,<br> 2024** |
| RMB into US$ for items in the consolidated statements of operations and comprehensive income, and cash flows |  | 7.1767 |
| HKD into US$ for items in the consolidated statements of operations and comprehensive income, and cash flows | 7.7994 | 7.7870 |
| EUR into US$ for items in the consolidated statements of operations and comprehensive income, and cash flows | 1.1664 |  |

---

No representation is intended to imply that the HKD and EUR amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2025, or at any other rate.

Transactions denominated in currencies other than functional currency are translated into functional currency at the exchange rates quoted by authoritative banks prevailing at the dates of the transactions. Exchange gains and losses resulting from those foreign currency transactions denominated in a currency other than the functional currency are recorded as a component of others, net in the consolidated statements of operations and comprehensive income/(loss).

**e)** **Cash and cash equivalents** 

Cash and cash equivalents consist of bank deposits, which are unrestricted as to withdrawal and use. The Group considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents.

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**3.** **Summary of Significant Accounting Policies** (cont.)

**f)** **Accounts receivable, net** 

The Group records accounts receivable at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for credit losses is the Group's reserve for uncollectible receivable amounts which is estimated using the approach based on expected losses. The Group determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions, along with reasonable and supportable forecasts as a basis to develop the Group's expected loss estimates. The Group adjusts the allowance percentage periodically when there are significant differences between estimated credit losses and actual credit losses. If there is strong evidence indicating that the accounts receivable is likely to be unrecoverable, the Group also makes specific allowance in the period in which a loss is determined to be probable. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

**g)** **Property and equipment, net** 

Property, plant and equipment is carried at cost; expenditures for new facilities and equipment and expenditures which substantially increase the useful lives of existing plant and equipment are capitalized; expenditures for maintenance and repairs are expensed as incurred. Upon disposal of properties, the related cost and accumulated depreciation are removed from the respective accounts and any profit or loss on disposition is included in income.

Depreciation is provided on the basis of estimated useful lives of depreciable properties, primarily by the straight-line method for financial statement purposes and by accelerated methods for income tax purposes. Depreciation expense includes the amortization of right-of-use ("ROU") assets accounted for as finance leases. The estimated useful lives of depreciable properties are generally as follows:

---

| | |
|:---|:---|
| <br>**Leasehold improvement** | **Shorter of**<br>**3 years**<br>**or lease term** |
| Furniture, fixture and other equipment | 2 – 3 years |
| Electronic equipment | 3 years |

---

When property and equipment are retired or otherwise disposed of, resulting gain or loss is included in net income in the period of disposition.

For the six months ended December 31, 2025 and 2024, the Group did not dispose of any fixed assets.

**h)** **Impairment of long-lived assets** 

All long-lived assets, which include tangible long-lived assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of the asset to the estimated undiscounted future cash flows expected to be generated by the assets. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recognized for the difference between the carrying amount of the asset and its fair value.

For the year ended December 31, 2025 and 2024, the Group did not recognize any impairment loss on long-lived assets.

**i)** **Deferred IPO costs** 

Deferred IPO costs consist of legal, accounting, underwriting fee and other costs incurred through the balance sheet date that are directly related to the proposed public offering. These costs, together with the underwriting discounts and commissions, will be charged to additional paid-in capital upon completion of the proposed public offering. Should the proposed public offering prove to be unsuccessful, the deferred cost, as well as additional expenses to be incurred, will be charged to operations.

**j)** **Fair value of financial instruments** 

The Group's financial instruments primarily consist of cash and cash equivalents, accounts receivable, net, due from related parties, accounts payable and due to a related party. The carrying values of these financial instruments approximate fair values due to their short maturities.

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**3.** **Summary of Significant Accounting Policies** (cont.)

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This note also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

Level 1 — Quoted prices in active markets for identical assets or liabilities.

---

| | |
|:---|:---|
| Level 2 — | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |

---

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Determining which category an asset or liability falls within the hierarchy requires significant judgment.

The Group evaluates its hierarchy disclosures each quarter.

**k)** **Revenue recognition** 

In accordance with ASC Topic 606, revenue are recognized when control of the contracted goods or services is transferred to the Group's customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. In determining when and how much revenue is recognized from contracts with customers, the Group performs the following five-step analysis: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; (5) recognize revenue when (or as) the entity satisfies a performance obligation. The Group assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. Revenue is recognized upon the transfer of control of contracted goods or services to a customer.

**Software development services**

Revenue generated from software development services is earned by the Group to design software system based on client's specification or provide them with standard software. The identified promises include (1) developing software according to client specification, (2) testing and deployment of software, (3) delivering software (including but not limited to source code, etc.) to client, (4) providing training on the use of software, and (5) option to purchase warranty. The single performance obligation identified is to develop software according to client specification. Promises (1), (2) and (3) are interrelated and cannot be separated or differentiated, because testing and deployment and delivery of software cannot be benefited on their own or with other readily available resources, except with the developed software. Promises (4) and (5) identified above are immaterial when considered both qualitative and quantitative factors of these performance obligations. In the same contract, the Company provides a twelve-month free warranty after the customized application is delivered. This warranty is an assurance-type warranty so the Company does not consider it as a separate performance obligation. The costs to the Company in fulfilling its obligation under the warranty clause have been immaterial. The sole performance obligation identified is the developing, testing and deployment, and delivery of software. The Group is the principal party in fulfilling the identified performance obligation. The revenue is recognized at a point in time when it delivers the software to the client for acceptance testing and the acceptance report is signed, which represents the point in time which the performance obligation is satisfied and when the control of the software is transferred to the client.

Revenue are measured as the amount of consideration the Group expects to receive in exchange for transferring software to customers. Consideration is recorded net of value-added tax, and there is no variable consideration exists in the software development services.

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**3.** **Summary of Significant Accounting Policies** (cont.)

**Contract balance**

When a revenue contract has been performed, the Group presents the contract in the consolidated balance sheet as a contract asset or a contract liability, depending on the relationship between the Group's performance and the customer's payment. Contract balances consist of accounts receivable, contract assets and contract liabilities.

Accounts receivable represent revenue recognized for the amounts invoiced and/or prior to invoicing when the Group has satisfied its performance obligation and has unconditional right to the payment. Contract assets represent the Group's right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditioned on something other than the passage of time. As of December 31, 2025 and 2024, the Group does not have any contract assets.

Contract liabilities consist of advance from customers, which represent the billings or cash received for services or product sales in advance of revenue recognition and is recognized as revenue when all of the Group's revenue recognition criteria are met. The Group's advance from customers amounted to nil and nil as of December 31, 2025 and 2024, respectively.

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**3.** **Summary of Significant Accounting Policies** (cont.)

**l)** **Cost of revenue** 

Cost of revenue primarily consist of outsourcing fees, staff payroll, social security and housing funds, and other miscellaneous expenses.

**m)** **General and administrative expenses** 

General and administrative expenses primarily consisted of salary expenses, and included rental expenses, utilities and property management fees, depreciation and amortization expenses, office overhead, professional service fees, bad debt expenses and other expenses.

**n)** **Research and development expenses** 

Research and development expenses consist primarily of payroll and related expenses for research and development professionals, and other expenses related to technology and development functions. The Company follows the guidance in FASB ASC 985-20, Cost of Software to Be Sold, Leased or Marketed, regarding software development costs to be sold, leased, or otherwise marketed.

FASB ASC 985-20-25 requires research and development costs for software development to be expensed as incurred until the software model is technologically feasible. Technological feasibility is established when the enterprise has completed all planning, designing, coding, testing, and identification of risks activities necessary to establish that the product can be produced to meet its design specifications, features, functions, technical performance requirements. A certain amount of judgment and estimation is required to assess when technological feasibility is established, as well as the ongoing assessment of the recoverability of capitalized costs. The Company's products reach technological feasibility shortly before the products are released and sold to the public. Therefore research and development costs are generally expensed as incurred.

**o)** **Income taxes** 

The Group follows the guidance of ASC Topic 740 "Income taxes" and uses liability method to account for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Group records a valuation allowance to offset deferred tax assets, if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in statement of income and comprehensive income in the period that includes the enactment date.

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**3.** **Summary of Significant Accounting Policies** (cont.)

**p)** **Value added tax ("VAT")** 

The Group is subject to VAT and related surcharges on revenue generated from software development services, exhibition and conference services, hardware sales and others. The Group records revenue net of VAT. This VAT may be offset by qualified input VAT paid by the Group to suppliers. Net VAT balance between input VAT and output VAT is recorded in the line item of other current assets on the consolidated balance sheets.

The VAT rate is 3% for small-scale value-added taxpayers providing services. Since March 1, 2020, the Treasury Department in PRC has announced various preferential tax treatment on VAT for small-scale value-added taxpayers. Taxation Announcement 2020#13 stated from March 1, 2020 to May 31, 2020, small-scale value-added taxpayers other than in Hubei province would be subject to a reduced value added tax rate of 1% on their taxable sales that used to subject to 3% VAT. Taxation Announcement 2020#24 extended the above preferential tax policy to December 31, 2020. In 2021, Taxation Announcement 2021#11 announced that from April 1, 2021 to December 31, 2021, small-scale value-added taxpayers with monthly sales of less than RMB150,000 will be exempt from VAT. Taxation Announcement 2022#15 stated that from April 1, 2022 to December 31, 2022, small-scale VAT taxpayers shall be exempt from VAT on taxable sales that used to subject to 3% VAT tax rate. Taxation Announcement 2023#1 stated that from January 2, 2023 to December 31, 2023, small-scale VAT taxpayers would be subject to a reduced value added tax rate of 1% on their taxable sales that used to subject to 3% VAT.

**q)** **Uncertain tax positions** 

The Group uses a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As a result, the impact of an uncertain income tax position is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained.

Interest on non-payment of income taxes under requirement by tax law and penalties associated with tax positions when a tax position does not meet the minimum statutory threshold to avoid payment of penalties recognized, if any, will be classified as a component of the provisions for income taxes. The tax returns of the Group's Hong Kong and PRC subsidiaries are subject to examination by the relevant local tax authorities. According to the Departmental Interpretation and Practice Notes No.11 (Revised) ("DIPN11") of the Hong Kong Inland Revenue Ordinance (the "HK tax laws"), an investigation normally covers the six years of the assessment prior to the year of the assessment in which the investigation commences. In the case of fraud and willful evasion, the investigation is extended to cover ten years of assessment. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100,000. In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. For the six months ended December 31, 2025 and 2024, the Group did not have any material interest or penalties associated with tax positions. The Group did not have any significant unrecognized uncertain tax positions as of December 31, 2025 or 2024. The Group does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months.

**r)** **Segment reporting** 

ASC 280, Disclosures about Segments, of an Enterprise and Related Information, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise engaging in business activities from which they may earn revenue and incur expenses, and about which separate financial information is available that is evaluated regularly by the chief operating decision-marker, or decision-making group (the "CODM"), in deciding how to allocate resources and in assessing performance.

The Group has determined that it has only one reportable operating segment, as the Group's long-lived assets are substantially all located in the Hong Kong and all of the Group's revenue and expenses are derived from within Hong Kong, no geographical segments are presented.

**s)** **Comprehensive income** 

Comprehensive income includes all changes in equity from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. For the years presented, total comprehensive income included foreign currency translation adjustments.

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**3.** **Summary of Significant Accounting Policies** (cont.)

**t)** **Earnings per share** 

Earnings (loss) per share is computed in accordance with ASC 260. The two-class method is used for computing earnings per share in the event the Group has net income available for distribution. Under the two-class method, net income is allocated between ordinary shares and participating securities based on dividends declared and participating rights in undistributed earnings as if all the earnings for the reporting period had been distributed. Basic earnings per ordinary share is computed by dividing net earnings attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to ordinary shareholders by the sum of the weighted-average number of ordinary shares outstanding and dilutive potential ordinary shares during the period. For the six months ended December 31, 2025, there were issuance of convertible bonds and warrants, so participating securities existed. For the six months ended December 31, 2024, there were only Class A Ordinary Shares issued and outstanding, so no participating securities existed.

Basic earnings per ordinary share is computed by dividing net income attributable to holders of ordinary shares by the weighted average outstanding during the year. Diluted earnings per share is calculated by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary and dilutive Class A ordinary equivalent shares outstanding during the year. Ordinary equivalent shares are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive or in the case of contingently issuable shares that all necessary conditions for issuance have not been satisfied.

**u)** **Commitments and contingencies** 

The Group accrues estimated losses from loss contingencies by a charge to income when information available before financial statements are issued or are available to be issued indicates that it is probable that an asset had been impaired, or a liability had been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred.

As of both December 31, 2025 and 2024, there were no contingent liabilities relating to litigations against the Group.

**v)** **Lease** 

In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)". The amendments in this ASU require that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments — Credit losses (Topic 326), Derivative and Hedging (Topic 815), and Lease (Topic 842): Effective Date. ASU2019-10 amends the effective dates for ASU No. 2016-02. The Group fits the requirement for other entities and has adopted ASU2016-02 for fiscal year ended December 31, 2025 and 2024. The Company has adopted the amendments with no material change to the Group's balance sheet to recognize right-of-use assets and related lease liabilities for operating leases.

**w)** **Recent issued or adopted accounting standards** 

The Group is an "emerging growth company" ("EGC") as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Group does not opt out of extended transition period for complying with any new or revised financial accounting standards. Therefore, the Group's financial statements may not be comparable to companies that comply with public company effective dates.

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**3.** **Summary of Significant Accounting Policies** (cont.)

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments". The amendments in this ASU require the measurement and recognition of expected credit losses for financial assets held at amortized cost. The amendments in this ASU replace the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. In November 2018, the FASB issued ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments-Credit Losses", which among other things, clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. For public entities, the amendments in these ASUs are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For all other entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. As a result of the issuance of ASU No. 2019-10 as discussed above, the effective date of ASU No. 2016-13 and its subsequent updates for all other entities was deferred to for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Group has adopted the ASUs since the fiscal year ended June 30, 2024 and the adoption does not have material impact on its financial position, results of operations and cash flow.

In October 2023, the FASB issued ASU No. 2023-06, "Disclosure Improvements — Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative". The amendments in this ASU are in response to the U.S. Securities and Exchange Commission's (SEC) Release No. 33-10532, Disclosure Update and Simplification, in which the SEC referred certain of its disclosure requirements that overlap with, but require incremental information to, generally accepted accounting principles to the FASB for potential incorporation into the Codification. For entities subject to the SEC's existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. For all other entities, the amendments will be effective two years later. For all entities, if by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the Codification and will not become effective for any entity. The Group is still evaluating the impact of this amendment to the Group's consolidated financial position, results of operations and cash flow.

In December 2023, the FASB issued ASU 2023-09, "Improvement to Income Tax Disclosure". This standard requires more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This standard also includes certain other amendments to improve the effectiveness of income tax disclosures. ASU 2023-09 is effective for public business entities, for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025.

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"), which requires all public entities, including public entities with a single reportable segment, to provide in interim and annual periods one or more measures of segment profit or loss used by the chief operating decision maker to allocate resources and assess performance. Additionally, the standard requires disclosures of significant segment expenses and other segment items as well as incremental qualitative disclosures. The Company adopted ASU 2023-07 effective December 31, 2024, on a retrospective basis. The adoption of ASU 2023-07 did not change the way that the Company identifies its reportable segments and, as a result, did not have a material impact on the Company's segment-related disclosures.

Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Group's consolidated financial position and results of operations upon adoption.

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**4.** **Financial Assets Held for Trading** 

The following table present fair value measurements of investment:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  | **US$** | **US$** | **US$** | **US$** |
| Financial Assets Held for Trading |  | 2520128 |  | 2520128 |
| **Total** |  | **2520128** |  | **2520128** |

---

The Group purchased certain units of an investment fund through which it mainly invested in the debt security markets. The fair value of this investment cannot be determined by market value as the fund was not publicly traded. Unit price was determined by the fund manager with liquidity discounts taken into account.

The following table set forth the movements for financial assets held for trading:

---

| | |
|:---|:---|
|  | **Financial<br> Assets<br> Held<br> for<br> Trading** |
|  | **US$** |
| **Balance, July 1, 2024** | **-** |
| Subscription Amount | **-** |
| Net change in unrealized appreciation (depreciation) on investments | **-** |
| Net realized gain (loss) on investments | **-** |
| **Balance, June 30, 2025** | **2384192** |
| Subscription Amount |  |
| Net change in unrealized appreciation (depreciation) on investments |  |
| Net realized gain (loss) on investments | 135936 |
| **Balance, December 31, 2025** | **2520128** |

---

**5.** **Accounts Receivables, net** 

---

| | | |
|:---|:---|:---|
|  | **As of December 31,**<br>**2025** | **As of <br> June 30,**<br>**2025** |
|  | **US$** | **US$** |
| Less than 6 months | 2764408 | 3030000 |
| More than 6 months but less than 1 year | 1801126 |  |
| More than 1 year | 28500 | 378626 |
|  | 4594034 | 3408626 |
| Allowance for credit losses | (194363) | (189313) |
| **Total** | 4399671 | 3219313 |

---

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**5.** **Accounts Receivables, net** (cont.)

The roll forward schedule of accounts receivable allowance is as follows:

---

| | |
|:---|:---|
|  | **Amount** |
|  | **US$** |
| **Balance as of July 1, 2024** |  |
| Addition | (190786) |
| Write off |  |
| Effect of exchange rate difference | 1473 |
| **Balance as of June 30, 2025** | (189313) |
| Addition | (3423) |
| Write off |  |
| Effect of exchange rate difference | (1627) |
| **Balance as of December 31, 2025** | (194363) |

---

As of December 31, 2025, and June 30, 2025, US$194,363 and US$189,313 allowance for credit losses expense was recognized against its accounts receivable, respectively.

**6.** **Advance to suppliers, net** 

---

| | | |
|:---|:---|:---|
|  | **As of December 31,**<br>**2025** | **As of<br> June 30,**<br>**2025** |
|  | **US$** | **US$** |
| Prepayment to suppliers | 863591 |  |
| **Total** | **863591** |  |

---

**7.** **Investments** 

---

| | |
|:---|:---|
|  | **Guangzhou<br> Sanyi<br> Network** |
|  | **US$** |
| **Balance, July 1, 2024** |  |
| Fair value of 40% equity of *Guangzhou Sanyi Network* | 569956 |
| Net realized gain (loss) on investments | 55549 |
| Net change in unrealized appreciation (depreciation) on investments |  |
| Interest and dividend income paid | - |
| **Balance, June 30, 2025** | 625505 |
| Net realized gain (loss) on investments | (44420) |
| Net change in unrealized appreciation (depreciation) on investments |  |
| Interest and dividend income paid |  |
| Effect of foreign currency translation adjustments | 2254 |
| Consideration received for the sale of shares | (757890) |
| Gain disposal of joint ventures | 174551 |
| **Balance, December 31, 2025** | - |

---

**8.** **Deposits, Prepayments and Other Current Assets** 

---

| | | |
|:---|:---|:---|
|  | **As of December 31,**<br>**2025** | **As of<br> June 30,**<br>**2025** |
|  | **US$** | **US$** |
| Disposal proceeds receivable | 1851787 | 1060078 |
| Client legal fund for company incorporation | 23472 |  |
| Other current assets | 300 | 156511 |
| **Deposits, prepayments and other current assets** | 1875559 | 1216589 |

---

**9.** **Other non-current assets** 

---

| | | |
|:---|:---|:---|
|  | **As of December 31,**<br>**2025** | **As of<br> June 30,**<br>**2025** |
|  | **US$** | **US$** |
| Long-term unamortized expenses | 1721878 | 1537791 |
| Deposits on Property and Equipment | 1591.667 | - |
| **Other non-current assets** | 3313545 | 1537791 |

---

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**10.** **Leases** 

Operating lease as lessee

The Group signed a land lease agreement in Finland for a period from December 3, 2025 to December 2, 2055, and measured and recorded the right-of-use asset and operating lease at the lease commencement date.

Under a special pricing arrangement, based on a leased area of 101,071 square meters and a price of €2.46 per square meter after adjustment for the cost of living index (2,342 points as of September 2025), the land parcel has a redemption price of €248,728. The annual rent is 7.50% of the redemption price, giving a current base annual rent of €18,655.

The subsequent rent is calculated based on the base annual rent and is linked to the official Cost of Living Index published by Statistics Finland (October 1951 = 100). If the index increases or decreases relative to the base index of 2,342 points (the figure for September 2025), the annual rent shall be adjusted by the same proportion. The adjustment shall be made annually using the average index of the preceding year. Should this index cease to be published, an appropriate substitute index series shall be adopted.

Lease liabilities consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of December 31,**<br>**2025** | **As of<br> June 30,**<br>**2025** |
|  | **US$** | **US$** |
| **Lease liabilities-Current** | 5729 |  |
| **Lease liabilities-Non Current** | 259256 |  |
| **Total lease liabilities** | 264985 |  |

---

---

| | | |
|:---|:---|:---|
|  | **As of December 31,**<br>**2025** | **As of <br> June 30,**<br>**2025** |
|  | **US$** | **US$** |
| Weighted discount rate for the operating lease | 4.25% |  |
| Weighted average remaining lease term | 29.94 |  |

---

The following is a schedule of future minimum payments under the Company's operating leases (excluding short-term leases) as of December 31, 2025:

---

| | |
|:---|:---|
|  | **Amount** |
|  | **US$** |
| 2026 | 17158 |
| 2027 | 15896 |
| 2028 | 15896 |
| 2029 | 15896 |
| 2030 | 15896 |
| Thereafter | 396124 |
| Total lease payments | 476866 |
| Less: imputed interest | (211881) |
| **Total lease liabilities, net of interest** | **264985** |

---

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**11.** **Accrued Expenses and Other Liabilities** 

---

| | | |
|:---|:---|:---|
|  | **As of December 31,**<br>**2025** | **As of <br> June 30,**<br>**2025** |
|  | **US$** | **US$** |
| Payroll payables | 271265 | 108407 |
| Accrued professional fees | 82100 | 52219 |
| Accrued audit fees |  | 14035 |
| Reimbursable payables (1) | 2159978 | 516645 |
| Accrued occupancy expenses | 23100 | - |
| **Accrued expenses and other liabilities** | 2536443 | 691306 |

---

(1) Reimbursable payables primarily consist of expenses paid on behalf of due to Guangzhou 3E Network and Guangzhou Sanyi Network.

Guangzhou 3E Network was formerly a subsidiary of the Company and was disposed of on March 21, 2025. As of December 31, 2025 and June 30 2025, the outstanding balance of intercompany reimbursement payables arising from expenses settled on behalf of the counterparty prior to disposal amounted to $529,244 and $516,645.

Guangzhou Sanyi Network was formerly a subsidiary of the Company. It became an associate of the Company after the Company disposed of its controlling equity interest on March 21, 2025. The Company disposed of its remaining equity interest in Guangzhou Sanyi Network on December 25, 2025, completing the full disposal of the entity. As of December 31, 2025, the outstanding balance of intercompany reimbursement payables arising from expenses settled on behalf of the counterparty prior to disposal amounted to $1,630,734.

**12.** **Convertible Note** 

On June 9, 2025, the Company entered into a Securities Purchase Agreement (the "Purchase Agreement") with an institutional investor (the "Investor"), pursuant to which the Company (i) up to $7.4 million in face value of 8% original issue discount senior secured convertible notes ("Notes") and (ii) warrants ("Warrants") to purchase up to certain number of Class A ordinary shares par value $0.0001 per share ("Shares") that equals 40% of the maximum principal amount of the First Tranche Note divided by the daily volume weighted average prices ("VWAPs") prior to the initial closing date of the First Tranche.

The Purchase Agreement provides for three tranches of Notes and Warrants, including (i) the First Tranche, which consists of up to $2.2 million in principal amount of Note and related Warrants, to be issued in two instalments, the first instalment upon signing of the Purchase Agreement and the second instalment upon the U.S. Securities and Exchange Commission (the "SEC") declaring the initial resale registration statement to be filed therefor effective; (ii) the Second Tranche, also up to $2.2 million in principal amount of Note, to occur on the earlier of the date on which the First Tranche Note has less than $500,000 in principal remaining or after 120 days following effectiveness of the initial resale registration statement, subject to the Company having a minimum market capitalization of $30 million; and (iii) the Third Tranche, up to $3.0 million in principal amount of Notes, which may be issued by mutual consent up to 180 days after the Second Tranche closing. The conversion price of the Notes equals to the lower of (i) a fixed price equal to 120% of the average of the three daily VWAPs of the Shares immediately prior to the applicable closing date, which will be subject to adjustment for dilutive offerings (excluding director and officer compensation) that occur within the next 18 months and (ii) a floating price based on 93% of the lowest daily VWAP in the 10 trading days immediately preceding the conversion if there is no event of default. The transaction is subject to customary closing conditions for each tranche, and each closing is expected to take place once those conditions are satisfied or waived in the near future.

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**12.** **Convertible Note** (cont.)

The Company also issued 1,248,611 Shares ("Pre-Delivery Shares") and pre-funded warrants to purchase an additional 213,389 Pre-Delivery Shares.

On the initial first closing date, the investor shall pay the company the available funds equivalent to the initial first closing subscription amount of US$1,380,000 via wire transfer, and the company shall deliver to the investor the first tranche of notes in the amount of US$1,500,000, along with warrants and Pre-Delivery Shares, remotely through electronic transmission of the relevant transaction documents on June 10, 2025. As to the initial First Tranche Closing, a Warrant registered in the name of the Investor number of shares of ordinary shares equal to 40% of the Investor's maximum Principal Amount under the First Tranche Note divided by the daily VWAP of the ordinary shares on the date prior to such Closing, with an initial exercise price equal to the Fixed Conversion Price of the Note issued at such Closing, subject to adjustment therein(that is 279,739 warrants). Notwithstanding anything herein to the contrary, at any time or times from and after the occurrence and during the continuance of any Event of Default (as defined in the Note), the Holder may elect to exercise all or any portion of this Warrant at an alternative Exercise Price equal to 80% of the VWAP for the Trading Day immediately preceding the date of such exercise. As to the initial First Tranche Closing, a Warrant registered in the name of the Investor to purchase up to a number of shares of ordinary shares equal to 40% of the Investor's maximum Principal Amount under the First Tranche Note divided by the daily VWAP of the ordinary shares on the date prior to such Closing, with an initial exercise price equal to the Fixed Conversion Price of the Note issued at such Closing, subject to adjustment therein); From the date the U.S. Securities and Exchange Commission declares the initial resale registration statement effective, the investor shall pay $644,000 of the initial second closing subscription amount, and the company shall deliver to the investor the second tranche of the first notes in the amount of $700,000.

On October 2, 2025, investors completed the conversion of the first tranche with a face value of USD 2,050,000. Based on the pre-merger share capital, the converted shares amounted to 3,349,496; based on the post-merger share capital, the converted shares totalled 133,980. The remaining unconverted portion of the first tranche carried a face value of USD 150,000. The relevant investors have reached an agreement with the Company to use this unconverted amount to offset part of the principal of the USD 1,500,000 convertible bond issued by the Company on December 18, 2025.

On October 15, 2025, the terms of the second and third tranches of the original purchase agreement (the second tranche covering a maximum note principal of $220 million, and the third tranche covering a maximum note principal of $3 million) are hereby nullified.

On October 17, 2025, the Company entered into a Securities Purchase Agreement with an institutional investor ("the Investor"). Pursuant to the Agreement, the Company issued to the Investor senior secured convertible notes with an original issue discount of 8% and a principal amount of US$1,500,000 ("the Notes"), and the Investor paid a subscription amount equal to 92% of the principal, namely US$1,380,000. The Notes were settled on October 17, 2025. Under the relevant terms, the conversion price shall be the lower of: (A) a fixed conversion price of US$0.6777; (B) an alternative conversion price of 93% of the lowest daily VWAP during the 10 trading days preceding the conversion date (in the event of no default event); if a default event occurs, this 93% shall be replaced by 80%; or (C) a floor price of US$0.1007. Subsequent adjustment mechanism for the Fixed Conversion Price: "Effective upon each subsequent closing under any Purchase Agreement, the Fixed Conversion Price shall be reduced—never increased—to equal the lowest 120% of the average three-day VWAP calculated prior to the Closing Date."

On December 29, 2025, investors completed the conversion of the entire batch with a face value of USD 1,500,000. Based on the pre-merger share capital, the converted shares amounted to 5,773,423; based on the post-merger share capital, the converted shares totaled 230,937.

On December 18, 2025, the Company entered into a Securities Purchase Agreement with an institutional investor ("the Investor"). Pursuant to the agreement, the Company issued to the Investor senior secured convertible notes with an original issue discount of 8% and a maximum principal amount of USD 2,000,000 ("the Notes"), for which the Investor paid a subscription amount equivalent to 92% of the principal. The first delivery was completed on December 18, 2025, with the Company receiving notes totaling USD 1,380,000, representing a principal amount of USD 1,500,000. The agreement also stipulated a second delivery: upon the effectiveness of the resale registration statement corresponding to the Notes, the Investor would pay USD 460,000 for the remaining notes with a principal amount of USD 500,000. As of December 31, 2025, this batch had not yet been fully delivered. Additionally, under relevant terms, the conversion price shall be the lower of: (A) A fixed conversion price, calculated on the delivery date; (B) An alternative conversion price: 93% of the lowest daily VWAP during the 10 trading days preceding the conversion date (unless a default event occurs); in the event of a default, this 93% is replaced by 80%; or (C) A floor price: the conversion price shall not be less than USD 0.0524. The subsequent adjustment mechanism for the fixed conversion price is as follows: "Effective upon each subsequent closing under any Purchase Agreement, the Fixed Conversion Price shall be decreased, but in no event increased, to equal the lowest 120% of the average three-day VWAP calculated prior to the Closing Date."

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**12.** **Convertible Note** (cont.)

As of December 31, 2025, none of the convertible bonds in this batch's initial delivery portion had been converted into shares.

The Company has identified and evaluated the embedded features of the convertible notes, and concluded that (i) the Company call option, contingent interest features for event of default, and event of delisting put option are clearly and closely related to the debt host instrument and, therefore, are not required to be bifurcated under ASC 815, (ii) the conversion right is eligible for a scope exception from derivative accounting and is not required to be bifurcated under ASC 815. Consequently, the Company accounts for the convertible notes as a liability following the respective guidance of ASC 815 and ASC 470.

The company issue (i) up to Warrants to purchase up to certain number of Class A ordinary shares par value $0.0001 per Shares that equals 40% of the maximum principal amount of the First Tranche Note divided by the daily VWAP prior to the initial closing date of the First Tranche(that is 279,739 warrants). Therefore, the warrant should be settled by a fixed number of shares rather than a variable number of shares. In conclusion, the Warrants does not fall into any of the three classes, and it is without the scope of ASC 480.

For the six months ended December 31, 2025 and December 31, 2024, the net interest expense related to the convertible notes was $167,231 and nil, respectively, and has been included in the interest expense section of the consolidated income statement. The Company has no cash interest payment obligations; all interest expenses represent non-cash charges arising from the amortization of the discount on the convertible notes issuance, with the corresponding interest amounts fully incorporated into the amortized cost of the convertible notes.

The amortized cost of the Convertible Note as of December 31, 2025 consisted of the following:

---

| | |
|:---|:---|
|  | **As of <br> December 31,<br> 2025** |
|  | **US$** |
| Convertible Note Principal- Issued in December, 2025 | 1500000 |
| Convertible Note Interest Adjustment | (192570) |
| **Total** | **1307430** |

---

\* After giving effect to the reverse stock split effected on March 16, 2026.

**13.** **Income Taxes** 

The entities within the Group file separate tax returns in the respective tax jurisdictions in which they operate.

British Virgin Islands ("BVI")

Under the current laws of the BVI, the Group's subsidiaries incorporated in BVI are not subject to tax on income or capital gains. Additionally, upon payments of dividends by these BVI companies to its respective shareholders, no BVI withholding tax will be imposed.

Hong Kong, PRC

Our subsidiaries, HK 3e Network and Maskmeta, are Hong Kong entities subject to the two-tier profits tax rates regime under the Inland Revenue (Amendment) (No.3) Ordinance 2018. Pursuant to Hong Kong tax legislation, only one Hong Kong subsidiary within the Group is eligible for the preferential two-tier profits tax rate, and the remaining Hong Kong subsidiaries shall be subject to the standard profits tax rate of 16.5% on their entire assessable profits.

Under the two-tier profits tax rates regime, the first HKD 2 million of assessable profits of the eligible Hong Kong subsidiary is taxed at the preferential rate of 8.25%, while the remaining assessable profits are taxed at the standard rate of 16.5%.

Finland

The Group's Finnish subsidiaries are governed by the income tax law of Finland and are subject to Finnish corporate income tax. The current standard corporate income tax rate of Finland is 20%, which applies uniformly to Finnish tax resident companies and permanent establishments of foreign entities operating in Finland.

Pursuant to the official 2026–2029 medium-term fiscal framework released by the Finnish Government in April 2025, Finland has confirmed the latest tax reforms. The standard corporate income tax rate will be decreased from 20% to 18% effective from 1 January 2027, and the loss carryforward period will be extended from 10 years to 25 years, which applies to tax losses arising in the 2026 tax year and thereafter.

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**13.** **Income Taxes** (cont.)

Composition of profit or loss before income tax for the periods presented by jurisdictions is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended<br> December 31,** | **For the Six Months Ended<br> December 31,** |
|  | **2025** | **2024** |
|  | **US$** | **US$** |
| Hong Kong, PRC | 1052275 | 929508 |
| Other jurisdictions | 1184485 | 951 |
| Total | (132210) | 930459 |

---

For the six months ended December 31, 2025, income tax expenses amounted to USD77,506 and USD(229） in Hong Kong, PRC and other jurisdictions, respectively.

Composition of income tax expense for the periods presented are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** |
|  | **2025** | **2024** |
|  | **US$** | **US$** |
| Income before income tax expense | 109509 | 132180 |
| Deferred income tax expense/(benefit) | (32232) | - |
| Total | 77277 | 132180 |

---

Reconciliation of the income tax expense computed by applying the Hong Kong statutory profits tax rate of 16.5% to the Group's income (loss) before income taxes for the six months ended December 31, 2024 is as follows:

---

| | |
|:---|:---|
|  | **For the Six<br> Months <br> Ended December 31, 2024** |
|  | **US$** |
| Income before income tax expense | 930459 |
| Hong Kong statutory profits tax rate | 16.50% |
| Income tax at PRC statutory income tax rate | 153526 |
| Difference due to preferential tax | (21346) |
| Income tax expense | 132180 |

---

In accordance with the updated requirements of ASU 2023 - 09, reconciliation between the statutory tax rate and the Group's effective tax rate for the year ended December 31, 2025 is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended**<br> **December 31, 2025** | **For the Six Months Ended**<br> **December 31, 2025** |
|  | **US$** | **US$** |
|  | **Amount** | **Percent** |
| Profit before income taxes | (132210) |  |
| Income tax expense computed at Hong Kong statutory profits tax rate of 16.5% | (21816) | 16.5% |
| Foreign tax effects | 195187 | (147.6)% |
| Non-taxable or non-deductible items | (43602) | 33.0% |
| Other adjustments |  |  |
| &nbsp;&nbsp;&nbsp;Two-tiered profits tax relief | (21156) | 16.0% |
| Changes in valuation allowance | (31336) | 23.7% |
| Income tax expense | 77277 | (58.5)% |

---

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**13.** **Income Taxes** (cont.)

The Group's deferred tax assets and liabilities consist of the following components:

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** |
| **Deferred tax assets** | **US$** | **US$** |
| Allowance against receivables | 32070 |  |
| Lease liability | 47697 |  |
| Net operating loss carry-forwards | 330 |  |
| Less: Valuation allowance | (330) |  |
| Subtotal | 79767 |  |
| **Deferred tax liabilities** |  |  |
| Right-of-use assets | (47470) |  |
| Subtotal | (47470) |  |
| Total deferred tax assets, net | 32297 |  |

---

Full valuation allowances have been provided where, based on all available evidence, management determined that deferred tax assets arising from net operating loss carryforwards are not more likely than not to be realized in future tax years. As of December 31, 2025, the Group had tax losses of approximately USD 330 in Hong Kong, which have no expiry date and may be carried forward indefinitely under Section 19C of the Hong Kong Inland Revenue Ordinance. A full valuation allowance has been recorded against these deferred tax assets.

For the six months ended December 31, 2025 and 2024, the Group did not have any material interest or penalties associated with tax positions. The Group did not have any significant unrecognized uncertain tax positions as of December 31, 2025 or June 30, 2025. The Group does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months.

**14.** **Ordinary Shares** 

As of June 30, 2024, the Company had 1,000 Ordinary Shares, with par value of US$1 each. On January 3, 2024, the Company filed the Amended and Restated Articles with the Registrar of Corporate Affairs to increase its authorized shares from 50,000 ordinary shares, par value of $1 per share, to 500,000,000 ordinary shares, par value of $0.0001 per share, consisting of (i) 400,000,000 Class A Ordinary Shares, par value of $0.0001, and (ii) 100,000,000 Class B Ordinary Shares, par value of $0.0001. In respect of matters requiring a shareholders' vote, holders shall be entitled to one vote per share on all matters subject to the vote at general meetings of our company, while holders of Class B Ordinary Shares shall be entitled to 20 votes per share. Simultaneously, the Company effectuated a forward split of all issued and outstanding ordinary shares at a ratio of 1-for-10,000, and converted all existing issued and outstanding ordinary shares into Class A Ordinary Shares of the Company at a ratio of 1-for-1. As a result, as of the date hereof, there were 10,000,000 issued and outstanding Class A Ordinary Shares of the Company. Such share number are retrospectively applied to all period presented as if the 10,000,000 Class Ordinary Shares and nil Class B Ordinary Shares existed from the beginning of the first year presented.

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**14.** **Ordinary Shares** (cont.)

On January 10, 2025, the Group issued 1,250,000 Class A Ordinary Shares at $4.00 per share for a total of $5,000,000 gross proceeds in its Initial Public Offering ("IPO"). Net proceeds from the IPO was $1,695,539, net of expenses primarily including legal fees and audit fees.

On January 24, 2025, the Board of Directors approved the issuance of 300,000 shares of Class B Ordinary Shares to Ms. Jianping Niu and 280,000 Class B Ordinary Shares to Mr. Huabei Zhu, totaling 580,000 shares with a par value of US$0.0001 per share.

On October 20, 2025, the Company issued 1,000,000 Class A Ordinary Shares to external advisors in connection with the Company's equity incentive arrangements.

From July 2025 to December 2025, outstanding convertible notes were converted into Class A Ordinary Shares in multiple tranches, with an aggregate of 9,122,919 Class A Ordinary Shares newly issued upon conversion.

The Company holds 1,248,611 registered Class A pre-delivery shares. The counterparty confirmed its purchase commitment in March 2026, and such shares are included in the calculation of diluted earnings per share.

As of December 31, 2025, the Company had 22,621,530 issued Class A Ordinary Shares and 580,000 issued Class B Ordinary Shares. Excluding the pre-delivery shares, a total of 21,372,919 Class A Ordinary Shares and 580,000 Class B Ordinary Shares were outstanding as of the balance sheet date.

On March 16, 2026, the Company effected a 25-for-1 reverse share split on all issued and outstanding Class A and Class B Ordinary Shares. In conjunction with the reverse share split, the par value per share was proportionally increased from $0.0001 to $0.0025, while the total aggregate par value of the Company's issued share capital remained unchanged.

In accordance with ASC 260, all share counts, weighted average shares outstanding and per-share data for all periods presented have been retroactively restated to reflect the 25-for-1 reverse share split, as if the split had been effective at the beginning of the earliest period presented. After retrospective adjustment for the reverse share split, as of December 31, 2025, the Company had 904,861 issued Class A Ordinary Shares, 854,917 outstanding Class A Ordinary Shares, and 23,200 issued and outstanding Class B Ordinary Shares.

**15.** **Concentration of Risk** 

*<u>Credit risk</u>*

Financial instruments that potentially subject the Group to significant concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable and due from related parties. As of December 31, 2025, all of the Groups' cash and cash equivalents and restricted cash was held by major financial institutions located in PRC, Hong Kong and the United States. The Group believes that these financial institutions located in PRC, Hong Kong and the United States are of high credit quality. For accounts receivable and due from related parties, the Group extends credit based on an evaluation of the customer's or other parties' financial condition, generally without requiring collateral or other security. In order to minimize the credit risk, the Group delegated a team responsible for credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. Further, the Group reviews the recoverable amount of each individual receivable at each balance sheet date to ensure that adequate allowances are made for doubtful accounts. In this regard, the Group considers that the Group's credit risk for accounts receivable and due from related parties is significantly reduced.

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**15.** **Concentration of Risk** (cont.)

*<u>Concentration of customers and suppliers</u>*

The following tables summarized the information about the Group's concentration of customers and suppliers for the six months ended December 31, 2025 and 2024 or as of December 31, 2025 and June 30, 2025, respectively:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Revenue, customer** <br> **concentration risk** | **Revenue, customer** <br> **concentration risk** | **Accounts receivable, customer**<br> **concentration risk** | **Accounts receivable, customer**<br> **concentration risk** |
|  | **Six months ended**<br> **December 31,** <br> **2025** | **Six months ended**<br> **December 31,** <br> **2024** | **As of** <br> **December 31,**<br> **2025** | **As of**<br> **June 30,**<br> **2025** |
| Customer |  |  |  |  |
| A | 36% | 56% | 11% | -% |
| B | -% | -% | 21% | 38% |
| C | 22% | 19% | 23% | 14% |
| D | 21% | -% | 19% | 17% |
| E | 21% | -% | 14% | -% |
| F | -% | -% | \*% | \*% |
| G | -% | 25% | -% | -% |
| **Total** | **100%** | **100%** | **88%** | **69%** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Purchase, supplier concentration risk** | **Purchase, supplier concentration risk** | **Accounts payable, supplier concentration risk** | **Accounts payable, supplier concentration risk** |
|  | **Six months ended**<br> **December 31,** <br> **2025** | **Six months ended**<br> **December 31,** <br> **2024** | **As of** <br> **December 31,**<br> **2025** | **As of**<br> **June 30,**<br> **2025** |
| Supplier |  |  |  |  |
| H | 62% | 97% | -% | -% |
| I | 38% | -% | -% | 100% |
| **Total** | **100%** | **97%** | **-%** | **100%** |

---

---

| | |
|:---|:---|
| \* | Less than 10%. |
|  | No transaction incurred during the year/no balance existed as of the reporting date. |

---

**16.** **Share-based compensation** 

On October 20, 2025, the company granted a total of 1,000,000 restricted shares of Class A shares to external consultants as compensation for their consulting services. 100% of these restricted shares of Class A shares vested immediately upon the Grant Date.

The estimated fair value of restricted shares of Class A shares granted were based on the closing price of the Company's ordinary shares on the grant date. This restriction did not affect the timing of expense recognition as the awards were fully vested at the time of grant.

A summary of activities of the restricted shares for the six months ended December 31, 2025 is as follow:

---

| | | |
|:---|:---|:---|
|  | **Number of <br> nonvested <br> restricted shares** | **Weighted average FV per <br> ordinary share on the grant <br> date ($US)** |
| **Unvested as of July 1, 2024** | | |
| Granted |  |  |
| Vested |  |  |
| **Unvested as of June 30, 2025** |  |  |
| Granted | 40000 | 12.875 |
| Vested | (40000) | 12.875 |
| **Unvested as of December 31, 2025** | - | - |

---

\* After giving effect to the reverse stock split effected on March 16, 2026.

Share-based compensation expenses of $42,740 was recognized for the restricted shares for the six months ended December 31, 2025. As of December 31, 2025, unrecognized share based compensation expense related to the restricted shares amounted to $472,260 based on grant date fair value. Due to foreign currency translation differences the amount presented as other non current assets is $471,113. This amount will be amortized over the service period and recognized in profit or loss.

The allocation of total share-based compensation expenses is set forth as follows:

---

| | | |
|:---|:---|:---|
|  | **For the six months ended<br> December 31,** | **For the six months ended<br> December 31,** |
|  | **2025** | **2024** |
|  | **US$** | **US$** |
| General and administrative expenses | 42740 |  |
| **Total** | 42740 |  |

---

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**17.** **Commitments and Contingencies** 

From time to time, the Company may be subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. As of December 31, 2025 and June 30, 2025, although the outcomes of these legal proceedings cannot be predicted, the Company does not believe these actions, in the aggregate, will have a material adverse impact on its financial position, results of income or liquidity.

**18.** **Earnings Per Share** 

Basic and diluted earnings per ordinary share for each of the year presented is calculated as follows:

---

| | | |
|:---|:---|:---|
|  | **Six months ended**<br> **December 31,** | **Six months ended**<br> **December 31,** |
|  | **2025** | **2024** |
| Income (loss) from continuing operations | $(209487) | $798279 |
| Income (loss) from discontinued operation |  | 271048 |
| Net income (loss) | $(209487) | $1069327 |
| Weighted average common shares outstanding — basic | 564099 | 400000 |
| Effect of dilutive securities | 3548 |  |
| Weighted average common shares outstanding — diluted | 567647 | 400000 |
| Basic net income (loss) per share: |  |  |
| Continuing operations | (0.37) | 2.00 |
| Discontinued operations |  | 0.68 |
| Total basic net income (loss) per share | (0.37) | 2.68 |
| Diluted net income (loss) per share: |  |  |
| Continuing operations | (0.37) | 2.00 |
| Discontinued operations |  | 0.68 |
| Total diluted net income (loss) per share | (0.37) | 2.68 |

---

\* After giving effect to the reverse stock split effected on March 16, 2026.

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**18.** **Earnings Per Share** (cont.)

Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase earnings per share or decrease loss per share) are excluded from the calculation of diluted earnings per share. For the six months ended December 31, 2025, the dilutive effect of 3,548 potential common shares was included in the diluted earnings per share calculation. There were no dilutive securities for the six months ended December 31, 2024.

**19.** **Due From/(To) Related Parties** 

The following is a list of the related parties with whom the Group conducted transactions during the six months ended December 31, 2025, and for the years ended June 30, 2025, and 2024, and their relation with the Group:

---

| | |
|:---|:---|
| **Name of the related parties** | **Relation with the Group** |
| Tingjun Yang | Chief Executive Officer and Director |
| Hailiang Jia | Chief Financial Officer |
| Shu Sang Joseph Law | Shareholder |
| Jianping Niu | Shareholder |
| Huabei Zhu | Shareholder |
| Guangzhou Sanyi Network | Former related party (ownership reduced from 40% to 0% in current period, no longer a related party post-disposal) |

---

---

| | | |
|:---|:---|:---|
|  | **As of December 31, 2025** | **As of June 30,<br> 2025** |
|  | **US$** | **US$** |
| **Due from related parties** | | |
| Jianping Niu | $30 | $30 |
| Huabei Zhu | $28 | $28 |
| Shu Sang Joseph Law | $58758 | $58267 |
|  | $58816 | $58325 |

---

Due from related parties represents cash advanced to these related parties to use for the Company's operations.

---

| | | |
|:---|:---|:---|
|  | **As of December 31,**<br>**2025** | **As of June 30,**<br>**2025** |
|  | **US$** | **US$** |
| **Due to a related party – non-current** |  |  |
| Tingjun Yang | $62200 | $63000 |
| Guangzhou Sanyi Network \* | $- | $1619884 |
|  | $62200 | $1626184 |

---

\* *On December 25, 2025, the Company sold its remaining 40% equity interest in Guangzhou Sanyi Network, completing the full divestment of the entity.*

Due to related parties represents interest-free loan payable on money borrowed by the Company and used for daily operation. These amounts are settled on demand.

As of the date of this financial statement, nil of the payable has been settled.

**3 E NETWORK TECHNOLOGY GROUP LIMITED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**20.** **Subsequent Events** 

Between January 1, 2026 and March 15, 2026 (the day immediately prior to the effective date of the share consolidation described below), holders of the Company's convertible notes converted an aggregate principal amount of 975,000 USD into an aggregate of 5,518,569 Class A ordinary shares. The par value of the Class A ordinary shares issued upon conversion was 0.0001 USD. (On a post-consolidation basis, this would be adjusted to approximately 220,742 Class A ordinary shares.)

On February 11, 2026, the company granted a total of 100,000 restricted shares of Class A shares to external consultants as compensation for their consulting services. 100% of these restricted shares of Class A shares vested immediately upon the Grant Date. (On a post-consolidation basis, these restricted shares were adjusted to 4,000 Class A ordinary shares.) On March 16, 2026, the Company effected a 25-for-1 reverse share split on all issued and outstanding Class A and Class B Ordinary Shares. In conjunction with the reverse share split, the par value per share was proportionally increased from $0.0001 to $0.0025, while the total aggregate par value of the Company's issued share capital remained unchanged. In connection with the fractional shares resulting from the reverse share split, the Company issued 14,358 Class A Ordinary Shares on March 23, 2026 as compensation.

Between March 16, 2026 and the day immediately prior to the date of approval of these financial statements, holders of the Company's convertible notes converted an additional aggregate principal amount of 1,025,000 into an aggregate of 533,379 Class A ordinary shares at the adjusted conversion price (post-consolidation). The par value of the Class A ordinary shares issued upon post-consolidation conversion was 0.0025 USD per share.

On March 31, 2026, holders of the Company's pre-funded warrants exercised for an aggregate of 58,480 Class A ordinary shares (consisting of: 49,945 shares resulting from the 1,248,611 registered Class A pre-delivery shares held prior to the share consolidation, as adjusted for the 25:1 reverse share split; and 8,535 shares from the exercise of warrants after the share consolidation).

Between May 6, 2026 and the day immediately prior to the date of approval of these financial statements, holders of the Company's warrants exercised for an aggregate of 250,000 Class A ordinary shares.

## Exhibit 99.2

**Exhibit** **99.2**

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF**

**FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

The following discussion and analysis of its financial condition and results of operations should be read in conjunction with the section headed "Summary Financial and Operating Data" and its financial statements and the related notes included elsewhere in this prospectus. This discussion contains forward-looking statements that involve risks and uncertainties. Its actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under "Risk Factors" and elsewhere in this prospectus.

**Business Overview**

We are a business-to-business ("B2B") information technology ("IT") business solutions provider. Our business includes two main portfolios, software development portfolio.

For the six months ended December 31, 2025 and 2024, net revenue from software development services from continuing operations came to $3.72 million and $1.80 million, respectively.

**Seasonality and customer concentration**

There is no seasonality in our business operations throughout the year. Our customer base for software development services tends to vary from one year to another, as each purchase agreement tends to be a one-off event with few repeat customers. A major customer in one year may not provide the same level of revenue for us in any subsequent year. For the software development services, we believe that in the foreseeable future we will continue to derive a significant portion of our revenue from a small number of major customers.

**Factors Affecting Our Results of Operations**

We believe that the most significant factors that affect our business and financial results include the following:

● Our operation and financial performance have gradually improved and stabilized and has steadily recovered from the adverse impacts of the pandemic in prior years. Total revenue was $3,724,311 for the six months ended December 31, 2025, compared with $1,800,000 for the six months ended December 31, 2024, representing a increase of 106.9%. Our business operations are primarily concentrated in Hong Kong, and the Company intends to explore business expansion into other overseas markets going forward.

● *Our ability to expand our customer base and generate more business from existing customers.* We strive to provide our customers with the best services as satisfied customers are more likely to stay as our existing customers. Also, satisfied customers are more likely to recommend us to their peers. We work closely with our customers so that software solutions recommended by us can satisfy their needs and improve their efficiencies.

This marketing strategy allows us to minimize our marketing expenses but still get effective marketing. Revenue derived from a customer will usually decline after the initial order when the customer has acquired the basic IT system that it needs. In addition, for the six months ended December 31, 2025, our top 4 customers, account for 36.2%, 21.4%, 21.4% and 20.9%, respectively of our revenue. There are inherent risks with having a large percentage of total revenue concentrated with a limited number of customers. Changes to or reductions in the buying patterns of these larger customers may expose our business and results of operations to greater volatility. The mix and type of customers, and sales to any single customer, may vary significantly from quarter to quarter and from year to year, and have a significant impact on our financial condition, results of operations and cash flows. Therefore, it is important that we develop new products and new customers. For the six months ended December 31, 2025, our revenue from continuing operations increased by 106.9%, or $1,924,311, to $3,724,311, compared with $1,800,000 for the six months ended December 31, 2024. All revenue during the period was derived from existing customers, driven by follow-on projects and customized solution requirements.

● *Our ability to expand our software product range.* Based on our experience, our revenue from existing customers will drop after they have installed the basic software system. Therefore, it is important that we introduce new software products that meet the evolving needs of our customers and attract new customers. Our product design team is in close contact with participants in the markets that we operate to gain first-hand knowledge of the latest trends and issues of concerns to the participants in the markets, which allows us to design software products that can improve the efficiency of our customers and meet their needs in a cost-effective way. Also, through research and development, we have actively invested in broadening our product lines. Due to the concentration of our customer base and our billing model as a seller of one-time software solution rather than as a Software-as-a-Service (SaaS) provider, we will need to continue to launch new products to serve our existing customers and attract new customers.

● *Our ability to attract, retain and motivate qualified employees.* We pay particular attention in recruiting the right talent to join the Company. We develop intern programs with universities and technical colleges to support the talents in the community and get more exposure to graduates in the early stage of their career path. We provide on-the-job training to our staff, and encourage them to attend technical seminars and courses to update their knowledge. We believe our approach to attract and develop talents allows us to achieve a relatively low turnover among our technical staff.

**Results of Operations**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six months ended December 31, 2025** | **As % of sales** | **Six months ended December 31, 2024** | **As % of sales** | **Increase/ (Decrease)** | **%** |
| Revenue | 3724311 | 100.0 | 1800000 | 100.0 | 1924311 | 106.9 |
| Cost of revenue | (2085045) | (56.0) | (826688) | (45.9) | (1258357) | 152.2 |
| Gross profit | 1639266 | 44.0 | 973312 | 54.1 | 665954 | 68.4 |
| General and administration expenses | (1841288) | (49.4) | (39385) | (2.2) | (1801903) | 4575.1 |
| Exchange loss | (5829) | (0.2) | (3725) | (0.2) | (2104) | 56.5 |
| Investment income | (44420) | (1.2) |  |  | (44420) |  |
| Gain on disposal of joint ventures | 174551 | 4.7 |  |  | 174551 |  |
| Fair value gain on financial assets held for trading | 135655 | 3.6 |  |  | 135655 |  |
| Total operating expenses | (1581331) | (42.5) | (43110) | (2.4) | (1538221) | 3568.1 |
| Income from operation | 57935 | 1.6 | 930202 | 51.7 | (872267) | (93.8) |
| (Expenses)/other income, net | (190145) | (5.1) | 257 |  | (190402) | (74086.4) |
| (Loss) /income before income tax | (132210) | (3.5) | 930459 | 51.7 | (1062669) | (114.2) |
| Income tax | (77277) | (2.1) | (132180) | (7.3) | 54903 | (41.5) |
| Net (loss)/income | (209487) | (5.6) | 798279 | 44.3 | (1007766) | (126.2) |

---

**For the six months ended December 31, 2025 and 2024**

**Revenue**

Our revenue from continuing operations is primarily generated from the provision of IT consulting and solution services, with software development services as our core offering. These software development services mainly consist of customized software development arrangements subject to customer acceptance requirement, which are billed on a fixed price basis.

The following table presents our revenue from continuing operations by our service lines.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six months ended December 31, 2025**<br>**Revenue** |<br>**%** | **Six months ended December 31, 2024**<br>**Revenue** |<br>**%** |<br>**Variance** |<br>**%** |
| Software development services | 3724311 | 100.0 | 1800000 | 100.0 | 1924311 | 106.9 |
| **Total** | **3724311** | **100.0** | **1800000** | **100.0** | **1924311** | **106.9** |

---

Our revenue was solely generated from software development services. Total revenue increased by $1,924,311, or 106.9%, to $3,724,311 for the six months ended December 31, 2025, from $1,800,000 for the six months ended December 31, 2024. The growth was primarily driven by a rise in software development service revenue, resulting from an increase in projects undertaken during the period. This reflects our sustained efforts to attract new customers and expand our business operations.

**Cost of revenue**

Our cost of revenue comprise mainly outsourcing fees, employee salaries, and other incidental expenses. Cost of revenue increased by $1,258,357 or 152.2% to $2,085,045 for the six months ended December 31, 2025 from $826,688 for the six months ended December 31, 2024. The cost of revenue increased, primarily attributable to our proactive efforts to expand our customer base and undertake new projects, which led to an increase in outsourcing fees. As a percentage of revenue, our cost of revenue increased to 56.0% for the six months ended December 31, 2025 from 45.9% for the six months ended December 31, 2024. The increase was due to more of our project content being outsourced to third parties, which resulted in a lower profit margin.

**Gross profit**

Our gross profit increased by $665,954, or 68.4%, to $1,639,266 for the six months ended December 31, 2025 from $973,312 for the six months ended December 31, 2024. As a percentage of revenue, our gross margin decreased from 54.1% for the six months ended December 31, 2024 to 44.0% for the six months ended December 31, 2025. The decrease was due to a higher number of research projects outsourced by us to third parties, which resulted in a lower profit margin.

**General and administrative expenses**

General and administrative expenses primarily consisted of salary expenses, and included rental expenses, utilities and property management fees, depreciation and amortization expenses, office overhead, professional service fees and travel, bad debt expenses and other expenses.

General and administrative expenses increased by $1,801,903 or 4575.1% from approximately $39,385 for the six months ended December 31, 2024 to $1,841,288 for the six months ended December 31, 2025, which was attributable to a combination of higher salary expenses of $96,063, increased rental expenses of $23,283 and higher professional service fees of $1,708,010 for the six months ended December 31, 2025.The significant increase in professional service fees was mainly due to the increase in financing activities during the current period, compared with nil, nil and nil for salary expenses, rental expenses and professional service fees for the six months ended December 31, 2024, respectively.

**Other income/(expenses), net**

Other expenses primarily included of interest expenses related to the convertible notes payable.

For the six months ended December 31, 2025, the Company recorded other expenses of $190,145, consisting of interest expense of $167,230, gain (loss) on extinguishment of debt of $22,925, and other income of $10, compared to other income of $257 for the same period in 2024. The change was mainly due to the recognition of interest expense on convertible notes during the period.

**Income(loss) before income taxes**

Our income before income taxes decreased by $1,062,669 from income of $930,459 for the six months ended December 31, 2024 to a loss of $132,210 for the six months ended December 31, 2025.

**Provision for income taxes**

Our provision for income taxes for the six months ended December 31, 2025 and 2024 was $77,277 and $132,180, respectively. The variance in income tax provision was primarily attributable to higher revenue generated by our Hong Kong subsidiaries.

**Net Income(loss)**

Net income decreased by $1,007,766, or 126.2%, from income of $798,279 for the six months ended December 31, 2024 to a net loss of $209,487 for the six months ended December 31, 2025. The decrease was primarily due to higher general and administrative expenses incurred from financing activities during the current period.

**<u>Liquidity and Capital Resources</u>**

As of December 31, 2025, we had cash and cash equivalents of $35,284. Our current assets were approximately $9,753,049, and our current liabilities were $3,236,517 as of December 31, 2025. This compares with total assets of $9,355,281, which comprised of current assets of $7,191,985 and non-current assets of $2,163,296 as of June 30, 2025. Total retained earnings as of December 31, 2025 were $3,126,955. Net cash flows used in operating activities was $1,732,820 for the six months ended December 31, 2025. This compares with total liabilities of $4,001,536 as of June 30, 2025, which was comprised of current liabilities of $2,921,270 and non-current liabilities of $1,080,266.

Our operating results for future periods are subject to numerous uncertainties and it is uncertain whether we will be able to achieve a net income position for the foreseeable future. If management is not able to increase revenue and/or manage costs and operating expenses in line with revenue forecasts, we may not be able to achieve profitability.

We believe that available cash and cash equivalents, cash provided by operating activities, together with cash available from the activities mentioned above, should enable us to meet presently anticipated cash needs for at least the next 12 months after the date that the consolidated financial statements are issued and we have prepared the consolidated financial statements on a going concern basis. However, we continue to have ongoing obligations and we expect that we will require additional capital in order to execute our longer-term business plan. If we encounter unforeseen circumstances that place constraints on our capital resources, management will be required to take various measures to conserve liquidity, which could include, but not necessarily be limited to, initiating private and public offerings, curtailing our business development activities, suspending the pursuit of our business plan, obtaining credit facilities, controlling overhead expenses and seeking to further dispose of non-core assets. Management cannot provide any assurance that we will be able to raise additional capital if needed.

Substantially all of our operations are conducted in Hong Kong, and substantially all of our revenue and cash and cash equivalents are denominated in HKD. 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 December 31, 2025, cash and cash equivalents of approximately HKD256,191 (US$32,915), 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 negative for the six months ended December 31, 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 numerical 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:

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended<br> December 31,** | **Six Months Ended<br> December 31,** |
|  | **2025** | **2024** |
| Net cash (used in)/provided by operating activities | $(1732820) | $389450 |
| Net cash used in investing activities | (1591667) |  |
| Net cash provided by/(used in) financing activities | 3050800 | (355610) |
| Effect of exchange rate changes on cash and cash equivalents | (4595) | (14059) |
| Net (decrease)/increase in cash and cash equivalents | (278282) | 19781 |
| Cash and cash equivalents at the beginning of period | 313566 | 51809 |
| Cash and cash equivalents at the end of period | $35284 | $71590 |

---

To date, we have financed our operations primarily through borrowings from our shareholders, related and unrelated parties.

***<u>Operating Activitie</u>***<u>s</u>

Net cash used in operating activities was $1,732,820 for the six months ended December 31, 2025, mainly comprising a net loss of $209,487, a non-cash items totalling of $412,746, mainly inclusive of depreciation and amortization, amortization of Convertible Note issuance cost, a non-cash adjustment for loss on extinguishment of debt, and Share-based compensation expense, and other non-cash items, and an increase in tax payables and Accrued salaries and benefits of $250,923, offset by gain disposal of joint ventures of $174,551, an increase in accounts receivable of $1,185,408, and an increase in advances to suppliers of $863,591.

Net cash used in operating activities from continuing operations for the six months ended December 31 2024 was $340,835 (total of $389,450 provided by operating activities including net cash provided by operating activities from discontinued operations of $730,285), mainly comprising a net income from continuing operations of $798,279, an increase in accounts payable and tax payable of $930,200, offset by an increase in accounts receivable of $2,195,195.

***<u>Investing Activities</u>***

Net cash used in investing activities was $1,591,667 for the six months ended December 31, 2025. Net cash used in investing activities was due to Deposits on Property and Equipment of $1,591,667.

Net cash used in investing activities for the six months ended December 31, 2024 was nil from continuing operations and nil from discontinued operations.

***<u>Financing Activities</u>***

Net cash provided by financing activities was $3,050,800 for the six months ended December 31, 2025. Net cash provided by financing activities was mainly due to issuance of convertible bonds for cash of $3,051,600.

Net cash used in financing activities was $355,610 for the six months ended December 31, 2024, all of which was from continuing operations. Net cash used in financing activities for continuing operations was mainly due to repayment of interest-free loan to related parties of $370,541.

**Trend Information**

Other than as disclosed above and elsewhere in this Report, we are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on our revenue, net income, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition.

**Critical Accounting Policies, Judgments and Estimates**

We prepare our consolidated financial statements in conformity with accounting principles generally accepted by the United States of America ("U.S. GAAP"), which requires us to make judgments, estimates and assumptions that affect our reported amount of assets, liabilities, revenue, costs and expenses, and any related disclosures. In each case, the determination of these items requires management judgements based on information and financial data that may change in future periods. When reviewing our financial information, you should consider: (i) our selection of accounting policies; and (ii) the results to changes in conditions and assumptions.

We believe that the following accounting policies involve a higher degree of judgment and complexity in their application and require us to make significant accounting estimates. Accordingly, these are the policies we believe are the most critical to understanding and evaluating our consolidated financial condition and results of operations.

***Use of estimates and Assumptions***

The preparation of consolidated financial statements in conformity with U.S. GAAP 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 this consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. We continually evaluate these estimates and assumptions based on the most recently available information, historical experience and various other assumptions that we believe to be reasonable under the circumstances. Significant accounting estimates reflected in our consolidated financial statements include but are not limited to estimates and judgments applied in determination of allowance for doubtful receivables, 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.

***Revenue recognition***

3e Network applied ASC Topic 606 "Revenue from Contracts with Customers" ("ASC 606") for all periods presented. The five-step model defined by ASC 606 requires the Company to (1) identify its contracts with customers, (2) identify its performance obligations under those contracts, (3) determine the transaction prices of those contracts, (4) allocate the transaction prices to its performance obligations in those contracts and (5) recognize revenue when each performance obligation under those contracts is satisfied. Revenue is recognized when contracted goods or services are transferred to the customer in an amount that reflects the consideration expected in exchange for those goods or services.

The Company has elected to apply the practical expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have an original expected duration of one year or less.

We elected a practical expedient that it does not adjust the contract consideration for the effects of a significant financing component if the Company expects that, upon the inception of revenue contracts, the period between when the Company transfers its contracted services or deliverables to its customers and when the customer pay for those services or deliverables will be one year or less.

As a practical expedient, the Company elected to expense the incremental costs of obtaining a contract when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less.

We are a B2B IT business solutions provider. Started as a business that focuses on integrated software solutions in the property management and exhibition services spaces, we have expanded our software solution offering to reach across a variety of industries and sectors, including food establishments, real estate, exhibition & conferencing, and clean energy utilities. Our revenue streams include software development services, exhibition and conference software sales, and exhibition and conference hardware sales.

<u>Software development services</u>

As an IT business solution provider, we take pride in our technical acumen in delivering software solutions for our business customers. The key pillar of our growth story and the primary engine of our growth is the development of custom software solutions for our customers.

The Company enters into a distinct contract with its customer for the provision of software development services. The revenue generated from software development services is generally on a fixed price basis. Customers can choose to buy a basic version with minimal alterations or customize additional functions to suit their needs.

Revenue from software development services contracts requires the Company to design a software system based on clients' specifications or provide them with standard software. The contract covenants include (1) developing software according to client specifications, (2) testing and deployment of software, (3) delivering software (including but not limited to source code, etc.) to clients, (4) providing training on the use of the software and (5) option to purchase warranty. The required work period is generally less than one year. Upon delivery of the services, customer acceptance is generally required. In the same contract, we provide a twelve-month free warranty after the customized application is delivered. This warranty is an assurance-type warranty, so we do not consider it a separate performance obligation. The costs to us of fulfilling our obligation under the warranty clause have been immaterial.

Covenants (1), (2) and (3) are interrelated and cannot be separated or differentiated, because testing and deployment and delivery of software cannot be benefited on their own or with other readily available resources, except with the developed software. Covenants (4) and (5) identified in the customized software development contract are immaterial when considering both the qualitative and quantitative factors of these performance obligations. Therefore, the Company concludes that we should combine all of the services in a software service contract into a single performance obligation. The single performance obligation identified is to develop, test and deploy, and deliver the software according to client specifications. We recognize revenue for the delivery of customized software development service at a point in time when the system is delivered to the client for acceptance testing and the acceptance report is signed, which represents the point in time that the performance obligation of the contract is satisfied and the ownership control of the software is transferred to the client.

Differences between the timing of billings and the recognition of revenue are recorded as advance from customers which is classified as current liabilities on the consolidated balance sheets. When the right to payment becomes unconditional, the amount due from the customer under the contract, net of the related advances from the customer, is recorded as accounts receivables.

Costs incurred in advance of revenue recognition arising from direct and incremental staff costs in respect of services provided under the contracts according to the customer's requirements prior to the delivery of services are recorded as deferred contract costs which is included in the prepayments, deposits and other assets, net on the consolidated balance sheets. Such deferred contract costs are recognized upon the recognition of the related revenue.

We work closely with the customers to analyze their software requirements, develop system specifications with them, and start coding and testing once we reach a conclusion on the specifications. The completed software system will then be delivered to customers for testing before their final acceptance. Our software solutions serve a variety of industries and sectors, including in restaurant management, property management, exhibit and conferencing services, and solar power stations.

For the six months ended December 31, 2025 and 2024, our main products under our custom software solutions offering include software products developed for property management companies, restaurant management, intelligent music generation, and highway monitoring and control. Customers can choose to buy a basic version with minimal alterations or customize additional functions to suit their needs. We plan to significantly expand the number of customers we serve to diversify our customer base and grow our revenue. revenue from a new customer often rise quickly over the first several years following our initial engagement as we expand the services that we provide to that customer. Therefore, obtaining new customers is important for us to achieve rapid revenue growth.

As a young company with limited operating history and limited customer base, we are constantly looking for opportunities to develop new customers and expand into new business areas. In 2024, we became vendor of Chinese Academy of Science, Guangzhou Institute of Energy Conversion, collecting scattered small-scale photovoltaic power generation data through software to help apply for International Renewable Energy Certificates.

***Accounts receivable and allowance for credit losses***

Accounts receivable are carried at net realizable value. An allowance for credit losses is recorded in the period when loss is probable. We determine the adequacy of a reserve for credit losses based on individual account analysis and historical collection trends. We establish a provision for credit losses when there is objective evidence that we may not be able to collect amounts due. The allowance is based on management's best estimates of specific losses on individual customer exposures, as well as the historical trends of collections. Delinquent account balances are written-off against the allowance for credit losses after management has determined that the likelihood of collection is not probable. We regularly review the adequacy and appropriateness of the allowance for credit losses.

***Income taxes***

We account for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established to reduce deferred tax assets to the amount expected to be realized, when it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized.

**Recent Accounting Pronouncements**

The Jumpstart Our Business Startups Act ("JOBS Act") provides that an emerging growth company ("EGC") as defined therein can take advantage of an extended transition period for complying with new or revised accounting standards. This allows an EGC to delay adoption of certain accounting standards until those standards would otherwise apply to private companies. We have adopted the extended transition period.

For detailed discussion on recent accounting pronouncements, please see Note 3 to our consolidated financial statements, "Summary of Significant Accounting Policies", included elsewhere in this form.