Revenue Growth - Total revenue increased by US$3,975,823, or 462.66%, to US$4,835,167 for the year ended June 30, 2025, compared to US$859,344 for the year ended June 30, 2024[408] - Revenue from new customers accounted for US$3,867,698, or 80.00% of total revenue for the year ended June 30, 2025[401] - Total revenues increased by US$822,214, or 2214.40%, to US$859,344 for the year ended June 30, 2024, compared to US$37,130 for the year ended June 30, 2023[425] - Revenue from software development services rose by US$822,214 or 2214.40% to US$859,344 for the year ended June 30, 2024, driven by efforts to expand the customer base[426] Cost and Expenses - Cost of revenues increased by US$2,395,317, or 7752.84%, to US$2,426,213 for the year ended June 30, 2025, from US$30,896 for the year ended June 30, 2024[410] - Cost of revenues increased by US$23,558 or 321.04% to US$30,896 for the year ended June 30, 2024, but as a percentage of revenue, it decreased to 3.60% from 19.76% in the previous year[427] - General and administrative expenses rose by US$585,918, or 5,396.19%, to approximately US$596,776 for the year ended June 30, 2025[413] - General and administrative expenses decreased by US$659, or 5.72%, to approximately US$10,858 for the year ended June 30, 2024[429] Profitability - Gross profit increased by US$1,580,506, or 190.78%, to US$2,408,954 for the year ended June 30, 2025, with a gross margin decrease from 96.40% to 49.82%[411] - Gross profit increased by US$798,656, or 2680.75%, to US$828,448 for the year ended June 30, 2024, with gross margin improving to 96.40% from 80.24%[428] - Net income from continuing operations increased by US$775,202, or 110%, to US$1,477,806 for the year ended June 30, 2025[418] - Net income from continuing operations increased by US$688,582, or 4910.74%, to US$702,604 for the year ended June 30, 2024, compared to US$14,022 for the previous year[435] - Net income increased by US$552,190 or 55.45% to US$1,548,347 for the year ended June 30, 2024, from US$996,157 for the year ended June 30, 2023[438] Discontinued Operations - Loss from discontinued operations was US$712,887 for the year ended June 30, 2025, compared to a gain of US$845,743 for the year ended June 30, 2024[419] - Loss from discontinued operations was US$845,743 for the year ended June 30, 2024, compared to a gain of US$982,135 for the year ended June 30, 2023[436] Cash Flow and Liquidity - The net cash provided by operating activities for the year ended June 30, 2025 was US$13,832, a significant decrease from US$929,203 in 2024[456] - The company reported net cash used in investing activities of US$2,952,890 for the year ended June 30, 2025, primarily due to purchases of financial assets held for sale[460] - Net cash provided by financing activities was US$3,171,608 for the year ended June 30, 2025, mainly from the issuance of ordinary shares for cash of US$1,695,597[462] - The company expects to require additional capital to execute its longer-term business plan and may need to take measures to conserve liquidity if unforeseen circumstances arise[453] - The company has historically funded its working capital needs primarily from operations, advance payments from customers, and loans from shareholders[455] - The company reported a net income from continuing operations of US$1,477,806 for the year ended June 30, 2025, despite a net cash used in operating activities of US$376,065[457] Business Operations - The company operates primarily in China, and all revenue, expenses, and cash equivalents are denominated in HKD, which may affect its ability to distribute dividends outside of China[454] - The company is a B2B IT business solutions provider, focusing on integrated software solutions across various industries, including food establishments and clean energy utilities[479] - The company plans to significantly expand its customer base to diversify revenues, with new customer revenues expected to rise quickly in the first several years following initial engagement[488] - The company is developing management software for distributed photovoltaic power plants with a designed capacity under 10 megawatts, targeting a sector with significant government support[489] - The company provides exhibition and conference services, including hardware and personnel, with pricing typically determined by a markup on costs[490] - The company has a relatively small number of customers for its exhibition and conference services, which may lead to revenue variability due to lack of long-term commitments[491] - Revenue from hardware sales, such as gates and card readers, is recognized upon customer confirmation of receipt, with installation services being relatively immaterial[494] Accounts and Taxes - Accounts receivable are carried at net realizable value, with an allowance for credit losses established based on individual account analysis and historical trends[496] - Deferred income taxes are recognized for temporary differences between tax bases and reported amounts, with valuation allowances established for deferred tax assets expected to be unrealized[497] Strategic Developments - The company signed a non-binding Memorandum of Understanding with Orka Technologies Oy to jointly develop a data center in Finland[444] - The company entered into equity transfer agreements to sell 60% of Guangzhou Sanyi Network and 100% of Guangzhou 3E Network, reallocating resources towards expanding overseas operations[446] - As of June 30, 2025, the company had cash and cash equivalents of US$313,566, current assets of approximately US$7,191,985, and current liabilities of US$2,921,270[451]
3 E Network Technology Group Limited(MASK) - 2025 Q4 - Annual Report