3 E Network Technology Group Limited Announces First Half of Fiscal Year 2025 Financial Results
3 E Network Technology Group (MASK) reported strong financial results for H1 FY2025. Revenue increased 5.3% to $3.13 million, driven by expanded software development services. Gross profit surged 49.3% to $1.59 million, with gross margin improving from 35.9% to 50.9% year-over-year.
Net income grew 56.2% to $1.07 million, with EPS increasing 57.1% to $0.11. R&D expenses rose 25.4% to $149,785, while cost of revenue decreased 19.2% through outsourcing and focus on high-margin business.
The company completed its IPO on January 10, 2025, raising $5 million by offering 1.25 million shares at $4.00 each. Cash and equivalents stood at $71,590 as of December 31, 2024.
3 E Network Technology Group (MASK) ha riportato risultati finanziari solidi per il primo semestre dell'esercizio 2025. I ricavi sono aumentati del 5,3%, raggiungendo 3,13 milioni di dollari, grazie all'espansione dei servizi di sviluppo software. Il profitto lordo è cresciuto del 49,3%, arrivando a 1,59 milioni di dollari, con un margine lordo che è passato dal 35,9% al 50,9% su base annua.
Il reddito netto è aumentato del 56,2%, raggiungendo 1,07 milioni di dollari, mentre l'utile per azione è salito del 57,1% a 0,11 dollari. Le spese per ricerca e sviluppo sono cresciute del 25,4%, arrivando a 149.785 dollari, mentre il costo del fatturato è diminuito del 19,2% grazie all'outsourcing e al focus su attività a margine elevato.
L'azienda ha completato la sua IPO il 10 gennaio 2025, raccogliendo 5 milioni di dollari mediante l'offerta di 1,25 milioni di azioni a 4,00 dollari ciascuna. La liquidità e le equivalenze ammontavano a 71.590 dollari al 31 dicembre 2024.
3 E Network Technology Group (MASK) reportó sólidos resultados financieros en el primer semestre del año fiscal 2025. Los ingresos aumentaron un 5,3%, alcanzando los 3,13 millones de dólares, impulsados por la expansión de los servicios de desarrollo de software. La ganancia bruta se disparó un 49,3%, llegando a 1,59 millones de dólares, con un margen bruto que mejoró del 35,9% al 50,9% interanual.
El ingreso neto creció un 56,2%, alcanzando los 1,07 millones de dólares, y las ganancias por acción aumentaron un 57,1% hasta 0,11 dólares. Los gastos en I+D subieron un 25,4%, hasta 149.785 dólares, mientras que el costo de los ingresos disminuyó un 19,2% gracias a la subcontratación y al enfoque en negocios de alto margen.
La compañía completó su IPO el 10 de enero de 2025, recaudando 5 millones de dólares mediante la oferta de 1,25 millones de acciones a 4,00 dólares cada una. El efectivo y equivalentes eran de 71.590 dólares al 31 de diciembre de 2024.
3 E Network Technology Group (MASK)는 2025 회계연도 상반기에 강력한 재무 실적을 보고했습니다. 매출은 소프트웨어 개발 서비스 확장에 힘입어 5.3% 증가한 313만 달러를 기록했습니다. 매출 총이익은 49.3% 급증하여 159만 달러에 달했으며, 매출 총이익률은 전년 대비 35.9%에서 50.9%로 개선되었습니다.
순이익은 56.2% 증가한 107만 달러를 기록했고, 주당순이익(EPS)은 57.1% 증가한 0.11달러였습니다. 연구개발비는 25.4% 증가한 149,785달러였으며, 매출원가는 아웃소싱과 고마진 사업 집중으로 19.2% 감소했습니다.
회사는 2025년 1월 10일 IPO를 완료하여 주당 4.00달러에 125만 주를 발행해 500만 달러를 조달했습니다. 2024년 12월 31일 기준 현금 및 현금성 자산은 71,590달러였습니다.
3 E Network Technology Group (MASK) a publié de solides résultats financiers pour le premier semestre de l’exercice 2025. Le chiffre d’affaires a augmenté de 5,3 % pour atteindre 3,13 millions de dollars, porté par l’expansion des services de développement logiciel. Le bénéfice brut a bondi de 49,3 % à 1,59 million de dollars, avec une marge brute passant de 35,9 % à 50,9 % d’une année sur l’autre.
Le résultat net a progressé de 56,2 % pour atteindre 1,07 million de dollars, avec un BPA en hausse de 57,1 % à 0,11 dollar. Les dépenses en R&D ont augmenté de 25,4 % pour s’établir à 149 785 dollars, tandis que le coût des revenus a diminué de 19,2 % grâce à l’externalisation et à un focus sur les activités à forte marge.
L’entreprise a finalisé son introduction en bourse (IPO) le 10 janvier 2025, levant 5 millions de dollars en proposant 1,25 million d’actions à 4,00 dollars chacune. La trésorerie et équivalents s’élevaient à 71 590 dollars au 31 décembre 2024.
3 E Network Technology Group (MASK) meldete starke Finanzergebnisse für das erste Halbjahr des Geschäftsjahres 2025. Der Umsatz stieg um 5,3 % auf 3,13 Millionen US-Dollar, angetrieben durch erweiterte Softwareentwicklungsdienste. Der Bruttogewinn kletterte um 49,3 % auf 1,59 Millionen US-Dollar, wobei die Bruttomarge von 35,9 % auf 50,9 % im Jahresvergleich verbessert wurde.
Der Nettogewinn wuchs um 56,2 % auf 1,07 Millionen US-Dollar, und der Gewinn je Aktie stieg um 57,1 % auf 0,11 US-Dollar. Die F&E-Ausgaben erhöhten sich um 25,4 % auf 149.785 US-Dollar, während die Umsatzkosten durch Outsourcing und Fokus auf margenstarke Geschäfte um 19,2 % sanken.
Das Unternehmen schloss seinen IPO am 10. Januar 2025 ab und sammelte 5 Millionen US-Dollar durch das Angebot von 1,25 Millionen Aktien zu je 4,00 US-Dollar ein. Der Kassenbestand und Zahlungsmitteläquivalente beliefen sich zum 31. Dezember 2024 auf 71.590 US-Dollar.
- Revenue growth of 5.3% YoY to $3.13 million
- Significant gross margin improvement from 35.9% to 50.9%
- Net income increase of 56.2% to $1.07 million
- Cost of revenue reduced by 19.2% through operational efficiency
- Successful IPO raising $5 million in gross proceeds
- Cash and equivalents decreased to $71,590 from $114,067 YoY
- Operating expenses increased 18.7% YoY
- Bad debt expenses increased to $62,093 from $36,670
- Net cash from operations declined to $0.39M from $0.87M YoY
Insights
3E Network reports strong H1 FY2025 results with 56.2% net income growth and significant margin expansion despite modest revenue increase.
3E Network's first half fiscal 2025 results demonstrate a remarkable profitability transformation despite modest topline growth. While revenue increased only
The company's operational strategy shows impressive execution through:
- Gross margin expansion from
35.9% to50.9% through strategic outsourcing and high-margin service focus - Cost of revenue reduction of
19.2% despite higher sales volume - Disciplined operating expense management, maintaining R&D investment (
+25.4% ) while eliminating marketing costs
However, several risk indicators warrant attention. The company's cash position appears concerning at just
With a market cap of only
3E Network's strategic shift to higher-margin software development paired with intelligent outsourcing creates impressive financial efficiency in specialized B2B IT market.
3E Network's results reveal a textbook example of effective margin engineering in the specialized B2B software development space. Their strategy exhibits a sophisticated approach to value creation through operational refinement rather than pure scale pursuit.
The complete abandonment of their exhibition services division reflects decisive portfolio management, allowing full concentration on their core technical competency. This focus is paying dividends as evidenced by the dramatic margin expansion and nearly 50% gross profit growth on modest revenue increases.
Their software development approach appears to follow the high-skill/low-volume model typical of specialized B2B providers, where intelligent outsourcing of commoditized development functions preserves margins while maintaining delivery quality. This is demonstrated in the
What's particularly notable is their commitment to R&D investment (
The elimination of marketing expenses indicates a relationship-driven, reputation-based customer acquisition strategy typical in specialized B2B software verticals. This approach generally produces slower but higher-quality customer growth compared to marketing-intensive strategies, aligning with their modest revenue growth but substantial margin improvements.
Dr. Tingjun Yang, Chief Executive Officer and Director of 3e Network, commented: "We are pleased to report a strong performance for the first half of fiscal year 2025. Compared to the same period in the fiscal year 2024, our revenue increased by
This remarkable growth reflects our unwavering investment in research and development ("R&D"), which remains a cornerstone of our business development and long-term growth potential. R&D expenses increased by
Looking ahead, we are confident in the strength and resilience of our current business strategy and operational initiatives, which we believe will support sustained growth and enable further expansion. As a player in the fast-evolving and competitive B2B IT industry, our core competitiveness lies in technical innovation and software customization. Our steadfast commitment to R&D investment will remain the driving force behind our growth trajectory, and we are confident these efforts will continue to generate long-term value for our company and our shareholders."
First Half of Fiscal Year 2025 Financial Highlights
- Revenues were
$3.13 million 5.3% from$2.97 million - Gross profit was
$1.59 million 49.3% from$1.07 million - Gross margin was
50.9% for the first half of fiscal year 2025, increased from35.9% for the first half of fiscal year 2024. - Net income was
$1.07 million 56.2% from$0.68 million - Basic and diluted Earnings per Share were
$0.11 $0.07
First Half of Fiscal Year 2025 Financial Results
Revenues
Total revenues were
Revenue from software development services was
Revenue from exhibition and conference services was nil for the first half of fiscal year 2025, a decrease of
Cost of Revenues
Cost of revenue was
Gross Profit and Gross Profit Margin
Gross profit was
Total Operating Expenses
Total operating expenses were
- Selling and marketing expenses were nil for the first half of fiscal year 2025, a decrease of
100% from$2,085 - Research and development ("R&D") expenses were
$149,785 25.4% from$119,437 - General and administrative expenses were
$199,513 53.7% from$129,772 $19,453 $62,093 $9,832 $36,670
Net Income
Net income was
Basic and Diluted Earnings per Share
Basic and diluted earnings per share were
Financial Condition
As of December 31, 2024, the Company had cash and cash equivalents of
Net cash provided by operating activities was
Net cash used in financing activities was
Recent Development
On January 10, 2025, the Company completed its initial public offering (the "Offering") of 1,250,000 class A ordinary shares at a price of
About 3 E Network Technology Group Limited
3 E Network Technology Group Limited is a business-to-business ("B2B") information technology ("IT") business solutions provider. Through its two subsidiaries, Guangzhou Sanyi Network and
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions in this prospectus. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC.
For investor and media inquiries, please contact:
3 E Network Technology Group Limited
Investor Relations Department
Email: ird@3ekeji.cn
3 E NETWORK TECHNOLOGY GROUP LIMITED | ||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(In US$, except for share and per share data, or otherwise stated) | ||||||||
As of | As of | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 71,590 | $ | 51,809 | ||||
Accounts receivable, net | 2,683,251 | 2,098,227 | ||||||
Deposits, prepayments and other current assets | 424,689 | 41,461 | ||||||
Due from related parties – current | 5,936 | 32,013 | ||||||
Total current assets | 3,185,466 | 2,223,510 | ||||||
Property and equipment, net | 8,675 | 11,216 | ||||||
Deferred IPO costs | 2,132,303 | 1,520,975 | ||||||
Deferred tax assets, net | 39,872 | 104,857 | ||||||
Total assets | 5,366,316 | 3,860,558 | ||||||
Liabilities and equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 800,000 | $ | 206,407 | ||||
Advance from customers | 1,612 | 1,009 | ||||||
Accrued expenses and other liabilities | 237,846 | 295,504 | ||||||
Due to related party – current | 63,000 | — | ||||||
Tax payable | 384,690 | 218,918 | ||||||
Total current liabilities | 1,487,148 | 721,838 | ||||||
Due to a related party – non-current | 85,567 | 402,202 | ||||||
Total Liabilities | 1,572,715 | 1,124,040 | ||||||
Commitments and contingencies | ||||||||
Shareholders' equity: | ||||||||
Class A Ordinary Shares ( | 1,000 | 1,000 | ||||||
Class B Ordinary Shares ( | — | — | ||||||
Statutory reserve | 94,374 | 64,474 | ||||||
Retained earnings | 3,878,142 | 2,838,715 | ||||||
Accumulated other comprehensive loss | (179,915) | (167,671) | ||||||
Total shareholders' equity | 3,793,601 | 2,736,518 | ||||||
Total Liabilities and shareholders' equity | $ | 5,366,316 | $ | 3,860,558 | ||||
3 E NETWORK TECHNOLOGY GROUP LIMITED | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE | ||||||||
(In US$, except for share and per share data, or otherwise stated) | ||||||||
For the six months ended | ||||||||
2024 | 2023 | |||||||
Revenues | ||||||||
Software development services | $ | 3,128,203 | $ | 2,971,671 | ||||
Exhibition and conference services | — | — | ||||||
Hardware sales | — | 210 | ||||||
Others | — | 230 | ||||||
Total revenues | 3,128,203 | 2,972,111 | ||||||
Cost of revenues | ||||||||
Software development services | 1,528,919 | 1,891,256 | ||||||
Exhibition and conference services | — | — | ||||||
Hardware sales | — | 57 | ||||||
Others | — | — | ||||||
Taxes and other surcharges | 5,623 | 13,488 | ||||||
Total cost of revenues | 1,534,542 | 1,904,801 | ||||||
Gross profit | 1,593,661 | 1,067,310 | ||||||
Operating expenses | ||||||||
Sales and marketing expenses | — | 2,085 | ||||||
General and administrative expenses | 199,513 | 129,772 | ||||||
Research and development expenses | 149,785 | 119,437 | ||||||
Exchange (gain)/loss | (21,150) | 25,237 | ||||||
Total operating expenses | 328,148 | 276,531 | ||||||
Income from operations | 1,265,513 | 790,779 | ||||||
Other income, net | 1,582 | 10,117 | ||||||
Income before income tax | 1,267,095 | 800,896 | ||||||
Income tax expenses | 197,768 | 116,503 | ||||||
Net income | $ | 1,069,327 | $ | 684,393 | ||||
Other comprehensive income | ||||||||
Foreign currency translation (loss)/income | (12,244) | 42,311 | ||||||
Total comprehensive income | $ | 1,057,083 | $ | 726,704 | ||||
Weighted average number of ordinary shares outstanding: | ||||||||
Class A Ordinary Shares – Basic and diluted* | 10,000,000 | 10,000,000 | ||||||
Class B Ordinary Shares – Basic and diluted* | — | — | ||||||
Earnings per ordinary share | ||||||||
Class A Ordinary Shares – Basic and diluted* | $ | 0.11 | $ | 0.07 | ||||
Class B Ordinary Shares – Basic and diluted* | $ | — | $ | — | ||||
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SOURCE 3 E Network Technology Group Limited
FAQ
What was MASK's revenue growth in H1 FY2025?
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What was MASK's earnings per share (EPS) for H1 FY2025?
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What caused the increase in MASK's R&D expenses for H1 FY2025?
