Discontinued operation

6 Months Ended

12 Months Ended

Dec. 31, 2025

Jun. 30, 2025

Discontinued Operations and Disposal Groups [Abstract]

Discontinued operation

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 Months Ended December 31,
		2024
			US$
Net revenue			1,328,203
Cost of revenue			(702,230	)
Taxes and other surcharges			(5,623	)
Gross profit			620,350
Operating expenses			(285,038	)
Other income/(expenses).net			1,325
(Loss)/income before income tax			336,637
Income tax expense			(65,589	)
(Loss)/income from discontinued operation, net of income tax			271,048

3. 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.

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. As a result, we classified the results from operations of Guangzhou Sanyi Network and Guangzhou 3E Network separately in captions titled “discontinued operations” on our consolidated statements of operations and comprehensive income/(loss) for the current year. Additionally, assets and liabilities associated with Guangzhou Sanyi Network and Guangzhou 3E Network as of June 30, 2024 and 2023 were reclassified from certain amounts reported in the prior year to present separately in captions titled “assets of discontinued operations – current”, “assets of discontinued operations – non-current”, “liabilities of discontinued operations – current” and “liabilities of discontinued operations – non-current” to conform to current year financial statement presentation.

The following is a summary of assets and liabilities as of June 30, 2025 and a reconciliation of assets and liabilities disclosed in the notes to financial statements that are presented as a discontinued operation on the consolidated balance sheet as of June 30, 2024 and 2023:

		June 30,				June 30,				June 30,
		2025				2024				2023
ASSETS OF DISCONTINUED OPERATION
CURRENT ASSETS:
Cash and cash equivalents		$	-			$	40,692			$	4,005
Accounts receivable, net			-				1,558,227				875,281
Due from related parties			-				6,400				7,299
Deposits, prepayments and other current assets, net			-				16,102				19,466
Total current assets			-				1,621,421				906,051
NON - CURRENT ASSETS:
Property, planty and equipment, net			-				11,216				17,787
Deferred tax assets			-				104,857				264,736
Total non - current assets			-				116,073				282,523
TOTAL ASSETS		$	-			$	1,737,494			$	1,188,574

LIABILITIES OF DISCONTINUED OPERATION
CURRENT LIABILITIES:
Accounts payable		$	-			$	206,407			$	10,343
Accrued expenses and other payables			-				295,504				191,618
Advances from customers			-				1,009				1,520
Due to related parties			-				402,202				-
Tax payable			-				102,029				53,546
Total current liabilities			-				1,007,151				257,027
NON - CURRENT LIABILITIES:
Amount due to related parties - non-current			-				-				419,583
Total non - current liabilities			-				-				419,583
TOTAL LIABILITIES		$	-			$	1,007,151			$	676,610

The following is a reconciliation of the major classes of financial statement line items constituting net (loss)/income from discontinued operations from Guangzhou Sanyi Network and Guangzhou 3E Network, our discontinued operation, that is disclosed in the notes to the financial statements and presented in the consolidated statements of net (loss)/income for the years ended June 30, 2025, 2024 and 2023:

		Years Ended June 30,
		2025				2024				2023
		US$				US$				US$
Net revenues			1,825,288				3,702,619				1,634,221
Cost of revenues			(1,121,174	)			(2,216,444	)			(389,022	)
Taxes and other surcharges			(5,598	)			(9,934	)			(3,788	)
Gross profit			698,516				1,476,241				1,241,411
Operating expenses			(551,578	)			(471,218	)			(194,476	)
Other income/(expenses).net			1,501				10,178				7,929
(Loss)/income before income tax			148,439				1,015,201				1,054,864
Income tax expense			19,381				(169,458	)			(72,729	)
(Loss)/income from discontinued operation, net of income tax			167,820				845,743				982,135