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Discontinued operation | 12 Months Ended
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Jun. 30, 2025
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued operation | 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 |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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