3 E Network Technology Group Limited (Nasdaq: MASK) (the “Company” or “3 E Network”), a business-to-business (“B2B”) information technology (“IT”) business solutions provider committed to becoming a next-generation artificial intelligence (“AI”) infrastructure solutions provider, today announced that its wholly-owned subsidiary, 3e Network Technology Company Limited (HK), has begun shipping the first batch of products under its recently announced approximately $5.0 million core storage hardware sales contract.
Initial Core Storage Components Shipped
This phased delivery primarily involves large quantities of enterprise-grade high-density memory modules and data center-grade storage controllers. Supported by the Company’s global logistics network, the initial components have been successfully dispatched, with subsequent batches scheduled for delivery over the coming quarters based on a mutually agreed timeline.
The on-time dispatch of this first batch marks a milestone in fulfilling the agreement and progressing toward revenue recognition, while also demonstrating 3 E Network’s coordination capabilities in large-scale hardware procurement and cross-border order fulfillment. It marks the transition from contract signing to delivery.
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Providing Pre-Shipment System-Level Verification to Mitigate Integration Risks
In addition to standard hardware delivery, 3 E Network has also provided technical support for this order. Prior to shipment, the Company’s technical team conducted system-level compatibility and interoperability verification on the storage equipment. By conducting these pre-shipment verification procedures, the Company helps end clients mitigate the system integration risks that can arise when incorporating independent hardware into existing data center architectures. This helps meet the client’s technical operating standards and provides the Company with engineering and operational experience for undertaking more complex integrated hardware and software procurement projects for compute centers in the future.
Phased Delivery Supports Revenue Recognition and Internal Funding
As the delivery process advances, the corresponding sales revenue is expected to be recognized progressively based on fulfillment milestones, with related customer payments contributing to operating cash flow. This phased delivery and collection model is expected to improve the Company’s revenue visibility over the next few quarters while providing additional working capital.
The non-dilutive cash flow generated from this business will be directly allocated to support the Company’s ongoing capital-intensive and advanced technology projects. This includes the Mikkeli 9 MVA AI compute center in Finland, currently in the hardware Request for Proposal (RFP) evaluation phase, and the microarchitecture R&D for the next-generation proprietary AI Storage Controller. This approach reflects the Company’s strategy of using its core hardware and solutions business to support its advanced infrastructure initiatives.
Management Commentary
Dr. Tingjun Yang, Chief Executive Officer of 3 E Network, stated, “The on-schedule dispatch of the initial storage components signifies that this approximately $5.0 million contract has transitioned from a signed agreement into tangible fulfillment. Our team managed the process, from staging and testing to shipment, within the established timeframe, demonstrating the Company’s operational execution when handling enterprise-level high-volume hardware demands.”
Dr. Yang added, “As this order enters a regular delivery and payment cycle, we expect the related revenue to be progressively reflected in our financial statements. The management team will continue to take a pragmatic approach, using operating cash flow generated by our enterprise IT solutions business to support the construction of our European AI compute center and the R&D of our proprietary AI chip. Our objective is to maintain the stable operation of our core IT business while taking steady and methodical steps to expand our long-term competitive edge in the AI compute infrastructure market.”
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