Company: CHOW
Filing Date: 2025-03-19
Form Type: DRS/A
Source: 0001493152-25-010898
Chunk: 219

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-03-19
Form: DRS/A
Chunk 219
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 adjustments to the allowance are based on the overall risk profile of the portfolios and reflect management’s best estimate of potential credit losses. The reversal of HK$348,954 (US$44,738) in 2023 reflects improvements in the overall risk profile of certain portfolios, as well as the successful collection of previously reserved amounts.

5. UNBILLED RECEIVABES (CONTRACT ASSETS) AND DEFERRED REVENUE (CONTRACT LIABILITIES)

The following table summarizes the balances of contract assets and the movement during the periods presented:

|                                  |     | As of December 31, |          |   |     |      |           |   |     |           |         |   |
|                                  |     |               2022 |          |   |     | 2023 |           |   |     |           |         |   |
|                                  |     |                HK$ |          |   |     |  HK$ |           |   |     | US$ (Note 
 2(e))     |         |   |
| Unbilled receivables             
 (Contract assets):               |     |                    |          |   |     |      |           |   |     |           |         |   |
| Balance at beginning of the year |     |                    |  951,133 |   |     |      |   537,450 |   |     |           |  68,904 |   |
| Additions                        |     |                    |  537,450 |   |     |      | 1,964,662 |   |     |           | 251,880 |   |
| Less: progress billings          |     |                    | (951,133 | ) |     |      |  (537,450 | ) |     |           | (68,904 | ) |
| Balance at end of year           |     |                    |  537,450 |   |     |      | 1,964,662 |   |     |           | 251,880 |   |

| F-26 |

Contract assets represent the Company’s right to consideration for work performed but not yet billed as of the reporting date. Contract assets arise when the Company performs services or delivers goods in advance of billing the customer and are transferred to receivables when the right to consideration becomes unconditional, typically upon reaching specified milestones or the billing phase stipulated in the contract.

For the year ended December 31, 2022, the