Company: CHOW
Filing Date: 2025-02-10
Form Type: DRS/A
Source: 0001493152-25-005658
Chunk: 222

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-02-10
Form: DRS/A
Chunk 222
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iquidity and Risk Management

The Company regularly assesses its liquidity needs and monitors its ability to meet short-term obligations. As of December 31, 2023, the Company has sufficient cash and cash equivalents to settle its current liabilities, including accounts payable, as they become due. The significant reduction in accounts payable from HK$18,202,230 in 2022 to HK$7,079,837 in 2023 reflects the settlement of key project-related costs.

The Company does not anticipate any liquidity constraints in settling remaining payables and maintains adequate working capital reserves to ensure the timely settlement of all liabilities.

12. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

The following table presents the balances of accrued expenses and other current liabilities as of December 31, 2022, and December 31, 2023:

|                              |     | As of December 31, |           |     |      |           |     |           |         |
|                              |     |               2022 |           |     | 2023 |           |     |           |         |
|                              |     |                HK$ |           |     |  HK$ |           |     | US$ (Note 
 2(e))     |         |
| Payroll and welfare payables |     |                    |   220,108 |     |      |   272,685 |     |           |  34,960 |
| Accrued expenses             |     |                    | 1,026,201 |     |      | 1,250,987 |     |           | 160,383 |
|                              |     |                    | 1,246,309 |     |      | 1,523,672 |     |           | 195,343 |

| F-34 |

Payroll and Welfare Payables: The payroll and welfare payables represent amounts owed to employees for services rendered and the associated mandatory provident fund (MPF) contributions. Under the Hong Kong MPF Scheme, the Company is required to make contributions based on a percentage of qualified employees’ salaries. The Company recognized employee benefit expenses of HK$2,926,105 and HK$3,513,248 (US$450,416) for the years ended December 31, 2022, and 2023, respectively.

Composition of Accrued Expenses

Accrued expenses primarily consist of amounts due for professional services, sales commission, marketing expenses and other office and operating expenses related to