Company: CCHH
Filing Date: 2025-06-26
Form Type: DRS
Source: 0001213900-25-058036
Chunk: 170

Company: CCH Holdings Ltd
Filing Date: 2025-06-26
Form: DRS
Chunk 170
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 the territory. Renewal license fee is also required for extension of the license term. During the effective license term, licensees are also required to share a certain percentage of the applicable restaurant outlet’s gross revenues with the Group as royalties, which represents the majority of the consideration the Group receives under the licensing agreement. Royalty rates are generally between 5% to 7.5% for each restaurant outlet, and royalties are typically billed and settled on a monthly basis. Only one performance obligation is identified in the licensing agreement with licensees, since the Group has determined that the pre -openingand ongoing support services are highly interrelated with the franchise right and are therefore not distinct from providing the continuous access to the franchise license. Accordingly, revenues from administrative fees and license fees are recognized on a straight -linebasis over the applicable term as stated in each agreement, which is consistent with the licensee’s right to access and benefit from the proprietary marks during the period. Continuing payments from royalties are recognized as revenue when the related sales occur. From time to time, the Group provides additional support services to the licensees for which the Group charges direct reimbursements to cover the costs and expenses incurred, which are recognized as revenues from franchise licensing as occurred. F-15

CCH HOLDINGS LTD
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2024 (In U.S. Dollar, except for share data) 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) Others The Group also generates revenues from leasing out buildings. The Group recognizes revenues from leasing out buildings in the gross amount of contractual rent over the lease term on a straight -linebasis. Leasing revenue is recognized in accordance with ASC 842 (Note 2(n)). The following table disaggregates the Group’s total revenues by revenue streams:

| By revenue type:                         |     | For the years ended 
 December 31,        
 2023                |           |     | 2024 |           |
|:-----------------------------------------|:----|:--------------------|----------:|:----|:-----|----------:|
| Restaurant operations                    |     | $                   | 9,521,142 |     | $    | 8,548,395 |
| Company-owned restaurant operations      |     |                     | 8,209,810 |     |      | 6,640,706 |
| Sales of food ingredients and condiments |     |