Company: BGHL
Filing Date: 2025-09-25
Form Type: F-1/A
Source: 0001213900-25-091359
Chunk: 183

Company: BILLION GROUP HOLDINGS Ltd
Filing Date: 2025-09-25
Form: F-1/A
Chunk 183
---
 products as well as logistics services. The Group is contractually responsible for fulfilling the performance obligations to the customers under separate agreements. As such, the Group controls the specified goods before they are transferred to the customer. (h)Accounts receivable, net Accounts receivable are stated at the amount the Group expects to collect. The Group maintains allowances for credit losses for estimated losses. In accordance with ASC 326 Financial Instruments — Credit Losses, the Group estimates the allowance for expected credit losses based on expected future uncollectible accounts receivable using forecasts of future economic conditions, in addition to information about past events and current conditions. Management considers the following factors when determining the collectability of specific accounts: historical experience, creditworthiness of the clients, aging of the receivables, and other specific circumstances related to the accounts. Allowance for credit losses is made and recorded into administrative expenses based on the aging of accounts receivable and on any specifically identified receivables that may become uncollectible. Accounts receivable which are deemed to be uncollectible are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. There is no allowance for credit losses or write -offduring the years ended December 31, 2024 and 2023. (i)Inventories Inventories consist of finished products. Inventories are stated at the lower of cost or net realizable value. Cost is determined using the First -In - First-Outmethod. The Group routinely evaluates the net realizable value of the inventories in light of current market conditions and market trends and records a write -downagainst the cost of inventories should the net realizable value fall below the cost. The Group recognized provision for write -downon inventories of HK$5,260 and nil during the years ended December 31, 2024 and 2023, respectively. (j)Operating leases We determine if an arrangement is a lease at inception. Payments under our lease arrangements are fixed. Right -of -use(“ROU”) assets and lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is incremental borrowing rate, because the interest rate implicit in the leases is not readily determinable. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The lease terms include periods under options