Company: CHOW
Filing Date: 2025-04-01
Form Type: F-1
Source: 0001641172-25-001938
Chunk: 251

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-04-01
Form: F-1
Chunk 251
---
1 |
| Maintenance and Support Services                                                     |     |                                   |    639,808 |     |   |  0.8 |     |      |  1,331,652 |     |                 |    170,725 |     |   |  1.5 |
|                                                                                      |     |                                   |  2,903,574 |     |   |  3.7 |     |      |  3,983,385 |     |                 |    510,691 |     |   |  4.6 |
| Total cost of revenues                                                               |     |                                   | 78,634,199 |     |   |  100 |     |      | 85,885,003 |     |                 | 11,010,898 |     |   |  100 |

(p) Selling and marketing expenses

Selling and marketing expenses include direct and indirect costs incurred in connection with promoting and selling the Company’s products and services. These expenses primarily consist of:

| ● | Marketing service fees                                                                                      
 paid to third-party vendors for advertising, promotions, and other marketing activities;                    |
| ● | Commissions paid to staffs                                                                                  
 and third parties based on sales performance and achievement of sales targets;                              |
| ● | Salaries, benefits, and                                                                                     
 bonuses for in-house sales and marketing personnel involved in selling the Company’s products and services; |
| ● | Advertising and promotional                                                                                 
 costs, including media buys, events, and sponsorships.                                                      |

| F-55 |

Selling and marketing expenses are recognized as incurred, consistent with the period in which the related services are rendered or the corresponding revenue is recognized. Commissions paid to staffs and third parties are recognized as an expense when the related revenue is recognized unless they qualify for capitalization under ASC 340-40. If commissions are capitalized, they are amortized over the period in which the related performance obligations are satisfied. For the six months ended June 30, 2023, and 2024, the Company did not pay any renewal commissions.

If renewal commissions are paid in the future, they will be assessed to determine whether they are commensurate with the initial commissions. If they are commensurate, they will be capitalized and amortized over the renewal period. If they are not commensurate, the amortization period for initial commissions will reflect the combined benefit period of the initial contract and the expected renewals, consistent with ASC 340-40