Company: CHOW
Filing Date: 2025-02-28
Form Type: DRS/A
Source: 0001493152-25-008591
Chunk: 104

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-02-28
Form: DRS/A
Chunk 104
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9.7% for the year ended December 31, 2022 to 14.1% for the year ended December 31, 2023.

The gross profit margin on revenue on products and the gross profit margin on revenue on services increased from 8.1% and 27.2% for the year ended December 31, 2022 to 11.8% and 57.6% for the year ended December 31, 2023 respectively, which were mainly attributable to (i) our low-price strategy to expand our customer base and revenue during the year ended December 31, 2022 and (ii) the increase in our revenue from managed and support service with AI and AIOps included in the revenue category of “Sale of Software and IT Application Products with IT Professional Services”, which generally entailed higher gross profit margins, during the year ended December 31, 2023.

Selling and marketing expenses

Selling and marketing expenses consisted primarily of (i) marketing service fee paid to the third party; and (ii) commission paid to the third parties relevant to the sales function.

Our major selling and marketing expenses were comprised of the following items during the years indicated:

|                                               |     | Year ended December 31, |    2022 |     |   |       |     |     |      2023 |     |     |         |     |   |       |     |   |  Change |   |
|:----------------------------------------------|:----|:------------------------|--------:|:----|:--|------:|:----|:----|----------:|:----|:----|--------:|:----|:--|------:|:----|:--|--------:|:--|
|                                               |     | HK$                     |         |     | % |       |     | HK$ |           |     | US$ |         |     | % |       |     | % |         |   |
| Marketing service fee paid to the third party |     |                         |  33,000 |     |   |   9.0 |     |     |   986,495 |     |     | 126,474 |     |   |  96.3 |     |   | 2,889.4 |   |
| Commission paid to the third parties          |     |                         | 332,540 |     |   |  91.0 |     |