Company: CHOW
Filing Date: 2025-04-01
Form Type: F-1
Source: 0001641172-25-001938
Chunk: 233

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-04-01
Form: F-1
Chunk 233
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 for annual financial statements and should be read in conjunction with the Company’s audited
consolidated financial statements as of and for the year ended December 31, 2023 and 2022.

Management believes that these financial
statements provide adequate disclosures to ensure the information presented is not misleading. They have been prepared using consistent
accounting policies as those applied in the audited financial statements for the fiscal year ended December 31, 2023 and 2022. Additionally,
the results of operations for the six months ended June 30, 2024, may not be indicative of the Company’s performance for the full
fiscal year.

(b) Principles of consolidation

The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiary. All intercompany balances and transactions have been eliminated in consolidation.

(c) Use of estimates

The preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses, as well as the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements. These estimates and assumptions are evaluated regularly based on historical experience, current conditions, and reasonable and supportable forecasts of future economic conditions.

Significant accounting estimatesreflected in the Company’s unaudited condensed consolidated financial statements include, but are not limited to:

| ● | Incremental borrowing                                                                                                  
 rate used in the recognition of right-of-use assets and lease liabilities under ASC 842 (Leases), which is determined  
 based on the Company’s cost of borrowing, adjusted for the specific term and the economic environment.                 |
| ● | Allowance for expected                                                                                                 
 credit losses on accounts receivable under ASC 326 (Credit Losses), which is determined based on historical collection 
 experience, the creditworthiness of individual customers, and expected changes in macroeconomic conditions.            |
| ● | Useful lives of property                                                                                               
 and equipment, which are determined based on the Company’s experience with similar assets and expected usage patterns. |
| ● | Valuation allowance                                                                                                    
 for deferred tax assets under ASC 740 (Income Taxes), which is based on management’s assessment of the likelihood      
 of future taxable income and the ability to utilize deferred tax assets before expiration.                             |
| ● | Estimated progress towards                                                                                             
 the satisfaction of performance obligations under ASC 606 (Revenue from Contracts with Customers), which considers the 
 nature of the services provided and the terms of customer