Company: CHOW
Filing Date: 2025-08-22
Form Type: F-1/A
Source: 0001641172-25-025146
Chunk: 205

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-08-22
Form: F-1/A
Chunk 205
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 have yet to be performed or for performance obligations that have yet to be satisfied. Deferred revenue is recognized as revenue once the Company satisfies the performance obligations under the contract, which typically involves the delivery of services, or the achievement of specific milestones outlined in the contract.

As of December 31, 2023, the contract liabilities balance was HK$18,585,792, which was fully recognized as revenue during the year ended December 31, 2024. As of December 31, 2024, contract liabilities totaled HK$17,401,218 (US$2,230,925), which is expected to be recognized as revenue in the next financial year, upon the satisfaction of the associated performance obligations.

The Company’s contract liabilities primarily relate to advance billings for ongoing service contracts, including managed IT services, support and maintenance, and IT infrastructure solutions, where payment is received before services are rendered. For these contracts, the Company recognizes revenue over time as performance obligations are satisfied, typically based on either the passage of time or milestones achieved.

| F-27 |

Deferred revenue is recognized as revenue when the following criteria are met:

| 1. | Performance                                                                                                                
 obligations are satisfied over time or upon the achievement of defined milestones.                                         |
| 2. | Revenue                                                                                                                    
 is recognized over the contract term for service contracts, or at a point in time when a significant milestone is reached. |

The timing of revenue recognition depends on the specific contract terms and may vary based on the type of service provided and the method of measuring progress, such as output methods (e.g., deliverables completed).

Revenue to be Recognized in Future Periods

As of December 31, 2024, the Company expects to recognize most of its contract liabilities as revenue in the next financial year, as performance obligations are fulfilled. However, the actual timing of revenue recognition may be impacted by factors such as changes in customer requirements, delays in project execution, or other uncertainties. The Company regularly assesses its contract liabilities and adjusts revenue recognition estimates as necessary.

6. PREPAYMENT AND OTHER CURRENT ASSETS, NET AND OTHER NON-CURRENT ASSETS, NET

Prepayment and other current assets, net consisted of the following as of December 31, 2023 and 2024:

|                               |     |              As 
 of December 31, |            |     |      |            |     |             |           |
|                               |     |            2023 |            |     | 2024 |            |