Company: CHOW
Filing Date: 2025-03-19
Form Type: DRS/A
Source: 0001493152-25-010898
Chunk: 276

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-03-19
Form: DRS/A
Chunk 276
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 changes in the financial standing of the related parties may result in a       
 reassessment of the credit risk associated with these balances.                                                                         |
| (iii) | On December 31, 2023, Sereno                                                                                                            
 declared a dividend of HK$17,500,000 to Vigorous. In accordance with a written instruction of the Vigorous, the dividend will be        
 paid directly to Yee Kar Wing and Hui Wai Ming, the ultimate shareholders of Vigorous. The transaction was fully authorized by the      
 Board of Directors and documented in a board resolution. As of June 30, 2024, the amount of unpaid dividend to Mr. Yee Kar Wing and     
 Mr. Hui Wai Ming were HK$12,494 and HK$3,532,420 respectively.                                                                          |

8. LEASES

The Company leases office space from third parties
under non-cancellable operating lease agreements. The Company determines if an arrangement is, or contains, a lease at the inception
of the contract based on the terms of the agreement and whether the contract conveys the right to control the use of an identified asset
for a period of time in exchange for consideration. Right-of-use (ROU) assets and corresponding lease liabilities are recognized at the
lease commencement date based on the present value of future lease payments over the lease term.

As the lease agreements do not specify an implicit
rate, the Company used its incremental borrowing rate at the commencement date to determine the present value of lease payments. The
incremental borrowing rate was estimated using market rates available for similar instruments with similar terms, adjusted for the Company’s
credit risk and the lease term. The weighted average discount rate for operating leases as of June 30, 2024, was 5.875%.

The Company’s lease agreements do not contain
any material guarantees or restrictive covenants, and the Company has no finance leases or sublease activities as of June 30, 2024.

The Company elected the short-term lease exemption
under ASC 842 for certain lease arrangements that have a lease term of 12 months or less and do not contain purchase options. The Company
expenses these short-term leases on a straight-line basis over the lease term and does not recognize ROU assets or lease liabilities
on the consolidated balance sheet for these leases.

| F-66 |

The following table summarizes
the supplemental consolidated balance sheet information related to operating leases as of December 31, 2023 and June 30, 2024: