Company: CHOW
Filing Date: 2025-02-28
Form Type: DRS/A
Source: 0001493152-25-008591
Chunk: 103

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-02-28
Form: DRS/A
Chunk 103
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        |   |
| IT Professional Services                                                             |     |                         |  5,744,708 |     |   |   5.9 |     |      |   2,335,938 |     |     |    299,479 |     |   |   1.9 |     |        |  (59.3 | ) |
| Maintenance and Support Services                                                     |     |                         |    559,743 |     |   |   0.6 |     |      |     632,205 |     |     |     81,052 |     |   |   0.5 |     |        |   12.9 |   |
|                                                                                      |     |                         |  6,304,451 |     |   |   6.5 |     |      |   2,968,143 |     |     |    380,531 |     |   |   2.4 |     |        |  (52.9 | ) |
| Total cost of revenues                                                               |     |                         | 97,227,521 |     |   | 100.0 |     |      | 121,462,858 |     |     | 15,572,161 |     |   | 100.0 |     |        |   24.9 |   |

Cost of revenues consists primarily of subcontracting fees, cost of hardware, software license and IT application license directly attributable to services provided. For the year ended December 31, 2023, cost of revenues was HK$121.5 million (US$ 15.6million), increased by HK 24.3million or 24.9% from HK$ 97.2million in the same period in 2022. The increase was mainly attributable to the increase in cost of hardware, software license and IT application license for the IT solution projects, which involved hardware, software and IT application products with IT professional services or maintenance and support services, performed during the year ended December 31, 2023.

Gross profit and gross profit margin

As a result of the foregoing, the overall gross profit for the year ended December 31, 2023 was HK$ 19.9million (US$ 2.6million), an increase of HK$ 9.5million from HK$ 10.4million for the same period in 2022. The overall gross profit margin increased from