Company: CHOW
Filing Date: 2025-08-22
Form Type: F-1/A
Source: 0001641172-25-025146
Chunk: 105

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-08-22
Form: F-1/A
Chunk 105
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 operations.

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Interest Rate Risk

We are exposed to interest rate risk on our interest-bearing assets and liabilities. As part of our asset and liability risk management, we review and take appropriate steps to manage our interest rate exposure on our interest-bearing assets and liabilities. We have not been exposed to material risks due to changes in market interest rates, and have not used any derivative financial instruments to manage the interest risk exposure during the years presented.

Credit Risk

Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash, accounts receivable, amounts due from related parties and prepayment and other current assets. As of the years ended December 31, 2023 and 2024, approximately HK$9,873,451 and HK$10,522,032 (US$1,348,978) were deposited with financial institutions located in Hong Kong, respectively. In accordance with the relevant regulations in Hong Kong, the maximum insured bank deposit amount is HK$800,000 (year ended December 31, 2023: HK$500,000) for each financial institution. While we believe that these financial institutions are of high credit quality, it also continually monitors their credit worthiness.

We are also exposed to risk from our accounts receivable, amounts due from related companies and prepayment and other current assets. These assets are subjected to credit evaluations. An allowance has been made for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic environment.

Concentration Risk

There were three andtwo customers from whom revenues individually represent greater than 10% of the total revenues of the Company for the fiscal years ended December 31, 2023 and 2024 , respectively. The total sales to these customers accounted for approximately62.2 % and28.5 % of total revenues for the fiscal years ended December 31, 2023 and 2024, respectively. There were two and three customers individually represent greater than 10% of the total gross accounts receivable of the Company as of December 31, 2023 and 2024 respectively. The total receivables from these customers accounted for approximately 31.5% and 56.3% of the Company’s accounts receivable as of December 31, 2023 and 2024 respectively.

Future Financings

We may sell our Ordinary Shares in order to fund our business growth. Issuances of additional shares will result in dilution to existing shareholders. There is no