Company: CHOW
Filing Date: 2025-03-19
Form Type: DRS/A
Source: 0001493152-25-010898
Chunk: 229

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-03-19
Form: DRS/A
Chunk 229
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                              |     |               2022 |           |     | 2023 |           |     |           |         |
|                              |     |                HK$ |           |     |  HK$ |           |     | US$ (Note 
 2(e))     |         |
| Payroll and welfare payables |     |                    |   220,108 |     |      |   272,685 |     |           |  34,960 |
| Accrued expenses             |     |                    | 1,026,201 |     |      | 1,250,987 |     |           | 160,383 |
|                              |     |                    | 1,246,309 |     |      | 1,523,672 |     |           | 195,343 |

| F-34 |

Payroll and Welfare Payables: The payroll and welfare payables represent amounts owed to employees for services rendered and the associated mandatory provident fund (MPF) contributions. Under the Hong Kong MPF Scheme, the Company is required to make contributions based on a percentage of qualified employees’ salaries. The Company recognized employee benefit expenses of HK$2,926,105 and HK$3,513,248 (US$450,416) for the years ended December 31, 2022, and 2023, respectively.

Composition of Accrued Expenses

Accrued expenses primarily consist of amounts due for professional services, sales commission, marketing expenses and other office and operating expenses related to ongoing operational activities. These expenses are recognized as liabilities when the Company has received the services but has not yet paid for them as of the balance sheet date. The components of accrued expenses as of December 31, 2023, include:

| (i)   | Professional                                       
 services fees: HK$450,000 (US$57,693)              |
| (ii)  | Sales                                              
 commission: HK$7,723 (US$990)                      |
| (iii) | Marketing                                          
 expenses: HK$706,495 (US$90,576)                   |
| (iv)  | Other                                              
 office and operating expenses:HK$71,769 (US$9,201) |

The increase in accrued expenses from HK$1,026,201 in 2022 to HK$1,235,987 in 2023 is mainly attributable to an increase in professional fees and marketing expenses related to ongoing business expansion activities.

Timing and