Company: CHOW
Filing Date: 2025-09-16
Form Type: 424B4
Source: 0001493152-25-013607
Chunk: 99

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-09-16
Form: 424B4
Chunk 99
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 net income of HK$ 12.1million as adjusted for non-cash items and changes in operating assets and liabilities. Adjustments for non-cash items primarily consisted of (i) amortization of intangible asset of HK$0.4 million; and (ii) deferred income tax of HK$0.2 million, partially offset by the reversal of allowance for the expected credit losses on accounts receivable of HK$0.3 million. Changes in operating assets and liabilities primarily driven by an increase in deferred revenue (contract liabilities) of HK$10.8 million, a decrease in accounts receivable of HK$7.0 million and an increase in tax payable of HK$2.0 million, offset by an increase of prepayment and other current assets of HK$11.6 million and a decrease in accounts payable of HK$11.1 million.

For the year ended December 31, 2024, net cash provided by operating activities was HK$ 7.9million (US$ 1.0million), primarily resulted from the net income of HK$ 11.9million (US$ 1.5million) as adjusted for non-cash items and changes in operating assets and liabilities. Adjustments for non-cash items primarily consisted of (i) amortization of intangible asset of HK$0.7 million (US$87,374); and (ii) allowance for the current expected credit losses on accounts receivable of HK$0.5 million (US$65,029). Changes in operating assets and liabilities primarily driven by a decrease in deferred revenue (contract liabilities) of HK$1.2 million (US$0.2 million), a decrease in accounts payable of HK$2.5 million (US$0.3 million) and an increase in accounts receivable of HK$2.5 million (US$0.3 million), partially offset by an increase of tax payable of HK$2.2 million (US$0.3 million).

Cash Used in Investing Activities:

For the year ended December 31, 2023, net cash used in investing activities was HK$1.0 million, which was mainly for the enhancement cost of an information technology service management system paid to a third-party system developer.

For the year ended December 31, 2024, net cash used in investing activities was HK$1.2 million (US$0.2 million), which was mainly for the enhancement cost of an information technology service management system paid to