Company: CHOW
Filing Date: 2025-03-19
Form Type: DRS/A
Source: 0001493152-25-010898
Chunk: 222

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-03-19
Form: DRS/A
Chunk 222
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 |  HK$ |         |     | US$ (Note 
 2(e))     |        |
| Other non-current assets, net |     |                    |   |     |      |         |     |           |        |
| Rental deposits (ii)          |     |                    | - |     |      | 122,412 |     |           | 15,693 |

| i. | Advances                                                                                       
 to suppliers represent prepayments made by the Company for hardware costs, software and IT     
 application license costs, and service subcontracting fees. These prepayments are made in      
 the normal course of business to secure the timely delivery of products and services necessary 
 for the Company’s operations.                                                                  |

| ● | As                                                                                                                        
 of December 31, 2022, the Company’s advances to suppliers totaled HK$22,701, of which HK$22,701 was recognized as cost of 
 revenue during the year ended December 31, 2023.                                                                          |

| F-28 |

| ● | As                                                                                                                                  
 of December 31, 2023, the Company’s advances to suppliers increased significantly to HK$11,593,320 (US$1,486,323). This increase    
 is primarily attributable to prepayments made in connection with large-scale IT infrastructure and software implementation projects 
 scheduled for completion in 2024. These amounts are expected to be recognized as cost of revenue during the year ending December    
 31, 2024, as the associated performance obligations are satisfied, and the goods and services are received.                         |

Risk Management of Advances to Suppliers: The Company monitors the creditworthiness of its suppliers to mitigate the risk of non-performance or delays. Management reviews the advances to suppliers regularly to assess any potential impairment and has determined that no allowance for credit losses was necessary as of December 31, 2022 and 2023. The significant increase in advances during 2023 is aligned with the Company’s growth strategy and anticipated demand for services.

Impairment Considerations: The Company assesses prepaid expenses and deposits for potential impairment at each reporting date. As of December 31, 2022 and 2023, no impairments were recognized for advances to suppliers, rental deposits, or other deposits.

7. RELATED PARTY TRANSACTIONS

The table below sets forth the major related parties and their relationships with the Company as of December 31, 2022 and 2023:

| Names                          
 of the related parties         
 Leading                        
 Digital Supply Limited         |