Company: CHOW
Filing Date: 2025-01-13
Form Type: DRS/A
Source: 0001493152-25-001833
Chunk: 212

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-01-13
Form: DRS/A
Chunk 212
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 conditions and reasonable, supportable forward-looking information, including macroeconomic factors such as industry trends, market volatility, and the broader economic environment.

The Company monitors credit risk on a portfolio basis and evaluates the adequacy of the allowance for expected credit losses on a quarterly basis. Any adjustments to the allowance are based on the overall risk profile of the portfolios and reflect management’s best estimate of potential credit losses. The reversal of HK$348,954 (US$44,738) in 2023 reflects improvements in the overall risk profile of certain portfolios, as well as the successful collection of previously reserved amounts.

5. UNBILLED RECEIVABES (CONTRACT ASSETS) AND DEFERRED REVENUE (CONTRACT LIABILITIES)

The following table summarizes the balances of contract assets and the movement during the periods presented:

|                                  |     | As of December 31, |          |   |     |      |           |   |     |           |         |   |
|                                  |     |               2022 |          |   |     | 2023 |           |   |     |           |         |   |
|                                  |     |                HK$ |          |   |     |  HK$ |           |   |     | US$ (Note 
 2(e))     |         |   |
| Unbilled receivables             
 (Contract assets):               |     |                    |          |   |     |      |           |   |     |           |         |   |
| Balance at beginning of the year |     |                    |  951,133 |   |     |      |   537,450 |   |     |           |  68,904 |   |
| Additions                        |     |                    |  537,450 |   |     |      | 1,964,662 |   |     |           | 251,880 |   |
| Less: progress billings          |     |                    | (951,133 | ) |     |      |  (537,450 | ) |     |           | (68,904 | ) |
| Balance at end of year           |     |                    |  537,450 |   |     |      | 1,964,662 |   |     |           | 251,880 |   |

| F-25 |

Contract assets represent the Company’s right to consideration for work performed but not yet billed as of the reporting date. Contract assets arise when the