Company: GINT
Filing Date: 2025-08-15
Form Type: F-1/A
Source: 0001213900-25-077286
Chunk: 115

Company: Gifts International Holdings Ltd
Filing Date: 2025-08-15
Form: F-1/A
Chunk 115
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 balances are written off against the allowance for expected credit losses after management has determined that the likelihood of collection is not probable. Allowance for Credit Losses In accordance with ASC Topic 326, Credit Losses — Measurement of Credit Losses on Financial Instruments(“ASC 326”), the Company utilizes the current expected credit losses (“CECL”) model to determine an allowance that reflects its best estimate of the lifetime expected credit losses on accounts receivable and deposit, prepayments, and others receivable which is recorded as a liability to offset the receivables. The CECL model is prepared after considering historical experience, current conditions, and reasonable and supportable economic forecasts to estimate lifetime expected credit losses. Accounts receivable and deposit, prepayments, and others receivable are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded as a reduction of bad debt expense. Inventories Inventories are valued at the lower of cost or net realizable value, which are mainly the purchase of fresh floral, gourmet food, skincare and beauty, decoration and accessories, and packaging material. The Company establishes reserves for excess and obsolete inventory based on prevailing circumstances and judgment for consideration of current events, such as economic conditions, that may affect inventory. The reserve required to record inventory at the lower of cost or net realizable value may be adjusted in response to changing conditions, however inventory cannot be subsequently written back up, since the reserve establishes a new (lower) cost basis. Inventory cost is primarily determined using the first in, first out (FIFO) method. Plant and Equipment Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight -linebasis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values:

|                               |     | Expected useful life |
| Machine and equipment         |     | 5 years              |
| Computer and office equipment |     | 5 years              |
| Motor vehicle                 |     | 4 years              |

63 Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. When assets have retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations. Impairment of Long-Lived Assets In accordance with the provisions of ASC Topic 360, Impairment