Company: BGHL
Filing Date: 2025-10-28
Form Type: F-1/A
Source: 0001213900-25-102958
Chunk: 191

Company: BILLION GROUP HOLDINGS Ltd
Filing Date: 2025-10-28
Form: F-1/A
Chunk 191
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 current market conditions and market trends and records a write -downagainst the cost of inventories should the net realizable value fall below the cost. The Group recognized provision for write -downon inventories of HK$5,260 and nil during the years ended December 31, 2024 and 2023, respectively. (j)Operating leases We determine if an arrangement is a lease at inception. Payments under our lease arrangements are fixed. Right -of -use(“ROU”) assets and lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is incremental borrowing rate, because the interest rate implicit in the leases is not readily determinable. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The lease terms include periods under options to extend or terminate the lease when it is reasonably certain that we will exercise that option. The Group generally uses the base, non -cancelable, lease term when determining the ROU assets and F-9 BILLION GROUP HOLDINGS LIMITED
NOTES TO THE COMBINED FINANCIAL STATEMENTS 1. SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (cont.) lease liabilities. ROU assets also include any prepaid lease payments and lease incentives. The current portion of operating lease liabilities is included in accrued expenses and other current liabilities. Should there be long term portion, the non -currentlease liabilities will be included in operating lease liabilities. Operating lease expense is recognized on a straight -linebasis over the lease term. (k)Convenience translation Translations of the combined balance sheets, combined statements of operations and comprehensive income and combined statements of cash flows from HK$ into US$ as of and for the year ended December 31, 2024 are solely for the convenience of the reader and were calculated at the rate of HK$7.80 = US$1, based on the pegged rate determined by the Hong Kong’s linked exchange rate system. No representation is made that the HK$ amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2024, or at any other rate. (l)Income taxes Income taxes are provided for in accordance with the laws and regulations applicable to the Group as enacted by the relevant tax authorities. Deferred tax assets and liabilities are recognized for