Company: CHOW
Filing Date: 2025-02-10
Form Type: DRS/A
Source: 0001493152-25-005658
Chunk: 200

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-02-10
Form: DRS/A
Chunk 200
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             | 18,124,661 |     |   |  100 |

* Revenue Recognition for Contracts with Non-Distinct Obligations

Contracts with customers often include a combination of goods (e.g., hardware, software) and services (e.g., IT professional services, integration, maintenance). When the goods and services in a contract are highly interdependent and interrelated, they are treated as a single performance obligation in accordance with ASC 606-10-25-21.

The total transaction price for such contracts
is recognized as revenue at the point in time when control of the combined performance obligation transfers to the customer, typically
upon customer acceptance. Given the integrated nature of the deliverables, the Company cannot allocate revenue to individual components
such as hardware, software, or services.

Instead, revenue is categorized based on the predominant
characteristic of the combined deliverable. This determination considers the primary benefit to the customer, the relative significance
of each component to the contract’s objective, and the customer’s primary reason for entering the arrangement. For example, when contracts
involve a significant degree of customization and implementation services, the Company categorizes revenue as services, as these activities
represent the primary driver of value for the customer.

| F-17 |

The following table summarizes disaggregated revenue from contracts with customers by timing of revenue:

|                                     |     | For the Years Ended December 31, |             |     |   |      |     |      |             |     |           |            |     |   |      |
|                                     |     |                             2022 |             |     |   |      |     | 2023 |             |     |           |            |     |   |      |
|                                     |     |                              HK$ |             |     | % |      |     |  HK$ |             |     | US$ (Note 
 2(e))     |            |     | % |      |
| Revenue recognized at point in time |     |                                  |             |     |   |      |     |      |             |     |           |            |     |   |      |
| Sale of Hardware Products           |     |                                  |     921,490 |     |   |  0.9 |     |      |     834,848 |     |           |    107,032 |     |   |  0.6 |
| IT Professional Services            |     |                                  |   6,815,946 |     |