Company: CCHH
Filing Date: 2025-08-27
Form Type: F-1
Source: 0001213900-25-081009
Chunk: 170

Company: CCH Holdings Ltd
Filing Date: 2025-08-27
Form: F-1
Chunk 170
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 that the lessee is reasonably certain to exercise. c)The lease term is for a major part of the remaining economic life of the underlying asset. d)The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset. e)The underlying asset is of such a specialized nature that it is expected to have no alternative use to the Group at the end of the lease term. f)When none of the criteria are met, the Group classifies a lease as an operating lease. Operating leases Group as a lessee When the Group acts as a lessee, leases with an initial term of 12 months or less are short -termlease and not recognized as operating lease right -of -use(“ROU”) assets and operating lease liabilities on the consolidated balance sheet. The Group recognizes lease expense for short -termleases on a straight -linebasis over the lease term. The right -of -useasset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and less any lease incentive received. Lease term includes rent holidays and options to extend or terminate the lease when the Group is reasonably certain that the Group will exercise that option. The lease assets for operating leases consist of the amount of the measurement of the lease liabilities and any prepaid lease payments. Operating lease expense is recognized on a straight -linebasis over the lease term by adding interest expense determined using the effective interest method to the amortization of the operating lease right -of -useassets. Interest expense is determined using the effective interest method. The Group’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. F-13 CCH HOLDINGS LTD
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2024 (In U.S. Dollar, except for share data) 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) Group as a lessor When the Group acts as a lessor, it classifies at lease inception (or when there is a lease modification) each of its leases as either an operating lease or a finance lease. Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases.