Company: CHOW
Filing Date: 2025-02-10
Form Type: DRS/A
Source: 0001493152-25-005658
Chunk: 249

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-02-10
Form: DRS/A
Chunk 249
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3.9 |     |     |              19,686 |     |                 |      2,524 |     |   |  1.6 |
| Contracts with Multiple Promises |     |     |                   9,706 |     |   |  0.5 |     |     |           1,162,791 |     |                 |    149,075 |     |   | 92.3 |
|                                  |     |     |               1,964,662 |     |   |  100 |     |     |           1,259,804 |     |                 |    161,513 |     |   |  100 |

(o) Cost of revenues

Cost of revenues includes direct costs associated with the delivery of the Company’s services and products. These costs primarily consist of:

| ● | Subcontracting fees, which                                                                                                               
 include amounts paid to third-party vendors and service providers for project-related services;                                          |
| ● | Hardware costs, which represent                                                                                                          
 the direct cost of hardware sold to customers as part of the Company’s service offerings;                                                |
| ● | Software licenses and IT                                                                                                                 
 application licenses, which include the costs of licenses procured from third-party vendors and resold or utilized in providing services 
 to customers.                                                                                                                            |

Costs are recognized in the same period as the corresponding revenues are recognized under ASC 606 (Revenue from Contracts with Customers) to ensure that costs are matched with the associated performance obligations. The Company allocates costs to performance obligations in proportion to the revenues recognized, ensuring that costs are accurately matched to the period in which the corresponding revenues are recognized.

Cost of revenues also includes any direct labour costs attributable to the delivery of services and the implementation of hardware, software, and IT solutions. These labour costs include salaries and benefits for employees directly involved in service delivery.

The following table sets forth a breakdown of our costs of revenues, in absolute amounts and percentages of total revenues for the six months ended June 30, 2023 and 2024:

|                                                                                 |     | For the Six Months Ended June 30, |            |     |   |      |     |      |            |     |                 |            |     |   |      |
|                                                                                 |     |                              2023 |            |     |   |      |     | 2024 |            |     |                 |            |     |   |      |
|                                                                                 |     |                               HK$ |