Company: CHOW
Filing Date: 2025-01-13
Form Type: DRS/A
Source: 0001493152-25-001833
Chunk: 91

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-01-13
Form: DRS/A
Chunk 91
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,548,668 |     |   |   7.1 |     |      |  9,343,008 |     |     |  1,197,822 |     |   |  10.9 |     |        |  68.4 |   |
|                                               |     |                           |  5,548,668 |     |   |   7.1 |     |      |  9,343,008 |     |     |  1,197,822 |     |   |  10.9 |     |        |  68.4 |   |
| Total cost of revenues                        |     |                           | 78,634,199 |     |   | 100.0 |     |      | 85,885,003 |     |     | 11,010,898 |     |   | 100.0 |     |        |   9.2 |   |

Cost of revenues consists primarily of subcontracting fees, cost of hardware, software license and IT application license directly attributable to services provided. For the six months ended June 30, 2024, cost of revenues was HK$85.9 million (US$ 11.0million), increased by HK 7.3million or 9.2 % from HK$78.6 million in the same period in 2023. The increase was mainly attributable to increase in cost of software license and IT application license for and subcontracting fees for the IT solution projects performed during the six months ended June 30, 2024. Such increases were partially offset by the decrease in hardware cost.

Gross profit

As a result of the foregoing, gross profit for the six months ended June 30, 2024 was HK$ 12.4million (US$ 1.6million), an increase of HK$ 2.0million from HK$ 10.4million for the same period in 2023. The gross profit margin increased from 11.7% for the six months ended June 30, 2023 to 12.6% for the six months ended June 30, 2024, which was mainly attributable to the increase in our revenue from managed and support service with AI and AIOps included in the revenue categories of “Sale of Software and IT Application Products with IT Professional Services”, which generally entailed higher gross profit margins.

The differences between Revenue from Products and Cost of Products