Company: CHOW
Filing Date: 2025-04-01
Form Type: F-1
Source: 0001641172-25-001938
Chunk: 106

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-04-01
Form: F-1
Chunk 106
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 net income of HK$6.5 million as adjusted for non-cash items and changes in operating
assets and liabilities. Adjustments for non-cash items primarily consisted of (i) amortization of intangible asset of HK$0.2 million
and (ii) deferred income tax of HK$0.1 million. Changes in operating assets and liabilities primarily driven by a decrease in deferred
revenue (contract liabilities) of HK$3.4 million and decrease in accounts payable of HK$1.8 million, partially offset by increase in
taxable payable of HK$0.9million.

For the six months ended June 30, 2024, net cash provided by operating activities was HK$ 3.2million (US$ 0.4million), primarily resulted from the net income of HK$ 6.9million (US$ 0.9million) as adjusted for non-cash items and changes in operating assets and liabilities. Adjustments for non-cash items primarily consisted of (i) amortization of intangible asset of HK$0.3 million (US$33,412); (ii) allowance for the current expected credit losses on accounts receivable of HK$0.2 million (US$29,427) and (iii) deferred income tax of HK$0.1 million (US$14,544). Changes in operating assets and liabilities primarily driven by a decrease in deferred revenue (contract liabilities) of HK$14.3 million (US$1.8 million) and decrease in accounts payable of HK$3.6 million (US$0.5 million), partially offset by an decrease of prepayment and other current assets, net of HK$11.6 million (US$1.5 million).

Cash Used in Investing Activities:

For the six months ended June 30, 2023, net cash used in investing activities was HK$ 1.0million, which was mainly for the enhancement cost of an information technology service management system paid to a third-party system developer. For the six months ended June 30, 2024, net cash used in investing activities was HK$1.2 million (US$0.2 million), which was mainly for the enhancement cost of an information technology service management system paid to a third-party system developer.

Cash Used in Financing Activities:

For the six months ended June 30, 2024, net cash used in financing activities of HK$0.5 million (US$ 59,