Company: CHOW
Filing Date: 2025-03-19
Form Type: DRS/A
Source: 0001493152-25-010898
Chunk: 283

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-03-19
Form: DRS/A
Chunk 283
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4 is mainly attributable to the settlement of accrued marketing expenses of HK$706,495
during the period.

Timing and Classification

All amounts recorded in accrued expenses and other
current liabilities are classified as current liabilities and are expected to be settled within 12 months of the balance sheet date.
These liabilities represent the Company’s short-term obligations and are due in the normal course of business operations.

Employee Benefit Accrual Methodology

The Company calculates its employee benefit liabilities,
including MPF contributions, based on statutory requirements and internal compensation policies. Contributions are calculated as a percentage
of each eligible employee’s gross salary and are accrued monthly in accordance with ASC 710 (Compensation). The contributions are
made to the MPF on behalf of employees as required under the Hong Kong Legislative Council’s regulations.

Liquidity Management

The Company continually monitors its cash flow and
liquidity to ensure that it can meet its short-term obligations, including accrued expenses and employee benefits. As of June 30, 2024,
the Company has sufficient cash reserves to settle these liabilities as they become due. The Company does not anticipate any liquidity
constraints that would impact its ability to meet these obligations in a timely manner.

13. INCOME TAXES

Cayman Islands

The Company is incorporated in the Cayman Islands.
Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. In addition, dividend payments
are not subject to withholdings tax in the Cayman Islands.

| F-70 |

British Virgin Islands

Vigorous is incorporated in British Virgin Islands
and conducts its primary business operations through the subsidiary in Hong Kong. Under the current laws of British Virgin Islands, British
Virgin Islands levies no taxes on individuals or corporations based upon profits, income, gains or appreciation and the Company is therefore
not subject to tax on income or capital gains arising in British Virgin Islands. Additionally, upon payments of dividends by the Company
to its shareholders, no British Virgin Islands withholding tax will be imposed.

Hong Kong

Sereno is subject to a two-tiered income tax rate
in Hong Kong. The first HK$2,000,000 of profits are taxed at a rate of 8.25%, while any remaining profits are taxed at the standard rate
of 16.5%.

The following table summarizes the composition of
income tax expense for six months ended June 30, 2023, and 2024:

|                            |     | For the Six Months Ended June 30