Company: CHOW
Filing Date: 2025-02-10
Form Type: DRS/A
Source: 0001493152-25-005658
Chunk: 267

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-02-10
Form: DRS/A
Chunk 267
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 primarily
relate to advance billings for ongoing service contracts, including managed IT services, support and maintenance, and IT infrastructure
solutions, where payment is received before services are rendered. For these contracts, the Company recognizes revenue over time as performance
obligations are satisfied, typically based on either the passage of time or milestones achieved.

Deferred revenue is recognized as revenue when the
following criteria are met:

| 1. | Performance obligations                                                                                 
 are satisfied over time or upon the achievement of defined milestones.                                  |
| 2. | Revenue is recognized over                                                                              
 the contract term for service contracts, or at a point in time when a significant milestone is reached. |

The timing of revenue recognition depends on the
specific contract terms and may vary based on the type of service provided and the method of measuring progress, such as output methods
(e.g., deliverables completed).

Revenue to be Recognized in Future Periods

As of June 30, 2024, the Company expects to recognize
most of its contract liabilities as revenue during the year ending December 31, 2024, as performance obligations are fulfilled. However,
the actual timing of revenue recognition may be impacted by factors such as changes in customer requirements, delays in project execution,
or other uncertainties. The Company regularly assesses its contract liabilities and adjusts revenue recognition estimates as necessary.

6. PREPAYMENT AND OTHER CURRENT ASSETS, NET AND OTHER NON-CURRENT ASSETS, NET

Prepayment and other current assets, net consisted
of the following as of December 31, 2023 and June 30, 2024:

|                                          |     | As                   
 of December 31, 2023 |            |     | As of June 30, 2024 |       |     |                 |     |
|:-----------------------------------------|:----|:---------------------|-----------:|:----|:--------------------|------:|:----|:----------------|----:|
|                                          |     | HK$                  |            |     | HK$                 |       |     | US$ (Note 2(e)) |     |
|                                          |     |                      |            |     | -Unaudited          |       |     | -Unaudited      |     |
| Prepayment and other current assets, net |     |                      |            |     |                     |       |     |                 |     |
| Advances to suppliers (i)                |     |                      | 11,593,320 |     |                     |