Company: CHOW
Filing Date: 2025-05-29
Form Type: F-1/A
Source: 0001641172-25-012773
Chunk: 207

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-05-29
Form: F-1/A
Chunk 207
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,694 |

| i. | Advances                                                                                       
 to suppliers represent prepayments made by the Company for hardware costs, software and IT     
 application license costs, and service subcontracting fees. These prepayments are made in      
 the normal course of business to secure the timely delivery of products and services necessary 
 for the Company’s operations.                                                                  |

As of December 31, 2024, the Company’s advances to suppliers totaled HK$10,585,100. These amounts are expected to be recognized as cost of revenue in the next financial year, as the associated performance obligations are satisfied, and the goods and services are received.

| F-28 |

Risk Management of Advances to Suppliers: The Company monitors the creditworthiness of its suppliers to mitigate the risk of non-performance or delays. Management reviews the advances to suppliers regularly to assess any potential impairment and has determined that no allowance for credit losses was necessary as of December 31, 2023 and 2024.

| ii.  | Prepaid                                                                                                                             
 marketing expenses represent prepayments made by the Company for marketing activities. As of December 31, 2024, the Company’s       
 prepaid marketing expenses totaled HK$719,286. These amounts are expected to be recognized as selling and marketing expenses in the 
 next financial year, as the associated performance obligations are satisfied and services are received.                             |
| iii. | Rental                                                                                                                              
 deposits are deposits paid to secure office space leases.                                                                           |

Impairment Considerations: The Company assesses prepaid expenses and deposits for potential impairment at each reporting date. As of December 31, 2023 and 2024, no impairments were recognized for advances to suppliers, rental deposits, or other deposits.

7. RELATED PARTY TRANSACTIONS

The table below sets forth the major related parties and their relationships with the Company as of December 31, 2023 and 2024:

| Names                          
 of the related parties         
 Leading                        
 Digital Supply Limited         |     | Relationship                                               
 with the Company                                           
 50%                                                        
 owned by Yee Kar Wing; Director until July 4, 2024         |
|:-------------------------------|:----|:-----------------------------------------------------------|
| Primex                         
 Technology Limited             |     | 50%                                                        
 owned by Yee Kar Wing; Director                            |
| GMS                            
 Enterprise (Hong Kong) Limited |     | 100%                                                       
 owned by Primex Technology Limited; Director: Yee Kar Wing |
| Yee                            
 Kar Wing                       |     |