Company: CHOW
Filing Date: 2025-02-28
Form Type: DRS/A
Source: 0001493152-25-008591
Chunk: 223

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-02-28
Form: DRS/A
Chunk 223
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079,837 |     |           | 907,671 |

Accounts payable represent amounts due to suppliers for subcontracting fees, hardware costs, software license costs, and IT application license costs. As of December 31, 2022, the accounts payable balance included an IT application license cost of HK$11,022,495 related to an IT professional services project. This amount was fully settled during the year ended December 31, 2023.

Payment Terms

The Company’s accounts payable are current liabilities, typically due within 30 to 90 days of the invoice date, depending on the terms negotiated with each supplier. The Company’s payment practices aim to align with standard industry terms and cash flow management practices. All payables related to the 2022 IT application license cost were settled within 12 months as per the terms of the agreement with the supplier.

Liquidity and Risk Management

The Company regularly assesses its liquidity needs and monitors its ability to meet short-term obligations. As of December 31, 2023, the Company has sufficient cash and cash equivalents to settle its current liabilities, including accounts payable, as they become due. The significant reduction in accounts payable from HK$18,202,230 in 2022 to HK$7,079,837 in 2023 reflects the settlement of key project-related costs.

The Company does not anticipate any liquidity constraints in settling remaining payables and maintains adequate working capital reserves to ensure the timely settlement of all liabilities.

12. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

The following table presents the balances of accrued expenses and other current liabilities as of December 31, 2022, and December 31, 2023:

|                              |     | As of December 31, |           |     |      |           |     |           |         |
|                              |     |               2022 |           |     | 2023 |           |     |           |         |
|                              |     |                HK$ |           |     |  HK$ |           |     | US$ (Note 
 2(e))     |         |
| Payroll and welfare payables |     |                    |   220,108 |     |      |   272,685 |     |           |  34,960 |
| Accrued expenses             |     |                    | 1,026,201 |     |      | 1,250,987 |     |           | 160,383 |
|                              |