Company: CHOW
Filing Date: 2025-04-01
Form Type: F-1
Source: 0001641172-25-001938
Chunk: 214

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-04-01
Form: F-1
Chunk 214
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|                       |     |               2022 |         |     | 2023 |          |   |     |           |         |   |
|                       |     |                HK$ |         |     |  HK$ |          |   |     | US$ (Note 
 2(e))     |         |   |
| Beginning balance     |     |                    |       - |     |      |  842,674 |   |     |           | 108,035 |   |
| Addition / (Reversal) |     |                    | 842,674 |     |      | (348,954 | ) |     |           | (44,738 | ) |
| Ending balance        |     |                    | 842,674 |     |      |  493,720 |   |     |           |  63,297 |   |

The Company utilizes a portfolio analysis approach to estimate the allowance for expected credit losses, grouping accounts receivable into pools based on shared risk characteristics such as customer type, geographic location, industry, and historical payment patterns. The allowance for expected credit losses is determined using historical loss rates, adjusted for current conditions and reasonable, supportable forward-looking information, including macroeconomic factors such as industry trends, market volatility, and the broader economic environment.

The Company monitors credit risk on a portfolio basis and evaluates the adequacy of the allowance for expected credit losses on a quarterly basis. Any adjustments to the allowance are based on the overall risk profile of the portfolios and reflect management’s best estimate of potential credit losses. The reversal of HK$348,954 (US$44,738) in 2023 reflects improvements in the overall risk profile of certain portfolios, as well as the successful collection of previously reserved amounts.

5. UNBILLED RECEIVABES (CONTRACT ASSETS) AND DEFERRED REVENUE (CONTRACT LIABILITIES)

The following table summarizes the balances of contract assets and the movement during the periods presented:

|                                  |     | As of December 31, |          |   |     |      |           |   |     |           |         |   |
|                                  |     |               2022 |          |   |     | 2023 |           |   |     |           |         |   |
|                                  |     |                HK$ |          |   |     |  HK$ |           |   |     | US$ (Note 
 2(e))     |         |   |
|