Company: CHOW
Filing Date: 2025-02-28
Form Type: DRS/A
Source: 0001493152-25-008591
Chunk: 229

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-02-28
Form: DRS/A
Chunk 229
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05 |

* Retroactively presented for the effect of reorganization for the Company’s initial public offering

Explanation of EPS Calculation

Basic earnings per share is calculated by dividing the net income attributable to the Company’s shareholders by the weighted average number of ordinary shares outstanding during the period. For the years ended December 31, 2022, and 2023, the Company had 32,500,000 ordinary shares outstanding, and there were no changes in the number of shares during the periods presented.

| F-38 |

Diluted earnings per share is calculated by dividing net income attributable to the Company’s shareholders by the weighted average number of shares outstanding during the period, including the effect of all potentially dilutive securities, if any. For the years ended December 31, 2022, and 2023, the Company had no dilutive securities outstanding, resulting in basic and diluted earnings per share being the same.

No Potential Dilutive or Anti-Dilutive Securities

As of December 31, 2022 and 2023, the Company did not have any options, warrants, convertible securities, or other instruments that could potentially dilute the earnings per share calculation. Therefore, the Company’s basic earnings per share and diluted earnings per share are the same for both years.

Additional Information

The weighted average number of shares used in the calculation of EPS remained consistent at 32,500,000 ordinary shares for the years ended December 31, 2022, and 2023. There were no changes in the number of shares issued or outstanding during these periods.

16. COMMITMENTS AND CONTINGENCIES

(a) Commitments

As of December 31, 2022 and 2023, the Company had no capital expenditure commitments or other significant contractual obligations. The Company continuously monitors its capital needs and has the financial flexibility to adjust to future investment requirements. The Company has no plans for material capital expenditures at this time.

(b) Contingencies

The Company may become involved in legal proceedings, investigations, and regulatory actions arising in the ordinary course of business. These proceedings could include disputes with vendors, customers, or regulatory bodies. The outcomes of such proceedings are inherently uncertain, and while the Company does not currently anticipate that any such matters will have a material adverse effect on its financial position, results of operations, or cash flows, it continues to assess legal risks on an ongoing basis.

As of December 31, 2022 and 2023, the Company was not a party to any material legal or administrative proceedings that