Company: CHOW
Filing Date: 2025-01-13
Form Type: DRS/A
Source: 0001493152-25-001833
Chunk: 213

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-01-13
Form: DRS/A
Chunk 213
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 |               2022 |           |     | 2023 |            |     |           |           |
|                                                              |     |                HK$ |           |     |  HK$ |            |     | US$ (Note 
 2(e))     |           |
| Deferred revenue (Contract liabilities), current portion     |     |                    | 7,790,830 |     |      | 18,575,792 |     |           | 2,381,512 |
| Deferred revenue (Contract liabilities), non-current portion |     |                    |         - |     |      |     10,000 |     |           |     1,282 |
|                                                              |     |                    | 7,790,830 |     |      | 18,585,792 |     |           | 2,382,794 |

Contract liabilities consist of deferred revenue, which represents billings or cash received in advance of revenue recognition for services that have yet to be performed or for performance obligations that have yet to be satisfied. Deferred revenue is recognized as revenue once the Company satisfies the performance obligations under the contract, which typically involves the delivery of services, or the achievement of specific milestones outlined in the contract.

As of December 31, 2021, the Company’s contract liabilities totaled HK$4,318,713, all of which were recognized as revenue during the year ended December 31, 2022. As of December 31, 2022, the contract liabilities balance was HK$7,790,830, which was fully recognized as revenue during the year ended December 31, 2023. As of December 31, 2023, contract liabilities totaled HK$18,585,792 (US$2,382,794). Of this balance, HK$18,575,792 (US$2,381,512) is expected to be recognized as revenue during the year ending December 31, 2024, upon the satisfaction of the associated performance obligations.

The Company’s contract liabilities 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.

| F-26 |

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

| 1. | Performance                                                                                                                
 obligations are satisfied over time or upon the achievement of