Company: BGHL
Filing Date: 2025-10-28
Form Type: F-1/A
Source: 0001213900-25-102958
Chunk: 190

Company: BILLION GROUP HOLDINGS Ltd
Filing Date: 2025-10-28
Form: F-1/A
Chunk 190
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 by customer. Our revenue generating activities have a single performance obligation and are recognized at the point in time when control transfers and our obligation have been fulfilled, which is when the ownership of the related goods are transferred to the customer. We have elected to treat transportation as a fulfillment activity. Revenue is measured as the amount of consideration we expect to receive in exchange for our products. Our sales terms do not allow for a right of return except for matters related to any defects on our part. Principal vs. Agent Considerations In accordance with the guidance under ASC 606, the Group has assessed whether it acts as a principal or an agent in transactions involving customers and food suppliers. The Group has concluded that it acts as a principal, as it controls the underlying food products before they are transferred to the end users (customers). The Group obtains control of the food products before they are transferred to end users (customers), and it has the ability to direct the food suppliers to supply the food products as well as logistics services. The Group is contractually responsible for fulfilling the performance obligations to the customers under separate agreements. As such, the Group controls the specified goods before they are transferred to the customer. (h)Accounts receivable, net Accounts receivable are stated at the amount the Group expects to collect. The Group maintains allowances for credit losses for estimated losses. In accordance with ASC 326 Financial Instruments — Credit Losses, the Group estimates the allowance for expected credit losses based on expected future uncollectible accounts receivable using forecasts of future economic conditions, in addition to information about past events and current conditions. Management considers the following factors when determining the collectability of specific accounts: historical experience, creditworthiness of the clients, aging of the receivables, and other specific circumstances related to the accounts. Allowance for credit losses is made and recorded into administrative expenses based on the aging of accounts receivable and on any specifically identified receivables that may become uncollectible. Accounts receivable which are deemed to be uncollectible are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. There is no allowance for credit losses or write -offduring the years ended December 31, 2024 and 2023. (i)Inventories Inventories consist of finished products. Inventories are stated at the lower of cost or net realizable value. Cost is determined using the First -In - First-Outmethod. The Group routinely evaluates the net realizable value of the inventories in light of