Company: CHOW
Filing Date: 2025-02-10
Form Type: DRS/A
Source: 0001493152-25-005658
Chunk: 201

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-02-10
Form: DRS/A
Chunk 201
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 Professional Services  |     |                 | 117,556 |     |   | 21.9 |     |      |    76,948 |     |             |   9,865 |     |   |  3.9 |
| Contracts              
 with Multiple Promises |     |                 | 257,002 |     |   | 47.8 |     |      |     9,706 |     |             |   1,245 |     |   |  0.5 |
|                        |     |                 | 537,450 |     |   |  100 |     |      | 1,964,662 |     |             | 251,880 |     |   |  100 |

| F-18 |

(n) Cost of revenues

Cost of revenues includes direct costs associated with the delivery of the Company’s services and products. These costs primarily consist of:

| ● | Subcontracting                                                                                      
 fees, which include amounts paid to third-party vendors and service providers for project-related   
 services;                                                                                           |
| ● | Hardware                                                                                            
 costs, which represent the direct cost of hardware sold to customers as part of the Company’s       
 service offerings;                                                                                  |
| ● | Software                                                                                            
 licenses and IT application licenses, which include the costs of licenses procured from third-party 
 vendors and resold or utilized in providing services to customers.                                  |

Costs are recognized in the same period as the corresponding revenues are recognized under ASC 606 (Revenue from Contracts with Customers) to ensure that costs are matched with the associated performance obligations. The Company allocates costs to performance obligations in proportion to the revenues recognized, ensuring that costs are accurately matched to the period in which the corresponding revenues are recognized.

Cost of revenues also includes any direct labour costs attributable to the delivery of services and the implementation of hardware, software, and IT solutions. These labour costs include salaries and benefits for employees directly involved in service delivery.

The following table sets forth a breakdown of our costs of revenues, in absolute amounts and percentages of total revenues for the years ended December 31, 2022 and 2023:

|                                                                               |     | For the Years Ended December 31, |            |     |   |      |     |      |             |     |                 |            |     |   |      |
|                                                                               |     |                             2022 |            |     |   |      |     | 2023 |             |     |                 |            |     |