Company: CHOW
Filing Date: 2025-08-22
Form Type: F-1/A
Source: 0001641172-25-025146
Chunk: 206

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-08-22
Form: F-1/A
Chunk 206
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. The Company determines if an arrangement is, or contains, a lease at the inception of the contract based on the terms of the agreement and whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Right-of-use (ROU) assets and corresponding lease liabilities are recognized at the lease commencement date based on the present value of future lease payments over the lease term.

| F-30 |

As the lease agreements do not specify an implicit rate, the Company used its incremental borrowing rate at the commencement date to determine the present value of lease payments. The incremental borrowing rate was estimated using market rates available for similar instruments with similar terms, adjusted for the Company’s credit risk and the lease term. The weighted average discount rate for operating leases as of December 31, 2024, was 5.875%.

The Company’s lease agreements do not contain any material guarantees or restrictive covenants, and the Company has no finance leases or sublease activities as of December 31, 2024.

The Company elected the short-term lease exemption under ASC 842 for certain lease arrangements that have a lease term of 12 months or less and do not contain purchase options. The Company expenses these short-term leases on a straight-line basis over the lease term and does not recognize ROU assets or lease liabilities on the consolidated balance sheet for these leases.

The following table summarizes the supplemental consolidated balance sheet information related to operating leases as of December 31, 2023 and 2024:

|                                                          |     |              As 
 of December 31, |         |   |     |      |         |   |     |             |        |   |
|                                                          |     |            2023 |         |   |     | 2024 |         |   |     |             |        |   |
|                                                          |     |             HK$ |         |   |     |  HK$ |         |   |     | US$         
 (Note 2(e)) |        |   |
| Operating                                                
 lease right-of-use assets, net                           |     |                 | 443,423 |   |     |      | 218,130 |   |     |             | 27,965 |   |
| Operating                                                
 lease liabilities, current                               |     |                 | 225,293 |   |     |      | 218,130 |   |     |             | 27,965 |   |
| Operating                                                
 lease liabilities, non-current                           |