Company: CHOW
Filing Date: 2025-04-01
Form Type: F-1
Source: 0001641172-25-001938
Chunk: 265

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-04-01
Form: F-1
Chunk 265
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 |            (723,248 | ) |     |                 |   (92,724 | ) |
| Net accounts receivable                        |     |     |           15,685,215 |   |     |            |          14,807,264 |   |     |                 | 1,898,367 |   |

Movement in the Allowance for Expected Credit Losses

The movement in the allowance for expected credit
losses for the six months ended June 30, 2023 and 2024 is as follows:

|                       |     |     | As of December 31, 2023 |   |     |            | As of June 30, 2024 |     |                 |        |
|:----------------------|:----|:----|------------------------:|:--|:----|:-----------|--------------------:|:----|:----------------|-------:|
|                       |     | HK$ |                         |   |     | HK$        |                     |     | US$ (Note 2(e)) |        |
|                       |     |     |                         |   |     | -Unaudited |                     |     | -Unaudited      |        |
| Beginning balance     |     |     |                 842,674 |   |     |            |             493,720 |     |                 | 63,297 |
| (Reversal) / Addition |     |     |                (348,954 | ) |     |            |             229,528 |     |                 | 29,427 |
| Ending balance        |     |     |                 493,720 |   |     |            |             723,248 |     |                 | 92,724 |

The Company utilizes a portfolio analysis approach
to estimate the allowance for expected credit losses, grouping accounts receivable into pools based on shared risk characteristics such
as customer type, geographic location, industry, and historical payment patterns. The allowance for expected credit losses is determined
using historical loss rates, adjusted for current conditions and reasonable, supportable forward-looking information, including macroeconomic
factors such as industry trends, market volatility, and the broader economic environment.

| F-62 |

The Company monitors credit risk on a portfolio basis
and evaluates the adequacy of the allowance for expected credit losses on a quarterly basis. Any adjustments to the allowance are based
on the overall risk profile of the portfolios and reflect management’s best estimate of potential credit losses.

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