Company: CHOW
Filing Date: 2025-02-10
Form Type: DRS/A
Source: 0001493152-25-005658
Chunk: 263

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-02-10
Form: DRS/A
Chunk 263
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     |     |           16,178,935 |   |     |            |          15,530,512 |   |     |                 | 1,991,091 |   |
| Less: allowance for the expected credit losses |     |     |             (493,720 | ) |     |            |            (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,