Company: CHOW
Filing Date: 2025-04-01
Form Type: F-1
Source: 0001641172-25-001938
Chunk: 94

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-04-01
Form: F-1
Chunk 94
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Cost of revenues consists primarily of subcontracting fees, cost of hardware, software license and IT application license directly attributable to services provided. For the six months ended June 30, 2024, cost of revenues was HK$85.9 million (US$ 11.0million), increased by HK 7.3million or 9.2% from HK$78.6 million in the same period in 2023. The increase was mainly attributable to increase in cost of software license and IT application license for and subcontracting fees for the IT solution projects, which involved software and IT application products with IT professional services or maintenance and support services, performed during the six months ended June 30, 2024. Such increases were partially offset by the decrease in hardware cost.

Gross profit and gross profit margin

As a result of the foregoing, the overall gross profit for the six months ended June 30, 2024 was HK$ 12.4million (US$ 1.6million), an increase of HK$ 2.0million from HK$ 10.4million for the same period in 2023. The overall gross profit margin increased from 11.7% for the six months ended June 30, 2023 to 12.6% for the six months ended June 30, 2024.

The gross profit margin on revenue on products increased from 10.0% for the six months ended June 30, 2023 to 11.5% for the six months ended June 30, 2024 and the gross profit margin on revenue on services decreased from 40.8% for the six months ended June 30, 2023 to 30.4% for the six months ended June 30, 2024. The overall increase in gross profit margin was mainly attributable to the increase in our revenue from managed and support service with AI and AIOps included in the revenue category of “Sale of Software and IT Application Products with IT Professional Services”, which generally entailed higher gross profit margins.

Selling and marketing expenses

Selling and marketing expenses consisted primarily of (i) marketing service fee paid to the third party; and (ii) commission paid to the third parties relevant to the sales function.

Our major selling and marketing expenses were comprised of the following items during the periods indicated:

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 months ended June 30, |