Company: CCHH
Filing Date: 2025-06-26
Form Type: DRS
Source: 0001213900-25-058036
Chunk: 168

Company: CCH Holdings Ltd
Filing Date: 2025-06-26
Form: DRS
Chunk 168
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 straight -linebasis and is included in revenue in the consolidated statement of operations and comprehensive income due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis on the rental income. The Group does not have any sales -typeor direct financing leases for the years ended December 31, 2023 and 2024. Finance leases The lease term includes rental holidays and options to extend or terminate the lease when the Group is reasonably certain that it will exercise that option, if any. The Group does not recognize finance lease assets or lease liabilities for renewal periods unless it is determined that it is reasonably certain of renewing the lease at inception or when a triggering event occurs. The lease assets for finance leases consist of the amount of the measurement of the lease liabilities and any prepaid lease payments. The finance lease expense, including interest and amortization expense of finance lease are presented separately. Interest expense is determined using the effective interest method. Amortization expense is recorded on a straight -linebasis of the finance lease assets. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. (o)Revenue recognition The Group’s revenues are derived principally from (i) restaurant operations, which further include revenues from company -ownedrestaurant operations, sales of food ingredients and condiments, and franchise licensing, and (ii) others. The Group recognizes revenues pursuant to ASC 606, Revenues from Contracts with Customers (“ASC 606”). In accordance with ASC 606, revenues from contracts with customers are recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. Revenues are recorded net of any service tax and surcharges. Restaurant operations Company-owned restaurants operations Revenues from restaurants owned by the Group are recognized when customers take possession of the food and tender payment, which is when the obligation performance is satisfied. Revenues from restaurant operations are presented net of service tax and discounts, if any. The Group also offers food delivery service to customers who want to order takeaway food through third -partyaggregators’ platforms or from certain of the Group’s restaurants. When control of the takeaway food has transferred, being at the point the customers receive the takeaway food delivered by the delivery staff of third -partyaggregators or the Group’s own riders, the Group recognizes revenues, excluding delivery fees and platform charges