Company: CCHH
Filing Date: 2025-09-12
Form Type: F-1/A
Source: 0001213900-25-087080
Chunk: 80

Company: CCH Holdings Ltd
Filing Date: 2025-09-12
Form: F-1/A
Chunk 80
---
 2024, respectively. Valuation Allowance for Deferred Tax Assets Deferred income taxes are provided using assets and liabilities method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Deferred tax assets are recognized to the extent that these assets are more likely than not to be realized. In making such a determination, we consider all positive and negative evidence, including future reversals of projected future taxable income and results of recent operation. We establish a valuation allowance against deferred tax assets to the extent we believe that recovery is not likely. In general, deferred tax assets represent future tax benefits to be received when certain expenses previously recognized in the consolidated statements of operations become deductible expenses under applicable income tax laws, or loss or credit carryforwards are utilized. As we estimate the allowance for deferred tax assets by considering if sufficient future taxable income will be generated to utilize the existing deferred tax assets, it can be altered if we change our forecasts of future profitability. We recorded US$28,967 and US$2,560 valuation allowance for deferred tax assets for the years ended December 31, 2023 and 2024, respectively. 57 Quantitative and Qualitative Disclosures about Market Risks Interest Rate Risk We are exposed to interest rate risk on our interest -bearingassets and liabilities. As part of our asset and liability risk management, we review and take appropriate steps to manage our interest rate exposures on our interest -bearingassets and liabilities. We have not been exposed to material risks due to changes in market interest rates, and not used any derivative financial instrument to manage the interest risk exposure during the years ended December 31, 2023 and 2024. Inflation Risk Inflationary factors, such as increases in raw materials, personnel and overhead costs, could impair our operating results. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, a high rate of inflation in the future may have an adverse effect on our ability to maintain current levels of gross margin and operating expenses as a percentage of sales revenues if the revenues do not increase with such increased costs. Credit Risk Credit risk is controlled by the application of credit approvals, limits and monitoring procedures. We manage credit risk through in -houseresearch and analysis of Malaysian and worldwide economy and the underlying obligors and transaction structures. We consider many factors in assessing the collectability of our receivables, such as the age of the amounts due, the customer