Company: CCHH
Filing Date: 2025-08-07
Form Type: DRS/A
Source: 0001213900-25-072802
Chunk: 171

Company: CCH Holdings Ltd
Filing Date: 2025-08-07
Form: DRS/A
Chunk 171
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 or contains a lease, the Group assesses whether the contract involves the use of an identified asset, whether it has the right to obtain substantially all of the economic benefits from the use of the asset and whether it has the right to control the use of the asset. The Group classifies a lease as a financing lease at lease commencement when the lease meets any one of the criteria: a)The lease transfers ownership of the underlying asset to the lessee by the end of the lease term. b)The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise. c)The lease term is for a major part of the remaining economic life of the underlying asset. d)The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset. e)The underlying asset is of such a specialized nature that it is expected to have no alternative use to the Group at the end of the lease term. f)When none of the criteria are met, the Group classifies a lease as an operating lease. Operating leases Group as a lessee When the Group acts as a lessee, leases with an initial term of 12 months or less are short -termlease and not recognized as operating lease right -of -use(“ROU”) assets and operating lease liabilities on the consolidated balance sheet. The Group recognizes lease expense for short -termleases on a straight -linebasis over the lease term. The right -of -useasset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and less any lease incentive received. Lease term includes rent holidays and options to extend or terminate the lease when the Group is reasonably certain that the Group will exercise that option. The lease assets for operating leases consist of the amount of the measurement of the lease liabilities and any prepaid lease payments. Operating lease expense is recognized on a straight -linebasis over the lease term by adding interest expense determined using the effective interest method to the amortization of the operating lease right -of -useassets. Interest expense is determined using the effective interest method. The Group’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. F-13 CCH HOLDINGS LTD
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS EN