Company: HNIT
Filing Date: 2025-01-23
Form Type: 10-K
Source: 0001493152-25-003324
Chunk: 222

Company: Huineng Technology Corp
Filing Date: 2025-01-23
Form: 10-K
Item: Item 9
Chunk 222
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 purchase date of such investments.

Accounts
Receivable

Financial
instruments that potentially subject the Company to concentrations of credit risk consist primarily of accounts receivable. The Company
extends credit to its customers in the normal course of business and generally does not require collateral. The Company’s credit
terms are dependent upon the segment and the customer. The Company assesses the probability of collection from each customer at the outset
of the arrangement based on a number of factors, including the customer’s payment history and its current creditworthiness. If
in management’s judgment collection is not probable, the Company does not record revenue until the uncertainty is removed.

Management
performs ongoing credit evaluations, and the Company maintains an allowance for potential credit losses based upon its loss history and
its aging analysis. The allowance for credit losses is the Company’s best estimate of the amount of credit losses in existing accounts
receivable. Management reviews the allowance for credit losses each reporting period based on a detailed analysis of trade receivables.
In the analysis, management primarily considers the age of the customer’s receivable, and also considers the creditworthiness of
the customer, the economic conditions of the customer’s industry, general economic conditions and trends, and the business relationship
and history with its customers, among other factors. If any of these factors change, the Company may also change its original estimates,
which could impact the level of the Company’s future allowance for credit losses. If judgments regarding the collectability of
receivables were incorrect, adjustments to the allowance may be required, which would reduce profitability.

Accounts
receivable are recognized and carried at the original invoice amount less an allowance for any uncollectible amounts. An estimate for
doubtful accounts receivable is made when collection of the full amount is no longer probable. Bad debts are written off as identified.

Plant
and equipment

Plant
and equipment are stated at cost less accumulated depreciation and impairment. Depreciation of plant, equipment and software are calculated
on the straight-line method over their estimated useful lives or lease terms generally as follows:

SCHEDULE
OF ESTIMATED USEFUL LIVES 

    Classification
     
    Useful
    Life
  
    Office
    Equipment
     
    5
    years

    F-7

Revenue
Recognition

Revenue
is generated through provision of website development and design services to customers. Revenue is recognized when a customer obtains
control of promised goods or services and is recognized in an amount that reflects the consideration that the