Company: CHOW
Filing Date: 2025-03-19
Form Type: DRS/A
Source: 0001493152-25-010898
Chunk: 23

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-03-19
Form: DRS/A
Chunk 23
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| ● | acquiring                              
 or developing the necessary expertise; |

| 10 |

| ● | maintaining                                           
 high-quality control and process execution standards; |

| ● | maintaining                                                          
 productivity levels and implementing necessary process improvements; |

| ● | controlling             
 costs and expenses; and |

| ● | successfully                                                                   
 attracting existing and new clients for new solutions and services we develop. |

A failure by us to effectively manage the growth of our solution and service portfolio could damage our reputation, cause us to lose business and adversely affect our results of operations. In the event that we are unable to successfully grow our service portfolio, we could lose our competitive edge in providing our existing colocation and managed services, since significant time and resources that are devoted to such growth could have been utilised instead to improve and expand our existing solutions and services.

We have a substantial customer concentration, with a limited number of customers accounting for a substantial portion of our revenues.

We derive a significant portion of our revenues from a few major customers. Our top three in the fiscal years ended December 31, 2022 and 2023 customers accounted for approximately 60.9% and 62.2% of our total revenue, respectively. Specifically, Motto Group Limited, Asia Top Loyalty Limited, and SEMNET PTE LTD, our top three customers in the fiscal year ended December 31, 2022, contributed approximately 34.1%, 19.7% and 7.1% of our total revenue, respectively; while Motto Group Limited, Servicesky Limited, and Asia Top Loyalty Limited, our top three customers in the fiscal year ended December 31, 2023, contributed approximately 32.8%, 17.9% and 11.5% of our total revenue, respectively.

Inherent risks exist whenever a large percentage of total revenues are concentrated with a limited number of customers. It is not possible for us to predict the future level of demand for our solutions and services that will be generated by these customers or the future demand for our solutions and services by these customers in the marketplace. If any of these customers experience declining or delayed sales due to market, economic or competitive conditions, we could be pressured to reduce our prices or they could decrease the purchase quantity of our solutions and services, which could have an adverse effect on our margins and financial position, and could negatively affect our revenues and results of operations. If any of our largest customers terminates the purchase of our solutions and services, such termination would materially negatively affect our