The Company makes advances to third-party suppliers and service providers in the ordinary course of business. These advances primarily relate to deposits and prepayments made in connection with logistics and transportation services, as well as advances for the procurement of inventory used in the garment trading business. Such advances are made to secure service capacity, facilitate the timely provision of services or delivery of goods, and in certain cases to obtain favorable commercial terms.

The Company evaluates the creditworthiness and financial condition of its suppliers and service providers before making advance payments. If the Company determines that the recoverability of any advance becomes doubtful due to a supplier’s inability to fulfill its contractual obligations or repay the advance, an allowance for expected credit losses is recognized in accordance with the Company’s accounting policy.