Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 46

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4A
Chunk 46
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shareholders, no BVI withholding tax will be imposed.

Hong Kong

Wching HK is incorporated in Hong Kong and
is subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance
with relevant Hong Kong tax laws. The applicable tax rate is 16.5% in Hong Kong. From year of assessment of 2019/2020 onwards,
Hong Kong profits tax rates are 8.25% on assessable profits up to HK$2,000,000 (approximately US$255,470), and 16.5% on any part
of assessable profits over HK$2,000,000 (approximately US$255,470). Under Hong Kong tax law, the above-mentioned Hong Kong company
is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends.

Our income tax expenses decrease by approximately
US$284,230 from income tax expenses of approximately US$231,030 for the year ended December 31, 2023 to income tax credit of approximately
US$53,200 for the year ended December 31, 2024, primarily due to (i) an decrease in the net income before tax by approximately
US$1,653,383 or 141.5% from income before income tax of approximately US$1,168,639 for the year ended December 31, 2023 to loss before
income tax of approximately US$484,744 for year ended December 31, 2024; and (ii) an decrease in deferred tax expenses of US$156,216
derived from the acceleration of depreciation and amortization of property and equipment and intangible assets and provision of expected
credit loss. Our effective tax rates were 19.8% and (10.9)% for the year ended December 31, 2023 and 2024, respectively.

Net income

Our net income for the years ended December 31, 2023 and
net loss for the year ended December 31, 2024, was US$937,609 and US$431,544, respectively. The decrease of net income by US$1,369,153
or 146.0% was mainly due to the increase in selling and marketing expenses, legal and professional fees, provision of expected credit
losses and decrease in revenue.

Year ended December 31, 2023
compared with year ended December