Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 63

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4A
Chunk 63
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. As of December 31, 2024, accounts receivable were aged within one year and allowance for expected credit
loss provided was US$326,812.

Customer concentration risk

For the year ended December 31, 2024, two customers accounted
for 32.4% and 15.3% of our total revenues. The two customers signed Wching HK’s standard software development agreement, including
provisions regarding deliverables, payment, confidentiality, intellectual property, warranties, indemnification, assignment, and governing
law. The non-breaching party may terminate the agreement for a material breach of any terms and conditions within such agreement, and
either party may terminate the agreement if the other party receives convictions of criminal offenses or files for bankruptcy during the
term of the agreement. We usually provide a 90-day continuing support service from the application delivery, including repairs of bugs,
glitches, and other issues related to the delivered application, and we do not charge separately for these support services. For the year
ended December 31, 2023 one customer accounted for 20.7% of our total revenues. For the year ended December 31, 2022, two customers accounted
for 45.9% and 12.2% of our total revenues. No other customer accounts for more than 10% of our revenues for the years ended December 31,
2022, 2023 and 2024, respectively.

As of December 31, 2023, one customer accounted
for 10.5% of the total balance of accounts receivable. As of December 31, 2024, five customers accounted for 21.0%, 14.5%, 13.2%, 12.8%
and 11.9% of the total balance of accounts receivable. No other customer accounts for more than 10% of our accounts receivable as of December 31,
2023 and 2024, respectively.

Subcontractor concentration risk

For the year ended December 31, 2023, one
subcontractor accounted for 24.7% of our total cost of revenues. No other subcontractor accounts for more than 10% of our cost of revenues
for the years ended December 31, 2023 and 2024, respectively.

Interest rate risk

The Company is exposed to cash flow interest rate
risk through the changes in interest rates related mainly to the Company’s bank borrowings and cash and cash