Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 59

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4A
Chunk 59
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 and prepayments of US$5,035
due to the prepayment for the maintenance fee to the subcontractor and (iii) decrease in contract liabilities of US$106,621 due to
recognition of revenues because of completion of performance obligations during the year ended December 31, 2023.

For the year ended December 31, 2024, our net cash used in operating
activities was US$316,126, which primarily arising from our net loss from operation of approximately US$431,544, as adjusted for non-cash
items and changes in operating assets and liabilities. Adjustments for non-cash items mainly consisted of (i) depreciation of property
and equipment of US$40,560; and (ii) amortization of intangible assets of US$259,997; and (iv) allowance for expected credit
losses of US$311,539. Changes in operating assets and liabilities mainly include (i) the increase in accruals and other payables
by US$202,287 due to increase in accrued professional fee resulted from the audit fee and accrued staff costs; (ii) the increase
in accounts receivable from customers by US$44,117 due to was mainly due to the increase in revenue in last quarter for year ended December
31, 2024; (iii) increase in deposits, other receivables and prepayments of US$871,381 due to the prepayment for the maintenance fee
to the subcontractor and (iv) increase in contract liabilities of US$269,491 due to recognition of revenues because of completion
of performance obligations during the year ended December 31, 2024.

Cash flows used in investing activities

Our cash flows used in investing activities primarily
consisted of (i) the purchase of property and equipment; (ii) the purchases of intangible assets; and (iii) the prepayment
for acquisition of intangible assets.

For the year ended December 31, 2022, net cash
used in investing activities was approximately US$1,314,653, mainly arising from (i) purchase of property and equipment of approximately
US$125,533 primarily for leasehold improvement; and (ii) purchase of intangible assets of approximately US$1,189,120 which represented
the ERP software acquired from third party during the year.

For the year ended December 31, 2023, net
cash used in investing activities was approximately US$566,692, mainly arising from