Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 126

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 126
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 are expensed to statements
of income. At the time when property and equipment are retired or otherwise disposed of, the asset and related accumulated depreciation
or amortization accounts are relieved of the applicable amounts. Gains or losses from retirements or sales are credited or charged to
statements of income.

The Company depreciates property and equipment
using the straight-line method as follows:

  Leasehold improvement      Over the shorter of the lease term or estimated useful life  
  Office equipment           5 years                                                      
  Furniture and fixture      5 years                                                      

The Company also re-evaluates the periods of depreciation
to determine whether subsequent events and circumstances warrant revised estimates of useful lives.

Intangible assets, net

Intangible assets consist of self-developed software
capitalized costs and an ERP software system acquired by the Company.

For the self-developed software costs, the Company
capitalizes costs related to the development of new software products or the enhancement of existing software products for use in the
Company’s product offerings. These costs are capitalized from the point of time that technological feasibility has been established,
as evidenced by a working model or detailed working program design to the point of time that the product is available for general release
to customers to use and the Company can generate economic benefits. Software development costs are amortized on a straight-line basis
over the estimated economic lives of the products, beginning when the product is placed into service.

The ERP software system was acquired from a third
party and it was merged with the existing self-developed software as all-in-one MR. CLOUD platform for ERP software solutions in
which the Company is offering wide range of applications to meet different customers’ needs on subscription basis.

F-11

WELLCHANGE HOLDINGS COMPANY LIMITED

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
AND PRACTICES(cont.)

Intangible assets are stated at cost less accumulated
amortization and impairment losses, if any. It is amortized on a straight-line basis over the estimated useful life of ten years.
The estimation of useful life of intangible assets is based on the economic benefits they can generate for the Company, in which management
believes that the ERP software system can generate positive future cash flows in the coming ten years supported by objective evidence.

Impairment for long-lived assets

Long-lived assets, representing property and equipment
and intangible assets with finite lives, are reviewed for impairment whenever events or changes in circumstances (such as a significant
adverse change to market conditions that will