Company: WCT
Filing Date: 2025-10-07
Form Type: DRS
Source: 0001213900-25-096917
Chunk: 118

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-10-07
Form: DRS
Chunk 118
---
idend income discussed above under “— Taxation of Dividends and Other Distributions on our Class A Ordinary Shares”
generally would not apply.

The mark-to-market election is available
only for “marketable stock,” which is stock that is traded in other than de minimis quantities on at least 15 days during
each calendar quarter (“regularly traded”) on a qualified exchange or other market (as defined in applicable U.S. Treasury
regulations), including the Nasdaq Capital Market. If the Class A Ordinary Shares are regularly traded on the Nasdaq Capital Market and
if you are a holder of the Class A Ordinary Shares, the mark-to-market election would be available to you were we to be or become
a PFIC.

Alternatively, a U.S. Holder of stock in
a PFIC may make a “qualified electing fund” election with respect to such PFIC to elect out of the tax treatment discussed
above. A U.S. Holder who makes a valid qualified electing fund election with respect to a PFIC will generally include in gross income
for a taxable year such holder’s pro rata share of the corporation’s earnings and profits for the taxable year. However, the
qualified electing fund election is available only if such PFIC provides such U.S. Holder with certain information regarding its
earnings and profits as required under applicable U.S. Treasury regulations. We do not currently intend to prepare or provide the
information that would enable you to make a qualified electing fund election. If you hold Ordinary Shares in any year in which we are
a PFIC, you will be required to file U.S. Internal Revenue Service Form 8621 regarding distributions received on the Class A
Ordinary Shares and any gain realized on the disposition of the Class A Ordinary Shares.

If you do not make a timely “mark-to-market”
election (as described above), and if we were a PFIC at any time during the period you hold our Class A Ordinary Shares, then such Class
A Ordinary Shares will continue to be treated as stock of a PFIC with respect to you even if we cease to be a PFIC in a future year, unless
you make a “purging election” for the year we cease to be a PFIC. A “purging election” creates a deemed sale
of such Ordinary Shares at their fair market value on the last day of the last year in which we are treated as a PFIC. The gain
recognized by the purging election will be