Company: WCT
Filing Date: 2025-12-02
Form Type: F-1
Source: 0001213900-25-116978
Chunk: 75

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-12-02
Form: F-1
Chunk 75
---
 in the foreseeable future.
As a result, you may only receive a return on your investment in our Class A Ordinary Shares if the market price of our Class A Ordinary
Shares increases. Our board of directors has complete discretion as to whether to distribute dividends, subject to certain requirements
of Cayman Islands law. In addition, our shareholders may by ordinary resolution, declare a dividend, but no dividend may exceed the amount
recommended by our directors.

There can be no assurance that we will not be deemed a passive foreign investment company, or PFIC, for U.S. federal income tax purposes for any taxable year, which could result in adverse U.S. federal income tax consequences to U.S. holders of our Class A Ordinary Shares.

A non-U.S. corporation will be a PFIC for any
taxable year if either (1) at least 75% of its gross income for such year consists of certain types of “passive” income; or
(2) at least 50% of the value of its assets (based on an average of the quarterly values of the assets) during such year is attributable
to assets that produce passive income or are held for the production of passive income, or the asset test. Based on our current and expected
income and assets, we do not presently expect to be a PFIC for the current taxable year or the foreseeable future. However, no assurance
can be given in this regard because the determination of whether we are or will become a PFIC is a fact-intensive inquiry made on an annual
basis that depends, in part, upon the composition of our income and assets. In addition, there can be no assurance that the Internal Revenue
Service, or IRS, will agree with our conclusion or that the IRS would not successfully challenge our position. Fluctuations in the market
price of our Class A Ordinary Shares may cause us to become a PFIC for the current or subsequent taxable years because the value of our
assets for the purpose of the asset test may be determined by reference to the market price of our Class A Ordinary Shares. The composition
of our income and assets may also be affected by how and how quickly we use our liquid assets and cash. If we were to be or become a PFIC
for any taxable year during which a U.S. Holder holds our Class A Ordinary Shares, certain adverse U.S. federal income tax consequences
could apply to such U.S. Holder and such U.S. Holder may be subject to additional reporting requirements. For a more detailed