Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 136

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 136
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 costs for operations, depreciation,
legal and professional services fees, rental and other office expenses related to general operations.

Other income

Interest income is mainly generated from savings
and time deposits and is recognized on an accrual basis using the effective interest method.

Government subsidies are recognized as income
in other income or as deferred government subsidy before conditions attached to the government subsidy are met and charged to statements
of income as other income once conditions are fulfilled.

In 2023, the Company successfully applied
for funding support from the Employment Support Scheme (“ ESS”) under the Anti-epidemic Fund, set up by the
Hong Kong Government, to provide financial support to enterprises to retain their employees who may otherwise be made
redundant. The wage subsidies provided to eligible employers under ESS are disbursed in and was used for paying wages of employees
from May to July 2023. Employers participating in ESS were required to undertake and warrant that they would: (i) not
implement redundancies during the subsidy period; and (ii) spend all the wage subsidies on paying wages to their employees. If
an employer fails to use all the subsidies received to pay the wages of his/her employees, the Hong Kong Government will claw
back the unspent balance of the subsidy. If the total number of employees on the payroll in any one month of the subsidy period is
less than the “committed headcount of paid employees”, the employer will have to pay a penalty to the Hong Kong
Government. For the years ended December 31, 2022, 2023 and 2024, the Company recognized government subsidiesof
approximately US$13,792, US$1,533and US$17,090, respectively, in the consolidated statements of income. As confirmed by the ESS,
the post-funding audit of Wching HK’s application has been completed and Wching HK is not required to return any
subsidy or pay any penalty to the Hong Kong Government. There was no unfulfilled conditions nor other contingencies attached to
the ESS funding.

F-17

WELLCHANGE HOLDINGS COMPANY LIMITED

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

In January 2023, the Company received US$38,506from the Hong Kong Government in relation to the Dedicated Fund on Branding, Upgrading and Domestic Sales (“ BUD Fund”)
(Free Trade Agreement (“ FTA”) Program) in Hong Kong which aims