Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 32

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4A
Chunk 32
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 suitability of our software for their specific
needs, increasing the likelihood of conversion.

Expanding into new markets

We intend to expand into new international markets,
focusing on those with low digital adoption and growing usage of software solutions. We will conduct thorough market research, analyzing
factors such as market size, growth potential, competitive landscape, regulatory environment, and customer needs in each market to identify
potential target markets that align with MR. CLOUD offerings. We will invest in our sales force to identify strategic partners in
the potential markets to accelerate our entry and gain access to the potential customer base. By collaborating with local system integrators,
resellers, or technology partners who have established networks and expertise in the market, such partnerships can help us navigate local
business practices and increase our market reach.

Continued investments in innovation and
growth

Investments in innovation are pivotal factors
that significantly influence the results of operations for our software solution services provider in Hong Kong. We intend to continue
to invest in research and development to build new capabilities and maintain the core technology underpinning our white-labelled software
design and development services. In addition, we expect to increase investment in sales and marketing to broaden our reach with new clients
and abroad and deepen our penetration with existing clients. We are increasing our general and administrative spending to support our
growing operations and prepare for operating as a public company. With our revenue growth objectives, we expect to continue to make such
investments for the foreseeable future.

Basis of Presentation

Our consolidated financial statements have been
prepared in accordance with accounting principles generally accepted in the United States (“ US GAAP”) and financial reporting
requirements under the SEC rules. They include the financial statements of the Company and its subsidiaries. All transactions and balances
among these entities have been eliminated upon consolidation.

Critical Accounting Policies, Judgments and
Estimates

The preparation of consolidated financial statements
in conformity with U. S. GAAP requires management to make judgements, estimates and assumptions that affect the application of policies
and reported amounts of assets and liabilities as at the date of the consolidated financial statements and reported amounts of income
and expenses during the reporting periods. The estimates and associated assumptions are based on historical experience and various other
factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about
carrying values of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected
in the consolidated financial statements include allowance for expected credit