Company: WCT
Filing Date: 2025-10-07
Form Type: DRS
Source: 0001213900-25-096917
Chunk: 51

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-10-07
Form: DRS
Chunk 51
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 significantly decline or become worthless, which would materially affect the interests of the investors.

As one of the conditions for the handover of the
sovereignty of Hong Kong to China, China accepted conditions such as Hong Kong’s Basic Law, which is a national law of
the PRC and the constitutional document for Hong Kong. The Basic Law ensured Hong Kong would retain its own currency (the Hong Kong
Dollar), legal system, parliamentary system and people’s rights and freedom for fifty years from 1997. This agreement has given
Hong Kong the freedom to function with a high degree of autonomy. The Special Administrative Region of Hong Kong is responsible
for its own domestic affairs, including but not limited to the judiciary and courts of last resort, immigration and customs, public finance,
currencies and extradition. Hong Kong continues using the English common law system. Furthermore, pursuant to the Basic Law, national
laws of the PRC shall not be applied in Hong Kong except for those listed in Annex III of the Basic Law and applied locally
by promulgation or local legislation. The Basic Law expressly provides that the national laws of the PRC, which may be listed in Annex III
of the Basic Law shall be confined to those relating to defense and foreign affairs as well as other matters outside the autonomy of Hong Kong.
The basic policies of the PRC regarding Hong Kong as a special administrative region of the PRC are reflected in the Basic Law, providing
Hong Kong with a high degree of autonomy and executive, legislative and independent judicial powers, including that of final adjudication
under the principle of “one country, two systems.”

We and our subsidiaries are not based in Mainland
China and do not have operations in Mainland China. Furthermore, none of our customers and suppliers are located in Mainland China. We
currently do not have or intend to set up any subsidiary in Mainland China, or do not foresee the need to enter into any contractual arrangements
with a VIE to establish a VIE structure in Mainland China. However, in light of the PRC government’s recent expansion of authority
in Hong Kong, we may be subject to uncertainty about any future actions of the PRC government or authorities in Hong Kong, and
it is possible that all the legal and operational risks associated with being based in and having operations in the Mainland China may
also apply to operations in Hong Kong in the future.

There is no assurance that there will not be any
changes in the economic, political and legal environment in