Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 49

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4A
Chunk 49
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4  
  Subscription services                                             17,592        5.0                157,488       28.8  
  Total                                                            352,962      100.0                547,630      100.0  

Cost of revenues mainly consists of amortization
of intangible assets, subcontracting costs, IT personnel staff cost and rental of server. For the years ended December 31, 2022
and 2023, cost of revenues was US$352,962 and US$547,630, respectively, increase in cost of revenues by US$194,668 or 55.2%, which is
in line with the increase in revenues, is mainly due to the increase in amortization of intangible asset which in turn was resulted from
the purchase of additional modules of the ERP system from a third party at a consideration of US$437,874 during the year ended December 31,
2023 and increase in the cost of subcontractor by US$83,130 or 159.0% for the maintenance and support of ERP system from US$52,294 for
the year ended December 31, 2022 to US$135,424 for the year ended December 31, 2023.

Gross profit

  Category                                                                                                                       
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Customized software solutions        841,511      122,759        718,752      85.4      1,813,678      185,087      1,628,591  
  White label software                 766,211      212,611        553,600      72.3        382,527      205,055        177,472  
  Subscription services                 63,395       17,592         45,803      72.3        293,790      157,488        136,302  
  Total                              1,671,117      352,962      1,318,155      78.9      2,489,995      547,630      1,942,365  

For the years ended December 31, 2022
and 2023, gross profit was US$1,318,155 and US$1,942,365, respectively, and gross profit margin was 78.9% and 78.0%, respectively, of
oper