Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 56

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4A
Chunk 56
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 Kong enterprises in developing brands, upgrading and restructuring operations
and promoting sales in the FTA economies, so as to enhance their competitiveness and facilitate their business development in the FTA
economies. Such amount was recognized in the consolidated balance sheets as deferred government subsidy due to the conditions attached
in the BUD Fund have not been fulfilled as of December 31, 2023 and 2024.

Lease liabilities

Our lease liabilities represented the current
position of our non-cancellable lease agreement of our corporate office in Hong Kong, and were reduced by amortization charge and
lease payments were made, respectively.

Increase in lease liabilities by approximately
US$82,840 (including the non-current portion of lease liabilities) or 97.6% as of December 31, 2024 from approximately US$84,883
as of December 31, 2023 to approximately US$167,723 (including the non-current portion of lease liabilities) as December 31,
2024 was mainly due to the new lease contract was entered during the year ended December 31, 2024.

Contract liabilities

Contract liabilities are recorded when consideration is received from
a customer prior to transferring the services to the customer or other conditions under the terms of a service contract. These payments
are non-refundable and are recognized as revenue when our performance obligation is satisfied. As of December 31, 2023 and 2024,
the Company recorded contract liabilities of US$45,920 and US$315,411, respectively. Increase in our contract liabilities by approximately
of US$269,491 or 586.9% as of December 31, 2024 was primarily due to increase in the deposit received from customer in the last quarter
of the year ended December 31, 2024.

Cash Flows

Our use of cash primarily related to operating
activities. We have historically financed our operations primarily through our cash flow generated from our operations and advances from
related parties.

The following table summarizes our cash flows
for the years indicated:

                                                              Years ended December 31,                                
                                                                                  2022          2023            2024  
                                                                                   US$           US$             US$  
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net cash generated from (used in) operating activities                     1,168,362       797,205        (316,126  
  Net cash used in investing activities                                     (1,314