Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 55

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4A
Chunk 55
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 and due
to a director of US$260,414 as of December 31, 2023 and 2024, respectively, represented the fund transfer to Mr. Shek Kin Pong,
the director and Controlling Shareholder of the Company, for the operations of related companies. The balances as of December 31,
2023 and 2024 with the director are unsecured, interest free with no specific repayment terms and non-trade nature. As at the date of
this report, the amount due to Mr. Shek Kin Pong has been fully repaid.

Overall decrease in balances with the director for the year ended December 31,
2024 was due to the advance from Mr. Shek Kin Pong in the year ended December 31, 2024.

Bank borrowings

Bank borrowings are initially recognized at fair value, net of upfront
fees incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs)
and the redemption amount is recognized in statements of operations over the period of the borrowings using the effective interest method.
All bank borrowings were classified as short term due to repayment on demand clauses attached on the borrowings. As of December 31,
2023 and 2024, the bank borrowings were approximately US$496,517 and US$433,991, respectively. There are no material movement was noted.

Accruals and other payables

Accruals and other payables primarily include
accrued staff costs, accrued professional fee, payables for rental of server for the software a product that the Group is offering and
other accrual and payable for the operation of the ordinary course of business.

Our accruals and other payables as of December 31,
2024 increased by approximately US$17,045 or 6.5% from approximately US$262,078 as of December 31, 2023 to approximately US$245,033
as of December 31, 2024, mainly due to the increase of accrued staff costs by approximately US$24,812.

Deferred government subsidy

The balance represented the government subsidy
of US$38,716 received from the Hong Kong Government during the year ended December 31, 2024, in relation to the Dedicated Fund
on Branding, Upgrading and Domestic Sales (“ BUD Fund”) (Free Trade Agreement (“ FTA”) Program) in Hong Kong
which aims to fund projects and activities to assist Hong