Company: WCT
Filing Date: 2025-10-07
Form Type: DRS
Source: 0001213900-25-096917
Chunk: 75

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-10-07
Form: DRS
Chunk 75
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 certain types of “passive” income; or
(2) at least 50% of the value of its assets (based on an average of the quarterly values of the assets) during such year is attributable
to assets that produce passive income or are held for the production of passive income, or the asset test. Based on our current and expected
income and assets, we do not presently expect to be a PFIC for the current taxable year or the foreseeable future. However, no assurance
can be given in this regard because the determination of whether we are or will become a PFIC is a fact-intensive inquiry made on an annual
basis that depends, in part, upon the composition of our income and assets. In addition, there can be no assurance that the Internal Revenue
Service, or IRS, will agree with our conclusion or that the IRS would not successfully challenge our position. Fluctuations in the market
price of our Class A Ordinary Shares may cause us to become a PFIC for the current or subsequent taxable years because the value of our
assets for the purpose of the asset test may be determined by reference to the market price of our Class A Ordinary Shares. The composition
of our income and assets may also be affected by how and how quickly we use our liquid assets and cash. If we were to be or become a PFIC
for any taxable year during which a U.S. Holder holds our Class A Ordinary Shares, certain adverse U.S. federal income tax consequences
could apply to such U.S. Holder and such U.S. Holder may be subject to additional reporting requirements. For a more detailed discussion
of the application of the PFIC rules to us and the consequences to U.S. taxpayers if we were or are determined to be a PFI.

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Our lack of effective internal controls over financial reporting may affect our ability to accurately report our financial results or prevent fraud which may affect the market for and price of our Class A Ordinary Share.

To implement Section 404 of the Sarbanes-Oxley
Act of 2002, the SEC adopted rules requiring public companies to include a report of management on the company’s internal control
over financial reporting. Prior to filing this prospectus, we were a private company with limited accounting personnel and other resources
for addressing our internal control over financial reporting. Our management has not completed an assessment of the effectiveness of our
internal control over financial reporting and our independent registered public accounting firm has not conducted an audit of our