Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 154

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 154
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 the need arises.

Foreign currency risk

The reporting currency of the Company is US$.
To date the majority of the revenues and costs are denominated in HK$ and a significant portion of the assets and liabilities are denominated
in HK$. There was no significant exposure to foreign exchange rate fluctuations and the Company has not maintained any hedging policy
against foreign currency risk. The management will consider hedging significant currency exposure should the need arise.

Liquidity risk

Liquidity risk is the risk that the Company will
encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another
financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company’s reputation.

Typically, the Company ensures that it has sufficient
cash on demand to meet expected operational expenses for a period of twelve months, including through operations and financial support
from our Controlling Shareholder, financial institutions, and investors. We are continuing to focus on improving operational efficiency
and cost reductions and enhancing efficiency, as well as servicing of financial obligations: this excludes the potential impact of extreme
circumstances that cannot reasonably be predicted, such as natural disasters. Our ability to continue as a going concern is dependent
upon obtaining the necessary financing or negotiating the terms of the existing short-term liabilities to meet our current and future
liquidity needs.

F-30

WELLCHANGE HOLDINGS COMPANY LIMITED

17.
COMMITMENTS AND CONTINGENCIES

Lease Commitments

We entered into operating leases for a corporate
office in Hong Kong for a term of twoyears. Our commitments for minimum lease payment under these operating lease obligations
as of December 31, 2024 are listed in section “ Note 11 - RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES”.

Litigation

From time to time, we are involved in claims and
legal proceedings that arise in the ordinary course of business. Based on currently available information, we do not believe that the
ultimate outcome of any unresolved matters, individually and in the aggregate, is reasonably possible to have a material adverse effect
on our financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and our view
of these matters may change in the future. We record a liability when it is both probable that