Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 54

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4A
Chunk 54
---
 315,411  
  Deferred government subsidy                                                      38,506                   38,716  
  Bank borrowings                                                                 496,517                  433,991  
  Lease liabilities                                                                84,883                   90,199  
  Amount due to a director                                                              —                  260,416  
  Tax payable                                                                     128,280                  128,982  
  Total current liabilities                                                     1,056,184                1,512,748  
  Net current (liabilities) assets                                               (268,232                   66,210  

Accounts receivable, net

Accounts receivable mainly represent amounts due from customers for
provision of cloud-based SaaS services from subscription and customized software solutions which are recorded net of allowance for the
Company’s expected credit loss. The Company generally grant credit terms of 90 days to the clients. In evaluating the collectability
of receivable balances, the Company considers specific evidence including aging of the receivable, the client’s payment history,
its current creditworthiness and current economic trends and customer specific quantitative and qualitative factors that may affect our
customers’ ability to pay. The Company regularly reviews the adequacy and appropriateness of the allowance for expected credit loss.
Accounts receivable are written off after all collection efforts have ceased. As of December 31, 2023, accounts receivable were aged
within one year and allowance for expected credit losses provided was US$13,864. As of December 31, 2024, accounts receivable were
aged within one year and allowance for expected credit losses provided was US$326,813.

Our accounts receivable balance decreased by US$267,422, or 37.1% from
US$720,245 as of December 31, 2023 to US$452,823 as of December 31, 2024. The decrease was mainly due to the increase in provision
of expected credit loss on long outstanding balance of the accounts receivables.

Amount due from (to) a director

                                                       As of December 31,                                      
  Name                   Relationship                  2023                                2024                
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                                       US$                                 US$                 
  Mr. Shek Kin Pong      Director and Controlling                              18,414                (260,414  
                                                                               18,414                (260,414  

The balance with the amount due from a director of US$18,414