Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 137

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 137
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 to fund projects and activities to assist Hong 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 upon receipt. It will be charged to statements of income as other income at the time that all conditions
attached to the subsidy are met. The conditions attached to the subsidy include the submission of a written report regarding all the expenditures
of the program and acceptance and approval of report by the government are required. As of December 31, 2023 and 2024, a written
report of expenditures for the project was submitted to government for approval and the subsidy was recognized as at deferred government
subsidy amounting to US$38,506and US$38,716respectively in the consolidated balance sheets and the approval from the Hong Kong
government has not yet received.

Employee benefit plan

The principal employee’s retirement scheme
is under the Hong Kong Mandatory Provident Fund Schemes Ordinance. Contributions are made by both the employer and the employee at
the rate of5% on the employee’s relevant salary income, subject to a cap of monthly relevant income of approximately US$3,832.

During the years ended
December 31, 2022, 2023 and 2024, the total amount charged to the consolidated statements of income in respect of the
Company’s costs incurred on the Mandatory Provident Fund Scheme were approximately US$16,782, US$16,772and US$14,341,
respectively.

Income taxes

The Company accounts for income taxes pursuant
to ASC Topic 740, Income Taxes (“ ASC 740”). Income taxes are provided on an asset and liability approach for financial
accounting and reporting of income taxes. Any tax paid by subsidiaries during the year is recorded. Current tax is based on the profit
or loss from ordinary activities adjusted for items that are non-assessable or disallowable for income tax purpose and is calculated using
tax rates that have been enacted or substantively enacted at the balance sheet date. ASC 740 also requires the recognition of deferred
tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and
liabilities, and the expected future tax benefit to be derived from tax losses and tax credit carry-forwards. ASC 740 additionally
requires the establishment of a valuation allowance to