Company: WCT
Filing Date: 2025-12-02
Form Type: F-1
Source: 0001213900-25-116978
Chunk: 76

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-12-02
Form: F-1
Chunk 76
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 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 internal
control over financial reporting. Our independent registered public accounting firm did not conduct an audit of our internal control over
financial reporting. However, in connection with the audits of our consolidated financial statements as of December 31, 2024 and 2023,
we and our independent registered public accounting firm identified a few material weaknesses in our internal control over financial reporting
PCAOB of the United States, a “material weakness” is a deficiency, or a combination of deficiencies, in internal control over
financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements
will not be prevented or detected on a timely basis. The material weaknesses identified related to (1) our lack of sufficient full-time
personnel with appropriate levels of accounting knowledge and experience to monitor the daily recording of transactions, address complex
U.S. GAAP accounting issues and to prepare and review financial statements and related disclosures under U.S. GAAP; (2) our lack of a
functional internal audit department or personnel that monitors the consistencies of the preventive internal control procedures as well
as adequate policies and procedures in internal audit function to ensure that our policies and procedures have been carried out as planned;
(3) our lack of proper procedures developed and implemented for system security and access as well as segregation of duties in relation
to the system; (4) our lack of proper procedures developed for system development, program change management policies and critical change
management control processes and procedures; and (5) our lack of proper procedures developed and implemented for IT policy and procedure
as well as operating system security management