Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 58

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4A
Chunk 58
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 2022, in relation
to the Dedicated Fund on Branding, Upgrading and Domestic Sales (“ BUD Fund”) in Hong Kong in which the conditions were not
yet fulfilled as of December, 2022; (iii) increase in contract liabilities of US$20,020 due to receipt from the customers during the year
for the subscription services; and (iv) the increase in deferred tax liabilities of US$186,899 mainly due to the temporary differences
of depreciation and amortization of intangible assets; and partially offset by (i) the increase in deferred tax assets of US$29,563 due
to the increase tax losses arising from the temporary differences on depreciation and amortization of intangible assets; and (ii) the
increase in rental deposit of US$25,115 due to the lease of a new office during the year ended December 31, 2022 with a lease term of
two years.

For the year ended December 31, 2023, our
net cash generated from operating activities was US$797,205, which primarily arising from our net income from operation of approximately
US$937,609, as adjusted for non-cash items and changes in operating assets and liabilities. Adjustments for non-cash items mainly consisted
of (i) depreciation of property and equipment of US$40,385; and (ii) amortization of intangible assets of US$146,401; and (iv) allowance
for expected credit losses of US$13,864. Changes in operating assets and liabilities mainly include (i) the decrease in deferred
tax assets by US$54,049 due to the utilization during the year resulted from the taxable profits in the current year; (ii) the increase
in accruals and other payables by US$227,975 due to increase in accrued professional fee resulted from the audit fee for IPO listing purpose;
(iii) the increase in deferred tax liabilities of US$48,967 mainly due to the temporary differences of depreciation and amortization of
intangible assets; and (iv) increase in tax payables of US$128,280 due to increase in the assessable profit for the year ended December 31,
2023; and partially offset by (i) the increase in accounts receivable from customers by US$688,332 due to was mainly due to the increase
in revenue in last quarter for year ended December 31, 2023; (ii) increase in deposits, other receivables