Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 62

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4A
Chunk 62
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 years ended December 31, 2022, 2023 and 2024 were mainly related to the addition of leasehold improvement and the
purchase of server for storage of all data of software and computer equipment. For the years ended December 31, 2022, 2023
and 2024, our capital expenditures in relation to property and equipment were approximately US$125,533, US$818 and Nil,
respectively, and our capital expenditures in relation to intangible asset were approximately US$1,189,120, US$437,874 and
US$2,832,115, respectively. We principally funded our capital expenditures through cash flows from operations and borrowings during
the years ended December 31, 2022, 2023 and 2024.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements, including
arrangements that would affect its liquidity, capital resources, market risk support, and credit risk support or other benefits.

Quantitative and Qualitative Disclosure About
Market Risk

Credit risk

The Company’s assets that are potentially
subject to a significant concentration of credit risk primarily consist of bank balances and accounts receivable.

Bank balances

The Company believes that there is no significant
credit risk associated with cash in Hong Kong, which were held by reputable financial institutions in the jurisdiction where the
Company and its subsidiaries are located. The Hong Kong Deposit Protection Board pays compensation up to a limit of approximately
US$64,000 if the bank with which an individual/a company hold its eligible deposit fails. As of December 31, 2023, cash balance of
US$12,783 was maintained at financial institutions in Hong Kong and approximately US$12,783 was insured by the Hong Kong Deposit
Protection Board.

Accounts receivable

The Company has designed credit policies with an objective to minimize
their exposure to credit risk. The Company’s accounts receivable are short term in nature and the associated risk is minimal. The
Company conducts credit evaluations on customers and generally do not require collateral or other securities from such customers. The
Company periodically evaluates the creditworthiness of the existing customers in determining an allowance for expected credit loss primarily
based upon the aging of the receivable, the client’s payment history, its current creditworthiness and current economic trends.
Since all accounts receivable as at year ended December 31, 2023 and 2024 were aged within one year, minimum credit risk was noted
for accounts receivable