Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 42

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4A
Chunk 42
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 2024.

Cost of revenues

                                     Years ended December 31,                                                            
                                     2023                                                  2024                          
                                     US$                                                   US$                           
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Customized software solutions                                    185,087       33.8                117,252       16.9  
  White label software                                             205,055       37.4                361,619       52.3  
  Subscription services                                            157,488       28.8                213,113       30.8  
  Total                                                            547,630      100.0                691,984      100.0  

Cost of revenues mainly consists of amortization
of intangible assets, subcontracting costs, IT personnel staff cost and rental of server. For the years ended December 31, 2023
and 2024, cost of revenues was US$547,630 and US$691,984, respectively, increase in cost of revenues by US$144,354 or 26.4%, which is
mainly due to the increase in (i) amortization of intangible asset which in turn was resulted from the purchase of additional modules
of the ERP system from a third party at a consideration of US$2,832,115 during the year ended December 31, 2024, and (ii) increase
in the cost of subcontractor by US$44,071 or 32.5% for the maintenance and support of ERP system from US$135,424 for the year ended December 31,
2023 to US$179,495 for the year ended December 31, 2024.

Gross profit

  Category                                                                                                                       
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Customized software solutions      1,813,678      185,087      1,628,591      89.8      1,119,210      117,252      1,001,958  
  White label software                 382,527      205,055        177,472      46.4        748,770      361,619        387,151  
  Subscription services                293,790      157,488        136,302      46.4        441,238      213,113        228,125