Company: WCT
Filing Date: 2025-10-07
Form Type: DRS
Source: 0001213900-25-096917
Chunk: 70

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-10-07
Form: DRS
Chunk 70
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 Shares may be unable to readily sell the shares they
hold or sell their shares at all.

Volatility in our Class A Ordinary Shares price may subject us to securities litigation.

The market for our Class A Ordinary Shares may
have, when compared to seasoned issuers, significant price volatility and we expect that our share price may continue to be more volatile
than that of a seasoned issuer for the indefinite future. In the past, plaintiffs have often initiated securities class action litigation
against a company following periods of volatility in the market price of its securities. We may, in the future, be the target of similar
litigation. Securities litigation could result in substantial costs and liabilities and could divert management’s attention and
resources.

We rely on dividends and other distributions on equity paid by our subsidiaries to fund any cash and financing requirements we may have. In the future, funds may not be available to fund operations or for other uses outside of Hong Kong, due to interventions in, or the imposition of restrictions and limitations on, our ability or our HK subsidiary by the PRC government to transfer cash. Any limitation on the ability of our subsidiaries to make payments to us could have a material adverse effect on our ability to conduct our business and might materially decrease the value of Class A Ordinary Shares or cause them to be worthless.

Wellchange Cayman is a holding company, and we
rely on dividends and other distributions on equity paid by our subsidiaries for our cash and financing requirements, including the funds
necessary to pay dividends and other cash distributions to our shareholders and to service any debt we may incur. We do not expect to
pay cash dividends in the foreseeable future. We anticipate that we will retain any earnings to support operations and finance the growth
and development of our business. If any of our subsidiaries incur debt on its own behalf in the future, the instruments governing the
debt may restrict its ability to pay dividends or make other distributions to us.

According to the BVI Business Companies Act 2004
(As Revised), a BVI company may make dividends distribution to the extent that immediately after the distribution, the value of the company’s
assets exceeds its liabilities and that such a company is able to pay its debts as they fall due. According to the Companies Ordinance
of Hong Kong, a Hong Kong company may only make a distribution out of profits available for distribution. Under the current practice of
the Inland Revenue Department of Hong Kong, no tax is payable in Hong Kong in respect to dividends paid by us. The PRC laws