Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 19

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4
Chunk 19
---
2024, 4 customer accounted for 21.0%, 14.5%, 13.2%, 12.8% and 11.9% of the total balance of accounts receivable. No
other customer accounted for more than 10% of our accounts receivable as of December 31, 2023 and 2024.

Our Subcontractors

For the year ended December 31, 2023, one subcontractor providing
assistance in our applications development accounted for 24.7% of our total cost of revenues. No other subcontractor accounted for
more than 10% of our cost of revenues for the years ended December 31, 2023 and 2024.

Sales and Marketing

Our current sales and marketing efforts principally
focus on the Hong Kong SMBs. Referrals, reputation, word-of-mouth, and promotion from our existing customers contribute to organic
customer acquisition and play primary roles in generating continuous interest. We also employ a range of paid enterprise marketing techniques,
including search engine marketing and optimization, campaigns, webinars, and events, to ensure widespread discoverability. A significant
portion of our new customers contact us directly through our email and our website.

Our sales team, led by our management, acquired
the remainder of our new SME customers. Our centralized, highly trained team members are organized into several targeted and coordinated
groups to address the service SMBs’ highly varied verticals. Led by our management, we are actively and continuously expanding our
sales channels, optimizing go-to-market strategies, strengthening business development efforts for new customer acquisition. They are
also tasked to maintain regular contact with our existing client, increase sales conversion, identify customer upsell and cross-sell opportunities,
and explore adjacent expansion verticals.

Competition

The market for management software in
Hong Kong is highly fragmented. The retail market consists of two groups: (i) SMBs and (ii) large and mega
enterprises. We offer a complete portfolio of integrated ERP solutions designed to serve SMBs in addition to CRM. In serving
this group, we face competition from software companies, especially those focusing on specific business sectors. These companies
often do not have a complete portfolio of solutions. We believe that the breadth of our portfolio is an important competitive
advantage because most SMBs seek integrated solutions from a single vendor. We face little competition from international companies,
either because they focus their sales efforts on large and mega enterprises or because they do not enter Hong Kong market due