Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 57

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4A
Chunk 57
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,653      (566,692      (2,832,115  
  Net cash generated from (used in) financing activities                       354,323      (479,774       3,394,012  
  Net increase (decrease) in cash and cash equivalents                         208,032      (249,261         245,771  
  Cash and cash equivalents at beginning of year                                51,862       261,377          12,783  
  Effect of foreign exchange differences                                         1,483           667          (8,242  
  Cash and cash equivalents at end of year                                     261,377        12,783         250,312  

Cash flows generated from operating activities

During the years ended December 31,
2022, 2023 and 2024, the cash inflows from our operating activities were primarily derived from the revenues generated from our provision
for customized software solutions, white label software and subscription services; whereas the cash outflows for our operating activities
mainly comprised staff cost and employee benefits, subcontracting costs, and other operating expenses including rental and office expenses
and legal and professional fees.

Our net cash generated from operating activities
primarily reflected our net income, as adjusted for non-cash items, such as depreciation and amortization of intangible assets, and effects
of changes in operating assets and liabilities such as increase or decrease in accounts receivable, deferred tax assets, rental deposit,
accruals and other payables, deferred government subsidy, contract liabilities and deferred tax liabilities.

For the year ended December 31, 2022, our net
cash generated from operating activities was US$1,168,362, which primarily arising from our net income from operation of approximately
US$780,648, as adjusted from 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$38,646; and (ii) amortization of intangible assets of US$56,887. Changes in operating
assets and liabilities mainly include (i) the decrease in accounts receivable by US$96,992 due to the settlement of accounts receivable
from the customers during the year outweighed the increase in accounts receivable; (ii) increase in deferred government subsidy of US$38,506
due to the government subsidy of US$38,506 received from the Hong Kong Government during the year ended December 31,