Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 22

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4
Chunk 22
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2022, 2023 and 2024, there was no interruption to our operations as a result
of labor disputes.

Insurance

Wching HK maintains employees’ compensation
insurance for its employees in accordance with the laws and regulations in Hong Kong. We do not maintain business interruption insurance
or key person insurance.

As of the date of this annual report and during
the fiscal years ended December 31, 2022, 2023 and 2024, Wching HK has not been subject to nor received any insurance claims.

Seasonality

We have not experienced, and do not expect to
experience, any seasonal fluctuations in our results of operations for either our wheelchair business or living aids products business.

Legal Proceedings

We may, from time to time, be subject to various
legal or administrative claims and proceedings arising in the ordinary course of our business. We are currently not a party to any pending
material legal or administrative proceedings and are not aware of any events that are likely to lead to such proceedings. As of the date
of this annual report, we are not a party to, and we are not aware of any threat of, any legal proceeding that, in the opinion of our
management, is likely to have a material adverse effect on our business, financial condition or operations, nor have we experienced any
incident of non-compliance which, in the opinion of our directors, is likely to materially and adversely affect our business, financial
condition or operations. Litigation or any other legal or administrative proceeding, regardless of the outcome, is likely to result in
substantial costs and diversion of our resources, including our management’s time and attention.

Regulations

Regulations Related to Our Business Operations
in Hong Kong

The national laws adopted by the PRC are generally
not applicable to Hong Kong according to the Basic Law of the Hong Kong Special Administrative Region (the “ Basic Law”).
The Basic Law came into effect on July 1, 1997. It is the constitutional document of Hong Kong, which sets out the PRC’s
basic policies regarding Hong Kong. The principle of “one country, two systems” is a prominent feature of the Basic Law,
which dictates that Hong Kong will retain its unique common law and capitalist system for 50 years after the handover in 1997.
Under the principle of “one country, two systems,” Hong Kong’s legal system, which is different from that of the
PRC, is based on common law, supplemented by statutes. According to Article