Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 95

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 11
Chunk 95
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ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest rate risk

The Company is exposed to cash flow interest rate
risk through the changes in interest rates related mainly to the Company’s bank borrowings and cash and cash equivalents. The Company
currently does not have any interest rate hedging policy in relation to fair value interest rate risk and cash flow interest rate risk.
The directors monitor the Company’s exposures on an ongoing basis and will consider hedging the interest rate should the need arises.

Foreign currency risk

The reporting currency of the Company is US$.
To date the majority of the revenues and costs are denominated in HK$ and a significant portion of the assets and liabilities are denominated
in HK$. There was no significant exposure to foreign exchange rate fluctuations and the Company has not maintained any hedging policy
against foreign currency risk. The management will consider hedging significant currency exposure should the need arise.

Liquidity risk

Liquidity risk is the risk that the Company will
encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another
financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company’s reputation.

Typically, the Company ensures that it has sufficient
cash on demand to meet expected operational expenses for a period of twelve months, including through operations and financial support
from our Controlling Shareholder, financial institutions, and investors. We are continuing to focus on improving operational efficiency
and cost reductions and enhancing efficiency, as well as servicing of financial obligations: this excludes the potential impact of extreme
circumstances that cannot reasonably be predicted, such as natural disasters. Our ability to continue as a going concern is dependent
upon obtaining the necessary financing or negotiating the terms of the existing short-term liabilities to meet our current and future
liquidity needs.

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES