Company: WCT
Filing Date: 2025-10-07
Form Type: DRS
Source: 0001213900-25-096917
Chunk: 7

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-10-07
Form: DRS
Chunk 7
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OB is unable to inspect our auditors. The delisting of our Class A Ordinary Shares, or the threat of their being delisted, may materially and adversely affect the value of your investment. Furthermore, on June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act, which was signed into law on December 29, 2022, amending the HFCAA to require the SEC to prohibit an issuer’s securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three” on page 27. We cannot
assure you whether Nasdaq or other regulatory authorities will apply additional or more stringent criteria to us. Such uncertainty could
cause the market price of our Class A Ordinary Shares to be materially and adversely affected.

Our management monitors the cash position of Wching
HK regularly and prepares budgets on a monthly basis to ensure it has the necessary funds to fulfill its obligations for the foreseeable
future and to ensure adequate liquidity. In the event that there is a need for cash or a potential liquidity issue, it will be reported
to our chief financial officer and subject to approval by our board of directors.

No regulatory approval is required for Wellchange
Cayman to transfer cash to its subsidiaries: Wellchange Cayman is permitted under the laws of the Cayman Islands and its memorandum and
articles of association (as amended from time to time) to provide funding to our subsidiaries incorporated in the BVI and Hong Kong
through loans or capital contributions. Wellchange Cayman’s subsidiary formed under the laws of the BVI is permitted under the laws
of the BVI to provide funding to our Hong Kong operating subsidiary Wching HK subject to certain restrictions laid down in the BVI
Business Companies Act 2004 (As Revised) and memorandum and articles of association of the relevant Wellchange Cayman’s subsidiary
incorporated under the laws of the BVI. As a holding company, Wellchange Cayman may rely on dividends and other distributions on
equity paid by its subsidiaries for its cash and financing requirements. 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