Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 53

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4A
Chunk 53
---
 foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends.

Our income tax increased by approximately US$73,722,
or 46.9%, from income tax expenses of approximately US$157,308 for the year ended December 31, 2022 to approximately US$231,030 for
the year ended December 31, 2023, primarily due to (i) an increase in the net income before tax by approximately US$230,683
or 24.6% from approximately US$937,956 for the year ended December 31, 2022 to approximately US$1,168,639 for year ended December 31,
2023; as a result the net operating loss was fully utilized for the year ended December 31, 2023; and (ii) an increase
in deferred tax expenses of US$54,049 derived from the acceleration of depreciation and amortization of property and equipment and intangible
assets. Our effective tax rates were 16.8% and 19.8% for the year ended December 31, 2022 and 2023, respectively.

Net income

Our net income for the years ended December 31,
2022 and 2023, was US$780,648 and US$937,609, respectively. The increase of net income by US$156,961 or 20.1% was mainly due to the predominantly
the increase in our overall revenues in 2023.

Liquidity and Capital Resources

The following table sets forth a breakdown of
our current assets and liabilities as of the dates indicated.

                                                        As of December 31,                                          
                                                        2023                                   2024                 
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                                        US$                                    US$                  
  ASSETS                                                                                                            
  Current assets:                                                                                                   
  Cash and cash equivalents                                                        12,783                  250,312  
  Accounts receivable, net                                                        720,245                  452,823  
  Deposits, prepayments and other receivables, net                                 36,510                  875,823  
  Amount due from a director                                                       18,414                        —  
  Total current assets                                                            787,952                1,578,958  
  Current liabilities:                                                                                              
  Accruals and other payables                                                     262,078                  245,033  
  Contract liabilities                                                             45,920