Wellchange Narrows Per-Share Loss to $6.45 Despite 44.1% Revenue Drop
Key Facts
Wellchange Holdings reported unaudited results on November 10 for the six months ended June 30, 2026, posting a basic and diluted loss per share of $6.45, compared with a loss of $16.99 in the same period of 2025, according to a filing with the U.S. Securities and Exchange Commission. The improvement in per-share loss came alongside a contraction in activity, with revenue falling 44.1% year over year. Gross profit and its margin fell sharply during the period, while net loss and operating cash outflows declined from the first half of the previous year. The company provides custom software solutions, cloud software-as-a-service platforms, and white-label software design and development services. It operates in Hong Kong through its subsidiary Wching Tech Ltd Co.
Revenue was $669,929 in the first half of 2026, compared with $1,197,566 in the first half of 2025, a decline of $527,637, or 44.1%, according to the company filing. Wellchange attributed most of the drop to a $487,013 decrease in white-label software services revenue and a $46,216 decrease in custom software solutions revenue. The company said demand for custom solutions was affected by reduced government support for small and medium-sized businesses adopting enterprise resource planning systems. It added that customers' caution over discretionary spending amid global economic uncertainty was associated with the absence of white-label software revenue. The revenue decline marks a significant shift in the scale of business recorded compared with the year-earlier period, not merely a change in per-share profitability.
Gross profit fell to $38,459 in the six months through June 30, 2026, from $787,446 a year earlier, and the gross margin dropped to 5.7% from 65.8%, according to figures in the filing. The contraction highlights mounting pressure on core activity alongside declining sales, as the value remaining after the cost of revenue shrank substantially year over year. By contrast, net loss improved to $1,406,599 from $2,965,109 in the first half of 2025. Basic and diluted loss per share also narrowed to $6.45, compared with $16.99 in the comparable period. The comparison therefore shows two divergent trends in the results: narrower reported losses alongside declines in revenue, gross profit and margin.
On liquidity, cash and cash equivalents totaled $3,105,823 at June 30, 2026, compared with $2,805,408 at December 31, 2025, according to the balance sheet in the filing. The company used $152,881 in net cash in operating activities during the first half, compared with $8,855,965 in the year-earlier period. It also recorded net cash inflows from financing activities of $354,448 in the six months ended June 2026. Wellchange said its internal resources, available banking facilities and the measures it outlined would be sufficient to cover its expected cash needs for at least 12 months from the report date. These figures put the decline in operating cash use alongside the cash balance and financing inflows in assessing the company's ability to meet its stated needs.
As financing background predating the report date, Wellchange closed a best-efforts private placement on August 31, 2026, to sell 50,000,000 Class A shares at $0.15 per share, generating gross proceeds of $7.5 million, according to its filing. A one-for-ten reverse split of its Class A shares also took effect at the market open on November 9. The company said the number of shares outstanding would fall as a result from approximately 10,581,089 to approximately 1,058,109. WCT shares closed at $3.93 on November 10, according to EL7 data. That price does not include a reliable intraday trading range.