Company: XCH
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0000950170-25-056976
Chunk: 122

Company: XCHG Ltd
Filing Date: 2025-04-23
Form: 20-F
Item: Item 5
Chunk 122
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 of a potential liquidity event, such as a sale of our company or an initial public offering, and estimates of the volatility of our equity securities. The anticipated timing is based on the plans of our board and management.

The major assumptions used in calculating the fair value of our ordinary shares include:

• Discount rate: The discount rate was based on the weighted average cost of capital, which was determined based on a consideration of the factors including risk-free rate, macroeconomic risk, comparative industry risk, market risk premium, geographic risk, company size and non-systemic risk factors.

• Comparable companies: In deriving the WACCs, which are used as the discount rates under the income approach, certain publicly traded companies engaged in EV charger businesses were selected for reference as our guideline companies.

• Discount for lack of marketability, or DLOM: DLOM was quantified by the Finnerty’s Average-Strike put options model. Under this option-pricing method, which assumed that the put option is struck at the average price of the stock before the privately held shares can be sold, the cost of the put option was considered as a basis to determine the DLOM.

The income approach involves applying appropriate WACCs to estimated cash flows that are based on our projected earnings and cash flows. Our revenues growth rates, as well as major milestones that we have achieved, have jointly contributed to the increase in the fair value of our ordinary shares from 2022 to 2023. However, the determination of the fair value of our ordinary shares requires complex and subjective judgments to be made, which will not be necessary once the ADSs begin trading.

ITEM 6. DIRECTORS, SENI OR MANAGEMENT AND EMPLOYEES

6. A. Directors and Senior Management

The following table provides information regarding our directors and executive officers as of the date of this annual report.

  Directors and Executive Officers      Age      Position/Title                                                         
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Yifei Hou                              37      Chief Executive Officer, Interim Chief Financial Officer and Director  
  Aatish V Patel                         29      President                                                              
  Alexander Jacob Urist                  32      Vice President                                                         
  Rui Ding                               38      Chairman, Chief Technology Officer                                     
  Rodney James Huey                      81      Independent Director                                                   
  Alberto Méndez Rebollo                 47      Independent Director                                                   

Yifei Hou has served as our director and chief executive