Company: XCH
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0000950170-25-056976
Chunk: 164

Company: XCHG Ltd
Filing Date: 2025-04-23
Form: 20-F
Item: Item 10
Chunk 164
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 of the underlying Class A ordinary shares represented by those ADSs for U. S. federal income tax purposes. Accordingly, no gain or loss will be recognized if a U. S. Holder exchanges ADSs for the underlying Class A ordinary shares represented by those ADSs.

This discussion does not address any state, local or non-U. S. tax considerations, or any federal taxes (such as estate or gift taxes) other than income taxes. U. S. Holders should consult their tax advisers concerning the U. S. federal, state, local and non-U. S. tax consequences of owning and disposing of ADSs or Class A ordinary shares in their particular circumstances.

Taxation of Distributions

The following is subject to the discussion under “ - Passive Foreign Investment Company Rules” below.

Distributions paid on the ADSs or Class A ordinary shares, other than certain pro rata distributions of ADSs or Class A ordinary shares, generally will be treated as dividends to the extent paid out of our current or accumulated earnings and profits, as determined under U. S. federal income tax principles. Because we do not maintain calculations of our earnings and profits under U. S. federal income tax principles, it is expected that distributions generally will be reported to U. S. Holders as dividends. Dividends will not be eligible for the dividends-received deduction generally available to U. S. corporations under the Code. Because the ADSs are listed on the Nasdaq, subject to applicable limitations, dividends paid to certain noncorporate U. S. Holders of ADSs may be taxable at a preferential rate. Noncorporate U. S. Holders should consult their tax advisers regarding the availability of this preferential tax rate on dividends in their particular circumstances.

Dividends will be included in a U. S. Holder’s income on the date of receipt by the depositary (in the case of ADSs) or the U. S. Holder (in the case of Class A ordinary shares). The amount of any dividend income paid in foreign currency will be the U. S. dollar amount calculated by reference to the spot rate of exchange in effect on the date of receipt, regardless of whether the payment is in fact converted into U. S. dollars on such date. If the dividend is converted into U. S. dollars on the date of receipt, a U. S. Holder generally should not be required to recognize foreign currency gain or loss in respect of the amount received. A U. S. Holder may have foreign