Company: XCH
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0000950170-25-056976
Chunk: 112

Company: XCHG Ltd
Filing Date: 2025-04-23
Form: 20-F
Item: Item 5
Chunk 112
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% from US$38.1 million in 2023 to US$41.5 million in 2024, mainly driven by the increase in the sales revenue from DC chargers.

Service revenues

Our revenues generated from services were US$0.5 million and US$0.7 million in 2023 and 2024, respectively.

Cost of Revenues

Our cost of revenues increased by 0.2% from US$20.9 million in 2023 to US$21.0 million in 2024, growing at a much slower pace than our revenues, primarily benefiting from economies of scale and our enhanced cost control measures.

Gross Profit

As a result of the foregoing, our gross profit increased by 20.8% from US$17.6 million in 2023 to US$21.2 million in 2024, which grew much faster than our business growth. Our overall gross margin increased from 45.6% in 2023 to 50.3% in 2024, benefiting from economies of scale and our enhanced cost control measures.

Operating Expenses

Our operating expenses increased by 35.8% from US$24.5 million in 2023 to US$33.3 million in 2024, primarily reflecting the increases in our selling and marketing expenses, research and development expenses and general and administrative expenses.

Selling and marketing expenses

Our selling and marketing expenses increased by 60.8% from US$6.4 million in 2023 to US$10.3 million in 2024. The increase was mainly attributable to (i) the increase in share based compensation of US$1.8 million for key selling and marketing employees, and (ii) the increase in staff cost of US$1.3 million, primarily due to the increased bonus resulting from improved selling performance and the growth of the team. Our selling and marketing expenses as percentages of total revenues increased from 16.7% in 2023 to 24.5% in 2024, reflecting our enhanced efforts in selling and marketing to press ahead with our global expansion.

Research and development expenses

Our research and development expenses increased by 199.4% from US$4.1 million in 2023 to US$12.2 million in 2024. The increase was mainly attributable to (i) the increase in outsourcing development expense of US$5.6 million to develop advanced charging system, and (ii) the increase in share based compensation