Company: XCH
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0000950170-25-056976
Chunk: 102

Company: XCHG Ltd
Filing Date: 2025-04-23
Form: 20-F
Item: Item 5
Chunk 102
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 the revenue at a point in time when the products are accepted by customers. In 2022, 2023 and 2024, our product revenues amounted to US$28.7 million, US$38.1 million and US$41.5 million, respectively, representing 97.7%, 98.8% and 98.3% of our total revenues in the same periods, respectively. We anticipate that our revenue generated from product revenues will continue to increase in absolute amount.

Service revenues. Complementary to the initial sales of products, we also offer accompanying services throughout the entire life cycle, including both software system upgrades and hardware maintenance. We start to charge our customers for the services after an inclusion period of one to three years following the sale. We typically recognize the revenue over the period of such services on a straight-line basis. In 2022, 2023 and 2024, most of our products sold were still within the inclusion period of one to three years following the sale. Our service revenues amounted to US$0.7 million, US$0.5 million and US$0.7 million in 2022, 2023 and 2024, respectively, representing 2.3%, 1.2% and 1.7% of our total revenues in the same periods, respectively. As the number of installed chargers grows, we expect recurring service revenues to account for an increasing portion of our total revenues in the long run.

See “ Item 4. Information on the Company - 4. B. Business Overview - Our Solutions” for details about how we generate our revenues.

Cost of Revenues

Our cost of revenues consists of the costs and expenses that are directly related to providing our products and services to our customers. These costs and expenses include (i) cost of products sold, (ii) shipping costs, (iii) share based compensation, and (iv) others. In 2022, 2023 and 2024, our cost of revenues amounted to US$18.7 million, US$20.9 million and US$21.0 million, respectively, representing 63.6%, 54.4% and 49.7% of our revenues in the same periods, respectively. The following table sets forth our cost of revenues, in absolute amounts and as percentages of total revenues, for the periods indicated.

                                For the Year Ended December 31,                                                                           
                                2022                                                                                                      
                                US$