Company: XCH
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0000950170-25-056976
Chunk: 163

Company: XCHG Ltd
Filing Date: 2025-04-23
Form: 20-F
Item: Item 10
Chunk 163
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 use a mark-to-market method of tax accounting;

• persons holding ADSs or Class A ordinary shares as part of a straddle, integrated or similar transaction;

• persons whose functional currency for U. S. federal income tax purposes is not the U. S. dollar;

• partnerships or other entities classified as partnerships for U. S. federal income tax purposes and partners or investors therein;

• tax-exempt entities, “individual retirement accounts” or “ Roth IRAs”;

• perso
ns who acquired ADSs or Class A ordinary shares pursuant to the exercise of an employee stock option or otherwise as compensation;

• persons that own or are deemed to own ADSs or Class A ordinary shares representing 10% or more of our stock by vote or value; or

• persons holding ADSs or Class A ordinary shares in connection with a trade or business outside the United States.

If a partnership (or other entity that is classified as a partnership for U. S. federal income tax purposes) owns ADSs or Class A ordinary shares, the U. S. federal income tax treatment of a partner generally will depend on the status of the partner and the activities of the partnership. Partnerships owning ADSs or Class A ordinary shares and their partners should consult their tax advisers as to their particular U. S. federal income tax consequences of owning and disposing of ADSs or Class A ordinary shares.

This discussion is based on the Internal Revenue Code of 1986, as amended (“the Code”), administrative pronouncements, judicial decisions, final, temporary and proposed Treasury regulations, and the income tax treaty between the United States and the PRC (the “ Treaty”), all as of the date hereof, any of which is subject to change, possibly with retroactive effect. This discussion assumes that each obligation under the deposit agreement and any related agreement will be performed in accordance with its terms.

For purposes of this discussion, a “ U. S. Holder” is a person that is, for U. S. federal income tax purposes, a beneficial owner of the ADSs or Class A ordinary shares and:

• a citizen or individual resident of the United States;

• a corporation, or other entity taxable as a corporation, created or organized in or under the laws of the United States, any state therein or the District of Columbia; or

• an estate or trust the income of which is subject to U. S. federal income taxation regardless of its source.

In general, a U. S. Holder that owns ADSs will be treated as the owner