Company: XCH
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0000950170-25-056976
Chunk: 113

Company: XCHG Ltd
Filing Date: 2025-04-23
Form: 20-F
Item: Item 5
Chunk 113
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 of US$2.3 million for key research and development employees. Our research and development expenses as percentages of total revenue increased from 10.6% in 2023 to 28.8% in 2024, which was primarily driven by our enhanced investment in research and development.

General and administrative expenses

Our general and administrative expenses decreased by 23.1% from US$14.0 million in 2023 to US$10.8 million in 2024, mainly attributable to (i) the decrease in share based compensation of US$5.1 million for directors, executives, certain employees and non-employee consultants, and (ii) the increase in foreign currency exchange loss of US$1.1 million, primarily due to the depreciation of the Euro relative to the RMB in 2024. Our general and administrative expenses as percentages of total revenues decreased from 36.4% in 2023 to 25.6% in 2024, mainly resulting from the decrease in the absolute amount in general and administrative expenses due to the aforementioned reasons.

Changes in Fair Value of Financial Instruments

Our changes in fair value of financial instruments decreased by 94.0% from US$1.5 million in 2023 to US$87.8 thousand in 2024, mainly due to the extinguishment of convertible debts.

Interest Expenses

We recorded interest expenses of US$0.2 million and US$0.2 million in 2023 and 2024, respectively.

Interest Income

We recorded interest income of US$0.2 million in 2024, as compared to US$0.1 million in 2023.

Income Tax Expense

We recorded nil income tax expense in 2023 and 2024, respectively.

Net Income (Loss)

As a result of the foregoing, we recorded net loss of US$11.9 million in 2024, as compared to net loss of US$8.1 million in 2023.

Year Ended December 31, 2023 Compared to the Year Ended December 31, 2022

See “ Management’s Discussion and Analysis of Financial Condition and Results of Operations - Year Ended December 31, 2023 Compared to the Year Ended December 31, 2022” beginning on page 78 of our prospectus filed with the Securities and Exchange Commission on September 10, 2024 pursuant to Rule 424(b)(4) under the Securities Act (Securities Act File No. 333