Company: XCH
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0000950170-25-056976
Chunk: 105

Company: XCHG Ltd
Filing Date: 2025-04-23
Form: 20-F
Item: Item 5
Chunk 105
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 expenses, rental and depreciation in relation to selling and marketing functions, and other expenses.

Research and development expenses. Research and development expenses consist of (i) outsourcing development expense, (ii) staff cost in relation to research and development activities, (iii) share based compensation, and (iv) other research and development expenses. In 2022, 2023 and 2024, our research and development expenses amounted to US$2.8 million, US$4.1 million and US$12.2 million, respectively, representing 9.6%, 10.6% and 28.8% of our revenues in the same periods, respectively. The following table sets forth a breakdown of our research and development expenses, in absolute amounts and as percentages of our total revenues, for the periods indicated.

                                         For the Year Ended December 31,                                                                        
                                         2022                                                                                                   
                                         US$                                                                                                    
  Research and development expenses      (in thousands, except for percentages)                                                                 
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Outsourcing development expense                                                    —          —        —          —          5,593      13.2  
  Staff cost                                                                         2,201      7.5      3,147      8.2        3,460       8.2  
  Share based compensation                                                           —          —        —          —          2,308       5.5  
  Others (1)                                                                         615        2.1      914        2.4          798       1.9  
  Total                                                                              2,816      9.6      4,061      10.6      12,159      28.8  

Note:

(1)

Primarily consist of certification expenses, testing expenses, and other expenses.

General and administrative expenses. Our general and administrative expenses consist of (i) professional expenses paid to professional consultants, (ii) staff cost in relation to general and administrative activities, (iii) share based compensation, (iv) foreign currency exchange loss (gain) resulting from the exchange difference in remeasuring foreign currencies to the functional currency as of the relevant dates, (v) losses of credit impairment, (vi) issuance cost of the convertible debts, and (vii) other general corporate expenses. In 2022, 2023 and 2024, our general and administrative expenses amounted to US