Company: XCH
Filing Date: 2025-12-19
Form Type: F-3
Source: 0001193125-25-325891
Chunk: 52

Company: XCHG Ltd
Filing Date: 2025-12-19
Form: F-3
Chunk 52
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 of judgments (other than arbitral awards) in civil and commercial matters.

On August 29, 2022, the EU deposited its instrument of accession to the Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters (HCCH 2019 Judgments Convention). Germany ratified this convention on August 29, 2022, and it has been binding for Germany since September 1, 2023. The Convention obliges states to recognize and enforce judicial decisions that are valid and enforceable in the state in which they were issued in another contracting state in accordance with the rules of the agreement. Although the United States has signed this convention, it has not yet ratified it. PRC has not acceded to this agreement.

PRC

We have been advised by Fangda Partners, our PRC legal counsel, that there is uncertainty as to whether the courts of the PRC would enforce judgments of United States courts or Cayman Islands courts obtained against us or these persons predicated upon the civil liability provisions of the United States federal and state securities laws. Fangda Partners has further advised us that the recognition and enforcement of foreign judgments are provided for under PRC Civil Procedures Law. PRC courts may recognize and enforce foreign judgments in accordance with the requirements of PRC Civil Procedures Law based either on treaties between China and the country where the judgment is made or on reciprocity between jurisdictions. China does not have any treaties or other form of reciprocity with the United States or the Cayman Islands that provide for the reciprocal recognition and enforcement of foreign judgments. In addition, according to the PRC Civil Procedures Law, courts in the PRC will not enforce a foreign judgment against us or our directors and officers if they decide that the judgment violates the basic principles of PRC law or national sovereignty, security or public interest. Under the PRC Civil Procedures Law, foreign shareholders may originate actions based on PRC law against a company for disputes relating to contracts or other property interests in the PRC, if they can establish a sufficient nexus to the PRC for a PRC court to have jurisdiction, and meet other procedural requirements, including, among others, the plaintiff must have a direct interest in the case, and there must be a concrete claim, a factual basis and a cause for the suit.

However, it would be difficult for foreign shareholders to establish a sufficient nexus to the PRC for a PRC court to have jurisdiction pursuant to the PRC Civil Procedures Law by virtue only of holding the ADSs or Class A Ordinary Shares.