Company: XCH
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0000950170-25-056976
Chunk: 180

Company: XCHG Ltd
Filing Date: 2025-04-23
Form: 20-F
Item: Item 15
Chunk 180
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 accordance with U.S. GAAP and SEC financial reporting requirements;
•implement regular U.S. GAAP and SEC financial reporting training programs for the financial reporting and accounting personnel to equip them with sufficient knowledge and practical experience of preparing financial statements under U.S. GAAP and SEC reporting requirements; and
•develop and implement a comprehensive set of period-end financial reporting policies and procedures, especially for non-recurring and complex transactions to ensure consolidated financial statements and related disclosures are in compliance with U.S. GAAP and SEC reporting requirements.
To remediate the second identified material weakness, we have adopted and will adopt further measures to improve our internal control over financial reporting, as follows:
•add personnel and allocate resources as necessary to support the increasing complexity of our general information technology environment;
•formalize policies and procedures on relevant GITCs; 
•enhance control over the authorization of accounts, and improve the segregation of duties in accounts across incompatible IT layers/functions; and
•reassess and select SAAS service providers for the financial management system in different countries to improve the ability of the management to assess the effectiveness of the GITCs.
We intend to remediate the material weaknesses in multiple phases and expect that we will incur certain costs for implementing our remediation measures. The implementation of these measures, however, may not fully remediate the material weaknesses identified in our internal control over financial reporting, and we cannot conclude that the material weaknesses has been fully remediated. See “Item 3. Key Information—3.D. Risk Factors—Risks Related to Our Business—If we fail to implement and maintain an effective system of internal controls over financial reporting, we may be unable to accurately or timely report our results of operations or prevent fraud, and investor confidence and the trading price of our ADSs may be materially and adversely affected.”
Management’s Annual Report on Internal Control over Financial Reporting
This annual report on Form 20-F does not include a report of management’s assessment regarding internal control over financial reporting due to a transition period established by rules of the SEC for newly public companies.
Attestation Report of the Registered Public Accounting Firm
Since we are an “emerging growth company” as defined under the JOBS Act, we are exempt from the requirement to comply with the auditor attestation requirements that our independent registered public accounting firm attest to and report on the effectiveness of our internal control structure and procedures for financial reporting.
Changes in Internal Control over Financial Reporting
Other than those remediation steps described above, there were no changes in our internal controls over financial