Company: XCH
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0000950170-25-056976
Chunk: 28

Company: XCHG Ltd
Filing Date: 2025-04-23
Form: 20-F
Item: Item 3
Chunk 28
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•the timing and volume of new sales;
•the timing of new charger rollouts;
•weaker than anticipated demand for our products and services, whether due to changes in government incentives and policies or due to other conditions;

•fluctuations in sales and marketing, business development or research and development expenses;
•supply chain interruptions and manufacturing or delivery delays;
•the timing and availability of new products and services relative to customers’ and investors’ expectations;
•the impact of pandemics on our workforce, or those of our customers, suppliers, or business partners;
•disruptions in sales, production, service or other business activities or our inability to attract and retain qualified personnel;
•unanticipated changes in local or foreign government incentive programs, which can affect demand for EVs;
•seasonal fluctuations in driving patterns.
Fluctuations in operating results and cash flow could, among other things, give rise to short-term liquidity issues. In addition, revenue, and other operating results may fall short of the expectations of investors and financial analysts, which could have an adverse effect on the price of the ADSs.
Changes to applicable tax laws and regulations or exposure to additional tax liabilities could adversely affect our after-tax profitability and financial results.
We are currently subject to income taxes in Europe, the United States and China. With the expansion of our business, we may also in the future become subject to income taxes in other foreign jurisdictions. Our effective income tax rate could be adversely affected by a number of factors, including changes in deferred tax assets and liabilities, changes in tax laws, changes in accounting and tax standards or practices, changes in the composition of operating income by tax jurisdiction and changes in our operating results before taxes. We plan to regularly assess these matters to determine the adequacy of our tax liabilities. If any of our assessments are ultimately determined to be incorrect, our business, results of operations, financial condition and prospects could be materially adversely affected.
Due to the complexity of multinational tax obligations and filings, we may have a heightened risk related to audits or examinations by taxing authorities in the jurisdictions in which we operate. Outcomes from these audits or examinations could have a material adverse effect on our business, results of operations, financial condition and prospects. We may also be adversely affected by changes in the relevant tax laws and tax rates, treaties, regulations, administrative practices and principles, judicial decisions, and interpretations thereof, in each case, possibly with retroactive effect.
If we fail to implement and maintain an effective system of internal controls over financial reporting, we may be unable