PART I [ITEM 3. KEY INFORMATION](index=6&type=section&id=ITEM%203.%20KEY%20INFORMATION) XCHG operates as a holding company, relying on subsidiary dividends, and completed IPO filings while managing regulatory and market risks - The company operates as a holding company, relying on subsidiary dividends subject to local regulations, particularly in the PRC[28](index=28&type=chunk)[29](index=29&type=chunk) - The company completed required CSRC filings for its initial public offering on December 27, 2023, with future overseas offerings also requiring CSRC approval[35](index=35&type=chunk)[40](index=40&type=chunk) - The company does not expect to be identified as a Commission-Identified Issuer under the HFCAA due to its PCAOB-inspected auditor[45](index=45&type=chunk)[138](index=138&type=chunk) [Risk Factors](index=13&type=section&id=3.D.%20Risk%20Factors) The company faces business, regulatory, international, and ADS-specific risks, including growth management, EV market dependency, and data security - Business risks include managing growth, high dependency on EV adoption, rapid technological changes, and intense competition[51](index=51&type=chunk) - Regulatory risks stem from uncertainties in PRC laws, particularly new overseas securities and data security regulations[53](index=53&type=chunk)[124](index=124&type=chunk) - International operations are exposed to unfavorable regulatory, political, and trade policy changes, especially U.S.-China tensions[53](index=53&type=chunk)[150](index=150&type=chunk)[152](index=152&type=chunk) - ADS-specific risks include price volatility, potential **PFIC classification**, and concentrated voting power from a dual-class share structure[52](index=52&type=chunk)[192](index=192&type=chunk)[198](index=198&type=chunk) - Two material weaknesses in internal control were identified for FY2024: insufficient U.S. GAAP/SEC accounting expertise and inadequate general information technology controls (GITCs)[112](index=112&type=chunk)[113](index=113&type=chunk) [Information on the Company](index=62&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) XCHG, a Cayman Islands holding company, provides global EV charging solutions, including battery-integrated systems, relying on OEMs for manufacturing and navigating extensive regulations - The company offers comprehensive EV charging solutions, including DC fast chargers (C6/C7) and advanced battery-integrated systems (NZS/GridLink)[210](index=210&type=chunk)[219](index=219&type=chunk) - NZS and GridLink integrate DC fast chargers with lithium-ion batteries and EMS, enabling fast charging and Battery-to-Grid (B2G) functions[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk) - The company employs a 'charger-as-a-service' model, generating initial product sales and growing recurring service revenue[216](index=216&type=chunk) - Production primarily relies on OEMs for quality and speed, with plans for a new manufacturing facility in Texas for localized output[218](index=218&type=chunk)[243](index=243&type=chunk)[329](index=329&type=chunk) [History and Development of the Company](index=62&type=section&id=4.A.%20History%20and%20Development%20of%20the%20Company) XCHG Limited, incorporated in Cayman Islands in 2021, traces its origins to 2015 and completed its Nasdaq IPO in September 2024 - XCHG Limited was incorporated in the Cayman Islands on December 16, 2021, originating from X-Charge Technology founded in PRC in 2015[205](index=205&type=chunk)[206](index=206&type=chunk) - The company completed its initial public offering in September 2024, with ADSs trading on Nasdaq under 'XCH'[208](index=208&type=chunk) [Business Overview](index=64&type=section&id=4.B.%20Business%20Overview) The company offers advanced EV charging solutions, leveraging proprietary technologies, serving global customers, outsourcing manufacturing, and navigating extensive regulations Charging Product Portfolio | Model | Peak Output | Number of Charging Guns | Battery Storage | Bi-directional Charging | | :--- | :--- | :--- | :--- | :--- | | C6 | 200 kW | Two | No | No | | C7 | 420 kW | Two | No | No | | NZS | 210 kW | Two | 466 kWh | Yes | | GridLink | 194 kW / 300 kW | Two | 430 kWh | Yes | - Key technologies include proprietary heat treatment for battery safety, adaptive smart charging, and an advanced Energy Management System (EMS) supporting bi-directional charging like B2G[236](index=236&type=chunk)[237](index=237&type=chunk)[238](index=238&type=chunk) - As of December 31, 2024, the R&D team comprised **88 personnel** in Germany and China, holding **60 patents**, **20 copyrights**, and **53 trademarks**[246](index=246&type=chunk)[247](index=247&type=chunk) - The company is subject to extensive regulations in key markets, including product safety, data protection (GDPR), and antitrust in Germany, and foreign investment, cybersecurity, and data security in the PRC[257](index=257&type=chunk)[258](index=258&type=chunk)[272](index=272&type=chunk) [Property, Plant and Equipment](index=96&type=section&id=4.D.%20Property,%20Plant%20and%20Equipment) The company leases 2,669 square meters of office space and plans a new US manufacturing plant by 2026, costing $5-7.5 million - The company leases approximately **2,669 square meters** of office space across Germany, the PRC, and the United States as of December 31, 2024[328](index=328&type=chunk) - A new U.S. manufacturing plant is planned for construction around 2026, with an estimated cost of **US$5 to US$7.5 million**, to enhance production capacity[329](index=329&type=chunk) [ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS](index=97&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) In FY2024, revenue grew to $42.2 million and gross profit increased, but surging operating expenses led to a wider net loss of $11.9 million, with liquidity supported by IPO proceeds [Operating Results](index=97&type=section&id=5.A.%20Operating%20Results) In FY2024, revenues increased 9.6% to $42.2 million and gross margin improved to 50.3%, but a 35.8% surge in operating expenses led to an $11.9 million net loss Consolidated Results of Operations (2022-2024) | | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | **Revenues** | $29.4M | $38.5M | $42.2M | | **Gross Profit** | $10.7M | $17.6M | $21.2M | | *Gross Margin* | *36.4%* | *45.6%* | *50.3%* | | **Total Operating Expenses** | $9.1M | $24.5M | $33.3M | | **Operating Income (Loss)** | $1.7M | ($6.5M) | ($12.0M) | | **Net Income (Loss)** | $1.6M | ($8.1M) | ($11.9M) | Revenue Breakdown (2022-2024) | Revenue Source | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | Product revenues | $28.7M | $38.1M | $41.5M | | Service revenues | $0.7M | $0.5M | $0.7M | | **Total** | **$29.4M** | **$38.5M** | **$42.2M** | Operating Expenses Breakdown (2022-2024) | Expense Category | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | Selling and marketing | $3.5M | $6.4M | $10.3M | | Research and development | $2.8M | $4.1M | $12.2M | | General and administrative | $2.7M | $14.0M | $10.8M | | **Total** | **$9.1M** | **$24.5M** | **$33.3M** | - Research and development expenses surged **199.4%** from 2023 to 2024, driven by a **$5.6 million** increase in outsourcing and a **$2.3 million** rise in share-based compensation[379](index=379&type=chunk) Adjusted Net Income (Loss) Reconciliation (2022-2024) | | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | **Net income (loss)** | **$1,610K** | **($8,084K)** | **($11,941K)** | | Share-based compensation | — | $7,457K | $7,031K | | Changes in fair value of financial instruments | $191K | $1,472K | $88K | | Gain on extinguishment of convertible debts | — | — | ($233K) | | **Adjusted net income (loss)** | **$1,801K** | **$845K** | **($5,055K)** | [Liquidity and Capital Resources](index=110&type=section&id=5.B.%20Liquidity%20and%20Capital%20Resources) As of December 31, 2024, the company held $26.8 million in cash, with net cash used in operations at $7.2 million, offset by $19.1 million from IPO financing Consolidated Cash Flow Data (2022-2024) | (in thousands USD) | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | $849 | ($5,576) | ($7,202) | | Net cash from investing activities | $1,222 | $2,266 | ($534) | | Net cash from financing activities | $2,278 | $10,743 | $19,150 | | **Net increase in cash** | **$3,842** | **$7,022** | **$11,081** | | **Cash at end of year** | **$8,670** | **$15,693** | **$26,774** | - As of December 31, 2024, the company held **$26.8 million** in cash and equivalents, primarily in RMB (**$12.0M**), USD (**$10.1M**), and EUR (**$4.7M**)[391](index=391&type=chunk) - Net cash used in operating activities increased to **$7.2 million** in 2024 from **$5.6 million** in 2023, driven by higher prepayments and related party receivables[396](index=396&type=chunk)[397](index=397&type=chunk) - Net cash from financing activities in 2024 was **$19.1 million**, primarily from initial public offering proceeds[401](index=401&type=chunk) [ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES](index=117&type=section&id=ITEM%206.%20DIRECTORS,%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) The company's leadership, compensation, and governance are shaped by its dual-class share structure, with founders controlling 81.9% of voting power and 184 employees as of FY2024 - The company's leadership includes **Yifei Hou** as CEO and **Rui Ding** as Chairman and CTO[419](index=419&type=chunk)[424](index=424&type=chunk) - For FY2024, aggregate cash compensation was **US$0.5 million** for executive officers and **US$0.05 million** for non-executive directors[427](index=427&type=chunk) - Multiple share incentive plans (2023, 2023 II, 2025) have been adopted to grant equity awards to key personnel[431](index=431&type=chunk)[439](index=439&type=chunk)[441](index=441&type=chunk) - As of March 31, 2025, founders Yifei Hou and Rui Ding control **81.9%** of aggregate voting power through Class B shares, making the company a 'controlled company'[193](index=193&type=chunk)[195](index=195&type=chunk) - As of December 31, 2024, the company had **184 employees**, with **88** in Research and Development[455](index=455&type=chunk) [ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](index=132&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) The company engaged in related party transactions, including interest-free advances with founders and dealings with affiliated entities, with founders controlling 81.9% of voting power - The company provided interest-free advances to founders Yifei Hou (**$0.4 million**) and Rui Ding (**$0.3 million**) in 2023, fully collected by early 2024[468](index=468&type=chunk)[470](index=470&type=chunk) - Transactions with affiliated entities included **$0.4 million** in inventory purchases from Zhichong Technology and **$1.7 million** in product sales to Beijing Zhichong New Energy in 2024[473](index=473&type=chunk)[478](index=478&type=chunk) - A **RMB30.3 million** (**$4.2 million**) loan was provided to Beijing Puyan Enterprise Management Co., Ltd in 2021, with **$0.3 million** outstanding as of December 31, 2024[475](index=475&type=chunk)[477](index=477&type=chunk) [ITEM 8. FINANCIAL INFORMATION](index=133&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) The company's consolidated financial statements are appended, with no material legal proceedings or plans for future dividend payments, retaining earnings for growth - The company is not currently a party to any material legal or administrative proceedings[483](index=483&type=chunk) - The company has no present plan to pay cash dividends, intending to retain earnings for growth, with future distributions subject to board discretion and legal restrictions[484](index=484&type=chunk)[485](index=485&type=chunk) [ITEM 10. ADDITIONAL INFORMATION](index=134&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) XCHG, a Cayman Islands company, has a dual-class share structure and faces potential PRC resident enterprise tax status and PFIC classification risks for U.S. investors - The company's share structure includes Class A (one vote) and Class B (ten votes) ordinary shares, with Class B convertible to Class A[502](index=502&type=chunk)[504](index=504&type=chunk) - The Cayman Islands does not levy taxes on profits, income, capital gains, or withholding taxes on dividends[561](index=561&type=chunk) - The company risks classification as a PRC resident enterprise, potentially incurring a **25%** enterprise income tax on worldwide income and withholding tax on dividends[566](index=566&type=chunk)[569](index=569&type=chunk) - The company does not believe it was a Passive Foreign Investment Company (PFIC) for 2024, though status is annually determined and PFIC classification would have adverse U.S. tax consequences[199](index=199&type=chunk)[585](index=585&type=chunk) [ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=160&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces foreign currency risk from global operations, manages credit risk through financial institutions and customer evaluations, and deems interest rate risk immaterial - The company's U.S. Dollar reporting currency, alongside Euro and Renminbi functional currencies, exposes it to foreign currency translation and transaction risks[603](index=603&type=chunk) - Credit risk in cash and receivables is mitigated by using high-rated banks and performing customer credit evaluations[605](index=605&type=chunk)[606](index=606&type=chunk)[607](index=607&type=chunk) - Interest rate risk is minimal due to immaterial floating rate debt exposure and no use of derivative financial instruments for hedging[608](index=608&type=chunk) [PART II](index=164&type=section&id=PART%20II) This section details the use of **$15.0 million** IPO proceeds, identifies two material weaknesses in internal controls, and outlines corporate governance practices as a foreign private issuer [Use of Proceeds](index=164&type=section&id=ITEM%2014.%20MATERIAL%20MODIFICATIONS%20TO%20THE%20RIGHTS%20OF%20SECURITY%20HOLDERS%20AND%20USE%20OF%20PROCEEDS) The company received **$15.0 million** net proceeds from its September 2024 IPO, using **$10.8 million** by year-end for R&D, market expansion, and offering expenses - The company received **US$15.0 million** in net proceeds from its September 2024 IPO after **US$6.5 million** in expenses[622](index=622&type=chunk) - By December 31, 2024, approximately **US$10.8 million** of net proceeds were used for R&D, global market expansion, and IPO-related professional expenses[623](index=623&type=chunk) [Controls and Procedures](index=164&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) As of December 31, 2024, two material weaknesses in internal control were identified: insufficient U.S. GAAP/SEC expertise and inadequate GITC policies, with remediation underway - A material weakness was identified due to insufficient financial reporting and accounting personnel with U.S. GAAP and SEC expertise[627](index=627&type=chunk) - A second material weakness involves the failure to establish formal policies for general information technology controls (GITCs), including user access and SaaS provider oversight[627](index=627&type=chunk) - Remediation plans include hiring financial staff, training, formalizing IT policies, enhancing access controls, and reassessing SaaS providers[628](index=628&type=chunk)[632](index=632&type=chunk) [Corporate Governance and Other Disclosures](index=167&type=section&id=ITEM%2016.%20Corporate%20Governance%20and%20Other%20Disclosures) The company has an audit committee financial expert, follows Cayman Islands corporate governance as a foreign private issuer, and maintains a cybersecurity risk management program - The board designated **Rodney James Huey** as the audit committee financial expert[633](index=633&type=chunk) Principal Accountant Fees (2023-2024) | (in thousands USD) | 2023 | 2024 | | :--- | :--- | :--- | | Audit Fees | $987 | $227 | | Tax Fees | $56 | — | | **Total** | **$1,043** | **$227** | - As a foreign private issuer, the company adheres to Cayman Islands corporate governance, exempting it from certain Nasdaq rules like majority-independent board requirements[642](index=642&type=chunk) - A cybersecurity risk management program is in place, overseen by the board and management, with no material threats identified in 2024[647](index=647&type=chunk)[648](index=648&type=chunk)[650](index=650&type=chunk) [PART III](index=171&type=section&id=PART%20III) This section presents the company's consolidated financial statements for fiscal years 2022-2024, prepared under U.S. GAAP, along with a comprehensive list of exhibits - This part includes the company's consolidated financial statements prepared in accordance with U.S. GAAP, as required by Item 18 of Form 20-F[653](index=653&type=chunk) - A comprehensive list of exhibits, including corporate governance documents, material contracts, and certifications, is provided[654](index=654&type=chunk) [Financial Statements](index=171&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) The consolidated financial statements for FY2022-2024 show total assets of **$57.1 million** and liabilities of **$27.6 million** as of Dec 31, 2024, reflecting increased cash post-IPO and widening net losses Consolidated Balance Sheet Highlights (As of Dec 31) | (in thousands USD) | 2023 | 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $39,745 | $54,411 | | *Cash and cash equivalents* | *$15,661* | *$26,774* | | **Total Assets** | **$40,960** | **$57,138** | | **Total Current Liabilities** | $30,728 | $26,188 | | **Total Liabilities** | **$30,980** | **$27,629** | | **Total Shareholders' (Deficit) Equity** | **($30,037)** | **$29,509** | - The company completed a corporate restructuring in June 2023 to establish an offshore shareholding structure for its IPO, accounted for as a recapitalization[696](index=696&type=chunk)[701](index=701&type=chunk) - In 2023, **150,000,000** immediately vested shares resulted in a **$7.5 million** share-based compensation expense, followed by a **$7.0 million** expense in 2024 under the 2023 Plan II[873](index=873&type=chunk)[877](index=877&type=chunk) Revenue by Geographic Area (2022-2024) | (in thousands USD) | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | Europe | $18,181 | $30,212 | $19,411 | | PRC | $4,256 | $4,751 | $6,067 | | Others | $6,986 | $3,549 | $16,725 | | **Total** | **$29,424** | **$38,512** | **$42,204** |

Core Viewpoint - XCharge Limited's GridLink system has achieved significant safety and efficiency certifications in the U.S., reinforcing its position in the energy storage market and showcasing the company's commitment to innovation and safety [1][7]. Group 1: Certifications and Safety Standards - GridLink has received UL 1973 and UL 9540A certifications, which highlight its exceptional safety standards and grid compliance [1][2]. - The system features advanced fire safety measures, including built-in fire suppression water tanks, to prevent thermal runaway and protect battery packs [2]. - Compliance with UL 1741 ensures that GridLink's bidirectional converter integrates seamlessly with U.S. energy infrastructure [3]. Group 2: Efficiency and Performance - GridLink's DC high-voltage air conditioning system offers 2% greater efficiency compared to conventional AC systems, contributing to reduced energy consumption and improved overall performance [4]. - The modular design of GridLink allows for easy replacement of individual battery packs, which lowers maintenance costs and extends the system's lifecycle [6]. Group 3: Safety Monitoring and Protection - The four-dimensional safety monitoring system detects potential risks such as electricity, infrared light, heat, and gases, ensuring comprehensive oversight [5]. - Dual electrical protection combines active and passive measures for rapid disconnection of the main circuit under critical conditions, enhancing user and infrastructure safety [5]. Group 4: Company Overview and Future Commitment - Founded in 2015, XCharge is a leader in integrated EV charging solutions, focusing on enhancing charging efficiency and energy storage management [8]. - The company is dedicated to pioneering innovative solutions that meet the evolving needs of the energy market, aiming for a sustainable and resilient energy future [7][8].

Core Viewpoint - XCharge Limited's GridLink system has achieved significant safety and efficiency certifications in the U.S., reinforcing its position in the energy storage market and paving the way for future growth in the EV charging sector [1][7]. Group 1: Certifications and Safety Standards - GridLink has received UL 1973 and UL 9540A certifications, which are benchmarks for safety, efficiency, and grid compliance, highlighting its commitment to high safety standards [1][2]. - The system features advanced fire safety measures, including built-in fire suppression water tanks, to prevent thermal runaway and protect battery packs [2]. - Compliance with UL 1741 ensures that GridLink's bidirectional converter meets U.S. grid interconnection standards, facilitating integration with the energy infrastructure [3]. Group 2: Efficiency and Performance - GridLink's DC high-voltage air conditioning system offers 2% greater efficiency compared to conventional AC systems, contributing to reduced energy consumption and improved overall performance [4]. - The modular design of GridLink allows for easy replacement of individual battery packs, which lowers maintenance costs and extends the system's lifecycle [6]. Group 3: Safety Monitoring and Protection - The four-dimensional safety monitoring system detects potential risks such as electricity, infrared light, heat, and gases, ensuring comprehensive oversight [5]. - Dual electrical protection combines active and passive measures for rapid disconnection of the main circuit under critical conditions, enhancing user and infrastructure safety [5]. Group 4: Company Overview and Future Outlook - Founded in 2015, XCharge is a leader in integrated EV charging solutions, focusing on enhancing charging efficiency and energy storage management [8]. - The certifications achieved by GridLink mark a significant milestone for XCharge's expansion in the U.S. market, reflecting its dedication to innovation and safety in the evolving energy landscape [7].

Core Insights - XCharge Limited has announced a collaboration with a rental car leader to enhance EV charging solutions at US airport rental facilities, having completed construction at several major East Coast airports and secured future projects [1][2] Company Overview - XCharge, founded in 2015, is a global leader in integrated EV charging solutions, offering DC fast chargers and advanced battery-integrated charging systems, aimed at enhancing EV charging efficiency and promoting a sustainable future [5] Collaboration Details - The collaboration focuses on upgrading the rental company's airport charging infrastructure, addressing unique challenges such as limited space and utility grid constraints, with XCharge's solutions designed for fast and efficient installation [2][3] - XCharge's Level-3 charging stations significantly reduce charging times, improving speed by more than tenfold compared to existing Level-2 solutions, thus alleviating service bottlenecks and enhancing customer satisfaction [3] Strategic Goals - The company aims to alleviate charging anxiety for EV drivers by expanding its presence in high-traffic locations, thereby introducing convenient, high-speed charging services to a broader audience [4]

Core Insights - XCharge's GridLink system has received UL 1973 and UL 9540A certifications, establishing its safety, efficiency, and grid compliance in the energy storage market [6][9][19] Group 1: Certifications and Compliance - The GridLink system complies with U.S. grid interconnection standards through UL 1741 certification, ensuring integration with the national energy infrastructure [7] - Achieving UL certifications reflects XCharge's commitment to safety and innovation, setting a new industry benchmark [19] Group 2: Safety Features - GridLink features a four-dimensional safety monitoring system that detects potential risks such as electricity, infrared light, heat, and gases [8] - The system includes advanced fire safety measures, such as built-in fire suppression water tanks, to prevent thermal runaway [17] Group 3: Efficiency and Design - The DC high-voltage air conditioning system of GridLink achieves 2% greater efficiency compared to conventional systems, reducing energy consumption [12] - GridLink's modular design allows for easy replacement of individual battery packs, lowering maintenance costs and extending lifecycle [13] Group 4: Company Overview - XCharge, founded in 2015, is a leader in integrated EV charging solutions, offering a range of products including DC fast chargers and energy storage systems [14][20]

Core Insights - XCHG Limited (XCharge) has announced that its GridLink system has received UL 1973 and UL 9540A certifications, enhancing its position in the energy storage market [1][11] - The certifications ensure safety, efficiency, and compliance with U.S. grid standards, reflecting the company's commitment to reliable energy solutions [2][6] Group 1: Product Innovations - GridLink's bidirectional converter complies with UL 1741, facilitating integration with the U.S. energy infrastructure [2] - The system features a DC high-voltage air conditioning system that achieves 2% greater efficiency than conventional systems, reducing energy consumption and improving performance [3] - A four-dimensional safety monitoring system detects potential risks, ensuring user and infrastructure safety through rapid disconnection under critical conditions [4] Group 2: Design and Reliability - GridLink's modular design allows for easy replacement of individual battery packs, lowering maintenance costs and extending the system's lifecycle [5] - The system incorporates advanced fire safety measures, including built-in fire suppression tanks and IP65-rated sealing, to prevent thermal runaway and protect battery packs [11][12] Group 3: Market Position and Future Outlook - The certification marks a significant milestone for XCharge's expansion in the U.S. market, promoting a sustainable and resilient energy future [6] - XCharge, founded in 2015, focuses on integrated EV charging solutions, enhancing charging efficiency and energy management [7]

Company Overview - XCharge, founded in 2015, is a global leader in integrated EV charging solutions, offering comprehensive products including DC fast chargers and advanced battery-integrated DC fast chargers [4] - The company focuses on enhancing EV charging efficiency through proprietary charging technology and energy storage systems, aiming to establish a global green future [4] Trading Information - XCharge's American Depositary Shares (ADSs) are traded on the Nasdaq Global Market under the ticker symbol "XCH" [1] - The company has acknowledged recent unusual trading activity of its ADSs but is not aware of any material news or events that would account for this activity [2][6] Corporate Governance - XCharge is committed to sound corporate governance and transparent communication with its shareholders, ensuring that its operations continue as normal and its financial condition remains strong [2]

Core Viewpoint - XCharge Limited reported a challenging second quarter in 2024, with significant declines in DC fast charger deliveries and revenues, while maintaining a focus on innovation and customer demand amidst a tough macroeconomic environment [1][3]. Operational Highlights - DC fast charger deliveries in Q2 2024 were 438, down 31.8% from 642 in Q2 2023 - Total EV charger deliveries in Q2 2024 were 619, a decrease of 5.4% from 654 in Q2 2023 - For the first half of 2024, DC fast charger deliveries totaled 764, down 30.0% from 1,092 in the same period of 2023 - Total EV charger deliveries for the first half of 2024 were 1,155, an increase of 2.1% from 1,131 in the same period of 2023 [2]. Financial Highlights - Revenues for Q2 2024 were $9.0 million, a decrease of 26.3% from $12.2 million in Q2 2023 - Gross profit for Q2 2024 was $4.2 million, down 23.9% from $5.5 million in Q2 2023 - Operating loss for Q2 2024 was $(0.9) million, compared to an operating income of $2.1 million in Q2 2023 - Net loss for Q2 2024 was $(1.0) million, compared to a net income of $2.0 million in Q2 2023 [5][7][12]. Cost and Expense Analysis - Cost of revenues for Q2 2024 was $4.8 million, down 28.2% from $6.7 million in Q2 2023 - Selling and marketing expenses increased to $2.3 million in Q2 2024, up 74.2% from $1.3 million in Q2 2023 - Research and development expenses rose to $1.2 million in Q2 2024, an increase of 18.7% from $1.0 million in Q2 2023 - General and administrative expenses were $1.6 million in Q2 2024, up 47.4% from $1.1 million in Q2 2023 [8][9][10][11]. Initial Public Offering - In September 2024, XCharge completed its IPO, issuing 3,462,223 American depositary shares at $6.20 per ADS, raising approximately $21.5 million before expenses, with net proceeds of $19.1 million [4]. Cash Position - As of June 30, 2024, cash and cash equivalents were $24.3 million, an increase from $12.8 million as of March 31, 2024 [13]. Company Overview - XCharge, founded in 2015, is a leader in integrated EV charging solutions, focusing on enhancing charging efficiency and developing innovative technologies to support a global green future [14].

Core Insights - XCharge North America has partnered with Grensol Group to enhance recycling solutions for Electric Vehicle Supply Equipment (EVSE) waste, particularly focusing on EV charging cables and modules [1][5][6] Group 1: Partnership Details - The collaboration will involve XCharge NA providing broken or worn-down EVSE materials to Grensol and Worcester Polytechnic Institute (WPI) for developing an industrial recycling solution [2][3][4] - Grensol will utilize advanced technologies, including metals recovery and photolysis, to process the waste and generate valuable raw materials for a circular economy [4][7] Group 2: Objectives and Benefits - The partnership aims to address the short lifecycle of EVSEs by creating recyclable material solutions, thereby promoting sustainable practices in the automotive industry [5][6] - The initiative is expected to reduce carbon emissions and keep resources onshore, contributing to a more sustainable future [5][6] Group 3: Future Directions - XCharge NA and Grensol plan to explore various recycling methods, including wire cutting, alkaline leaching, and steam cracking, to establish a continuous lifecycle for charging materials [6] - Initial components, such as charging cables and modules, have already been shipped to Grensol and WPI for processing [6]