XCHG Limited Reports Second Quarter 2024 Unaudited Financial Results

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].