Xchg Limited's Business Segments

XCHG Limited is a holding company incorporated in the Cayman Islands that operates through its subsidiaries. Its principal subsidiaries include Beijing X-Charge Technology Co., Ltd. (X-Charge Technology), XCharge Europe GmbH (XCharge Europe), and XCharge Energy USA Inc. (XCharge North America). The company is engaged in the development, production, and sale of electric vehicle (EV) chargers and related products and services. XCHG Limited depends on dividends from its subsidiaries to meet cash requirements, including dividend payments to shareholders. Subsidiaries in China are subject to local regulations that may restrict dividend distributions and require appropriations from after-tax profits to reserve funds such as a general reserve fund, enterprise expansion fund, and staff bonus and welfare fund. The company operates in a competitive and uncertain industry influenced by government policies, market acceptance, technological developments, and economic conditions. XCHG Limited consolidates its financial information and business operations from its subsidiaries and reports using multiple currencies, including U.S. dollars, euros, and Renminbi.

The Group operates as a single operating segment. The Chief Executive Officer, serving as the chief operating decision maker (CODM), reviews consolidated financial information to make operating decisions, allocate resources, and evaluate financial performance. Segment profitability is measured by consolidated net loss. The CODM monitors budget versus actual results and allocates resources based on consolidated net loss as reported in the consolidated statements of comprehensive loss. No additional expense categories beyond those in the primary financial statements are regularly provided to the CODM. The Group's long-lived assets are primarily located in and derived from the People's Republic of China, with no material long-lived assets attributable to other individual countries; therefore, no geographical segments are presented.