Company: XXC
Filing Date: 2025-08-05
Form Type: F-1/A
Source: 0001213900-25-071711
Chunk: 134

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-08-05
Form: F-1/A
Chunk 134
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 by operating activities for the six months ended December31, 2023 was approximately $1.91million, which was primarily attributable to a net loss of approximately $0.29million, adjusted for non -cashitems for approximately $0.09million and adjustments for changes in working capital of approximately $2.12million. The adjustments for changes in working capital mainly included: (i)a decrease in accounts receivable of approximately $1.37million, primarily due to the collection of outstanding balances from prior period ended June30, 2023; (ii)a decrease in advance to suppliers of approximately $1.01million, primarily due to: (i) receipt of raw materials from one of our material suppliers, were subsequently recognized as cost of sales; and (ii) the completion of construction of a new factory resulting in the settlement of the construction payment, which were paid in advance; (iii)a decrease in other receivables of approximately $2.09million, primarily due to the collection of working capital loans lent to three unrelated third -partycompanies; and (iv)a decrease in other payables of approximately $1.86million, primarily due to the repayment of borrowings from third -partycompanies. Net cash provided by operating activities for the fiscal year ended June30, 2024 was approximately $3.30million, which was primarily attributable to a net profit of approximately $0.84million, adjusted for non -cashitems for approximately $0.46million and adjustments for changes in working capital approximately $2million. The adjustments for changes in working capital mainly included: (i)an increase in accounts receivable of approximately $5.18million, primarily due to the fact that (a) (i) we shifted our focus from low-margin copper resales to higher-margin copper bar products, and (ii) copper bar customers — especially for use in electric vehicle battery packs — generally have longer payment terms than customers for copper materials.;

78 (ii)an increase in inventory of approximately $1.72million primarily due to (a) an increase in production of the copper power distribution components made of copper bars that are widely used in electric vehicle battery packs; and (b) an increase in purchase of electrolytic copper as its market price remained at a low point during the year; (iii)a decrease in advances to suppliers of approximately $2.29million, primarily related to the decrease in prepaid purchase of equipment, which was assembled and put in operation during the year; (iv)a decrease in other rece