Company: XXC
Filing Date: 2025-06-10
Form Type: F-1/A
Source: 0001213900-25-052817
Chunk: 146

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-06-10
Form: F-1/A
Chunk 146
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99.50 million and $146.76million, respectively, accounting for approximately 93.98% and 85.90%, respectively, of our total revenues. In January 2024, we adjusted our sales structure by significantly reducing the volume of copper material resales, primarily electrolytic copper, until June30, 2024. This decrease was primarily the result of a strategic adjustment in our sales focus away from lower -marginproducts, such as electrolytic copper and traditional copper bars, toward higher -marginproducts, specifically soft and hard connection copper bars, which are widely used in electric vehicle battery packs. As a result, there was a significant decrease in resale of copper materials, primarily electrolytic copper from January 2024 to June 2024, due to their relatively low profit margins of 4% and 2.6%, respectively, for the fiscal years ended June30, 2024 and 2023. This strategic adjustment was also accompanied by a gradual increase in the production and sales of copper bar products, which generated comparatively higher profit margins of 5.9% and 8.1%, respectively, for the same respective periods. See “ Management’s Discussion and Analysis of Financial Condition and Results of Operations.” This realignment reflects our ongoing efforts to optimize our product mix, improve overall profitability, and focus on higher -marginbusiness lines. Aluminum bar Aluminum bars, also known as aluminum bar assemblies or soft aluminum connectors, are soft connectors made of aluminum foil. They are widely used in the battery modules of new energy vehicles to facilitate electrical connections between battery cells. Aluminum bars offer good electrical conductivity, ensuring efficient current transmission within battery modules. Since May 2023, we have procured aluminum raw materials, processed them using our existing polymer diffusion welding machines and punch presses, and subsequently sold the finished products to our customers. Picture 8: Selection of Aluminum Bar For the fiscal years ended June30, 2024 and 2023, our revenues generated from the sales of aluminum bar products were approximately $0.13million and nil, accounting for approximately 0.12% and nil, respectively, of our total revenues. 84 Our Customers A sound customer base is undeniable to our success. We source our customers through multiple channels: (i) referrals from our present customers, (2) industry exhibitions/expos, and (iii) our direct sales team. Because of our strong brand equity, loyal customer base and evolving product portfolio, we believe there are significant growth opportunities across these channels as we deepen our sales