Company: XXC
Filing Date: 2025-11-18
Form Type: 20-F
Source: 0001213900-25-111691
Chunk: 107

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-18
Form: 20-F
Item: Item 19
Chunk 107
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  Bad debts and impairment provisions                           80,714                 79,563                 79,738  
  Safety production funds                                      395,569                389,930                390,785  
  Total                                    $                   476,283      $         469,493      $         470,523  

The Company follows the liability
method of accounting for income taxes in accordance with ASC 740 (“ ASC 740”), Income Taxes. Under this method, deferred
tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities
using enacted tax rates that will be in effect in the period in which the differences are expected to be reversed. The Company would record
a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that
some portion, or all, of the deferred tax assets, will not be realized. The effect on deferred taxes of a change in tax rate is recognized
in tax expense in the period that includes the enactment date of the change in tax rate.

There wasnovaluation allowance
for the deferred tax assets as of June 30, 2025 and 2024. The ultimate realization of deferred tax assets is dependent upon the generation
of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled
reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon
the level of historical taxable income, projections for future taxable income over the periods in which the deferred tax assets are deductible,
and the scheduled reversal of deferred tax liabilities, management believes it is more likely that the Company will realize the benefits
of those deductible differences as of June 30, 2025 and 2024.

The Company accounted for uncertainties
in income taxes in accordance with ASC 740. Interest and penalties related to unrecognized tax benefit recognized in accordance with
ASC 740 are classified in the consolidated statements of income as income tax expense.

F-26

XINXU COPPER INDUSTRY TECHNOLOGY LIMITED

NOTE 23 - INCOME TAXES(cont.)

Uncertain Tax Positions

The guidance on accounting
for uncertainties in income taxes prescribes a more likely threshold for financial statement recognition and measurement of a tax position
taken or expected to be taken in a tax return. The guidance also applies to the recognition of income tax assets and liabilities, classification
of current and deferred income tax assets and liabilities