Company: XXC
Filing Date: 2025-11-28
Form Type: POS AM
Source: 0001213900-25-115625
Chunk: 121

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-28
Form: POS AM
Chunk 121
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 meet our liquidity needs for the next twelve months. Substantially all our operations are conducted in China and substantially all our revenues, expense, cash and cash equivalents are denominated in Renminbi (RMB). RMB is subject to the exchange control regulation in China, and, as a result, we may have difficulty distributing any dividends outside of China due to PRC exchange control regulations that restrict our ability to convert RMB into U.S. Dollars. Accounts Receivable Accounts receivables are recognized and carried at the original invoiced amount less an estimated allowance for uncollectible accounts. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect due amounts. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. Based on management of customers’ credit and ongoing relationship, management makes conclusions whether any balances outstanding at the end of the period will be deemed uncollectible on an individual basis and on an aging analysis basis. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. The Company does not believe it has a material collection risk under its business model, nor does it believe that macroeconomic issues will have a negative impact on its collectability. The Company expects the business will continue to grow due to innovation and the urbanization process in China. Thus, the Company does not believe the collection issues will impact on its liquidity adversely. Credit Facility We mainly finance our operations through short -termrevolving loans provided by a syndicate of banks, as listed in Note 10 to our financial statements included elsewhere in this registration statement. As of June30, 2025, we had 18 outstanding short -termloans provided by 14 banks, totaling RMB 94,797,143 in the aggregate, or approximately $13.23 million. As of June30, 2024, we had 13 outstanding short -termloans provided by 11 banks, totaling RMB 65,000,000 in the aggregate, or approximately $8.94million. Each of these borrowings has a term of one year and all such borrowings can be renewed, and