Company: XXC
Filing Date: 2025-11-18
Form Type: 20-F
Source: 0001213900-25-111691
Chunk: 89

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-18
Form: 20-F
Item: Item 19
Chunk 89
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 excluding
transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive income or loss is reported in
the consolidated statements of comprehensive income/(loss). Accumulated other comprehensive income/(loss), as presented on the accompanying
consolidated balance sheets, consists of accumulated foreign currency translation adjustments.

Dividends

Dividends are recognized when
declared. Nodividends were declared for the years ended June 30, 2025, 2024 and 2023, respectively. The Company does not have
any present plan to pay any dividends on ordinary shares in the foreseeable future and currently intends to retain the available funds
and any future earnings to operate and expand the business.

F-14

XINXU COPPER INDUSTRY TECHNOLOGY LIMITED

NOTE 2 - SIGNIFICANT ACCOUNTING
POLICIES(cont.)

Certain Risks and Concentration

Exchange Rate Risks

The Company operates in PRC,
which may give rise to significant foreign currency risks mainly from fluctuations and the degree of volatility of foreign exchange rates
between the USD and the RMB.

Currency Convertibility Risks

Substantially all the Company’s
operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions
take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange
rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory
institutions requires submitting a payment application form together with other information such as suppliers’ invoices, shipping
documents and signed contracts.

Concentration of Credit Risks

Financial instruments that
potentially subject the Company to the concentration of credit risks consist primarily of cash, and notes receivable. The Company places
its cash in good credit quality financial institutions in Hong Kong and PRC. The concentration of credit risks with respect
to accounts receivable is linked to the concentration of revenue. To manage credit risk, the Company performs ongoing credit evaluations
of customers’ financial condition.

Interest Rate Risks

The Company is subject to interest
rate risk. The Company has bank interest bearing loans charged at variable interest rates. And although some bank interest bearing loans
are charged at fixed interest rates within the reporting period, the Company is still subject to the risk of adverse changes in the interest
rates charged by the banks when these loans are refinanced.

Risks and Uncertainties

The operations of the Company
are