Company: XXC
Filing Date: 2025-09-18
Form Type: F-1/A
Source: 0001213900-25-089077
Chunk: 139

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-09-18
Form: F-1/A
Chunk 139
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 the requirement that distributions by PRC entities can only be paid out of distributable profits computed in accordance with PRC GAAP, our PRC entities are restricted from transferring a portion of their net assets to us. Amounts restricted include paid -incapital, additional paid -incapital, and the statutory reserves of our PRC subsidiaries. The aggregate amount of capital and statutory reserves restricted which represented the amount of net assets of the relevant subsidiaries in the Company not available for distribution was $5,487,069 as of December31, 2024, June 30, 2024 and 2023. Under PRC laws and regulations, statutory surplus reserves are restricted to set -offagainst losses, expansion of production and operation and increasing registered capital of the respective company and are not distributable other than upon liquidation. The reserves are not allowed to be transferred to the Company in terms of cash dividends, loans, or advances, nor are they allowed for distribution except under liquidation. Quantitative and Qualitative Disclosures about Market Risk Foreign Exchange Risk All our revenues and substantially all our expenses are denominated in RMB. Our financial information uses RMB as the functional currency has been translated into U.S. dollars in our consolidated financial statements. We do not believe that we currently have any significant direct foreign exchange risk and have not used any derivative financial instruments to hedge exposure to such risk. The value of the RMB against the U.S. dollar and other currencies is affected by, among other things, changes in China’s political and economic conditions. The PRC government allowed the RMB to appreciate by more than 20% against the U.S. dollar between July 2005 and July 2008. Over the last three years, the U.S. dollar has appreciated against the RMB, rising from approximately 6.7 to a peak of around 7.35, and has recently stabilized in the 7.16 – 7.17 range. The trend reflects a mix of global economics, China policy, and easing intervention — moving from relative stability to mild depreciation. With the development of the foreign exchange market and progress towards interest rate liberalization and Renminbi internationalization, the PRC government may in the future announce further changes to 83 the exchange rate system and it is difficult to predict whether the Renminbi will appreciate or depreciate significantly in value against the U.S. dollar in the future. It is also difficult to predict how market forces or PRC or U.S. government policy may impact