Company: XXC
Filing Date: 2025-11-18
Form Type: 20-F
Source: 0001213900-25-111691
Chunk: 80

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-18
Form: 20-F
Item: Item 19
Chunk 80
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 to realize its assets and discharge its liabilities in the normal
course of business.

The Company meets its day-to-day working
capital requirements through its bank facilities. Most of the bank borrowings as of June 30, 2025 that are repayable within the next
12 months are subject to renewal and the management is confident that these borrowings can be renewed upon expiration based on the
Company’s past experience and credit history.

To strengthen the Company’s
liquidity in the foreseeable future, the Company has taken the following measures:

  (i)      Negotiating with banks in advance for renewal and obtaining  

  (ii)      Taking various cost control measures to tighten the costs  

  (iii)      Speeding up production cycle and shortening the delivery term  

  (iv)      Implementing various strategies to enhance sales and profitability.  

The management has a reasonable
expectation that the Company will have adequate resources to continue in operational existence for the foreseeable future.

Use of Estimates

The preparation of the consolidated
financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported
and disclosed in the consolidated financial statements and the accompanying notes. Such estimates include, but are not limited to, allowances
for doubtful accounts, inventory valuation, useful lives of property and equipment, intangible assets, and income taxes related to realization
of deferred tax assets and uncertain tax position. Actual results could differ from those estimates.

F-8

XINXU COPPER INDUSTRY TECHNOLOGY LIMITED

NOTE 2 - SIGNIFICANT ACCOUNTING
POLICIES(cont.)

Foreign Currency Translation

The financial records of the
Company’s subsidiaries in the PRC are maintained in their local currencies which are Chinese Yuan (“ RMB”). Monetary
assets and liabilities denominated in currencies other than their local currencies are translated into local currencies at the rates of
exchange in effect at the consolidated balance sheet dates. Transactions denominated in currencies other than their local currencies during
the year are converted into local currencies at the applicable rates of exchange prevailing when the transactions occur. Transaction gains
and losses are recorded in operating income (expense), net in the consolidated statements of income and comprehensive income.

Xinxu Group maintained its
financial record using the United States dollar (“ US dollar” or “ USD”) as the functional currency, while
the subsidiaries of the Company in Hong Kong and mainland China maintained their financial records using RMB as the functional currencies.
The reporting currency of the Company is US dollars. When translating local