Company: XXC
Filing Date: 2025-09-18
Form Type: F-1/A
Source: 0001213900-25-089077
Chunk: 132

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-09-18
Form: F-1/A
Chunk 132
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2023, we received a large volume of orders from our customers to purchase electrolytic copper. As a result, we purchased electrolytic copper from our suppliers to fulfil these orders, most of which were not delivered to customers as of June30, 2023 and resulted in a high inventory level. As of June30, 2023, we had electrolytic copper inventory of 7,664 tons, with book value of approximately $60.33million. As of June30, 2024, we delivered all such orders to our customers, which significantly reduced our inventory level. We believe this surge of inventory in June 2023 is not a seasonal or occurring event but a non -occurringevent. (iii)an increase in advance to suppliers of approximately $4.77million. During the fiscal year ended June30, 2024, in order to acquire equipment for our new R&D projects related to copper power distribution components made of copper bars that are widely used in electric vehicle battery packs, we made advance payments to our equipment suppliers in the aggregate amount of approximately $3.33million; (iv)a decrease in accounts payable of approximately $52.95million primarily due to the payment we made to our electrolytic copper suppliers. During the fiscal year ended June30, 2023, we received a large volume of orders from our customers to purchase electrolytic copper. As a result, we purchased electrolytic copper from our suppliers to fulfil these orders, which caused a significant increase in accounts payable as of June30, 2023. As of June30, 2024, we delivered all such orders to our customers and paid off our accounts payable to suppliers, which significantly reduced our accounts payable balance; and (v)a decrease in advance from customers of approximately $3.61million primarily due to delivery of electrolytic copper to customers during the fiscal year ended June30, 2024. During June 2023, we received a large volume of orders from our customers to purchase electrolytic copper, and some of the customers were required to pay a certain amount of advance deposit. During the fiscal year ended June30, 2024, we delivered all orders to our customers which offset the advance payment from customers. Investing Activities: Net cash used in investing activities was approximately $0.28million for the six months ended December31, 2024, which was primarily attributable to the acquisition of fixed assets during the period. See more information on the acquired fixed assets in Note 9 to the consolidated financial statements.