Company: XXC
Filing Date: 2025-11-18
Form Type: 20-F
Source: 0001213900-25-111691
Chunk: 55

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-18
Form: 20-F
Item: Item 10
Chunk 55
---
 are a non-corporate U. S. Holder, including
an individual U. S. Holder, who has held the ordinary shares for more than one year, you may be eligible for reduced tax rates on any
such capital gains. The deductibility of capital losses is subject to limitations.

Passive
Foreign Investment Company

A
non-U. S. corporation is considered a PFIC for any taxable year if either:

  at                                                                         

  at                                                                                        
  least 50% of the value of its assets (based on an average of the quarterly values of the  
  assets during a taxable year) is attributable to assets that produce or are held for the  
  production of passive income (the “asset test”).                                          
 ────────────────────────────────────────────────────────────────────────────────────────────

Passive
income generally includes dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct of
a trade or business) and gains from the disposition of passive assets. We will be treated as owning our proportionate share of the assets
and earning our proportionate share of the income of any other corporation in which we own, directly or indirectly, at least 25% (by
value) of the shares. In determining the value and composition of our assets for purposes of the PFIC asset test, (1) the cash we raise
in our initial public offering will generally be considered to be held for the production of passive income and (2) the value of our
assets must be determined based on the market value of our ordinary shares from time to time, which could cause the value of our non-passive
assets to be less than 50% of the value of all of our assets (including the cash raised in our initial public offering) on any particular
quarterly testing date for purposes of the asset test.

We
must make a separate determination each year as to whether we are a PFIC. Depending on the amount of cash we raise in our initial public
offering, together with any other assets held for the production of passive income, it is possible that, for our current taxable year
or for any subsequent taxable year, more than 50% of our assets may be assets held for the production of passive income. We will make
this determination following the end of any particular tax year. Although the law in this regard is unclear, we treat our consolidated
affiliated entities as being owned by us for United States federal income tax purposes because we consolidate their