Company: XXC
Filing Date: 2025-06-10
Form Type: F-1/A
Source: 0001213900-25-052817
Chunk: 126

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-06-10
Form: F-1/A
Chunk 126
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 | ) |
| Net cash (used in) provided by investing activities          |     |   |  (2,093,112 | ) |     |   |   1,788,177 |   |
| Net cash (used in) financing activities                      |     |   |    (654,252 | ) |     |   |    (530,559 | ) |
| Effect of exchange rate changes on cash and cash equivalents |     |   |      (3,295 | ) |     |   |      (8,581 | ) |
| Net change in cash and cash equivalents                      |     | $ |     549,218 |   |     | $ |    (189,737 | ) |
| Cash and cash equivalents, beginning of period               |     |   |      24,621 |   |     |   |     214,358 |   |
| Cash and cash equivalents, end of period                     |     | $ |     573,839 |   |     | $ |      24,621 |   |

70 Operating Activities: Net cash provided by operating activities for the fiscal year ended June30, 2024 was approximately $3.30 million, which was primarily attributable to a net profit of approximately $0.84 million, adjusted for non -cashitems for approximately $0.46 million and adjustments for changes in working capital approximately $2million. The adjustments for changes in working capital mainly included: (i)an increase in accounts receivable of approximately $5.18million, primarily due to (a) the change in sales structure in January 2024 which led to a significant decrease in resale of copper materials, primarily electrolytic copper, due to low profit margin of 4% compared with the gradual increase in the production and sales of copper bar products which had a comparatively high profit margin of 5.9% during the 2024 fiscal year; and (b) the gradual increase in copper bar products which are widely used in the electric vehicle battery packs having a collection period of usually 90 days, which is longer than 7 days for copper materials, including electrolytic copper; (ii)an increase in inventory of approximately $1.72million primarily due to (a) an increase in production of the copper power distribution components made of copper bars that are widely used in electric vehicle battery packs; and (b) an increase in purchase of electrolytic copper as its market price remained at a low point during the year; (iii)a