Company: XXC
Filing Date: 2025-09-08
Form Type: F-1/A
Source: 0001213900-25-085500
Chunk: 310

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-09-08
Form: F-1/A
Chunk 310
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, as well as a provision on historical trends of collections. Based on management of customers’ credit and ongoing relationship, management makes conclusions whether any balances outstanding at the end of the period will be deemed uncollectible on an individual basis and on an aging analysis basis. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable.

F-39 XINXU COPPER INDUSTRY TECHNOLOGY LIMITED
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (cont.) Inventories Inventories are stated at the lower of cost or net realizable value. Cost is principally determined using the weighted -averagemethod. The Company records adjustments to inventory for excess quantities, obsolescence or impairment when appropriate to reflect inventory at net realizable value. These adjustments are based upon a combination of factors including current sales volume, market conditions, lower of cost or market analysis and expected realizable value of the inventory. Advances to Suppliers Advances to suppliers refer to advances for purchase of materials or other service agreements, which are applied against accounts payable when the materials or services are received. The Company reviews a supplier’s credit history, available financial condition information, and background information before advancing payment. If any circumstance indicates an impairment of the supplier’s ability to deliver goods or provide services, the Company will reserve provision for the amount in the period when it is considered impaired. Other Receivables Other receivables mostly refer to the interest income earned but not received from the loan receivable that the Company had with a third -partyborrower. The interest receivable would be collected back; at the time the loan receivable was due from the third party. Other Current Assets Other current assets are related to VAT input tax credit to be certified by the PRC tax authorities to be qualified for future deduction against VAT output tax liability. Advances from Customers Advances from customers refer to advances received from customers regarding product sales, which are applied against revenue when performance obligations are satisfied. Deferred Revenue Deferred revenue refers to a deferred government grant in relation to purchase of land use rights. This grant is amortized on a straight -linebasis over a 50 -yearperiod starting from April 2013. Long-term Deferred Expenses Long -termdeferred expenses refer to deferred repair and maintenance fees for buildings and manufacturing equipment.