Company: XXC
Filing Date: 2025-11-18
Form Type: 20-F
Source: 0001213900-25-111691
Chunk: 81

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-18
Form: 20-F
Item: Item 19
Chunk 81
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 financial reports of the Company’s subsidiaries into
US dollars, assets and liabilities are translated at the exchange rates at the consolidated balance sheet date, equity accounts are translated
at historical exchange rates and revenue, expenses, gains and losses are translated at the average rate for the period. Translation adjustments
are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income in the consolidated
statements of income and comprehensive income.

The relevant exchange rates
are listed below:

                                             For the Fiscal Years Ended                                                          
                                                               June 30,                                                          
                                                                   2025                  2024                  2023              
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Period Ended RMB: USD exchange rate                                        7.1636                7.2672                7.2513  
  Period Average RMB: USD exchange rate                                      7.2143                7.2248                6.9536  

Cash

Cash primarily consists of
cash on hand, cash accounts, and interest-bearing saving accounts with financial institutions which are unrestricted as to withdrawal
and use.

Accounts Receivable and Allowance for Doubtful
Accounts

Accounts receivables are recognized
and carried at the original invoiced amount less an estimated allowance for uncollectible accounts. The Company usually determines the
adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes
a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect due amounts. The allowance
is based on management’s best estimates of specific losses on individual exposures, 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.

Inventories

Inventories are stated at the
lower of cost or net realizable value. Cost is principally determined using the weighted-average method. 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