Company: XXC
Filing Date: 2025-08-05
Form Type: F-1/A
Source: 0001213900-25-071711
Chunk: 123

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-08-05
Form: F-1/A
Chunk 123
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 focus on higher -marginproducts. Notwithstanding the foregoing, after such strategic adjustment, electrolytic copper is still our main product, accounting for approximately 79.90%, 93.98% and 85.90%, respectively, of our total revenues for the six months ended December31, 2024 and the fiscal year ended June30, 2024 and 2023. We engage in metal casting, extruding, and drawing to fabricate finished and semi -finishedcopper products from copper cathode and scrap copper wires. Our products are used in a variety of applications across diversified end markets, including electronics and electrical components, telecommunications, automobiles, air conditioners, ships, metallurgy, electromechanical, transportation, building and housing, power distribution, solar energy, and other sectors across China. We access these end markets through our direct sales force, reaching a wide variety of customers with both high and low volume demands for our products. We believe the diversity of our product portfolio, our R&D capacities and technical expertise, underpin the long -standingrelationships we have with our broad customer base. Key Factors Affecting Our Results Our results are primarily derived from the sales of copper and copper alloy products to our customers in China. The historical performance and outlook for our business is influenced by numerous factors, including the following: •Fluctuations in Prices of Electrolytic Copper and Other Costs — Fluctuations in the prices of raw materials can lead to volatility in the pricing of our products, which influences the buying patterns of our customers. Because the raw material cost represents most of our total cost of sales, higher or lower raw material cost affects our gross margins. Increases in the market price of raw materials typically enable us to raise our selling prices. To a lesser extent, our gross margins and selling prices can also be impacted by the prices of other raw materials, transportation and labor. •Price Fluctuations Due to Cyclical Market Condition — The copper processing industry in general is characterized by cyclical market conditions. From time to time, the industry has been subject to imbalances between excess supply and a slowdown in demand, and in certain periods, resulting in declines in selling 70

prices. In addition, capacity expansion anticipated in the copper processing industry may lead to excess capacity. Capacity expansion in the industry may be due to scheduled ramp -upof new manufacturing facilities, and any large increases in capacity because of such expansion could further drive down the selling prices of our products, which would affect our results of operations. We cannot assure