Company: XXC
Filing Date: 2025-11-18
Form Type: 20-F
Source: 0001213900-25-111691
Chunk: 14

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-18
Form: 20-F
Item: Item 6
Chunk 14
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  of each quarter) during the taxable year which produces passive income or which are held for the production of passive income is at least  
  50%.                                                                                                                                       
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Passive income generally includes
dividends, interest, rents, royalties (other than rents or royalties derived from the active conduct of a trade or business) and gains
from the disposition of passive assets.

If we are determined to be
a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U. S. taxpayer who holds our ordinary shares,
the U. S. taxpayer may be subject to increased U. S. federal income tax liability and may be subject to additional reporting requirements.

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 year, more than 50% of our assets may be assets which produce 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 operating
results in our consolidated financial statements. For purposes of the PFIC analysis, in general, a non-U. S. corporation is deemed to own
its pro rata share of the gross income and assets of any entity in which it is considered to own, directly or indirectly, at least 25%
of the equity by value.

Our status as a PFIC is a fact-intensive
determination made on an annual basis. Accordingly, our U. S. counsel expresses no opinion with respect to our PFIC status and also expresses
no opinion with regard to our expectations regarding our PFIC status.

For a more detailed discussion
of the application of the PFIC rules to us and the consequences to U. S. taxpayers who own our ordinary shares if we were determined to
be a PFIC, see “ Item 10. E. Taxation - Material United States Federal Income Tax Considerations - Passive Foreign
Investment Company.”

The MAA contains anti-takeover provisions
could have a material adverse effect on the rights of holders of our ordinary shares.

Some provisions of our articles
of association may discourage, delay or prevent a change in control of