Company: XXC
Filing Date: 2025-09-18
Form Type: F-1/A
Source: 0001213900-25-089077
Chunk: 138

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-09-18
Form: F-1/A
Chunk 138
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 contributions or shareholder loans, subject to applicable PRC regulations. If any of our subsidiaries incur debt on their own behalf in the future, the instruments governing its debt may restrict its ability to pay dividends to us. In addition, our subsidiaries are permitted to pay dividends to us only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Pursuant to PRC Company Law, our PRC subsidiaries are required to maintain statutory surplus reserves. The statutory surplus reserves are to be appropriated from net income after taxes and should be at least 10% of the after -taxnet income determined in accordance with accounting principles and relevant financial regulations applicable to PRC enterprises (“PRC GAAP”). Our PRC subsidiaries have an option not to contribute to the statutory surplus reserve after the statutory surplus reserve is equal to 50% of the subsidiary’s registered capital. Statutory surplus reserves are recorded as a component of shareholders’ equity. As of December31, 2024, June30, 2024 and 2023, our PRC subsidiaries had no statutory surplus reserve. In accordance with the regulations of the PRC State Administration of Work Safety, the Company’s PRC subsidiary, Anhui Xinxu is required to incur safety production funds, which will be used for enhancement of production safety and improvement of facilities at the rate of: 3% of the actual sales income for the year below RMB10million; 1.5% of the actual sales income for the year between RMB10million and RMB100million (included); 0.5% of the actual sales income for the year between RMB100million and RMB1billion (included); 0.2% of the actual sales income for the year between RMB1billion and RMB5billion (included); 0.1% of the actual sales income for the year between RMB5billion and RMB10billion (included); 0.05% of the actual sales income for the year above RMB10billion. The Company has an option of not appropriating the safety production funds after the reserve is equal to 5% of the subsidiary’s last fiscal year’s sales revenue. As of December31, 2024, June30, 2024 and 2023, the Company accrued safety production funds, which were included in the statutory reserve, in the amount of $2,686,899. As a result of these PRC laws and regulations and