Company: XXC
Filing Date: 2025-08-05
Form Type: F-1/A
Source: 0001213900-25-071711
Chunk: 142

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-08-05
Form: F-1/A
Chunk 142
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 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 the requirement that distributions by PRC entities can only be paid out of distributable profits computed in accordance with PRC GAAP, our PRC entities are restricted from transferring a portion of their net assets to us. Amounts restricted include paid -incapital, additional paid -incapital, and the statutory reserves of our PRC subsidiaries. The aggregate amount of capital and statutory reserves restricted which represented the amount of net assets of the relevant subsidiaries in the Company not available for distribution was $5,487,069 as of December31, 2024, June 30, 2024 and 2023. Under PRC laws and regulations, statutory surplus reserves are restricted to set -offagainst losses, expansion of production and operation and increasing registered capital of the respective company and are not distributable other than upon liquidation. The reserves are not allowed to be transferred to the Company in terms of cash dividends, loans, or advances, nor are they allowed for distribution except under liquidation. Quantitative and Qualitative Disclosures about Market Risk Foreign Exchange Risk All our revenues and substantially all our expenses are denominated in RMB. Our financial information uses RMB as the functional currency has been translated into U.S. dollars in our consolidated financial statements. We do not believe that we currently have any significant direct foreign exchange risk and