Company: XXC
Filing Date: 2025-08-05
Form Type: F-1/A
Source: 0001213900-25-071711
Chunk: 135

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-08-05
Form: F-1/A
Chunk 135
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ivables of approximately $1.53million, primarily due to the repayment of borrowings from third -partycompanies; (v)an increase in accounts payable of approximately $6.50million, primarily due to an increase in purchase of raw materials in June 2024; and (vi)a decrease in other current liabilities of approximately $2.05million, primarily due to repayment of individual borrowings and funds from third -partycompanies. Net cash used in operating activities for the fiscal year ended June30, 2023 was approximately $1.44million, which was primarily attributable to a net loss of approximately $0.27million, adjusted for non -cashitems for approximately $0.40 million and adjustments for changes in working capital approximately $1.57 million. The adjustments for changes in working capital mainly included: (i)an increase in accounts receivable of approximately $4.49million, primarily due to the increased purchase of copper materials, primarily electrolytic copper; (ii)a decrease in inventory of approximately $63.07million due to the increase in sales of copper materials, primarily electrolytic copper. As the market price of electrolytic copper hit a historic low point during June 2023, we received a large volume of orders from our customers to purchase electrolytic copper. As a result, we purchased electrolytic copper from our suppliers to fulfil these orders, most of which were not delivered to customers as of June30, 2023 and resulted in a high inventory level. As of June30, 2023, we had electrolytic copper inventory of 7,664 tons, with book value of approximately $60.33million. As of June30, 2024, we delivered all such orders to our customers, which significantly reduced our inventory level. We believe this surge of inventory in June 2023 is not a seasonal or occurring event but a non -occurringevent. (iii)an increase in advance to suppliers of approximately $4.77million. During the fiscal year ended June30, 2024, in order to acquire equipment for our new R&D projects related to copper power distribution components made of copper bars that are widely used in electric vehicle battery packs, we made advance payments to our equipment suppliers in the aggregate amount of approximately $3.33million; (iv)a decrease in accounts payable of approximately $52.95million primarily due to the payment we made to our electrolytic copper suppliers. During the fiscal year ended June30, 2023, we received a large volume