Company: XXC
Filing Date: 2025-09-08
Form Type: F-1/A
Source: 0001213900-25-085500
Chunk: 152

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-09-08
Form: F-1/A
Chunk 152
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. Picture 6: Selection of T2 Copper Rods 91 T2 Copper rods are often used in power generators, electrical switchgear, cables, heat exchangers, pipes, solar energy, heat conductive equipment. For the six months ended December31, 2024 and the fiscal years ended June30, 2024 and 2023, our revenues generated from the sales of our “Xinxu” branded T2 copper rod products were approximately $0.07million, $0.55million and $0.60million, respectively, accounting for approximately 0.10%, 0.52% and 0.35%, respectively, of our total revenues. Electrolytic Copper Electrolytic copper, or extremely pure copper (greater than 99.95%), is superior in electric conductivity and workability, and can be used for a wide array of applications, from cutting -edgeelectronics parts to various electric wires, including general purpose wires. Additionally, due to its superior thermal conductivity coupled with superior workability, it is also used for various copper alloy fabricated products, including copper pipes for air conditioners. It is also heavily used for plated alloys aiming for a high -classimage of metals. We do not manufacture electrolytic copper on our own. We source electrolytic copper from other manufacturers for sales as well as a raw material in our production. We usually purchase products from other fabricator and processors at a lower price and then resell them to our customers at a comparatively higher price. Electrolytic copper is also the main raw materials for fabricating and processing our products, accounting for approximately 40% of our overall raw materials. Picture 7: Selection of Electrolytic Copper In January 2024, we adjusted our sales mix by significantly reducing the volume of copper material resales, primarily electrolytic copper due to their low margins. Instead, we shifted our focus toward higher -marginproducts, particularly soft and hard connection copper bars. We achieved small -batchproduction of these products in December 2023, which are currently widely used in electric vehicle battery packs, a segment experiencing growing demand. As a result, there was a significant decrease in resales of copper materials, primarily electrolytic copper from January 2024 to June 2024. See “ Management’s Discussion and Analysis of Financial Condition and Results of Operations.” This realignment reflects our ongoing efforts to optimize our product mix, improve overall profitability, and focus on higher -marginbusiness lines. Notwithstanding the foregoing, after such strategic adjustment