Company: XXC
Filing Date: 2025-11-18
Form Type: 20-F
Source: 0001213900-25-111691
Chunk: 48

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-18
Form: 20-F
Item: Item 10
Chunk 48
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 SAFE promulgated the Circular on Reforming and Regulating Policies on the Management of the Settlement of Foreign Exchange
of Capital Accounts, or the SAFE Circular 16. The SAFE Circular 16 unifies the discretional foreign exchange settlement for all the domestic
institutions. The Discretional Foreign Exchange Settlement refers to the foreign exchange capital in the capital account which has been
confirmed by the relevant policies subject to the discretional foreign exchange settlement (including foreign exchange capital, foreign
loans and funds remitted from the proceeds from the overseas listing) can be settled at the banks based on the actual operational needs
of the domestic institutions. The proportion of Discretional Foreign Exchange Settlement of the foreign exchange capital is temporarily
determined as 100%. Violations of SAFE Circular 19 or SAFE Circular 16 could result in administrative penalties in accordance with the
Foreign Exchange Administrative Regulation and relevant provisions.

Furthermore,
SAFE Circular 16 stipulates that the use of foreign exchange incomes of capital accounts by FIEs shall follow the principles of authenticity
and self-use within the business scope of the enterprises. The foreign exchange incomes of capital accounts and capital in RMB obtained
by the FIE from foreign exchange settlement shall not be used for the following purposes: (i) directly or indirectly used for the payment
beyond the business scope of the enterprises or the payment prohibited by relevant laws and regulations; (ii) directly or indirectly
used for investment in securities or financial schemes other than bank guaranteed products unless otherwise provided by relevant laws
and regulations; (iii) used for granting loans to non-affiliated enterprises, unless otherwise permitted by its business scope; and (iv)
used for the construction or purchase of real estate that is not for self-use (except for the real estate enterprises).

10. E. Taxation

The
following discussion of material Cayman Islands, PRC and United States federal income tax consequences of an investment in Xinxu’s
ordinary shares is based upon laws and relevant interpretations thereof in effect as of the date of this annual report, all of which
are subject to change. This discussion does not deal with all possible tax consequences relating to an investment in Xinxu’s ordinary
shares, such as the tax consequences under state, local and other tax laws.

Cayman
Islands Taxation

The
Cayman Islands currently levies no taxes on individuals or corporations based upon profits, income, gains, or appreciation and there
is no taxation in the nature of inheritance tax or estate duty.