Company: XXC
Filing Date: 2025-11-18
Form Type: 20-F
Source: 0001213900-25-111691
Chunk: 79

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-18
Form: 20-F
Item: Item 19
Chunk 79
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 by Xian Cheng. On November 3, 2021,
Hecang Limited, an unrelated Hong Kong entity, acquired5% of the equity interest of Anhui Xinxu from Jinchun Cheng. On November 15,
2021, Anhui Heri acquired93% equity of Anhui Xinxu from Jinchun Cheng,5% from Hecang Limited, and2% from Xian Cheng. As a result, Anhui
Xinxu’s equity interest was100% held by Anhui Heri as of November 15, 2021.

F-7

XINXU COPPER INDUSTRY TECHNOLOGY LIMITED

NOTE 1 - ORGANIZATION AND NATURE
OF OPERATIONS(cont.)

During the years presented
in these consolidated financial statements, the control of the entities has never changed (always under the ultimate control of Jinchun
Cheng). Accordingly, the combination has been treated as a corporate restructuring (reorganization) of entities under common control and
thus the current capital structure has been retroactively presented in prior periods as if such structure existed at that time and in
accordance with ASC 805-50-45-5, the entities under common control are presented on a combined basis for all periods to which such
entities were under common control. The consolidation of the Company and its subsidiaries have been accounted for at historical cost and
prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in
the accompanying consolidated financial statements.

NOTE 2 - SIGNIFICANT ACCOUNTING
POLICIES

Basis of Presentation and Principles of Consolidation

The accompanying consolidated
financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United Stated
of America (“ US GAAP”) and have been consistently applied. The accompanying consolidated financial statements include the
financial statements of the Company and its majority-owned and controlled subsidiaries. All significant inter-company transactions
and balances have been eliminated upon consolidation.

Going Concern Consideration

As of June 30, 2025, the
Company had a negative cash flow from operating activities of $4,894,319; As of June 30, 2024, the Company had a negative working
capital of $573,804and accumulated deficit of $1,153,912. These conditions raise substantial doubt about the Company’s ability
to continue as a going concern. Therefore, the Company may be unable