Company: XXC
Filing Date: 2025-11-18
Form Type: 20-F
Source: 0001213900-25-111691
Chunk: 56

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-18
Form: 20-F
Item: Item 10
Chunk 56
---
 operating results
in our consolidated financial statements. In particular, because the value of our assets for purposes of the asset test will generally
be determined based on the market price of our ordinary shares and because cash is generally considered to be an asset held for the production
of passive income, our PFIC status will depend in large part on the market price of our ordinary shares and the amount of cash we raise
in our initial public offering. Accordingly, fluctuations in the market price of the ordinary shares may cause us to become a PFIC. In
addition, the application of the PFIC rules is subject to uncertainty in several respects and the composition of our income and assets
will be affected by how, and how quickly, we spend the cash we raise in our initial public offering. We are under no obligation to take
steps to reduce the risk of our being classified as a PFIC, and as stated above, the determination of the value of our assets will depend
upon material facts (including the market price of our ordinary shares from time to time and the amount of cash we raise in our initial
public offering) that may not be within our control. If we are a PFIC for any year during which you hold ordinary shares, we will continue
to be treated as a PFIC for all succeeding years during which you hold ordinary shares. However, if we cease to be a PFIC and you did
not previously make a timely “mark-to-market” election as described below, you may avoid some of the adverse effects of the
PFIC regime by making a “purging election” (as described below) with respect to the ordinary shares.

If
we are a PFIC for your taxable year(s) during which you hold ordinary shares, you will be subject to special tax rules with respect to
any “excess distribution” that you receive and any gain you realize from a sale or other disposition (including a pledge)
of the ordinary shares, unless you make a “mark-to-market” election as discussed below. Distributions you receive in a taxable
year that are greater than 125% of the average annual distributions you received during the shorter of the three preceding taxable years
or your holding period for the ordinary shares will be treated as an excess distribution. Under these special tax rules:

  the                                                                                              

  the                                                                                             

  the                                                                                         

The
tax liability for amounts allocated to years prior to the year of disposition or “excess distribution” cannot be offset by
any net operating losses for