Company: XXC
Filing Date: 2025-11-28
Form Type: POS AM
Source: 0001213900-25-115625
Chunk: 128

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-28
Form: POS AM
Chunk 128
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ments and Arrangements There were no off -balancesheet arrangements for the fiscal years ended June30, 2025 and 2024 that have or that in the opinion of our management are likely to have, a current or future material effect on our consolidated financial condition or results of operations. Impact of Inflation We do not believe the impact of inflation on our Company is material. Our operations are in China and China’s inflation rates in the last three years are: 0.2% for 2024 and 0.23% for 2023. Holding Company Structure Xinxu is a holding company with no material operations of its own. We conduct our operations through our subsidiaries in China. As a result, our ability to pay dividends and to finance any debt we may incur depends upon dividends paid by our subsidiaries. Our PRC subsidiaries may purchase foreign exchange from relevant banks and make distributions to offshore companies after completing relevant foreign exchange registration with the SAFE. Our offshore companies may inject capital into or provide loans to our PRC subsidiaries through capital contributions or shareholder loans, subject to applicable PRC regulations. If any of our subsidiaries incur debt on their own behalf in the future, the instruments governing its debt may restrict its ability to pay dividends to us. In addition, our subsidiaries are permitted to pay dividends to us only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Pursuant to PRC Company Law, our PRC subsidiaries are required to maintain statutory surplus reserves. The statutory surplus reserves are to be appropriated from net income after taxes and should be at least 10% of the after -taxnet income determined in accordance with accounting principles and relevant financial regulations applicable to PRC 73 enterprises (“PRC GAAP”). Our PRC subsidiaries have an option not to contribute to the statutory surplus reserve after the statutory surplus reserve is equal to 50% of the subsidiary’s registered capital. Statutory surplus reserves are recorded as a component of shareholders’ equity. As of June30, 2025, the Company has statutory surplus reserve of $130,878. Due to the Company was at an accumulated deficit position as of June 2024 after the making up for the previous year’s accumulated deficit, there was no statutory surplus reserve to be booked for the fiscal year ended on June30, 2024. In accordance with the regulations of the PRC State Administration of Work Safety, the Company’s PRC subsidiary, Anhui Xinxu is required to incur safety production funds,