Company: XXC
Filing Date: 2025-08-05
Form Type: F-1/A
Source: 0001213900-25-071711
Chunk: 141

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-08-05
Form: F-1/A
Chunk 141
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 or cash flows. Off-balance Sheet Commitments and Arrangements There were no off -balancesheet arrangements for the six months ended December31, 2024 and the fiscal years ended June30, 2024 and 2023 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, 0.23% for 2023, and 1.97% for 2022. 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 82 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 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 December31, 2024, June30, 2024 and 2023, our PRC subsidiaries had no statutory surplus reserve. 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, which will be used for enhancement of production safety and