Company: XXC
Filing Date: 2025-06-10
Form Type: F-1/A
Source: 0001213900-25-052817
Chunk: 266

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-06-10
Form: F-1/A
Chunk 266
---
 to advances received from customers regarding product sales, which are applied against revenue when performance obligations are satisfied. Property and Equipment, net Property and equipment are recorded at cost less accumulated depreciation. Depreciation commences upon placing the asset in use and is recognized on a straight -linebasis over the estimated useful lives of the assets with 5% of residual value, as follows:

|                         |     | Useful lives |
| Buildings               |     | 20 years     |
| Machinery and equipment |     | 10 years     |
| Transportation vehicles |     | 5 – 10 years |
| Office equipment        |     | 3 – 5 years  |
| Electronic equipment    |     | 3 – 5 years  |

F-11

XINXU COPPER INDUSTRY TECHNOLOGY LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (cont.) Expenditures on maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses. Land Use Rights Intangible assets consist of land use rights. Under the PRC law, all land in the PRC is owned by the government and cannot be sold to an individual or company. The government grants individuals and companies the right to use parcels of land for specified periods of time. These land use rights are sometimes referred to informally as “ownership.” Land use rights are stated at the cost less accumulated amortization. Intangible assets are amortized using the straight -linemethod with the following estimated useful lives:

|                 |     | Useful lives |
| Land use rights |     | 50 years     |

Impairment of Long-lived Assets The Company’s management reviews the carrying values of long -livedassets whenever events and circumstances, such as a significant decline in the asset’s market value, obsolescence or physical damage affecting the asset, significant adverse changes in the assets use, deterioration in the expected level of the assets performance, cash flows for maintaining the asset are higher than forecast, indicate that the net book value of an asset may not be recovered through expected future cash flows from its use and eventual disposition. If the estimated