Company: XXC
Filing Date: 2025-11-18
Form Type: 20-F
Source: 0001213900-25-111691
Chunk: 105

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-18
Form: 20-F
Item: Item 19
Chunk 105
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 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 June 30, 2024.

As a result of these PRC laws
and regulations and the requirement that distributions by PRC entities can only be paid out of distributable profits computed in accordance
with PRC GAAP, the PRC entities are restricted from transferring a portion of their net assets to the Company. Amounts restricted include
paid-in capital, additional paid-in capital and the statutory reserves of the Company’s PRC subsidiaries. As of June 30,
2025 and 2024, the aggregate amounts of capital and statutory reserves restricted which represented the amount of net assets of the relevant
subsidiaries in the Company not available for distribution were $5,617,947and $5,487,069, respectively.

NOTE 23 - INCOME TAXES

Enterprise Income Taxes (“ EIT”)

Xinxu Group is incorporated
in Cayman Island as an offshore holding company and is not subject to tax on income or capital gain under the laws of Cayman Island.

HK Xinxu is established in
Hong Kong and is subject to statutory income tax rate at16.5%.

Anhui Heri Ltd. is established
in PRC and is subject to statutory income tax rate at25%.

Anhui Xinxu Ltd. is the Company’s
main operating subsidiary in PRC. Anhui Xinxu is a High-New Technology Enterprise and has an applicable EIT rate of15%. As
of June 30, 2025, the tax years ended December 31, 2019 through December 31, 2024 for the Company’s PRC entities
remain open for statutory examination by PRC tax authorities.

The Company evaluates each
uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the
unrecognized benefits associated with the tax positions. As of June 30, 2025, 2024 and 2023, the Company did not have any significant
unrecognized uncertain tax positions. The Company did not incur any interest and penalties related to potential underpaid income tax expenses
for the fiscal years ended June 30, 2025, 2024 and 2023, respectively, and also does not anticipate any significant increases
or decreases in unrecognized tax benefits in