Company: XXC
Filing Date: 2025-09-18
Form Type: F-1/A
Source: 0001213900-25-089077
Chunk: 272

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-09-18
Form: F-1/A
Chunk 272
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 loan receivable was due from the third party. Other Current Assets Other current assets are related to VAT input tax credit to be certified by the PRC tax authorities to be qualified for future deduction against VAT output tax liability. Deferred Revenues Deferred revenue refers to a deferred government grant in relation to purchase of land use rights. This grant is amortized on a straight -linebasis over a 50 -yearperiod starting from April 2013. Long-term Deferred Expenses Long -termdeferred expenses refer to deferred repair and maintenance fees for buildings and manufacturing equipment. Advances from Customers Advances from customers refer 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