Company: XXC
Filing Date: 2025-08-05
Form Type: F-1/A
Source: 0001213900-25-071711
Chunk: 272

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-08-05
Form: F-1/A
Chunk 272
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 are presented on a combined basis for all periods to which such entities were under common control. The consolidation of the Company and its subsidiaries has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United Stated of America (“US GAAP”) and have been consistently applied. The accompanying consolidated financial statements include the financial statements of the Company and its majority -ownedand controlled subsidiaries. All significant inter -companytransactions and balances have been eliminated upon consolidation. Going Concern Consideration As of June 30, 2024, the Company had a negative working capital of $573,804 and accumulated deficit of $1,153,912. As of June 30, 2023, the Company had a negative cash flow from operating activities of $1,438,774, a negative working capital of $83,680, and accumulated deficit of $1,995,214. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company may be unable to realize its assets and discharge its liabilities in the normal course of business. The Company meets its day -to -dayworking capital requirements through its bank facilities. Most of the bank borrowings as of June 30, 2024 that are repayable within the next 12 months are subject to renewal and the management is confident that these borrowings can be renewed upon expiration based on the Company’s past experience and credit history. To strengthen the Company’s liquidity in the foreseeable future, the Company has taken the following measures: (i)Negotiating with banks in advance for renewal and obtaining new banking facilities; (ii)Taking various cost control measures to tighten the costs of operations; (iii)Speeding up production cycle and shortening the delivery term to improve receivable turnover; and (iv)Implementing various strategies to enhance sales and profitability. The management has a reasonable expectation that the Company will have adequate resources to continue in operational existence for the foreseeable future. Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Such estimates include, but are not limited to, allowances for doubtful accounts