Company: XXC
Filing Date: 2025-06-10
Form Type: F-1/A
Source: 0001213900-25-052817
Chunk: 94

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-06-10
Form: F-1/A
Chunk 94
---
 internet will be essential to our operations. Our network and our computer infrastructure are potentially vulnerable to physical breaches or to the introduction of computer viruses, abuse of use and similar disruptive problems and security breaches that could cause loss (both economic and otherwise), interruptions, delays or loss of services to our users. It is possible that advances in computer capabilities or new technologies could result in a compromise or breach of the technology we use to protect user transaction data. A party that is able to circumvent our security systems could misappropriate proprietary information, cause interruptions in our operations or utilize our network without authorization. Security breaches also could damage our reputation and expose us to a risk of loss, litigation and possible liability. We cannot guarantee you that our security measures will prevent security breaches. If we are not able to control our labor costs in an effective way, our business, results of operations and financial condition may be adversely affected. Our labor costs are primarily incurred in China. The economy of China has been experiencing significant growth, leading to inflation and increased labor costs in recent years. In addition, we are required by PRC laws and regulations to pay various statutory employee benefits, including pensions, housing fund, medical insurance, work -relatedinjury insurance, unemployment insurance and maternity insurance to designated government agencies for the benefit of our 48 employees. We expect that our labor costs in China, including wages and employee benefits, will continue to grow as our business grows in scale. Significant additional government -imposedincreases in the cities of China where we have operations may affect our profitability and results of operations. The pandemics, epidemics, pandemics, natural disasters, terrorist activities, political unrest, and other outbreaks could disrupt our operations, which could materially and adversely affect our business, financial condition, and results of operations. We are vulnerable to health epidemics and natural disasters. For example, our business was adversely affected by COVID -19 between 2020 and 2023. The COVID -19 adversely affected many aspects of our business, including the expansion of our customer base, the introduction of new product offerings, and the increase of purchase price for raw materials by suppliers. Our production, logistics and supply chain were also temporarily restricted during the temporarily lockdown periods as requested by the local government as a result of the COVID -19 ; however, we did not experience any material inventory, raw material or labor shortages or reduced headcount of our employees, and the COVID -19 did not have a material impact on the Company’s financial positions and operating results. Our revenue reached approximately $105.