Company: XXC
Filing Date: 2025-11-28
Form Type: POS AM
Source: 0001213900-25-115625
Chunk: 123

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-28
Form: POS AM
Chunk 123
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 adjustments for changes in working capital approximately $7.03 million. The adjustments for changes in working capital mainly included: (i)a decrease in accounts receivable of approximately $0.75 million, primarily due to collection of outstanding balances; (ii)an increase in inventory of approximately $7.13 million due to increase in sales orders, increased production capacity, which was related to the launch of two new production lines on products widely used in new energy vehicles, and the increased market unit price of electrolytic copper; (iii)a decrease in accounts payable of approximately $0.89 million primarily due to the payments we made to our electrolytic copper suppliers; and (iv)a decrease in taxes payable of approximately $1.04 million primarily due to the decrease of the book balance of VAT payable. Net cash provided by operating activities for the fiscal year ended June30, 2024 was approximately $3.30million, which was primarily attributable to a net profit of approximately $0.84million, adjusted for non -cashitems for approximately $0.46million and adjustments for changes in working capital approximately $2million. The adjustments for changes in working capital mainly included: (i)an increase in accounts receivable of approximately $5.18million, primarily due to the fact that (a) (i) we shifted our focus from low-margin copper resales to higher-margin copper bar products, and (ii) copper bar customers — especially for use in electric vehicle battery packs — generally have longer payment terms than customers for copper materials.; (ii)an increase in inventory of approximately $1.72million primarily due to (a) an increase in production of the copper power distribution components made of copper bars that are widely used in electric vehicle battery packs; and (b) an increase in purchase of electrolytic copper as its market price remained at a low point during the year; (iii)a decrease in advances to suppliers of approximately $2.29million, primarily related to the decrease in prepaid purchase of equipment, which was assembled and put in operation during the year; (iv)a decrease in other receivables of approximately $1.53million, primarily due to the repayment of borrowings from third -partycompanies; (v)an increase in accounts payable of approximately $6.50million, primarily due to an increase in purchase of raw materials in June 2024; and (vi)a decrease in other current liabilities of approximately $2.05million, primarily due to repayment of individual borrowings and funds from third -partycompanies.