Company: XXC
Filing Date: 2025-11-18
Form Type: 20-F
Source: 0001213900-25-111691
Chunk: 87

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-18
Form: 20-F
Item: Item 19
Chunk 87
---
 incurred.

Shipping and Handling Costs

Shipping and handling costs
are expensed when incurred and are included in selling and marketing expenses. Shipping and handling costs were $114,558, $58,120 and
$ 81,789for the fiscal years ended June 30, 2025, 2024 and 2023, respectively, which were included in selling and marketing
expenses.

Income Taxes

The Company accounts for income
taxes using the asset and liability method whereby it calculates deferred tax assets or liabilities for temporary differences between
the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carry
forwards and credits by applying enacted tax rates applicable to the years in which those temporary differences are expected to be
reversed or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than
not that some portion or all the deferred tax assets will not be realized. Current income taxes are provided in accordance with the laws
of the relevant taxing authorities. The components of the deferred tax assets and liabilities are individually classified as non-current amounts.

The Company records uncertain
tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) the Company determines whether
it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for
those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit
that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.

To the extent applicable, the
Company records interest and penalties as other expenses. All the tax returns of the Company’s PRC subsidiaries remain subject to
examination by PRC tax authorities for five years from the date of filing. The fiscal year for tax purposes in PRC is December 31.
Accordingly, the PRC entities’ tax years from 2020 to 2024 remain subject to examination by the tax authorities. There werenoongoing examinations by tax authorities as of June 30, 2025.

F-13

XINXU COPPER INDUSTRY TECHNOLOGY LIMITED

NOTE 2 - SIGNIFICANT ACCOUNTING
POLICIES(cont.)

The Company and its subsidiaries
are not subject to U. S. tax laws and local state tax laws. The Company’s income and that of its related entities must be computed
in