Company: XXC
Filing Date: 2025-11-28
Form Type: POS AM
Source: 0001213900-25-115625
Chunk: 257

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-28
Form: POS AM
Chunk 257
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 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, 2025, the Company had a negative cash flow from operating activities of $ 4,894,319; As of June30, 2024, the Company had a negative working capital of $ 573,804and accumulated deficit of $ 1,153,912. 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, 2025 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, inventory valuation, useful lives of property and equipment, intangible assets, and income taxes related to realization of deferred tax assets and uncertain tax position. Actual results could differ from those estimates. F-9

XINXU COPPER INDUSTRY TECHNOLOGY LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SIGNIFICANT ACCOUNTING POLIC