Company: XXC
Filing Date: 2025-11-18
Form Type: 20-F
Source: 0001213900-25-111691
Chunk: 90

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-18
Form: 20-F
Item: Item 19
Chunk 90
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 in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political,
economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s results may be adversely
affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses
from these situations and believes that it is following existing laws and regulations including its organization and structure disclosed
in Note1, this may not be indicative of future results.

Liquidity Risks

The Company’s primary
sources of liquidity consist of existing cash balances, cash flows from the Company’s operating activities and availability under
its loan arrangements with local banks. The Company’s ability to generate sufficient cash flows from its operating activities is
primarily dependent on its sales and resales of copper products to our customers, and processing copper bars for our customers, at margins
sufficient to cover fixed and variable expenses.

As of June 30, 2025, and
2024, the Company had cash of $188,550and $573,839, respectively. The Company believes that its current cash, cash to be generated from
its operations and access to loans from related parties will be sufficient to meet its working capital needs for at least the next
twelve months. However, the Company does not have any amounts committed to be provided by its related parties and the Company does
not believe its working capital needs will be negatively impacted without such funds provided by related parties. The Company is
also not dependent upon this offering to meet its liquidity needs for the next twelve months. However, the Company plans to expand
our business to strengthen its position and implement its growth strategies in existing and prospective markets. To do so, the Company
will need more capital through equity financing to increase its production and meet market demands.

F-15

XINXU COPPER INDUSTRY TECHNOLOGY LIMITED

NOTE 2 - SIGNIFICANT ACCOUNTING
POLICIES(cont.)

Recent Accounting Pronouncements

The Company considers the applicability
and impact of all accounting standards updates (“ ASU”). Management periodically reviews new accounting standards that are
issued.

Recently adopted Accounting Standards

In December 2019, the
FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which removes specific exceptions to the general principles
in Topic 740 and to simplify accounting for income taxes. The guidance is effective for