Company: XXC
Filing Date: 2025-08-05
Form Type: F-1/A
Source: 0001213900-25-071711
Chunk: 125

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-08-05
Form: F-1/A
Chunk 125
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 to (a) an increase in sales of higher -marginproducts, such as soft and hard connection copper bars, which are widely used in electric vehicle battery packs. For the six months ended December 31, 2024 and 2023, gross profit margin of such products was approximately 8.3% and 8.1%, respectively, compared to the resale of copper raw materials, which had relatively lower profit margins of approximately 4.4% and 2.6%, respectively; and (b) a higher gross profit margin of 4.4% in resale of copper materials for the six months ended December 31, 2024, which was driven by increased unit sale price and demand, compared with a gross profit margin of approximately 2.6% for the six months ended December 31, 2023. General and administrative (“G&A”) expenses General and administrative expenses for the six months ended December 31, 2024 and 2023 consisted of the following:

|                                        |     |   |    2024 |     |   |    2023 |
|:---------------------------------------|:----|:--|--------:|:----|:--|--------:|
| Employee compensation and benefits     |     | $ | 369,045 |     | $ | 328,002 |
| Travel and communication expenses      |     |   |  35,166 |     |   |  33,617 |
| Consulting fees                        |     |   |  41,375 |     |   |  59,234 |
| Depreciation and amortization expenses |     |   | 158,945 |     |   |  50,125 |
| Entertainment                          |     |   |  93,296 |     |   | 168,382 |
| Office and miscellaneous               |     |   | 148,261 |     |   | 283,166 |
| Total                                  |     | $ | 846,088 |     | $ | 922,525 |

G&A expenses decreased by approximately $0.08 million, or 8.29%, to approximately $0.85 million for the six months ended December 31, 2024, as compared to approximately $0.92 million for the six months ended December 31, 2023. The decrease in G&A expenses was mainly due to decreased disposal cost of copper ash for the temporarily suspended smelting furnace production line used for smel