Company: XXC
Filing Date: 2025-06-10
Form Type: F-1/A
Source: 0001213900-25-052817
Chunk: 135

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-06-10
Form: F-1/A
Chunk 135
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 difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the Renminbi and the U.S. dollar in the future. 75 To the extent that we need to convert U.S. dollars into RMB for our operations, appreciation of the RMB against the U.S. dollar would have an adverse effect on the RMB amount we receive from the conversion. Conversely, if we decide to convert RMB into U.S. dollars, appreciation of the U.S. dollar against the RMB would have a negative effect on the U.S. dollar amounts available to us. Market Risk Market risk is the risk of loss arising from adverse changes in market rates and prices. Our market risk exposure is generally limited to those risks that arise in the normal course of business, as we do not engage in speculative, non -operatingtransactions, nor do we utilize financial instruments or derivative instruments for trading purposes. Commodity Price Risk Our revenue is exposed to the market risk of price fluctuations related to the sale of our copper products. Prices for the copper products that we sell are generally determined by market forces. These prices may be influenced by factors such as supply and demand, production costs (including the costs of our raw materials) and global and domestic economic growth. Adverse changes in any of these factors may reduce the revenue that we receive from the sale of our copper products. Our costs are also exposed to fluctuations in prices for the purchase, processing and production of copper and other raw material inputs. Historically, we have generally been able to pass along price increases to our customers; however, we may be unable to do so in the future. We do not engage in commodity price hedging activities. 76 INDUSTRY Overview of Copper Processing Industry Copper is one of the earliest key metals used by humans. It is ubiquitous across the power, transportation, building and construction, aerospace and related sectors due to its high electrical conductivity and heat transmission. Copper is also a staple constituent of power generators and electronic instruments and is therefore integral to the development of modern high -techindustries. According to an article titled “In -depthAnalysis Report on Copper Processing Industry for 2024” released on www. chinairn .comin November 2024, in recent years, the copper processing industry has attracted a lot of investment, especially driven by new energy, new infrastructure and other fields, the demand for copper has increased significantly. In 2024, the copper processing industry will maintain solid growth despite the slowing