Company: XXC
Filing Date: 2025-09-08
Form Type: F-1/A
Source: 0001213900-25-085500
Chunk: 294

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-09-08
Form: F-1/A
Chunk 294
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 income after taxes and should be at least 10% of the after -taxnet income determined in accordance with accounting principles and relevant financial regulations applicable to PRC enterprises (“non -USGAAP”). The Company has an option of not appropriating the statutory surplus reserve after the statutory surplus reserve is equal to 50% of the subsidiary’s registered capital. Statutory surplus reserves are recorded as a component of shareholders’ equity. Per the PRC GAAP, the Company’s PRC subsidiaries can also use the statutory surplus reserves, to make up for previous year’s accumulated deficit. Due to the Company still at an accumulated deficit position as of June 2024 and 2023 after the making up for the previous year’s accumulated deficit, there was no statutory surplus reserve to be booked for the fiscal years ended on June 30, 2024 and 2023. As a result of these PRC laws and regulations and the requirement that distributions by PRC entities can only be paid out of distributable profits computed in accordance with PRC GAAP, the PRC entities are restricted from transferring a portion of their net assets to the Company. Amounts restricted include paid -incapital, additional paid -incapital and the statutory reserves of the Company’s PRC subsidiaries. The aggregate amounts of capital and statutory reserves restricted which represented the amount of net assets of the relevant subsidiaries in the Company not available for distribution was $5,487,069 as of June 30, 2024 and 2023. NOTE 24 — INCOME TAXES Enterprise Income Taxes (“EIT”) Xinxu Group is incorporated in Cayman Island as an offshore holding company and is not subject to tax on income or capital gain under the laws of Cayman Island. HK Xinxu is established in Hong Kong and is subject to statutory income tax rate at 16.5%. Anhui Heri Ltd. is established in PRC and is subject to statutory income tax rate at 25%. Anhui Xinxu Ltd. is the Company’s main operating subsidiary in PRC. Anhui Xinxu is a High -NewTechnology Enterprise and has an applicable EIT rate of 15%. As of June 30, 2024, the tax years ended December 31, 2018 through December 31, 2023 for the Company’s PRC entities remain open for statutory examination by PRC tax authorities. The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the