Company: XXC
Filing Date: 2025-08-05
Form Type: F-1/A
Source: 0001213900-25-071711
Chunk: 177

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-08-05
Form: F-1/A
Chunk 177
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 stipulated in such negative list. The PRC policies supporting enterprise development are equally applicable to foreign -investedenterprises. The PRC does not impose expropriation on foreign investment. Under special circumstances, if it requires imposing expropriation on foreign investment due to the need of public interest, expropriation shall be imposed according to legal procedures, and the foreign -investedenterprises concerned shall receive fair and reasonable compensation. Foreign -investedenterprises can raise funds through public issuance of stocks, corporate bonds and other securities in accordance with the law. Overall, the 2019 Law of Foreign Investment establishes the clear principle of applying national treatment to FIEs except those engaged in industries on the Negative List. In the opinion of our PRC Counsel, our current and planned business in the copper processing and fabrication industry are not on the Negative List. Regulations Relating to Dividend Distributions The principal laws, rule and regulations governing dividends distribution by companies in the PRC are the PRC Company Law, which applies to both PRC domestic companies and foreign -investedcompanies, and the Foreign Investment Law and its implementing rules, which apply to foreign -investedcompanies. Under these laws, regulations and rules, both domestic companies and foreign -investedcompanies in the PRC are required to set aside as general reserves at least 10% of their after -taxprofit, until the cumulative amount of their reserves reaches 50% of their 106 registered capital. PRC companies are not permitted to distribute any profits until any losses from prior fiscal years have been offset. Profits retained from prior fiscal years may be distributed together with distributable profits from the current fiscal year. Regulations Relating to Private Lending The transfer of funds among companies are subject to the Provisions of the Supreme People’s Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases, or the Provisions on Private Lending Cases, which was issued by the Supreme People’s Court of the People’s Republic of China on August25, 2015 and amended on August19, 2020 and December29, 2020, respectively, to regulate the private lending activities between natural persons, legal persons and unincorporated organizations. The Provisions on Private Lending Cases do not apply to the disputes arising from relevant financial services such as loan disbursement by financial institutions and their branches established upon approval by the financial regulatory authorities to engage in lending business. The Provisions on Private Lending Cases set forth that private lending contracts will