Company: XXC
Filing Date: 2025-11-18
Form Type: 20-F
Source: 0001213900-25-111691
Chunk: 83

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-18
Form: 20-F
Item: Item 19
Chunk 83
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 Office equipment             3 – 5 years   
  Electronic equipment         3 – 5 years   

F-10

XINXU COPPER INDUSTRY TECHNOLOGY LIMITED

NOTE 2 - SIGNIFICANT ACCOUNTING
POLICIES(cont.)

Expenditures on maintenance
and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major
renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation
of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements
of income and other comprehensive income in other income or expenses.

Land Use Rights

Intangible assets consist of
land use rights. Under the PRC law, all land in the PRC is owned by the government and cannot be sold to an individual or company. The
government grants individuals and companies the right to use parcels of land for specified periods of time. These land use rights are
sometimes referred to informally as “ownership.” Land use rights are stated at the cost less accumulated amortization. Intangible
assets are amortized using the straight-line method with the following estimated useful lives:

                       Useful lives  
  Land use rights      50 years      

Impairment of Long-lived Assets

The Company’s management
reviews the carrying values of long-lived assets whenever events and circumstances, such as a significant decline in the asset’s
market value, obsolescence or physical damage affecting the asset, significant adverse changes in the assets use, deterioration in the
expected level of the assets performance, cash flows for maintaining the asset are higher than forecast, indicate that the net book value
of an asset may not be recovered through expected future cash flows from its use and eventual disposition. If the estimated cash flows
from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired
and written down to its fair value.

There wasnoimpairment charge
recognized for long-lived assets for the fiscal years ended June 30, 2025 and 2024.

Fair Value Measurement

Fair Value Measurements and
Disclosures require disclosure of the fair value of financial instruments held by the Company. Fair value is defined as the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. A three-level fair value hierarchy priorit