Company: XXC
Filing Date: 2025-11-18
Form Type: 20-F
Source: 0001213900-25-111691
Chunk: 88

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-18
Form: 20-F
Item: Item 19
Chunk 88
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 accordance with Chinese and foreign tax laws, as applicable, and all of which may be changed in a manner that could adversely affect
the amount of distributions to shareholders. There can be no assurance that Income Tax Laws of PRC will not be changed in a manner that
adversely affects shareholders. Any such change could increase the amount of tax payable by the Company, reducing the amount available
to pay dividends to the holders of the Company’s ordinary shares.

Statutory Reserves

Pursuant to Chinese Company
law applicable to foreign investment companies, the Company’s PRC subsidiaries are required to maintain statutory surplus reserves.
In case there’s no accumulated deficit, the statutory surplus reserves are to be appropriated from net income after taxes and should
be at least10% of the after-tax net income determined in accordance with accounting principles and relevant financial regulations
applicable to PRC enterprises (“ Non-US GAAP”). If there’s an accumulated deficit, the appropriation is not applicable
until the deficit is compensated using net income. The Company has an option of not appropriating the statutory surplus reserve after
the statutory surplus reserve is equal to50% of the subsidiary’s registered capital. Statutory surplus reserves are recorded as
a component of shareholders’ equity.

Under PRC laws and regulations,
statutory surplus reserves are restricted to set-off against losses, expansion of production and operation and increasing registered
capital of the respective company and are not distributable other than upon liquidation. The reserves are not allowed to be transferred
to the Company in terms of cash dividends, loans or advances, nor allowed for distribution except under liquidation.

Earnings Per Share

Earnings (loss) per share is
calculated in accordance with ASC 260 Earnings per Share. Basic earnings (loss) per share is computed by dividing the net income
(loss) attributable to shareholders of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted
earnings per share are computed in accordance with the treasury stock method and based on the weighted average number of ordinary shares
and dilutive common share equivalents. Dilutive common share equivalents are excluded from the computation of diluted earnings per share
if their effects would be anti-dilutive. There werenodilutive ordinary share equivalents outstanding during the fiscal years ended
June 30, 2025, 2024 and 2023.

Comprehensive income/(loss)

Comprehensive income/(loss)
is defined as the changes in shareholders’ equity during a period arising from transactions and other events and circumstances