Company: XXC
Filing Date: 2025-08-05
Form Type: F-1/A
Source: 0001213900-25-071711
Chunk: 307

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-08-05
Form: F-1/A
Chunk 307
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4, are not necessarily indicative of the results to be expected for the full fiscal year ending June 30, 2025. Going Concern Consideration As of December 31, 2024, the Company had a negative cash flow from operating activities of $598,812. As of June 30, 2024, the Company had a negative working capital of $573,804 and accumulated deficit of $1,153,912. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company may be unable to realize its assets and discharge its liabilities in the normal course of business. The Company meets its day -to -dayworking capital requirements through its bank facilities. Most of the bank borrowings as of December 31, 2024 that are repayable within the next 12 months are subject to renewal and the management is confident that these borrowings can be renewed upon expiration based on the Company’s past experience and credit history. To strengthen the Company’s liquidity in the foreseeable future, the Company has taken the following measures: (i)Negotiating with banks in advance for renewal and obtaining new banking facilities; (ii)Taking various cost control measures to tighten the costs of operations; (iii)Speeding up production cycle and shortening the delivery term to improve receivable turnover; and (iv)Implementing various strategies to enhance sales and profitability. F-38

XINXU COPPER INDUSTRY TECHNOLOGY LIMITED
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (cont.) The management has a reasonable expectation that the Company will have adequate resources to continue in operational existence for the foreseeable future. Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Such estimates include, but are not limited to, allowances for doubtful accounts, inventory valuation, useful lives of property and equipment, intangible assets, and income taxes related to realization of deferred tax assets and uncertain tax position. Actual results could differ from those estimates. Foreign Currency Translation The financial records of the Company’s subsidiaries in People’s Republic of China are maintained in their local currencies which are Chinese Yuan (“RMB”). Monetary assets and liabilities denominated in currencies other than their local currencies are translated into local currencies at the rates of exchange in effect at the consolidated balance sheet dates. Transactions denominated