Company: XXC
Filing Date: 2025-11-18
Form Type: 20-F
Source: 0001213900-25-111691
Chunk: 5

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-18
Form: 20-F
Item: Item 5
Chunk 5
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Item 5. Operating and Financial Review and Prospects

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Our Products.

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This realignment reflects our ongoing efforts to optimize our product mix, improve overall profitability, and focus on higher-margin products.
We engage in metal casting, extruding, and drawing to fabricate finished and semi-finished copper products from copper cathode and scrap
copper wires. Our products are used in a variety of applications across diversified end markets, including electronics and electrical
components, telecommunications, automobiles, air conditioners, ships, metallurgy, electromechanical, transportation, building and housing,
power distribution, solar energy and other sectors across China.

We access these end markets
through our direct sales force reaching a wide variety of customers with both high and low volume demands for our products. We believe
the diversity of our product portfolio, our R& D capacities and technical expertise, underpin the long-standing relationships we have
with our broad customer base.

As of the date of this annual
report, we have 199 customers, covering 19 provinces and municipal cities of China, including but not limited to Beijing, Shanghai, Anhui,
Zhejiang, Jiangsu, and Guangdong. We employ 235 people and operate our business in an area of approximately 43,330 square meters in Wuhu
City, Anhui Province, China. As of the date of this annual report, we have five manufacturing workshops in service covering an area of
approximately 21,860 square meters, housing ten production lines with an annual production capacity of approximately 20,000 tons. We also
have established long-term strategic partnerships with most of our major suppliers for the sufficient and steady supply of our raw materials.

Since our inception, we have
focused on the establishment and improvement of our R& D capacities. In April 2017, we established our R& D department and technology
center in Wuhu City, Anhui Province, and have conducted numerous R& D projects since then. We currently own six registered patents
acquired as a result of those R& D projects. As of the date of this annual report, those patents have been incorporated into our product
portfolio, which have improved our product quality and production efficiency. As of June 30, 2025, we have a R& D team consisting of
43 personnel, compared to 25 personnel as of June 30, 2024. The increase in R& D headcount was primarily driven by our need to support