XINXU COPPER INDUSTRY TECHNOLOGY Ltd (: XXC)

Xinxu is a holding company that conducts substantially all of its operations through its operating subsidiaries in China, primarily Anhui Xinxu. The company is engaged in the research and development, fabrication, processing, and sales and distribution of copper and copper alloy products. Its product portfolio includes T2 red copper bars, T2 tin plated copper bars, T2 copper rods, electrolytic copper, and aluminum bar. Xinxu operates five manufacturing workshops covering approximately 21,860 square meters and housing ten production lines with an annual capacity of about 20,000 tons. The company maintains a research and development team of 43 engineers and technicians, has six registered patents and four trademarks, and its products comply with ISO 9001, ISO 14001 and IATF16949 quality standards. These products serve diverse end markets such as electronics and electrical components, telecommunications, automobiles, air conditioners, ships, metallurgy, electromechanical, transportation, building and housing, power distribution, solar energy and other sectors across China.

Xinxu generates revenue from three main activities: sales of its own Xinxu brand copper products, sales of copper raw materials principally electrolytic copper, and service fees for processing customized copper products to customer specifications. In the fiscal year ended June 30, 2025, total revenue was approximately $113.46 million, with Xinxu brand products contributing about 22.07% of sales, electrolytic copper resales accounting for roughly 77.70%, and processing services representing a minor share. For the fiscal year ended June 30, 2024, revenue reached $105.87 million, and for the year ended June 30, 2023, revenue totaled $170.85 million. The company has been adjusting its sales mix since January 2024 by reducing lower margin electrolytic copper resales and increasing higher margin products such as soft and hard connection copper bars used in electric vehicle battery packs. Despite this shift, electrolytic copper remains the largest single revenue source.

Xinxu holds a competitive position in China’s copper industry, distinguished by its strong research and development capabilities, long standing customer and supplier relationships, and commitment to quality. The company maintains an R&D team of 43 engineers and technicians, has six registered patents and four trademarks, and its products comply with ISO 9001, ISO 14001 and IATF16949 standards. Key competitors include Ningbo Jintian Copper Industry Group, Zhejiang Hailiang Co., Ltd., Jiangsu Tongda Copper Material Co., Ltd., and Taizhou Zhengda Copper Material Co., Ltd. Xinxu differentiates itself through its focus on higher margin products such as soft and hard connection copper bars used in electric vehicle battery packs and its ability to provide customized processing services. The firm’s long term relationships with customers and suppliers, evidenced by a significant share of sales coming from clients engaged for three years or more, further strengthen its market standing.

Xinxu serves a diversified customer base of approximately 199 customers spread across 19 provinces and municipal cities in China, including Beijing, Shanghai, Anhui, Zhejiang, Jiangsu and Guangdong. Its customers operate in sectors such as electronics, electrical components, telecommunications, automotive manufacturing, air conditioning, shipbuilding, metallurgy, power distribution, solar energy and general industrial manufacturing. Although the filing does not disclose individual customer names, the company reports that a small number of key customers accounted for a significant portion of its revenue in recent fiscal years, with the top four customers representing about 63% of total purchases in the fiscal year ended June 30, 2025. The absence of long term written sales agreements means each transaction is typically governed by a brief purchase order, yet the company describes its relationships with customers as long standing and stable.