Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 165

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 11
Chunk 165
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 is U. S. dollars, and the functional currency of our subsidiaries
is their local currencies, which is Renminbi for our operating subsidiaries. Any significant revaluation of U. S. dollars may materially
and adversely affect our earnings and shareholders’ deficits in Renminbi given that a portion of our cash and cash equivalents are
denominated in U. S. dollars. A 10% depreciation of U. S. dollars against Renminbi may increase loss and shareholders’ deficits by
RMB 106.8 million (US$15.2 million) for FY 2024.

Concentration
of Credit Risk

Financial
instruments that potentially expose us to concentration of credit risk consist primarily of cash and cash equivalents.

All
of our cash and cash equivalents are held with financial institutions that our management believes to be high credit quality. To limit
exposure to credit risk relating to deposits, we primarily place cash and cash equivalent deposits with large financial institutions
in the United States and the PRC which management believes are of high credit quality and we also continually monitor their credit worthiness.

Concentration
of Customer

For
the year ended September 30, 2024, one customer accounted for 12.6% of the Company’s total revenues. For the year ended September
30, 2022 and 2023, no customer accounted for more than 10.0% of the Company’s total revenue.

As
of September 30, 2024, four customer accounted for 85.4% of the total balance of accounts receivables. As of September 30, 2023, none
of customer accounted for more than 10.0% of the total balance of accounts receivables.

Concentration
of Vendor

For
the year ended September 30, 2024, two vendors accounted for 22.1% of the Company’s total cost of revenues. For the year ended
September 30, 2022 and 2023, no vendors accounted for more than 10.0% of the Company’s total cost of revenue.

As
of September 30, 2024, one vendor accounted for 28.7% of the total balance of accounts payable. As of September 30, 2023, none of vendor
accounted for more than 10.0% of the total balance of accounts payable.

ITEM
12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES