Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 216

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 19
Chunk 216
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190  
  Accrued expenses and other current liabilities                               1,268                33,209  

  10.      REVENUE  
 ────────────────────

Revenue consists of insurance agency commission revenue.

               As of September 30,                         
                              2023      2024               
 ───────────────────────────────────────────────────────────
  Revenue                                         288,369  

  11.      COST OF REVENUE  
 ────────────────────────────

Cost of revenue consists primarily of commissions paid to distribution
channels..

                       As of September 30,                         
                                      2023      2024               
 ───────────────────────────────────────────────────────────────────
  Cost of Revenue                                         274,901  

  12.      SHARE BASED COMPENSATION  
 ─────────────────────────────────────

The Group utilized Yijia Inc., a company controlled by the Founder
as a vehicle to hold shares that will be used to provide incentives and rewards to employees and executives who contribute to the success
of the Group’s operations. According to the Group’s board resolutions, in July 2017 and March 2018,86million shares were
reserved to Yijia Inc. Yijia Inc. has no activities other than administrating the incentive program and does not have any employees. On
behalf of the Group and subject to approvals from the board or directors, the Founder has the authority to select eligible participants
to whom equity awards will be granted; determine the number of shares covered; and establish the terms, conditions and provision of such
awards. The board resolutions allow the grantees to hold options to purchase from the Yijia Inc. the equity shares of the Group.

As of June 24, 2022, Yijia Inc. held7.52billion Class B ordinary
shares. On June 24, 2022, Yijia Inc. transferred all reserved ordinary shares to Golden Stream Limited, a company controlled by Mr. Qu
Chengcai, the Chief Executive Officer of the Group. Upon transfer, the Class B ordinary shares previously held by Yijia Inc. were automatically
converted to Class A ordinary shares pursuant to the Company’s third amended and restated memorandum and articles of association.
Since then, Golden Stream Limited became a vehicle to hold shares that will be used to provide incentives and rewards to employees and
executives who contribute to the success of the Group’s operations. The board resolutions allow the gr