Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 113

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 4
Chunk 113
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 of our subsidiaries in the PRC, through which we carried out
the Disposed Business. The Disposed Business contributed substantially all revenue and held substantially all of our assets prior to
the Disposal.

We acquired Alpha Mind, an insurance agency and
insurance technology business in the PRC on December 28, 2023. Alpha Mind conducts insurance agency and insurance technology businesses
in the PRC through the Current WFOE and Current VIEs.

We conduct insurance agency and insurance technology
businesses in the PRC through our indirectly wholly-owned subsidiary, our Current WFOE and the Current WFOE’s consolidated variable
interest entities. In April 2022, Alpha Mind, through the Current WFOE, entered into contractual arrangements with the Current VIEs.
The contractual arrangements enable Alpha Mind to obtain control over the Current VIEs. The contractual arrangements consist of powers
of attorney, exclusive business cooperation agreements, exclusive option agreements, equity interest pledge agreements and spousal consent
letters. See “ Item 4. Information on the Company - C. Organizational Structure - Contractual Arrangements” for
details.

The chart below sets forth our simplified corporate
structure and identifies our principal subsidiaries as of the date of this annual report.

  Equity Interest  

  VIE                      

  Note:      On December 28, 2023, we completed the acquisition of 100% equity interest                                                                
             in Alpha Mind for a consideration of US$180,000,000. The purchase price is payable in the form of the Notes. The Notes have a maturity    
             of 90 days from the closing date, which was subsequently extended to June 30, 2025, an interest rate at an annual rate to 3% per annum    
             and will be secured by all of the issued and outstanding equity of the Alpha Mind and all of the assets of the Alpha Mind, including its  
             consolidated entities.                                                                                                                    
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Contractual Arrangements

The Company, through Alpha Mind and Alpha Mind WFOE, has the
following contractual arrangements with the VIEs and the shareholders of each VIE that enable the Company to (1) to direct the
activities that most significantly affect the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs
that could be significant to the VIEs. Accordingly, Alpha