Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 112

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 4
Chunk 112
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 amended in 2010, the Provisional Measures for Maternity Insurance of Employees of
Corporations implemented on January 1, 1995, the Decisions on the Establishment of a Unified Program for Basic Old Aged Pension Insurance
of the State Council issued on July 16, 1997, the Decisions on the Establishment of the Medical Insurance Program for Urban Workers of
the State Council promulgated on December 14, 1998, the Unemployment Insurance Measures promulgated on January 22, 1999 and the Social
Insurance Law of the PRC implemented on July 1, 2011 and revised on December 29, 2018, enterprises are obliged to provide their employees
in the PRC with welfare schemes covering pension insurance, unemployment insurance, maternity insurance, labor injury insurance and medical
insurance. These payments are made to local administrative authorities and any employer that fails to contribute may be fined and ordered
to make up within a prescribed time limit.

In accordance with the Regulations on the Management
of Housing Funds which was promulgated by the State Council in 1999 and amended in 2002, enterprises must register at the competent managing
center for housing funds and upon the examination by such managing centers of housing funds, these enterprises shall complete procedures
for opening an account at the relevant bank for the deposit of employees’ housing funds. Enterprises are also required to pay and
deposit housing funds on behalf of their employees in full and in a timely manner, and any employer that fails to open such bank account
or contribute any housing funds may be fined and ordered to make up within a prescribed time limit.

C. Organizational Structure

We are not an operating company but a Cayman
Islands holding company with operations conducted by our subsidiaries in China. Our operations are primarily conducted through our PRC
subsidiaries and other consolidated entities. Investors in our ADSs thus are purchasing equity interest in a Cayman Islands holding company
and not in an operating entity. As a holding company, XChange TEC. INC may rely on dividends from its subsidiaries for cash requirements,
including any payment of dividends to our shareholders. The ability of our subsidiaries to pay dividends to XChange TEC. INC may be restricted
by laws and regulations applicable to them or the debt they incur on their own behalf or the instruments governing their debt.

On October 31, 2023, we sold all of our equity
interest in Haoju. Haoju holds substantially all of the equity interest