Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 220

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 19
Chunk 220
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 and immediately converted into the equal number of Class A ordinary shares.

The board of directors has also approved the issuance of the Shares
to an ESOP Platform, which is holding these Shares and will act upon the instructions from a senior management committee of the Company
determined on a unanimous basis in relation to the voting and, prior to the vesting of the Shares to the relevant grantee of the share-based
awards under the 2022 Plan, the disposition of the Shares. The Shares held by the ESOP Platform are reserved for share-based awards that
the Company may grant in the future under the 2022 Plan. As of the date of this report,250,000,000,000Class B ordinary shares were reserved
to 2022 Plan and no Class B ordinary shares have been issued under the 2022 Plan.

2024 Equity Incentive Plan

On June 6, 2024, the Company adopted an equity incentive plan (the
“2024 Equity Incentive Plan”) and issued thereunder6,142,789,000,000Class B ordinary shares, par value US$0.0000001per
share, of the Company (the “ Reserved Shares”) to the ESOP Platform. The ESOP Platform will hold the Reserved Shares (i) before
any granting or vesting to the participants of the 2024 Equity Incentive Plan, and (ii) after any vesting to the participants, on behalf
of the participants pursuant to the respective share award agreements.

A summary of option balances from the years ended September 30, 2022
to 2024 is presented below:

                                                               Number of      Exercise        Remaining  
                                                                 Options         Price      Contractual  
                                                                                   RMB             Life  
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────
  Outstanding, as of September 30, 2022 and 2023           4,128,005,400          0.02             3.44  
  Vested and exercisable as of September 30, 2024          3,410,000,000          0.02             2.96  
  Vested or expected to vest as of September 30, 2024      4,128,005,400          0.02             3.44  

The Group recognized the compensation cost for the stock options
on a straight line basis over the requisite service periods. For the years ended September 30