Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 192

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 19
Chunk 192
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) (“ QK365”), FENGLINJU PROPERTY (CHINA) LIMITED and Shanghai Meileju Intelligent Technology Co., Ltd to Wangxiancai Limited,
at nominal consideration (the “ Third Equity Transfer”).

Upon deconsolidation of Q& K AI and QK365, the Group would no longer
provide rental and value-added services in China. The management believed the closing of the Second Equity Transfer and Third Equity Transfer
represented a strategic shift that had a major effect on the Company’s operations and financial results. The disposals of Q& K
Investment Consulting, Q& K HK, Q& K AI and QK365 are accounted as discontinued operations in accordance with ASC 205-20.

  Acquisition      

On December 28, 2023, the Group closed equity acquisition of Alpha
Mind Technology Limited (“ Alpha Mind”), which conducts insurance agency and insurance
technology businesses in the PRC. The Group acquired all the issued and outstanding shares in Alpha Mind for an aggregate all-cash
purchase price of US$180,000,000, paid in the form of the Notes delivered to each of the Sellers of Alpha Mind in an aggregate amount
equal to the purchase price. The Notes have a maturity of 90 days from the closing date, bear an interest rate of three percent (3%) per
annum and are secured by all of the issued and outstanding equity of Alpha Mind and all of the assets of Alpha Mind and its subsidiaries.
For the year ended September 30, 2024, the Company repaid the notes payable of RMB6,060to MMTEC, Inc.

On June 6, 2024, the Company and Burgeon Capital Inc (“ Burgeon
Capital”) entered into a share subscription agreement and a payoff letter, pursuant to which, the Company agreed to issue to Burgeon
Capital and Burgeon Capital agreed to subscribe from the Company,58,590,000,000,000Class A ordinary shares, par value US$0.0000001per
share, of the Company (the “ Converted Shares”), as the repayment by the Company to Burgeon Capital of all outstanding principal
amount and accrued interest under the Note with a total amount of US$27,342. On the same date, the Company consummated the issuance of
the Class A ordinary shares.

OnDecember 31, 2024, the Company and the sellers of Alpha Mind agreed
to extend the maturity date of the remaining Note