Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 127

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 5
Chunk 127
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) a major effect on an entity’s operations and financial results when the components of an entity meets the criteria in
paragraph 205-20-45-1E to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including
management, having the authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets,
current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from those balances
of the continuing operations. At the same time, the results of all discontinued operations, less applicable income taxes (benefit), shall
be reported as components of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC 205-20-45.

As of September 30, 2023, our long-term apartment
rental business in the PRC met all the conditions required in order to be classified as a discontinued operation. Accordingly, the operating
results of long-term apartment rental business in the PRC are reported as a loss from discontinued operations in the accompanying consolidated
financial statements for all periods presented. In addition, the assets and liabilities related to long-term apartment rental business
in the PRC are reported as assets and liabilities of discontinued operations in the accompanying consolidated balance sheets. For details,
see Note 3 - Disposition of Long-term Apartment Rental Business to our consolidated financial statements included elsewhere in this
annual report.

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES