Company: XHG
Filing Date: 2025-10-29
Form Type: F-3/A
Source: 0001213900-25-103499
Chunk: 17

Company: XChange TEC.INC
Filing Date: 2025-10-29
Form: F-3/A
Chunk 17
---
 representative and executive director of one of our subsidiaries and was therefore a related party; Wangxiancai Limited
ceased to be a related party in October 2023. The consideration for each transfer was nominal because the Disposed Entities were loss-making,
had net liabilities, and the likelihood of generating future cash flows was minimal given (i) decreasing demand for long-term rental
apartments in the areas of operation due to population outflows and (ii) increasing operating costs as a percentage of revenue resulting
from fixed cost burdens amid declining revenue streams. The Former WFOE was a wholly owned subsidiary of Q&K HK and, prior to its
transfer, maintained a series of contractual arrangements with our former variable interest entity, Shanghai Qingke E-commerce Co., Ltd.,
through which we carried out certain rental apartment operations. Haoju, a limited company organized under the laws of the PRC and our
indirect wholly owned subsidiary prior to the disposal, together with its subsidiaries held substantially all of the equity interests
of our PRC subsidiaries through which we conducted our long-term apartment rental business (the “Disposed Business”). The
Disposed Business contributed substantially all of our revenue and held substantially all of our assets prior to the October 31, 2023
disposal of Haoju, which was consummated on that date. The Disposed Business had been incurring losses from operations. Our accumulated
deficits amounted to RMB3,630.0 million and RMB3,856.8 million (US$549.6 million) as of September 30, 2023 and 2024, respectively. Net
cash used in operating activities from continuing operations were RMB 7.1 million, RMB 22.2 million and RMB 9.0 million for FY 2022,
FY 2023 and FY2024, respectively. As of September 30, 2023 and 2024, our current liabilities exceeded current assets by RMB 643.4 million
and RMB 1,271.2 million, respectively. These factors had raised substantial doubt about our ability to continue as a going concern. The
Equity Transfers were effected to enable us to allocate resources to higher-quality rental apartment operations through our remaining
subsidiaries in China. Haoju holds substantially all of the equity interest of our subsidiaries in the PRC, through which we carried
out long-term apartment rental business (the “Disposed Business”). The Disposed Business contributed substantially all revenue
and