Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 153

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 10
Chunk 153
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 holding Class A ordinary shares or ADSs as part of a hedging or conversion
transaction or a straddle, or persons whose functional currency is not the U. S. dollar. Moreover, this summary does not address state,
local or non-U. S. taxes, the U. S. federal estate and gift taxes, or the Medicare contribution tax applicable to net investment income
of certain non-corporate U. S. Holders, or alternative minimum tax consequences of acquiring, holding or disposing of Class A ordinary
shares or ADSs.

For purposes of this summary, a “ U. S. Holder”
is a beneficial owner of Class A ordinary shares or ADSs that is a citizen or resident of the United States or a U. S. domestic corporation
or that otherwise is subject to U. S. federal income taxation on a net income basis in respect of such Class A ordinary shares or ADSs.

You should consult your own tax advisors about the consequences
of the acquisition, ownership and disposition of the Class A ordinary shares or ADSs, including the relevance to your particular situation
of the considerations discussed below and any consequences arising under non-U. S., state, local or other tax laws.

ADSs

In general, a U. S. Holder of ADSs will be treated,
for U. S. federal income tax purposes, as the beneficial owner of the underlying Class A ordinary shares that are represented by those
ADSs.

Passive Foreign Investment Company Classification

Special U. S. tax rules apply to companies that
are considered to be PFICs. We will be classified as a PFIC in a particular taxable year if either

  75% or more of our gross income for the taxable year is passive income; or  

  50% or more of the value of our assets (generally determined on the basis of a quarterly average) is attributable to assets that produce or are held for the production of passive income.  
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For this purpose, passive income generally includes
dividends, interest, royalties and rents (other than royalties and rents derived in the active conduct of a trade or business and not
derived from a related person) and the excess of gains over losses from the disposition of assets that produce passive income. Goodwill
is treated as an active asset under the PFIC rules to the extent attributable to activities that produce active income. Cash