Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 194

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 19
Chunk 194
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 and 2024, respectively. As of September 30, 2023 and 2024, current liabilities exceeded current assets by RMB643,424and RMB1,271,179, respectively. In addition, the Group disposed of its long-term rental
apartment rental business in October 2023 and acquired Alpha Mind in December 2023. The Group had generated revenues of nil nil 288,369

These factors raise substantial doubt about the Group’s ability
to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Group is unable
to continue as a going concern.

On December 28, 2023, the Group
consummated an acquisition of 100 180,000 3

On June 6, 2024, the Company and Burgeon Capital agreed to settle all
outstanding principal amount and accrued interest under the Note with a total amount of US$27,342by issuance of Class A ordinary shares.
On December 31, 2024, the Company and MMTEC, Inc. agreed to extend the maturity date of the outstanding Note and accrued but unpaid interest
to date to June 30, 2025. Based on the historical experience, the Company is probably able to extend the maturity date till December 31,
2025 when the Note matures.

The Group intends to meet the cash requirements for the next 12 months
from the issuance date of this report through issuance of ordinary shares. On October 26, 2022, the Company’s Form F-3 to offer
up to a total amount of $300million was declared effective. The Company plans to raise funds under the Form F-3 to support the Company’s
operations.

There is a risk that Management plan cannot alleviate the substantial
doubt of the Group’s ability to continue as a going concern. There can be no assurance that the Group will be successful in achieving
its strategic plans, that the Group’s future capital raises will be sufficient to support its ongoing operations, or that any additional
financing will be available in a timely manner or with acceptable terms, if at all. Should there be any unforeseen circumstances which
may prevent the successful completion of the above mentioned plan in the next twelve months from the issuance of this report, the Group
will be required to reduce certain discretionary spending, alter or scale back research and development programs, or be unable to fund
capital expenditures, which would have a material adverse effect on