Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 118

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 5
Chunk 118
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ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The following discussion of our financial condition
and results of operations is based upon, and should be read in conjunction with, our audited consolidated financial statements and the
related notes included in this annual report on Form 20-F. This report contains forward-looking statements. See “ Forward-Looking
Statements” in this annual report. In evaluating our business, you should carefully consider the information provided under the
caption “ Item 3. Key Information - D. Risk Factors” in this annual report on Form 20-F. We caution you that our businesses
and financial performance are subject to substantial risks and uncertainties.

  Operating Results  
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On October 31, 2023, we sold all of the equity
interest in Haoju to Wangxiancai Limited, a limited company incorporated under the laws of Hong Kong for nominal consideration. On September
12, 2024, we sold all of the equity interest in QK365, FENGLINJU PROPERTY (CHINA) LIMITED and Shanghai Meileju Intelligent Technology
Co., Ltd to Wangxiancai Limited, a limited company incorporated under the laws of Hong Kong for nominal consideration. As a result of
the Disposal, we have no longer conducted the long-term apartment rental business as of the date of this annual report and the results
of our disposed long-term apartment rental business are accounted as discontinued operations in accordance with ASC 205-20-45 in the
financial statements as of and for the fiscal year ended September 30, 2024 included elsewhere in this annual report.

For additional information, see Note 3 - 
“ Disposition of Long-term Apartment Rental Business” to our consolidated financial statements included elsewhere in this
annual report.

We did not generate any revenue in FY 2022 and
FY 2023 from Continuing Operations, and generate RMB288.4 million revenue in FY2024. Overall, we incurred a net loss from continuing
operations of RMB495.1 million, RMB25.1 million and RMB 426.4 million in FY 2022, FY 2023 and FY 2024, respectively.

  Liquidity and Capital Resources  
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During the reporting period, our principal
sources of liquidity, which we have used to fund our growth, operations and capital expenditures for our apartments network, have
been proceeds from tenants’ rental pre