Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 217

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 19
Chunk 217
---
antees to hold options to
purchase from the Golden Stream Limited the equity shares of the Group.

All the share information disclosed under Stock Option A and Stock
Option B in this section refers to the shares of the Group the grantees are entitled through Yijia Inc. shares before June 24, 2022 and
through Golden Stream Limited after June 24, 2022. The related expenses are reflected in the Group’s consolidated financial statements
as share-based compensation expenses with an offset to additional paid-in capital. Given the shares owned by Yijia Inc./ Golden Stream
Limited for the purpose of the incentive program are existing and outstanding shares of the Group, the options do not have any dilution
effect on the (losses) earnings per share (see Note 13).

F-25

Stock Option A

On August 31, 2014, April 21, 2016, October 17, 2016 and October 18,
2016, the Group granted an aggregate number of26.86million share options to certain management, employees and non-employees of the Group.
Under the plan, the exercise price was US$0.0031(RMB0.02) per share and vests50% on the first and second anniversary after the IPO date.
All grantees were restricted from transferring more than 25% of their total exercised ordinary shares each year after the exercise date.
Given the vesting was contingent on the IPO and vested on the first and second anniversary after the IPO date, no share-based compensation
expense is recognized until the date of IPO. For the year ended September 30, 2021, noshare options were vested or exercised. As of September
30, 2023 and 2024, the number of outstanding options is1,025,000,000and1,025,000,000, respectively, which was equal to the number of
option expected to be vested. The remaining Stock Options A are exercisable into1,025,000,000Class B ordinary shares. Because the exercise
price is out of money, the weighted average intrinsic value of the outstanding options and the options expected to vest was nil.

Stock Option B

On July 31, 2017, the Group granted43.14million share options to
management and employees of the Group. The options vested immediately upon the grant date and the exercise price were US$0.0031(RMB0.02)
per share. All grantees