Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 77

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 4
Chunk 77
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 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 held substantially all of our assets prior to the Disposal. The Disposal was consummated on October 31,
2023.

On November 22, 2023, we entered into an equity
acquisition agreement with Alpha Mind, an insurance agency and insurance technology business in the PRC, and Alpha Mind’s then shareholders
to acquire all of the issued and outstanding shares in Alpha Mind for an aggregate purchase price of US$180,000,000 (the “ Acquisition”).
The purchase price is payable in the form of promissory note (collectively, the “ Notes”). The Notes have a maturity of 90
days from the closing date, which was subsequently extended to June 30, 2025, an interest rate at an annual rate to 3% per annum and will
be secured by all of the issued and outstanding equity of the Alpha Mind and all of the assets of the Alpha Mind, including its consolidated
entities. We have been exploring financing opportunities with certain Asia-based investors who are not U. S. persons and who are not affiliated
to us or the Current VIEs. The financing may involve equity-based instruments, including convertible debt. However, the terms and conditions
are still under negotiation and there are uncertainties whether we can close the financing on favorable terms and in a timely manner or
at all. In the event that we fail to repay the promissory notes within the extended maturity date, i. e. June 30, 2025, the noteholders
may exercise their collateral rights in which case we will lose control and will no longer be able to consolidate the results of operation
of Alpha Mind. For more details, see “ Item 3. Key Information - D. Risk Factors - Risks Related to our Business and Industry - 
If we are unable to repay or refinance the Notes, we will lose control and will no longer be able to consolidate the results of operation
of Alpha Mind. In addition, our level of indebtedness could adversely affect our business, financial condition, results of operations
and prospects.” The Acquisition was completed on December 28, 2023, upon which Alpha Mind become our wholly-owned subsidiary and
we assumed and began conducting the principal business of Alpha Mind.

Effective on December 7,