Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 68

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
Chunk 68
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 of association to determine whether or not,
and under what conditions, our corporate records may be inspected by our shareholders, but are not obliged to make them available to
our shareholders. This may make it more difficult for you to obtain the information needed to establish any facts necessary for a shareholder
resolution or to solicit proxies from other shareholders in connection with a proxy contest.

As a result of all of the above, our public shareholders
may have more difficulty in protecting their interests in the face of actions taken by management, members of the board of directors
or controlling shareholders than they would as public shareholders of a company incorporated in the United States.

Our dual class share structure with different voting rights
limits your ability to influence corporate matters and could discourage others from pursuing any change of control transactions that
holders of our Class A ordinary shares and the ADSs may view as beneficial.

We have a dual class share structure. As of September
30, 2024, our ordinary shares consist of 73,117,892,046,400 Class A ordinary shares and 6,392,789,000,000 Class B ordinary shares. In
respect of matters requiring the votes of shareholders, holders of Class A ordinary shares are entitled to one vote per share, while
holders of Class B ordinary shares are entitled to ten votes per share based on our dual class share structure. Each Class B ordinary
share is convertible into one (1) Class A ordinary share at any time by the holder thereof, while Class A ordinary shares are not convertible
into Class B ordinary shares under any circumstances. Upon any transfer of Class B ordinary shares by a holder thereof to any person
or entity which is not an affiliate of such holder or a trust whose beneficiary is an Affiliate of such holder, such Class B ordinary
shares shall be automatically and immediately converted into the equal number of Class A ordinary shares.

Golden Stream Ltd., a company controlled by Mr. Yong Zhang, beneficially
owns all of our issued Class B ordinary shares, representing 2.60% of the total outstanding share capital and 21.04% of the voting power
of the Company as of the date of this annual report, due to the disparate voting powers associated with our dual-class structure. The
Class B ordinary shares held by Golden Stream Ltd. represent the maximum number of shares underlying the Company’s 2022 Plan and
2024 Plan. Golden Stream Ltd. and its controlling shareholder Mr. Yong Zhang have agreed to act upon the instructions from the ESOP Operation
Committee of