Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 144

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 8
Chunk 144
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ITEM 8. FINANCIAL INFORMATION

  Consolidated Statements and Other Financial Information  
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We have appended consolidated financial statements
filed as part of this annual report.

Legal Proceedings

We are currently not a party to any material legal
or administrative proceedings. From time to time, we may be subject to legal, regulatory and/or administrative proceedings relating to
third-party and principal intellectual property infringement claims, contract disputes involving suppliers and customers, consumer protection
claims, claims relating to data and privacy protection, employment related disputes, unfair competition and other matters in the ordinary
course of our business.

Dividend Policy

Our board of directors has discretion on whether
to distribute dividends, subject to certain restrictions under Cayman Islands law, namely that our company may only pay dividends out
of profits or share premium, and provided always that in no circumstances may a dividend be paid if this would result in our company being
unable to pay its debts as they fall due in the ordinary course of business. Even if our board of directors decides to pay dividends,
the form, frequency and amount will depend upon our future operations and earnings, capital requirements and surplus, general financial
condition, contractual restrictions and other factors that the board of directors may deem relevant.

We do not have any plan to pay any cash dividends
on our ordinary shares in the foreseeable future and intend to retain most, if not all, of our available funds and any future earnings
to operate and expand our business.

We are a holding company incorporated in the Cayman
Islands. We may rely on dividends from our subsidiaries in China for our cash requirements, including any payment of dividends to our
shareholders. PRC regulations may restrict the ability of our PRC subsidiary to pay dividends to us. See “ Item 4. Information on
the Company - B. Business Overview - Regulations - Regulations Relating to Dividend Distribution” and “ Item 10.
Additional Information - E. Taxation - People’s Republic of China Taxation.”

If we pay any dividends on our ordinary shares,
we will pay those dividends which are payable in respect of the Class A ordinary shares underlying our ADSs to the depositary, as the
registered holder of such Class A ordinary shares, and the depositary then will pay such amounts to our ADS holders in proportion to the
Class A ordinary shares underlying the ADSs held by such ADS holders, subject to the terms of the deposit agreement, including the fees
and expenses payable thereunder. See