Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 195

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 19
Chunk 195
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 the Group’s financial position, results of operations, cash
flows, and ability to achieve its intended business objectives. One of the Group’s shareholders is committed to provide financial
support up to $1million to support the Group’s operations. Management assessed that this amount is sufficient to cover the Group’s
reduced operation costs and meet its obligations.

The accompanying consolidated financial statements do not include any
adjustments that might result from the outcome of this uncertainty. Accordingly, the consolidated financial statements have been prepared
on a basis that assumes the Group will continue as a going concern and which contemplates the realization of assets and satisfaction of
liabilities and commitments in the ordinary course of business.

F-11

Principles of consolidation

The consolidated financial statements include the financial statements
of the Group and its subsidiaries, which include the wholly-owned foreign enterprise and VIEs over which the Company exercises control
and, when applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary for accounting
purposes. Alpha Mind WFOE is deemed to have a controlling financial interest and be the primary beneficiary for accounting purposes of
Huaming Insurance and Huaming Yunbao because it has both of the following characteristics: (1) the power to direct activities at Huaming
Insurance and Huaming Yunbao that most significantly impact such entity’s economic performance, and (2) the right to receive benefits
from Huaming Insurance and Huaming Yunbao that could potentially be significant to such entity. All intercompany transactions and balances
are eliminated on consolidation.

The following financial statement amounts and balances of the Group’s
VIEs were included in the accompanying consolidated financial statements, after elimination of inter-company balances and transactions:

                                                      As of September 30,                         
                                                      2023                       2024             
                                                      RMB                         RMB             
 ──────────────────────────────────────────────────────────────────────────────────────────────────
  ASSETS                                                                                          
  Cash and cash equivalents                                                     7,491      1,067  
  Short-term investment                                                         2,032        290  
  Accounts receivable, net                                                     36,276      5,169  
  Advances to suppliers                                                         6,706        956  
  Other current assets                                                            798        114  
  Restricted Cash, non-current                                                  5,000        712  
  Property and equipment, net                                                       6          1  
  Operating lease right-of-use asset                                              568         81  
  Total assets                                                                 58