Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 206

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 19
Chunk 206
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 deferred tax assets and liabilities are determined on the basis of the differences
between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences
are expected to reverse.

Deferred tax assets are recognized to the extent that these assets
are more likely than not to be realized. In making such determination, the management considers all positive and negative evidence, including
future reversals of projected future taxable income and results of recent operation.

In order to assess uncertain tax positions, the Group applies a more
likely than not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step
approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates
that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes,
if any. The second step is to measure the tax benefit as the largest amount that is more than50% likely of being realized upon settlement.
The Group recognizes interest and penalties, if any, under accrued expenses and other current liabilities on its consolidated balance
sheet and under other expenses in its consolidated statement of comprehensive income (loss). As of September 30, 2023 and 2024, the Group
did not have any significant unrecognized uncertain tax positions.

Share-based compensation

The Group recognizes share-based compensation in the consolidated statements
of comprehensive income (loss) based on the fair value of equity awards on the date of the grant, with compensation expenses recognized
over the period in which the grantee is required to provide service to the Group in exchange for the equity award. Vesting of certain
equity awards are based on the completion of initial public offering (“ IPO”) and has a continued employment provision for
a period of time following the grant date. The share-based compensation expenses have been categorized as either general and administrative
expenses, research and development expenses or selling and marketing expenses, depending on the job functions of the grantees. For the
years ended September 30, 2022, 2023 and 2024, the Group recognized share-based compensation expenses of RMB9,771, RMB4,782and RMB2,507respectively, in the consolidated statements of comprehensive income (loss).

(Losses) earnings per share

Basic (losses) earnings per share are computed by dividing net loss
attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period.