Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 17

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
Chunk 17
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 2024, 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 intend to pay the rest of the Notes by either
using the cash flow generated by our operation or through debt or equity offerings or loans. However, we may not be able to obtain financing
or fund raising on favorable terms or at all. If we failed to obtain such financing and were unable to perform our payment obligations
under the terms of the Notes before the maturity date, the selling shareholders of Alpha Mind may exercise their collateral rights. We
will lose control of and no longer be able to consolidate Alpha Mind and our business, financial condition, results of operations and
prospects will be adversely affected. See “ - Risks Relating 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.”

These factors raise substantial doubt about our
ability to continue as a going concern. We intend to overcome the circumstances that impact our ability to remain a going concern through
a combination of new sources of revenues and additional financing. However, the implementation of these initiatives depends on many factors,
including the scale and pace of the expansion of our insurance agency network, efficiency in our services and SaaS platform, the expansion
of our sales and marketing activities, and potential investments in, or acquisitions of, businesses or technologies. Inability to access
financing on favorable terms in a timely manner or at all would materially and adversely affect our business, results of operations,
financial condition, and growth prospects. Furthermore, our inability to obtain adequate financing may cause a significant decline in
the value of our securities, and such securities may become worthless, resulting in a total loss of investment for holders of our securities.

The report of our independent registered public
accounting firm on our consolidated financial statements included elsewhere in this annual report includes an explanatory paragraph questioning
our ability to continue as a going concern. Our financial statements do not include any adjustments that might be necessary if we are
unable to continue as a going concern. If we are unable