Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 15

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
Chunk 15
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 or may otherwise adversely affect our business and financial condition.                                
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Risks Related to the Holding Foreign Companies Accountable Act

  If the U. S. Public Company Accounting Oversight Board, or the PCAOB, is unable to inspect our auditors as required under the Holding Foreign Companies Accountable Act, the SEC will prohibit th...  
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Risks Related to the ADSs

  The market price for the ADSs is volatile.  

  If we fail to meet the applicable listing requirements,                                                                             
  NASDAQ may delist our ADSs from trading on its exchange in which case the liquidity and market price of our ADSs could decline and  
  our ability to raise additional capital would be adversely affected.                                                                
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  An active market for the ADSs may not be maintained.  
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  If securities or industry analysts do not publish research                                                                         

  Because we do not expect to pay dividends in the foreseeable                            

Risks Related to Our Business and Industry

If we are unable to fully 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.

In
connection with the Acquisition, we issued the Notes in an aggregate amount equal to the purchase price to the selling shareholders of
Alpha Mind. The Notes, with an outstanding principal amount of USD$152.14 million as of September 30, 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 are secured by all of the issued and outstanding equity of Alpha Mind and all of
the assets of Alpha Mind and its subsidiaries.

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