Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 69

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
Chunk 69
---
 the Company, consisting of Yong Zhang and Jiaxing Chang determined on a unanimous basis in relation to the voting and, prior
to the vesting of the shares to the relevant grantee of the share-based awards under the 2022 Plan and 2024 Plan, the disposition of these
Class B ordinary shares. See “ Item 6. Directors, Senior Management and Employees - B. Compensation” and Item 6. Directors,
Senior Management and Employees - E. Share Ownership.

As a result of the dual class share structure and the concentration
of ownership, Golden Stream Ltd. and the ESOP Operation Committee have considerable influence over matters such as decisions regarding
change of directors, mergers, change of control transactions and other significant corporate actions. It may take actions that are not
in the best interest of us or our other shareholders. This concentration of ownership may discourage, delay or prevent a change in control
of our company, which could have the effect of depriving our other shareholders of the opportunity to receive a premium for their shares
as part of a sale of our company and may reduce the price of the ADSs. This concentrated control limits your ability to influence corporate
matters and could discourage others from pursuing any potential merger, takeover or other change of control transactions that holders
of Class A ordinary shares and ADSs may view as beneficial. In addition, the significant concentration of share ownership may adversely
affect the trading price of the ADSs due to investors’ perception that conflicts of interest may exist or arise.

Our memorandum and articles of association contain anti-takeover
provisions that could discourage a third party from acquiring us and adversely affect the rights of holders of our ordinary shares and
the ADSs.

Our current memorandum and articles of association
contain certain provisions that could limit the ability of others to acquire control of our company, including a provision that grants
authority to our board of directors to establish and issue from time to time one or more series of preferred shares without action by
our shareholders and to determine, with respect to any series of preferred shares, the terms and rights of that series. These provisions
could have the effect of depriving our shareholders and ADS holders of the opportunity to sell their shares or ADSs at a premium over
the prevailing market price by discouraging third parties from seeking to obtain control of our company in a tender offer or similar
transactions.

We are an emerging growth company and may take advantage of
certain reduced reporting requirements.

We are an “emerging growth company”