Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 76

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 4
Chunk 76
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0001 each, of which 8,500,000,000,000
were designated as Class A Ordinary Shares of a nominal or par value of US$0.0000001 each, 1,000,000,000,000 were designated as Class
B Ordinary Shares of a nominal or par value of US$0.0000001 each, and 500,000,000,000 were designated as Preferred Shares of a nominal
or par value of US$0.0000001 each (the “ Share Split”). In connection with such Share Split, the ratio of ADSs representing
our Class A ordinary shares was correspondingly adjusted from one (1) ADS representing one hundred and fifty (150) Class A ordinary share
to one (1) ADS representing fifteen thousand (15,000) Class A ordinary shares.

On October 31, 2023, we entered into an equity
transfer agreement to sell all of our equity interest in Haoju (Shanghai) Artificial Intelligence Technology Co., Ltd. (“ Haoju”),
a limited company incorporated under the laws of PRC, which was our indirect wholly-owned subsidiary prior to the disposition, to Wangxiancai
Limited for nominal consideration (the “ Disposal”). The Disposal was made at nominal consideration because Haoju and its subsidiaries
were loss-making and had net liabilities and the possibility that it would generate cash flow in the future was minimal considering (i)
decreasing demand for long-term rental apartments in areas it operated due to population outflow from these areas; and (ii) increasing
operating costs as a percentage of revenue as it had incurred certain fixed costs and experienced decreasing revenue streams. The Disposed
Business had been incurring losses from operations. Our accumulated deficits amounted to RMB3,630.0 million and RMB3,856.8 million (US$549.6
million) as of September 30, 2023 and 2024, respectively. Net cash used in operating activities from continuing operations were RMB 7.1
million, RMB 22.2 million and RMB 9.0 million for FY 2022, FY 2023 and FY2024, respectively. As of September 30, 2023 and 2024, our current
liabilities exceeded current assets by RMB 643.4 million and RMB 1,271.2 million, respectively. These factors had raised substantial doubt
about our ability to continue as a going concern.