Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
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Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
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ITEM 3. KEY INFORMATION

For risks associated with being based in or having
the majority of the operations in China, see “ Item 3. Key Information - D. Risk Factors - Risks Related to Doing Business
in China.”

Our Dual Class Share Structure

We have a dual class share structure. As of the
date of this annual report, we had 246,310,681,046,400 ordinary shares outstanding, consisting of 239,917,892,046,400 Class A ordinary
shares represented by 19,993,157 ADSs and 6,392,789,000,000 Class B ordinary shares. In respect of matters requiring the votes of shareholders,
holders of Class A ordinary shares are entitled to one vote per share, while holders of Class B ordinary shares are entitled to ten votes
per share.

Golden Stream Ltd., a company controlled by Mr.
Yong Zhang, beneficially owns all of our issued Class B ordinary shares, representing 2.60% of the total outstanding share capital and
21.04% of the voting power of the Company as of the date of this annual report, due to the disparate voting powers associated with our
dual-class structure. The Class B ordinary shares held by Golden Stream Ltd. represent the maximum number of shares underlying the Company’s
share incentive plan adopted in 2022 (the “2022 Plan”) and 2024 (the “2024 Plan). Golden Stream Ltd. and its controlling
shareholder Mr. Yong Zhang have agreed to act upon the instructions from a committee of the Company (the “ ESOP Operation Committee”),
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. 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.

For details of the risks related to our dual
class share structure, please see “ Item 3. Key Information - D. Risk Factors - Risks Related to the ADSs - Our dual
class share structure with different voting rights limits your ability to influence corporate matters and could discourage others from
pursuing any