Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 119

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 5
Chunk 119
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payment, draw-downs under short-term debt and other financing. As of September 30, 2024,
we had RMB 13,085,000 in cash and cash equivalents. We did not have any capital commitment as of September 30, 2024.

We have been incurring losses from operations
since our inception. Our accumulated deficits amounted to RMB3,630.0 million and RMB3,851.0 million (US$548.8 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 FY 2024, respectively. As of September 30, 2023 and 2024, our current liabilities exceeded
current assets by RMB 643.4 million and RMB 1,259.2 million, respectively. We disposed of our long-term rental apartment rental business
in October 2023 and September 2024 and we had no revenues from continued operations for the years ended September 30, 2022 and 2023. We
generated RMB 288.4 million revenue for the year ended September 2024. Therefore, these conditions considered in aggregate that raise
substantial doubt on our ability to continue as a going concern within one year after the date on which the financial statements are issued.

On December 28, 2023, we completed the acquisition of 100% equity interest
in Alpha Mind for a consideration of US$180,000,000. The purchase price is payable in the form of the Notes. The Notes 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 promissory 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