Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 169

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 15
Chunk 169
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ITEM
15. CONTROLS AND PROCEDURES

Disclosure
Controls and Procedures

Our
management, with the participation of our chief executive officer and chief financial officer, has performed an evaluation of the effectiveness
of our disclosure controls and procedures (as defined in Rule 13a-15(c) under the Exchange Act) as of the end of the period covered by
this report, as required by Rule 13a-15(b) under the Exchange Act.

Based
upon that evaluation, our management has concluded that, due to the outstanding material weakness described below, as of September 30,
2024, our disclosure controls and procedures were not effective in ensuring that the information required to be disclosed by us in the
reports that we file and furnish under the Exchange Act was recorded, processed, summarized and reported, within the time periods specified
in the SEC’s rules and forms, and that the information required to be disclosed by us in the reports that we file or submit under
the Exchange Act is accumulated and communicated to our management, including our chief executive officer and chief financial officer,
to allow timely decisions regarding required disclosure.

Management’s
Annual Report on Internal Control over Financial Reporting

Our
management is responsible for designing, establishing and maintaining a system of internal controls over financial reporting, as defined
in Rule 13a-15(f) under the Exchange Act, to provide reasonable assurance that the financial information prepared by us for external
purposes is reliable and has been recorded, processed and reported in an accurate and timely manner in accordance with U. S. GAAP. Our
board of directors is responsible for ensuring that management fulfills its responsibilities. Because of its inherent limitations, our
internal control over financial reporting may not prevent or detect all possible misstatements or frauds. Also, projections of any evaluation
of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that
the degree of compliance with policies or procedures may deteriorate.

In
connection with the audits of our consolidated financial statements as of September 30, 2024 and for FY 2024, we and our independent
registered public accounting firm identified one material weakness in our internal control over financial reporting. As defined in the
standards established by the U. S. Public Company Accounting Oversight Board, a “material weakness” is a deficiency, or combination
of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement
of the annual or interim