XChange TEC.INC

The Company recognizes share-based compensation in the unaudited condensed consolidated statements of comprehensive (loss) income based on the fair value of equity awards on the date of the grant, with compensation expenses recognized over the period in which the grantee is required to provide service to the Company in exchange for the equity award. Vesting of certain equity awards are based on the completion of initial public offering (“IPO”) and has a continued employment provision for a period of time following the grant date. The share-based compensation expenses have been categorized as either general and administrative expenses, research and development expenses or selling and marketing expenses, depending on the job functions of the grantees. For the six months ended March 31, 2024 and 2025, the Company recognized share-based compensation expenses of RMB 1,531 andnil, respectively, in the unaudited condensed consolidated statements of comprehensive (loss) income.