XChange TEC.INC plans to implement ADS ratio change

XChange TEC.INC (XHG)announced that it plans to change the ratio of the American depositary shares representing its Class A ordinary shares from one ADS representing six hundred thousand Class A ordinary share to one ADS representing twelve million Class A ordinary shares. For the ADS holders, the change in the ADS ratio will have the same effect as a one-for-twenty reverse ADS split. There will be no change to the company’s Class A ordinary shares. The effect of the ratio change on the ADS trading price on The Nasdaq Capital Market is expected to take place at the open of trading on November 8. Holder of ADSs will be required on a mandatory basis to surrender their old ADSs to the company’s depositary, The Bank of New York Mellon, in exchange for every twenty then-held ADSs to receive one new ADS. The ADSs will continue to be traded on The Nasdaq Capital Market under the symbol “XHG.”