Company: XHG
Filing Date: 2025-10-29
Form Type: F-3/A
Source: 0001213900-25-103499
Chunk: 5

Company: XChange TEC.INC
Filing Date: 2025-10-29
Form: F-3/A
Chunk 5
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 description of risks related to the holding corporate structure, “Item 3. Key Information—D.
Risk Factors—Risks Related to Doing Business in China—Substantial uncertainties exist with respect to the interpretation
and implementation of the PRC Foreign Investment Law and how it may impact the viability of our current corporate structure, corporate
governance and business operations” beginning on page 23 of our Form 20-F for FY 2024, which is incorporated herein by reference.

Specifically, the government of China (which
is also referred to as “PRC”) recently initiated a series of regulatory actions and made a number of public statements on
the regulation of business operations in China, including cracking down on illegal activities in the securities market, enhancing supervision
over China-based companies listed overseas using a variable interest entity structure, adopting new measures to extend the scope of cybersecurity
reviews, and expanding efforts in anti-monopoly enforcement. We do not believe that our subsidiaries in Hong Kong or mainland China are
directly subject to these regulatory actions or statements, as we have not carried out any monopolistic behavior and our business does
not involve the collection of personal information or implicate national security. However, since these statements and regulatory actions
by the PRC government are newly published and detailed official guidance and related implementation rules have not been issued or taken
effect, uncertainties exist as to how soon the regulatory bodies in China will finalize implementation measures, and the impacts the
modified or new laws and regulations will have on our daily business operation, the ability to accept foreign investments and list securities
on an U.S. or other foreign exchange.

We are exposed to legal and operational risks
associated with our operations in China. The PRC government has significant authority to exert influence on the ability of a company with
operations in China, including us, to conduct its business. Changes in China’s economic, political or social conditions or government
policies could materially and adversely affect our business and results of operations. We are subject to risks due to the uncertainty
of the interpretation and the application of the PRC laws and regulations, including but not limited to the risks of uncertainty about
any future actions of the PRC government on U.S. listed companies. We may also be subject to sanctions imposed by PRC regulatory agencies,
including CSRC, if we fail to comply with their rules and regulations. Any actions by the PRC government to exert more oversight and control
over offerings that are conducted overseas and/or foreign investment in companies having operations in China