Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 55

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
Chunk 55
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 Determination Report.

Notwithstanding the foregoing,
the Company’s ability to retain an auditor subject to the PCAOB inspection and investigation, including but not limited to inspection
of the audit working papers related to us, may depend on the relevant positions of U. S. and Chinese regulators. OneStop’s audit
working papers related to us are located in China. With respect to audits of companies with operations in China, such as the Company,
there are uncertainties about the ability of its auditor to fully cooperate with a request by the PCAOB for audit working papers in China
without the approval of Chinese authorities. If the PCAOB is unable to inspect or investigate completely the Company’s auditor because
of a position taken by an authority in a foreign jurisdiction, or the PCAOB re-evaluates its determination as a result of any obstruction
with the implementation of the Statement of Protocol, then such lack of inspection or re-evaluation could cause trading in the Company’s
securities to be prohibited under the HFCA Act, and ultimately result in a determination by a securities exchange to delist the Company’s
securities. Accordingly, the HFCA Act calls for additional and more stringent criteria to be applied to emerging market companies upon
assessing the qualification of their auditors, especially the non-U. S. auditors who are not inspected by the PCAOB. These developments
could add uncertainties to our offering.

If our ADSs are subject to a trading prohibition
under the HFCA Act, the price of our ADSs may be adversely affected, and the threat of such a trading prohibition would also adversely
affect their price. If we are unable to be listed on another securities exchange that provides sufficient liquidity, such a trading prohibition
may substantially impair your ability to sell or purchase our ADSs when you wish to do so. Furthermore, if we are able to maintain a
listing of our ordinary shares on a non-U. S. exchange, investors owning our ADSs may have to take additional steps to engage in transactions
on that exchange, including converting ADSs into ordinary shares and establishing non-U. S. brokerage accounts.

The HFCA Act also imposes
additional certification and disclosure requirements for Commission Identified Issuers, and these requirements apply to issuers in the
year following their listing as Commission Identified Issuers. The additional requirements include a certification that the issuer is
not owned or controlled by a governmental entity in the Relevant Jurisdiction, and the additional requirements for annual reports include
disclosure that the issuer’s financials were aud