Company: XHG
Filing Date: 2025-10-29
Form Type: F-3/A
Source: 0001213900-25-103499
Chunk: 58

Company: XChange TEC.INC
Filing Date: 2025-10-29
Form: F-3/A
Chunk 58
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 our filing of a second consecutive annual report on Form 20-F in which our auditor for such reports is a PCAOB Identified Firm.

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 Class A 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 Class A 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 audited by a firm not subject to PCAOB inspection, disclosure on governmental entities in the Relevant Jurisdiction’s
ownership in and controlling financial interest in the issuer, the names of Chinese Communist Party, or CCP, members on the board of the
issuer or its operating entities, and whether the issuer’s article’s include a charter of the CCP, including the text of such
charter.

In addition to the issues under the HFCA discussed above, the PCAOB’s inability to conduct inspections in China and Hong Kong prevents it from fully evaluating the audits and quality control procedures of the independent registered public accounting firm. Our current independent registered public accounting firm, Onestop Assurance PAC, is headquartered in Singapore, and has been inspected by the PCAOB on a regular basis with the last inspection in 2022. However, as noted above, recent developments create uncertainty as to the PCAOB’s continued ability to conduct inspections of our independent accounting firm, Onestop Assurance PAC. The inability of the PCAOB to conduct inspections of auditors in China makes it more difficult to evaluate the effectiveness of a China-based independent registered public accounting firm’s audit procedures or quality control procedures as compared to auditors outside of China that are subject to the PCAOB inspections, which could cause investors and