Company: XHG
Filing Date: 2025-10-29
Form Type: F-3/A
Source: 0001213900-25-103499
Chunk: 21

Company: XChange TEC.INC
Filing Date: 2025-10-29
Form: F-3/A
Chunk 21
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 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 articles include a charter of the CCP, including the text of such charter.

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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, Republic of 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 potential investors in the stock to lose confidence in the audit procedures and reported financial information and the quality of our financial statements.

Recent PRC Regulatory Development

We conduct our business in China through our subsidiaries
and the VIEs. We are required to obtain certain permissions from the PRC authorities to operate, issue securities to foreign investors,
and transfer certain data. The PRC government has exercised, and may continue to exercise, substantial influence or control over virtually
every sector of the Chinese economy through regulation and state ownership. Our ability to operate in China may be undermined if our subsidiaries
or the VIEs are not able to obtain or maintain approvals to operate in China. The central or local governments could impose new, stricter
regulations or interpretations of existing regulations that could require additional expenditures, and efforts on our part to ensure our
compliance with