Company: XHG
Filing Date: 2025-10-29
Form Type: F-3/A
Source: 0001213900-25-103499
Chunk: 35

Company: XChange TEC.INC
Filing Date: 2025-10-29
Form: F-3/A
Chunk 35
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 forth certain detailed factors
in determining “beneficial owner” status, and specifically, if an applicant’s business activities do not constitute
substantive business activities, the applicant will not qualify as a “beneficial owner”. Furthermore, the Administrative Measures
for Non-resident Taxpayers to Enjoy Treatment under Treaties, which became effective in January 2020, require non-resident enterprises
to determine whether they are qualified to enjoy the preferential tax treatment under the tax treaties and file relevant report with the
tax authorities. Therefore, if the relevant tax authorities determine that our transactions or arrangements are for the primary purpose
of enjoying a favorable tax treatment rather than substantive business activities, then we will not qualify as a “beneficial owner”,
and the relevant tax authorities may adjust the favorable withholding tax in the future. Accordingly, there is no assurance that the reduced
5% withholding rate will apply to dividends received by our Hong Kong subsidiary from our PRC subsidiaries. This withholding tax will
reduce the amount of dividends we may receive from our PRC subsidiaries. For more details, see “Item 3 Key Information-D. Risk Factors-Risks
Related to Doing Business in China-We may rely on dividends and other distributions on equity paid by our PRC subsidiaries to fund any
cash and financing requirements we may have, and any limitation on the ability of our PRC subsidiaries to make payments to us could have
a material and adverse effect on our ability to conduct our business.”

<div align='center'>13</div>

As of the date of this prospectus, no dividends or distributions have been made to date between the holding company, XChange TEC.INC, its subsidiaries, and the consolidated VIE, or to investors, including the U.S. investors (i.e., there have not been any dividends or distributions that a subsidiary or consolidated VIE have made to the holding company, XChange TEC.INC, or to investors, including U.S. investors). The holding company, XChange TEC.INC, its subsidiaries, and the consolidated VIE do not have any plans to distribute earnings or dividends or settle amounts owed under the Contractual Arrangements in the foreseeable future. To the extent cash and/or assets in the business are in the PRC and/or Hong Kong or our PRC and/or Hong Kong entities, such funds and/or assets may not be available to fund operations or for other use outside of the PRC and/or Hong Kong due to interventions in or the imposition of restrictions and limitations on