Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 44

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
Chunk 44
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 other directly liable persons. Given the
uncertainties surrounding the CSRC filing requirements at this stage, we cannot assure you that we will be able to complete the filings
and fully comply with the relevant new rules on a timely basis, or at all, if we conduct listing in other offshore stock markets or follow-on
offerings, issuance of convertible corporate bonds, exchangeable bonds, or other kinds of equity security in the future.

As of the date of this annual report, we have
not received any inquiry, notice, warning, or sanctions regarding offshore offering from the CSRC or any other PRC regulatory authorities.
However, if it is determined in the future that approval from the CSRC or other regulatory authorities or other procedures are required
for our offshore offerings, it is uncertain whether we can or how long it will take us to obtain such approval or complete such procedures
and any such approval or completion could be rescinded. Any failure to obtain or delay in obtaining such approval or completing such
procedures for our offshore offerings, or a rescission of any such approval obtained by us, would subject us to sanctions by the CSRC
or other PRC regulatory authorities for failure to seek approval for our offshore offerings. These regulatory authorities may impose
fines and penalties on our operations in China, limit our ability to pay dividends outside of China, limit our operating privileges in
China, delay or restrict the repatriation of the proceeds from our offshore offerings into China or take other actions that could materially
and adversely affect our business, financial condition, results of operations, and prospects, as well as the trading price of our ordinary
shares and ADSs.

Adverse changes in economic and political policies of the PRC
government could negatively impact China’s overall economic growth, which could materially adversely affect our business.

We conduct substantially all of our operations
through the PRC subsidiaries, the Current VIEs in China. Accordingly, our business, results of operations, financial condition and prospects
depend significantly on economic developments in China. China’s economy differs from the economies of most other countries in many
respects, including the amount of government involvement in the economy, the general level of economic development, growth rates and
government control of foreign exchange and the allocation of resources.

While the PRC economy has grown significantly
over the past few decades, this growth has remained uneven across different periods, regions and economic sectors. The PRC government
also exercises significant control over China’s economic growth by allocating resources, controlling the payment of