Company: XHG
Filing Date: 2025-09-09
Form Type: F-3
Source: 0001213900-25-086186
Chunk: 43

Company: XChange TEC.INC
Filing Date: 2025-09-09
Form: F-3
Chunk 43
---
 on cybersecurity would have a material adverse impact
on our business.

On September 1, 2021, the PRC Data Security Law
became effective, which imposes data security and privacy obligations on entities and individuals conducting data-related activities,
and introduces a data classification and hierarchical protection system based on the importance of data in economic and social development,
as well as the degree of harm it will cause to national security, public interests, or legitimate rights and interests of individuals
or organizations when such data is tampered with, destroyed, leaked, or illegally acquired or used. As of the date of this prospectus,
we have not been involved in any investigations on data security compliance made in connection with the PRC Data Security Law, and we
have not received any inquiry, notice, warning, or sanctions in such respect. Based on the foregoing, we do not expect that, as of the
date of this prospectus, the PRC Data Security Law would have a material adverse impact on our business.

<div align='center'>21</div>

On July 6, 2021, the relevant PRC governmental
authorities publicated the Opinions on Strictly Cracking Down Illegal Securities Activities in Accordance with the Law. These opinions
require the relevant regulators to coordinate and accelerate amendments of legislation on the confidentiality and archive management related
to overseas issuance and listing of securities, and to improve the legislation on data security, cross-border data flow and management
of confidential information. These opinions emphasized the need to strengthen the administration over illegal securities activities and
the supervision on overseas listings by China-based companies and proposed to take effective measures, such as promoting the construction
of relevant regulatory systems to deal with the risks and incidents faced by China-based overseas-listed companies. As these opinions
were recently issued, official guidance and related implementation rules have not been issued yet and the interpretation of these opinions
remains unclear at this stage. As of the date of this prospectus, we have not received any inquiry, notice, warning, or sanctions from
the CSRC or any other PRC government authorities. Based on the foregoing and the currently effective PRC laws, we and our PRC legal counsel,
Beijing Kingdom Law Firm, are of the view that, as of the date of this prospectus, these opinions do not have a material adverse impact
on our business.

On December 24, 2021, the CSRC published the Provisions
of the State Council on the Administration of Overseas Securities Offering and Listing by