Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 59

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
Chunk 59
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 all. An inactive market may also impair our ability to raise capital by selling ADSs and may impair
our ability to acquire other businesses or property using our ADSs as consideration.

If securities or industry analysts do not publish research or
publish inaccurate or unfavorable research about our business, the market price for the ADSs and trading volume could decline.

The trading market for the ADSs will depend in
part on the research and reports that securities or industry analysts publish about us or our business. If research analysts do not establish
and maintain adequate research coverage or if one or more of the analysts who cover us downgrade our ADSs or publish inaccurate or unfavorable
research about our business, the market price for the ADSs would likely decline. If one or more of these analysts cease coverage of our
company or fail to publish reports on us regularly, we could lose visibility in the financial markets, which, in turn, could cause the
market price or trading volume for the ADSs to decline.

Because we do not expect to pay dividends in the foreseeable
future, you must rely on price appreciation of the ADSs for return on your investment.

We currently intend to retain most, if not all,
of our available funds and any future earnings to fund the development and growth of our business. As a result, we do not expect to pay
any cash dividends in the foreseeable future. Therefore, you should not rely on an investment in the ADSs as a source for any future
dividend income.

Our board of directors has discretion as to whether
to distribute dividends, subject to certain restrictions under Cayman Islands law, namely that our company may only pay dividends out
of profits or share premium, and provided always that in no circumstances may a dividend be paid if this would result in our company
being unable to pay its debts at they fall due in the ordinary course of business. Even if our board of directors decides to declare
and pay dividends, the timing, amount and form of future dividends, if any, will depend on, among other things, our future results of
operations and cash flow, our capital requirements and surplus, the amount of distributions, if any, received by us from our subsidiary,
our financial condition, contractual restrictions and other factors deemed relevant by our board of directors. Accordingly, the return
on your investment in ADSs will likely depend entirely upon any future price appreciation of the ADSs. There is no guarantee that our
ADSs will appreciate in value or even maintain the price at which the ADS holders purchased the ADS