Company: XHG
Filing Date: 2025-10-29
Form Type: F-3/A
Source: 0001213900-25-103499
Chunk: 57

Company: XChange TEC.INC
Filing Date: 2025-10-29
Form: F-3/A
Chunk 57
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 are being inspected or investigated; (iii) the PCAOB has the unfettered
ability to transfer information to the SEC in accordance with the Sarbanes-Oxley Act; and (iv) the PCAOB inspectors can see complete audit
work papers without any redactions. However, uncertainties remain with respect to the implementation of this framework and there is no
assurance that the PCAOB will be able to execute, in a timely manner, its future inspections and investigations in a manner that satisfies
the Protocol.

On December 15, 2022, the PCAOB board announced
that it has completed the inspections, determined that it had complete access to inspect or investigate completely registered public accounting
firms headquartered in mainland China and Hong Kong, and voted to vacate the Determination Report.

If we are unable to retain a PCAOB-registered auditor subject to PCAOB inspection and investigation, a trading prohibition for our ADSs could be issued shortly after our filing of the third consecutive annual report on Form 20-F for which we have retained a PCAOB Identified Firm. Our current independent accounting firm, Onestop Assurance PAC, whose audit report is included in our annual report on Form 20-F for FY 2024, which is incorporated herein by reference, is headquartered in Singapore, and was not included in the list of PCAOB Identified Firms in the PCAOB December Release. Recent developments with respect to audits of China-based companies create uncertainty about the ability of Onestop Assurance PAC to fully cooperate with a PCAOB request for audit working papers without the approval of the Chinese authorities. Onestop Assurance PAC’s audit working papers related to us are located in China. The PCAOB has not requested Onestop Assurance PAC to provide the copies of these audit working papers and as a result, Onestop Assurance PAC has not sought permission from the Chinese authorities to provide copies of these materials to the PCAOB, but there is no assurance that they would be able to obtain such permission.

<div align='center'>27</div>

In June 2021, the United States Senate passed
a bill that would amend the HFCA Act to accelerate the imposition of trading prohibitions once an issuer is identified from three years
to two years, and a companion bill was introduced in the U.S. House of Representatives on December 14, 2021. If this bill amending the
HFCA Act is approved by both houses of Congress and signed by the President, our securities could be subject to a trading prohibition
following