Company: XHG
Filing Date: 2025-10-29
Form Type: F-3/A
Source: 0001213900-25-103499
Chunk: 56

Company: XChange TEC.INC
Filing Date: 2025-10-29
Form: F-3/A
Chunk 56
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 ADSs, or the threat of a trading prohibition, may materially and adversely affect the value of your investment. Additionally, the inability of the PCAOB to conduct inspections of our auditors would deprive our investors of the benefits of such inspections.

The U.S. Holding Foreign Companies Accountable
Act, or the HFCA Act, was enacted into law on December 18, 2020. Under the HFCA Act, if the SEC determines that we have filed audit reports
issued by a registered public accounting firm that has not been subject to inspection by the PCAOB for three consecutive years, the SEC
will prohibit our securities, including our ADSs, from being traded on a U.S. national securities exchange, including NASDAQ, or in the
over-the-counter trading market in the U.S. The process for implementing trading prohibitions pursuant to the HFCA Acts will be based
on a list of registered public accounting firms that the PCAOB has been unable to inspect and investigate completely as a result of a
position taken by a non-U.S. government, or the Relevant Jurisdiction, and such identified auditors, the PCAOB Identified Firms. The first
list of PCAOB Identified Firms was included in a release by the PCAOB on December 16, 2021, or the PCAOB December 2021 Release. The SEC
will review annual reports filed with it for fiscal years beginning after December 18, 2020 to determine if the auditor used for such
reports was so identified by the PCAOB, and such issuers will be designated as “Commission Identified Issuers” on a list to
be published by the SEC. If an issuer is a Commission Identified Issuer for three consecutive years (which will be determined after the
third such annual report), the SEC will issue an order that will implement the trading prohibitions described above.

On August 26, 2022, the PCAOB signed the Protocol
with the CSRC and the Ministry of Finance of the PRC governing inspections and investigations of audit firms based in mainland China and
Hong Kong, which marks the first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms
headquartered in China without any limitations on scope. The Protocol sets forth, among other terms, that (i) the PCAOB has independent
discretion to select any issuer audits for inspection or investigation; (ii) the PCAOB has direct access to interview and take testimony
from all personnel of the audit firms whose issuer engagements