Company: XHG
Filing Date: 2025-09-09
Form Type: F-3
Source: 0001213900-25-086186
Chunk: 46

Company: XChange TEC.INC
Filing Date: 2025-09-09
Form: F-3
Chunk 46
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 to the outbound data transfer activities in order to prevent illegal data transfer
activities.

As there are still uncertainties regarding these
new laws and regulations as well as the amendment, interpretation and implementation of the existing laws and regulations related to cybersecurity
and data protection, We cannot assure you that we will be able to comply with these laws and regulations in all respects. The regulatory
authorities may deem our activities or services non-compliant and therefore require us to suspend or terminate its business. We may also
be subject to fines, legal or administrative sanctions and other adverse consequences, and may not be able to become in compliance with
relevant laws and regulations in a timely manner, or at all. These may materially and adversely affect its business, financial condition,
results of operations and reputation.

Since these statements and regulatory actions
are new, it is highly uncertain how soon legislative or administrative regulation making bodies will respond and what existing or new
laws or regulations or detailed implementations and interpretations will be modified or promulgated, if any, and the potential impact
such modified or new laws and regulations will have on our daily business operation, our ability to accept foreign investments and conduct
follow-on offerings, and listing or continuing listing on a U.S. or other foreign exchanges. In addition, the PRC government has recently
published new policies that significantly affected certain industries such as the education and internet industries, and we cannot rule
out the possibility that it will in the future release regulations or policies regarding any other industry including the industry in
which we operate, which could adversely affect our business, financial condition and results of operations.

Uncertainties in the interpretation and enforcement of PRC laws and regulations could limit the legal protections available to us.

The PRC legal system is based on written statutes
and prior court decisions or legal cases have limited value as precedents. Since these laws, regulations and rules are relatively new
and the PRC legal system continues to rapidly evolve, the application and interpretations of these laws, regulations and rules are not
always uniform, are ambiguous and may be interpreted and applied inconsistently between different government authorities, and enforcement
of these laws, regulations and rules involves uncertainties.

Developments in the apartment rental industry
may lead to changes in PRC laws, regulations and policies or in the interpretation and application of existing laws, regulations and policies
that may limit or restrict us, which could materially and adversely affect our business and operations.

From time to time, we may have to resort to administrative
and court proceedings to enforce our legal rights