Company: XHG
Filing Date: 2025-10-29
Form Type: F-3/A
Source: 0001213900-25-103499
Chunk: 48

Company: XChange TEC.INC
Filing Date: 2025-10-29
Form: F-3/A
Chunk 48
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 the periods prior to the
completion of the Equity Transfer. If the PRC government finds such agreements non-compliant with relevant PRC laws, regulations, and
rules, or if these laws, regulations, and rules or the interpretation thereof change in the future, and such changes may be retroactively
applied to our historical contractual arrangements, we could be subject to severe penalties and our control over the VIE entities may
be rendered ineffective, which could result in potential restatement of our historical financial statements. As a result, our shares and/or
ADSs may decline in value or become worthless.

Risks Related to Doing Business in the PRC

The PRC government may exert, at any time, substantial intervention and influence over the manner of our operations, and the rules and regulations to which we are subject, including the ways they are enforced, may change rapidly and with little advance notice to us or our shareholders. Any such actions by the Chinese government, including any decision to intervene or influence the operations of our subsidiaries in China or to exert control over any offering of securities conducted overseas and/or foreign investment in China-based issuers, may cause us to make material changes to our operations in China, may limit or completely hinder our ability to offer or continue to offer securities to investors, and may cause the value of such securities to significantly decline or be worthless.

We are exposed to legal and operational risks
associated with our operations in China. The PRC government has significant authority to exert influence on the ability of a company with
operations in China, including us, to conduct its business. Changes in China’s economic, political or social conditions or government
policies could materially and adversely affect our business and results of operations. We are subject to risks due to the uncertainty
of the interpretation and the application of the PRC laws and regulations, including but not limited to the risks of uncertainty about
any future actions of the PRC government on U.S. listed companies. We may also be subject to sanctions imposed by PRC regulatory agencies,
including CSRC, if we fail to comply with their rules and regulations. Any actions by the PRC government to exert more oversight and control
over offerings that are conducted overseas and/or foreign investment in companies having operations in China, including us, could significantly
limit or completely hinder our ability to offer or continue to offer securities to investors, and cause the value of our securities to
significantly decline or become worthless. These China-related risks could result in a material change in our operations and/or the