Company: XHG
Filing Date: 2025-09-09
Form Type: F-3
Source: 0001213900-25-086186
Chunk: 49

Company: XChange TEC.INC
Filing Date: 2025-09-09
Form: F-3
Chunk 49
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 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.

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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 our filing of a second consecutive annual report on Form 20-F in which our auditor for such reports is a PCAOB Identified Firm.

If our ADSs are subject to a trading prohibition
under the HFCA Act, the price of our ADSs may be adversely affected, and the threat of such a trading prohibition would also adversely
affect their price. If we are unable to be listed on another securities exchange that provides sufficient liquidity, such a trading prohibition
may substantially impair your ability to sell or purchase our ADSs when you wish to do so. Furthermore, if we are able to maintain a listing
of our Class A ordinary shares on a non-U.S. exchange, investors owning our ADSs may have to take additional steps to engage in transactions
on that exchange, including converting ADSs into Class A ordinary shares and establishing non-U.S. brokerage accounts.

The HFCA Act also imposes additional certification
and disclosure requirements for Commission Identified Issuers, and these requirements apply to issuers in the year following their listing
as Commission Identified Issuers. The additional requirements include a certification that the issuer is not owned or controlled by a
governmental entity in the Relevant Jurisdiction, and the additional requirements for annual reports include disclosure that the issuer’s
financials were audited by a firm not subject to PCAOB inspection, disclosure on governmental entities in the Relevant Jurisdiction’s
ownership in and controlling financial interest in the issuer