Company: XHG
Filing Date: 2025-10-29
Form Type: F-3/A
Source: 0001213900-25-103499
Chunk: 55

Company: XChange TEC.INC
Filing Date: 2025-10-29
Form: F-3/A
Chunk 55
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, 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. However, since PRC administrative and court authorities have significant discretion
in interpreting and implementing statutory and contractual terms, it may be more difficult to evaluate the outcome of administrative and
court proceedings and the level of legal protection we enjoy than in more developed legal systems. Furthermore, the PRC legal system is
based in part on government policies and internal rules (some of which are not published in a timely manner or at all) that may have retroactive
effect. As a result, we may not be aware of our violation of these policies and rules in a timely manner until sometime after the violation.

Such uncertainties, including uncertainty over
the scope and effect of our contractual, property (including intellectual property) and procedural rights, could materially and adversely
affect our business and impede our ability to continue our operations.

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If the U.S. Public Company Accounting Oversight Board, or the PCAOB, is unable to inspect our auditors as required under the Holding Foreign Companies Accountable Act, the SEC will prohibit the trading of our ADSs. A trading prohibition for our