Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 160

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 10
Chunk 160
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 at least 15 days during each calendar quarter.
Once made, the election cannot be revoked without the consent of the IRS unless the shares cease to be marketable.

In some cases, a shareholder of a PFIC may also
be subject to alternative treatment by making a “qualified electing fund” (“ QEF”) election to be taxed currently
on its share of the PFIC’s undistributed income. To make a QEF election, the PFIC must provide shareholders with certain information
compiled according to U. S. federal income tax principles. We do not intend to make available the information necessary to make a QEF election,
and such election therefore will not be available to you.

A U. S. Holder that owns an equity interest in
a PFIC must annually file IRS Form 8621. A failure to file one or more of these forms as required may toll the running of the statute
of limitations in respect of each of the U. S. Holder’s taxable years for which such form is required to be filed. As a result, the
taxable years with respect to which the U. S. Holder fails to file the form may remain open to assessment by the IRS indefinitely, until
the form is filed.

U. S. Holders should consult their own tax advisors
regarding the U. S. federal income tax considerations discussed above and the desirability of making a mark-to-market election.

Foreign Financial Asset Reporting

Certain U. S. Holders who are individuals that
own “specified foreign financial assets” with an aggregate value in excess of US$50,000 on the last day of the taxable year
or US$75,000 at any time during the taxable year are generally required to file an information statement along with their tax returns,
currently on IRS Form 8938, with respect to such assets. “ Specified foreign financial assets” include any financial accounts
held at a non-U. S. financial institution, as well as securities issued by a non-U. S. issuer (which would include the Class A ordinary
shares and the ADSs) that are not held in accounts maintained by financial institutions. Higher reporting thresholds apply to certain
individuals living abroad and to certain married individuals. Regulations extend this reporting requirement to certain entities that are
treated as formed or availed of to hold direct or indirect interests in specified foreign financial assets based on certain objective
criteria. U. S. Holders that fail to report the required information could be subject to substantial penalties.