Company: XHG
Filing Date: 2025-10-29
Form Type: F-3/A
Source: 0001213900-25-103499
Chunk: 59

Company: XChange TEC.INC
Filing Date: 2025-10-29
Form: F-3/A
Chunk 59
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 potential investors in the stock to lose confidence in the audit procedures and reported financial information and the quality of our financial statements.

We are exposed to significant geographic concentration risk, and adverse developments in the regions where we generate a substantial portion of our revenue could materially and adversely affect our business, financial condition, results of operations, and cash flows.

A significant amount of our commission revenue
received from policies sold is concentrated in three provinces in Northern China, which collectively accounted for over 50% of our total
commission revenue in 2022, 2023 and 2024. The breakdown of revenue contribution from these provinces is set forth below:

|          |     | Percentage of Revenue 
 Contribution          |       |   |     |         |       |   |     |         |       |   |
| Province |     | FY 2022               |       |   |     | FY 2023 |       |   |     | FY 2024 |       |   |
| Tianjin  |     |                       | 33.40 | % |     |         | 27.66 | % |     |         | 21.65 | % |
| Shandong |     |                       | 13.88 | % |     |         | 19.13 | % |     |         | 21.19 | % |
| Anhui    |     |                       | 13.64 | % |     |         | 14.21 | % |     |         | 11.84 | % |

Because our business is geographically concentrated,
our performance is particularly sensitive to regional conditions. Localized economic downturns, tightening credit conditions, changes
in consumer confidence or spending patterns, or reductions in insurance demand in any of these provinces could reduce our sales volume
and commission revenue. In addition, new or amended regulations or guidance by local authorities could limit our ability to conduct business
or increase our compliance costs. Adverse events unique to these regions, including but not limited to public health emergencies, natural
disasters, or social or political instability, could also disrupt our operations or sales activities.

If we experience adverse developments in any of these provinces,
we may be unable to offset lost revenue with growth in other regions, and our results could be more volatile than those of companies
with more diversified geographic exposure. Any of the foregoing could materially and adversely affect our business, financial condition,
results of operations, and cash flows.

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USE OF PROCEEDS</div>