Company: XHG
Filing Date: 2025-10-29
Form Type: F-3/A
Source: 0001213900-25-103499
Chunk: 46

Company: XChange TEC.INC
Filing Date: 2025-10-29
Form: F-3/A
Chunk 46
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 be submitted to arbitration
pursuant to the arbitration provision in the deposit agreement, or may be brought in a court of competent jurisdiction, at the election
of the claimant.

By agreeing to such optional arbitration provision,
you will not be deemed to have waived our or the depositary’s compliance with U.S. federal securities laws and the rules and regulations
promulgated thereunder.

Risks Related to Our Corporate Structure

If the PRC government determines that the contractual arrangements with the VIE entities did not comply with PRC regulations, or if these regulations change or are interpreted differently in the future, our shares and/or ADSs may decline in value if we are deemed to be unable to assert our contractual control rights over the assets of the VIE entities.

The Regulations for the Administration of Foreign-Invested
Telecommunications Enterprises, promulgated by the State Council on December 11, 2001 and last amended with immediate effect on February
6, 2016, requires foreign-invested value-added telecommunications enterprises in the PRC to be established as Sino-foreign joint ventures,
and foreign investors shall not acquire more than 50% of the equity interest of such an enterprise. In addition, the main foreign investor
who invests in such an enterprise shall demonstrate a good track record and experience in such industry. Moreover, the joint ventures
must obtain approvals from the MIIT and the Ministry of Commerce of the PRC (“MOFCOM”), or their authorized local counterparts,
before launching the value-added telecommunications business in the PRC. On March 29, 2022, the Decision of the State Council on Revising
and Repealing Certain Administrative Regulations, which took effect on May 1, 2022, was promulgated to amend certain provisions of regulations
including the Provisions on the Regulations for the Administration of Foreign-Invested Telecommunications Enterprises (2016 Revision),
the requirement for major foreign investor to demonstrate a good track record and experience in operating value-added telecommunications
businesses is deleted.

The Special Administrative Measures (Negative
List) for Access of Foreign Investment (2021 version) (the “Negative List”) was jointly promulgated by the National Development
and Reform Commission of the PRC (“NDRC”) and MOFCOM on December 27, 2021 and came into effect on January 1, 2022. According
to the Negative List, the proportion of foreign investments in an entity engages in value-added telecommunications business (except for
e