Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 58

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
Chunk 58
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 trades can cause significant percentage
changes in valuation in a short time period. Such volatility may affect the attitude of investors towards our securities, which consequently
may impact the trading performance of our ADSs, regardless of our actual operating performance.

If we fail to meet the applicable listing requirements, NASDAQ
may delist our ADSs from trading on its exchange in which case the liquidity and market price of our ADSs could decline and our ability
to raise additional capital would be adversely affected.

Our ADSs are currently listed for trading on
the NASDAQ Capital Market. There are a number of requirements that must be met in order for our ADSs to remain listed on the NASDAQ Capital
Market, including but not limited to the minimum bid price of at least US$1.00 per ADS and the minimum number and market value of publicly
held shares, and the failure to meet any of these listing standards could result in the delisting of our ADSs from NASDAQ.

We have received a notice from NASDAQ dated November
13, 2024 stating that we are not in compliance with the requirement to maintain a minimum Market Value of Listed Securities (“ MVLS”)
of $35 million as set forth under Nasdaq Listing Rule for continued listing on the NASDAQ Capital Market. We have a 180-calendar-day
compliance period, which expires on May 12, 2025. If we are unable to regain compliance with the applicable Nasdaq Listing Rules by the
end of the compliance period, we will receive a written notice that our securities are subject to delisting. While we intend to take
appropriate actions within the specified period to regain compliance, there can be no assurance that we will be able to regain compliance
under the MVLS requirement and other applicable Nasdaq Listing Rules.

Additionally, we cannot assure you that we will
be able to comply with all Nasdaq Listing Rules at all times, or regain compliance in a timely manner in case of a default and avoid
any subsequent adverse action taken by NASDAQ, including but not limited to delisting.

An active market for the ADSs may not be maintained.

The ADSs began trading on NASDAQ in November
2019, and we can provide no assurance that we will be able to maintain an active trading market on NASDAQ or any other exchange in the
future. If an active market for the ADSs is not maintained, it may be difficult for the ADS holders to sell the ADSs without depressing
the market price for the ADSs, or at