Company: XHG
Filing Date: 2025-09-09
Form Type: F-3
Source: 0001213900-25-086186
Chunk: 17

Company: XChange TEC.INC
Filing Date: 2025-09-09
Form: F-3
Chunk 17
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), the SEC will issue an order that will implement the trading prohibitions described above. On August 26, 2022,
the PCAOB announced that it had signed a Protocol with the CSRC and the MOF of the People’s Republic of China, governing inspections
and investigations of audit firms based in mainland China and Hong Kong. Pursuant to the Protocol, the PCAOB conducted inspections on
select registered public accounting firms subject to the Determination Report in Hong Kong between September and November 2022. On December
15, 2022, the PCAOB board announced that it has completed the inspections, determined that it had complete access to inspect or investigate
completely registered public accounting firms headquartered in mainland China and Hong Kong, and voted to vacate the Determination Report.

Notwithstanding the foregoing, the Company’s ability to retain an auditor subject to the PCAOB inspection and investigation, including but not limited to inspection of the audit working papers related to us, may depend on the relevant positions of U.S. and Chinese regulators. If we are unable to retain a PCAOB-registered auditor subject to PCAOB inspection and investigation, a trading prohibition for our ADSs could be issued shortly after our filing of the third consecutive annual report on Form 20-F for which we have retained a PCAOB Identified Firm. Our current independent accounting firm, Onestop Assurance PAC whose audit report is included in the annual report on Form 20-F for FY 2024, which is incorporated herein by reference, is headquartered in Singapore, Republic of Singapore, and was not included in the list of PCAOB Identified Firms in the PCAOB December Release. Recent developments with respect to audits of China-based companies create uncertainty about the ability of Onestop Assurance PAC to fully cooperate with a PCAOB request for audit working papers without the approval of the Chinese authorities. Onestop Assurance PAC’s audit working papers related to us are located in China. The PCAOB has not requested Onestop Assurance PAC to provide the copies of these audit working papers and as a result, Onestop Assurance PAC has not sought permission from the Chinese authorities to provide copies of these materials to the PCAOB, but there is no assurance that they would be able to obtain such permission.

If our ADSs are subject to a trading prohibition
under the HFCA Act, the price of our ADSs may be adversely affected, and the threat of such a trading prohibition would also adversely
affect their price. If we are unable to be listed on another securities exchange that