Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 57

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
Chunk 57
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 market within the United States.

Risks Related to the ADSs

The market price for the ADSs is volatile.

The trading prices of the ADSs have fluctuated
significantly and will continue to be volatile and could fluctuate widely due to factors beyond our control. This may happen because
of broad market and industry factors, like the performance and fluctuation in the market prices or the underperformance or deteriorating
financial results of other listed internet or other companies based in China that have listed their securities in the United States in
recent years. The securities of some of these companies have experienced significant volatility since their initial public offerings,
including, in some cases, substantial price declines in their trading prices. The trading performances of other Chinese companies’
securities after their offerings, including internet and e commerce companies, may affect the attitudes of investors toward Chinese companies
listed in the United States, which consequently may impact the trading performance of the ADSs, regardless of our actual operating performance.
In addition, any negative news or perceptions about inadequate corporate governance practices or fraudulent accounting, corporate structure
or other matters of other Chinese companies may also negatively affect the attitudes of investors towards Chinese companies in general,
including us, regardless of whether we have conducted any inappropriate activities. In addition, securities markets may from time to
time experience significant price and volume fluctuations that are not related to our operating performance, which may have a material
adverse effect on the market price of the ADSs.

In addition to the above factors, the price and
trading volume of the ADSs may be highly volatile due to multiple factors, including, among others, (i) regulatory developments affecting
us, our business partners, third-party service providers, financial institutions, or our industry, (ii) market conditions in the insurance
agency industry, (iii) changes in the performance or market valuations of other insurance agency companies, (iv) announcements by us
or our competitors of new product and service offerings, acquisitions, strategic relationships, joint ventures or capital commitments,
(v) actual or anticipated fluctuations in our quarterly results of operations and changes or revisions of our expected results, or changes
in financial estimates by securities research analysts, (vi) negative publicity about us, our management or our industry, (vii) additions
to or departures of our directors and senior management, and (viii) sales or perceived potential sales of additional ordinary shares
or ADSs. Furthermore, as a result of the narrow band of our ADSs publicly available for trading, small