Company: XHG
Filing Date: 2025-09-09
Form Type: F-3
Source: 0001213900-25-086186
Chunk: 40

Company: XChange TEC.INC
Filing Date: 2025-09-09
Form: F-3
Chunk 40
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 in China. The PRC government has significant authority to exert influence on the ability of a company with
operations in China, including us, to conduct its business. Changes in China’s economic, political or social conditions or government
policies could materially and adversely affect our business and results of operations. We are subject to risks due to the uncertainty
of the interpretation and the application of the PRC laws and regulations, including but not limited to the risks of uncertainty about
any future actions of the PRC government on U.S. listed companies. We may also be subject to sanctions imposed by PRC regulatory agencies,
including CSRC, if we fail to comply with their rules and regulations. Any actions by the PRC government to exert more oversight and control
over offerings that are conducted overseas and/or foreign investment in companies having operations in China, including us, could significantly
limit or completely hinder our ability to offer or continue to offer securities to investors, and cause the value of our securities to
significantly decline or become worthless. These China-related risks could result in a material change in our operations and/or the value
of our securities, or could significantly limit or completely hinder our ability to offer securities to investors in the future and cause
the value of such securities to significantly decline or become worthless.

The PRC government may exert, at any time, substantial
intervention and influence over the manner of our operations. Recently, the PRC government initiated a series of regulatory actions and
statements to regulate business operations in China with little advance notice, including cracking down on illegal activities in the securities
market, enhancing supervision over China-based companies listed overseas, adopting new measures to extend the scope of cybersecurity reviews
and new laws and regulations related to data security, and expanding the efforts in anti-monopoly enforcement.

The regulatory framework for the collection, use,
safeguarding, sharing, transfer and other processing of personal information and important data worldwide is rapidly evolving in PRC and
is likely to remain uncertain for the foreseeable future. Regulatory authorities in China have implemented and are considering a number
of legislative and regulatory proposals concerning data protection. For example, the PRC Cybersecurity Law, which became effective in
June 2017, established China’s first national-level data protection for “network operators,” which may include all organizations
in China that connect to or provide services over the internet or other information network. The PRC Data Security Law, which was promulgated
by the Standing Committee of PRC National People’s Congress, or the