Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 91

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 4
Chunk 91
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 and operating in the PRC shall
be subject to the Company Law of the PRC, or the PRC Company Law, which was promulgated on December 29, 1993 and amended on December 28,
2013 and October 26, 2018 and newly amended on December 29, 2023 which came into effective on July 1, 2024. The PRC Company Law provides
general regulations for companies set up and operating in the PRC, including foreign-invested companies. Unless otherwise provided in
the PRC foreign investment laws, the provisions in the PRC Company Law shall prevail.

Investments in the PRC by foreign investors and
foreign-invested enterprises are regulated by the Special Administrative Measures (Negative List) for the Access of Foreign Investment,
or the Negative List, the latest version of which was promulgated by the NDRC and the PRC Ministry of Commerce, or the MOFCOM on June
23, 2020 and became effective as of July 23, 2020 and Catalogue of Industries for Encouraging Foreign Investment, or the Encouraging
Catalogue, the latest version of which was promulgated by the NDRC and the MOFCOM on December 27, 2020 and became effective as of January
27, 2021. The Negative List and the Encouraging Catalogue jointly categorize the industries into three categories: encouraged industries,
restricted industries and prohibited industries. Establishment of wholly foreign-owned enterprises is generally allowed in industries
outside of the Negative List. For the restricted industries within the Negative List, some are limited to equity or contractual joint
ventures, while in some cases Chinese partners are required to hold the majority interests in such joint ventures. Foreign investors
are not allowed to invest in industries in the Negative List. Industries not listed in the Negative List are generally open to foreign
investment unless specifically restricted by other applicable PRC regulations. The Negative List expands the scope of permitted industries
by reducing the number of industries that fall within the previous negative list where restrictions on the shareholding percentage or
requirements on the composition of board or senior management still exists.

The Foreign Investment Law became effective on
January 1, 2020 and has replaced the trio of three previous laws regulating foreign investment in China, or the Three FIE Laws, namely,
the Sino-foreign Equity Joint Venture Enterprise Law, the Sino-foreign Cooperative Joint Venture Enterprise Law and the Wholly Foreign-invested