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

Company: XChange TEC.INC
Filing Date: 2025-09-09
Form: F-3
Chunk 25
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agreements under the contractual arrangements among our WFOE, the VIEs and their nominee shareholders have not been tested in a court
of law. It is uncertain whether any new PRC laws or regulations relating to Current VIE structure will be adopted or, if adopted, what
they would provide. If we or the VIEs are found to be in violation of any existing or future PRC laws or regulations or fail to obtain
or maintain any of the required licenses, permits, registrations or approvals, the relevant PRC regulatory authorities would have broad
discretion to take action in dealing with such violations or failures. The PRC regulatory authorities could disallow the Current VIE structure
at any time in the future. If the PRC government deems that our contractual arrangements with the VIEs do not comply with PRC regulatory
restrictions on foreign investment in the relevant industries, or if these regulations or the interpretation of existing regulations change
or are interpreted differently in the future, we could be subject to severe penalties and may incur substantial costs to enforce the terms
of the arrangements, or be forced to relinquish our interests in those operations. Our Cayman Islands holding company, our subsidiaries,
the VIEs, and investors in our securities (including the ADS) face uncertainty with respect to potential future actions by the PRC government
that could affect the enforceability of the contractual arrangements with the VIEs and, consequently, significantly affect the financial
performance of our company and the VIEs as a whole. For details, see “Item 3. Key Information-D. Risk Factors - Risks Related to
Our Corporate Structure.”

<div align='center'>9</div>

The following diagram illustrates our corporate
structure, including our principal subsidiaries as of the date of this prospectus.

Equity Interest

VIE contractual arrangement

<div align='center'>10</div>

Permissions Required from the PRC Authorities

We conduct our business in China through our subsidiaries
and the VIEs. We are required to obtain certain permissions from the PRC authorities to operate, issue securities to foreign investors,
and transfer certain data. The PRC government has exercised, and may continue to exercise, substantial influence or control over virtually
every sector of the Chinese economy through regulation and state ownership. Our ability to operate in China may be undermined if our subsidiaries
or the VIEs are not able to obtain or maintain approvals to operate in China. The central or local governments could impose new, stricter
regulations