Company: XHG
Filing Date: 2025-09-09
Form Type: F-3
Source: 0001213900-25-086186
Chunk: 37

Company: XChange TEC.INC
Filing Date: 2025-09-09
Form: F-3
Chunk 37
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 to conduct inspections of our auditors would       
 deprive our investors of the benefits of such inspections. For more details, see “Risk Factors—Risks Related to Doing Business                 
 in the PRC—If the U.S. Public Company Accounting Oversight Board, or the PCAOB, is unable to inspect our auditors as required under            
 the Holding Foreign Companies Accountable Act, the SEC will prohibit the trading of our ADSs. A trading prohibition for our ADSs, or           
 the threat of a trading prohibition, may materially and adversely affect the value of your investment. Additionally, the inability of          
 the PCAOB to conduct inspections of our auditors would deprive our investors of the benefits of such inspections” beginning on                 
 page 24 of this prospectus.                                                                                                                    |

<div align='center'>18

RISK FACTORS</div>

Investing in our securities involves risk. You
should carefully consider the risk factors and uncertainties described under the heading “Item 3. Key Information—D. Risk
Factors” in our most recent annual report on Form 20-F for FY 2024, which is incorporated herein by reference, as updated by our
subsequent filings under the Securities Exchange Act of 1934, or the Exchange Act, and any risk factors and other information described
in the applicable prospectus supplement before acquiring any of our securities. These risks and uncertainties could materially affect
our business, results of operations or financial condition and cause the value of our securities to decline.

Risks Related to Our Corporate Structure

If the PRC government determines that the contractual arrangements with the VIE entities did not comply with PRC regulations, or if these regulations change or are interpreted differently in the future, our shares and/or ADSs may decline in value if we are deemed to be unable to assert our contractual control rights over the assets of the VIE entities.

The Regulations for the Administration of Foreign-Invested
Telecommunications Enterprises, promulgated by the State Council on December 11, 2001 and last amended with immediate effect on February
6, 2016, requires foreign-invested value-added telecommunications enterprises in the PRC to be established as Sino-foreign joint ventures,
and foreign investors shall not acquire more than 50% of the equity interest of such an enterprise. In addition, the main foreign investor
who invests in such an enterprise shall demonstrate a good track record and experience in such industry. Moreover, the joint ventures
must obtain approvals from the MIIT and the Ministry of