Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 14

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
Chunk 14
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. Below is a summary of material risks that we face, organized under relevant headings. These risks are discussed more fully in
“ Item 3. Key Information - D. Risk Factors.”

Risks Related to Our Business and Industry

  If we are unable to fully repay or refinance the Notes,                                                                           

  The report of our independent registered public accounting                                                                               
  firm on our consolidated financial statements includes an explanatory paragraph questioning our ability to continue as a going concern.  
  We recorded net losses in the past and may not be able to continue as a going concern or achieve or maintain profitability in the        
  future.                                                                                                                                  
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  We have a limited operating history in the insurance                                                                               
  agency market, which makes it difficult to evaluate our future prospects and results of operations and may increase the risk that  
  we will not be successful. In addition, our historical growth and financial condition may not be indicative of our future growth,  
  profitability, and financial condition.                                                                                            
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  If we fail to maintain stable relationships with our                                                                                  

  Because the commission revenue we earn on the sale                                                                                        
  of insurance products is based on premium and commission rates set by insurance companies, any decrease in these premiums or commission   
  rates, or increase in the referral fees we pay to our external referral sources, may have an adverse effect on our results of operation.  
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Risks Related to Our Corporate Structure

  We are not a Chinese operating company but a Cayman Islands holding                                                                        
  company with operations conducted by our subsidiaries and through contractual arrangements with the Current VIEs based in China,           
  and this structure involves unique risks to investors. Having the majority of our operations in China, we are subject to legal and         
  operational risks associated with doing business in China, which could result in a material change in our operating entities and           
  the Current VIEs’ operations. PRC laws and regulations governing our current business operations are sometimes vague and uncertain         
  and can change with little advance notice. The PRC government has significant authority in regulating our operations and may intervene     
  or influence our operations at any time. Moreover, its oversight and control over offerings conducted overseas by, and foreign investment  
  in