Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 7

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
Chunk 7
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may not be classified as core or important data by the authorities, and (iii) have not received or were denied such requisite permissions
by any PRC authority in connection with the Acquisition.

Uncertainties exist as to the interpretation
of these laws, regulations and policies and due to the possibility that laws, regulations, or policies in the PRC could change in the
future. Any action by the PRC government expanding the categories of industries and companies whose foreign securities offerings are
subject to review by the CSRC or the CAC or different or changing interpretation of these laws or regulations could significantly limit
or completely hinder our ability to engage in capital markets transactions offer or continue to offer securities to investors and could
cause the value of such securities to significantly decline or be worthless. For more detailed information, see “ Item 3. Key Information-D.
Risk Factors-Risks Relating to Doing Business in China.”

For the risks related to the HFCA Act, see “ - Risks
Related to the Holding Foreign Companies Accountable Act” as set forth at the outset of Part I and “ - Risk Factors - Risks
Related to Doing Business in China - 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.”

Cash and Asset Flows Through Our Organization

Alpha Mind WFOE, the VIE
and its consolidated subsidiaries, or investors transfer funds through our organization under the applicable PRC laws and regulations.
To the extent our cash in the business is in the PRC or a PRC entity, the funds may not be available to distribute dividends to our investors,
or for other use outside of the PRC, due to interventions in or the imposition of restrictions and limitations on the ability of us, our
subsidiaries, or the VIE by the PRC government to transfer cash. As of the date of this annual report, none of XHG, its subsidiaries,
the VIE or its subsidiaries has written cash management policies or procedures in place that dictate how funds are transferred. Rather,
the funds can be transferred in accordance with the applicable PRC laws and regulations.