Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 54

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
Chunk 54
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. Additionally, the inability of the PCAOB to conduct inspections of our auditors
would deprive our investors of the benefits of such inspections.

Pursuant to the HFCA Act, if the PCAOB, is unable
to inspect an issuer’s auditors for two consecutive years, the issuer’s securities are prohibited to trade on a U. S. stock
exchange. The PCAOB issued a Determination Report on December 16, 2021 (the “ Determination Report”) which found that the PCAOB
is unable to inspect or investigate completely registered public accounting firms headquartered in: (1) mainland China of the People’s
Republic of China because of a position taken by one or more authorities in mainland China; and (2) Hong Kong, a Special Administrative
Region and dependency of the PRC, because of a position taken by one or more authorities in Hong Kong. Furthermore, the Determination
Report identified the specific registered public accounting firms which are subject to these determinations (“ PCAOB Identified Firms”).

Our former auditor, Marcum Asia CPAs LLP (“ Marcum
Asia”), the independent registered public accounting firm that issued the audit report for our fiscal year ended September 30, 2022, and our current auditor OneStop, which issued the audit report for the fiscal year ended September 30, 2023 and 2024 included
elsewhere in this annual report, as auditors of companies that are traded publicly in the United States and firms registered with the
PCAOB, are subject to laws in the U. S. pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable
professional standards. As of the date of this annual report, Marcum Asia and OneStop are not included in the list of PCAOB Identified
Firms in the Determination Report.

On August 26, 2022, the
PCAOB announced that it had signed a Protocol with the CSRC and the MOF of the People’s Republic of China, governing inspections
and investigations of audit firms based in mainland China and Hong Kong. Pursuant to the Protocol, the PCAOB conducted inspections on
select registered public accounting firms subject to the Determination Report in Hong Kong between September and November 2022.

On December 15, 2022,
the PCAOB board announced that it has completed the inspections, determined that it had complete access to inspect or investigate completely
registered public accounting firms headquartered in mainland China and Hong Kong, and voted to vacate the