Company: XHG
Filing Date: 2025-09-09
Form Type: F-3
Source: 0001213900-25-086186
Chunk: 48

Company: XChange TEC.INC
Filing Date: 2025-09-09
Form: F-3
Chunk 48
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 December 18, 2020 to determine if the auditor used for such
reports was so identified by the PCAOB, and such issuers will be designated as “Commission Identified Issuers” on a list to
be published by the SEC. If an issuer is a Commission Identified Issuer for three consecutive years (which will be determined after the
third such annual report), the SEC will issue an order that will implement the trading prohibitions described above.

On August 26, 2022, the PCAOB signed the Protocol
with the CSRC and the Ministry of Finance of the PRC governing inspections and investigations of audit firms based in mainland China and
Hong Kong, which marks the first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms
headquartered in China without any limitations on scope. The Protocol sets forth, among other terms, that (i) the PCAOB has independent
discretion to select any issuer audits for inspection or investigation; (ii) the PCAOB has direct access to interview and take testimony
from all personnel of the audit firms whose issuer engagements are being inspected or investigated; (iii) the PCAOB has the unfettered
ability to transfer information to the SEC in accordance with the Sarbanes-Oxley Act; and (iv) the PCAOB inspectors can see complete audit
work papers without any redactions. However, uncertainties remain with respect to the implementation of this framework and there is no
assurance that the PCAOB will be able to execute, in a timely manner, its future inspections and investigations in a manner that satisfies
the Protocol.

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 Determination Report.

If we are unable to retain a PCAOB-registered auditor subject to PCAOB inspection and investigation, a trading prohibition for our ADSs could be issued shortly after our filing of the third consecutive annual report on Form 20-F for which we have retained a PCAOB Identified Firm. Our current independent accounting firm, Onestop Assurance PAC, whose audit report is included in our annual report on Form 20-F for FY 2024, which is incorporated herein by reference, is headquartered in Singapore, and was not included in the list of PCAOB Identified Firms in the PCAOB December Release. Recent developments with respect to audits