Company: XHG
Filing Date: 2025-09-09
Form Type: F-3
Source: 0001213900-25-086186
Chunk: 29

Company: XChange TEC.INC
Filing Date: 2025-09-09
Form: F-3
Chunk 29
---
 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 prospectus, 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.

Transfers between the VIE and Alpha Mind WFOE

The VIE and its consolidated subsidiaries are
the main operating entities, which receive their revenues in RMB. Alpha Mind WFOE may receive payments from the VIE, pursuant to the Contractual
Arrangements. There may also be transfers via intercompany loans between Alpha Mind WFOE and the VIE.

Transfer between XHG, Alpha Mind HK and Alpha Mind WFOE

XHG and Alpha Mind HK are holding companies and
may rely on dividends from Alpha Mind WFOE to fund cash and financing requirements. Cash transfers may also be in the form of capital
injection from the holding companies to Alpha Mind WFOE or via intercompany loans between the holding companies and Alpha Mind WFOE. Under
existing PRC foreign exchange regulations, payments of current account items, such as profit distributions and trade and service-related
foreign exchange transactions, can be made in foreign currencies without prior approval from the State Administration of Foreign Exchange,
or SAFE, by complying with certain procedural requirements. Therefore, our PRC subsidiary, Alpha Mind WFOE, is able to pay dividends in
foreign currencies to us without prior approval from SAFE, subject to the condition that the remittance of such dividends outside of the
PRC complies with certain routine procedures under PRC foreign exchange regulations, such as the overseas investment registrations by
shareholders who are PRC residents. Approval from or registration with appropriate government authorities is, however, required where
the RMB is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated
in foreign currencies. The PRC government may also at its discretion restrict access in the future to foreign currencies for current account
transactions.

<div align='center'>12</div>

For our Hong Kong