Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 102

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 4
Chunk 102
---
8, approval is not required for the opening of an account
entry in foreign exchange accounts under direct investment, for domestic transfer of the foreign exchange under direct investment. SAFE
Notice No. 59 also simplified the capital verification and confirmation formalities for foreign-invested entities and the foreign capital
and foreign exchange registration formalities required for the foreign investors to acquire the equities of a Chinese party, and further
improve the administration on exchange settlement of foreign exchange capital of foreign-invested entities.

On February 13, 2015, SAFE promulgated the Notice
on Simplifying and Improving the Foreign Currency Management Policy on Direct Investment, effective June 1, 2015, which canceled the
administrative approvals of foreign exchange registration of direct domestic investment and direct overseas investment. In addition,
it simplified the procedure of registration of foreign exchange and investors shall register with banks for direct domestic investment
and direct overseas investment.

The Notice of the SAFE on Reforming the Management
Approach regarding the Settlement of Foreign Capital of Foreign-invested Enterprise, or the SAFE Notice No. 19, was promulgated on March
30, 2015 and became effective on June 1, 2015. According to the SAFE Notice No. 19, a foreign-invested enterprise may, in response to
its actual business needs, settles with a bank the portion of the foreign exchange capital in its capital account for which the relevant
foreign exchange bureau has confirmed monetary contribution rights and interests (or for which the bank has registered the account crediting
of monetary contribution). For the time being, foreign-invested enterprises are allowed to settle 100% of their foreign exchange capitals
on a discretionary basis; a foreign-invested enterprise shall truthfully use its capital for its own operational purposes within the
scope of business; where an ordinary foreign-invested enterprise makes domestic equity investment with the amount of foreign exchanges
settled, the invested enterprise shall first go through domestic re-investment registration and open a corresponding account for foreign
exchange settlement pending payment with the foreign exchange bureau (bank) at the place of registration.

The Notice of the SAFE on Reforming and Regulating
Policies on the Control over Foreign Exchange Settlement of Capital Accounts, or the SAFE Notice No. 16, was promulgated and became effective
on June 9, 2016. According to the SAFE Notice No. 16, enterprises registered in PRC may also convert their foreign debts from foreign
currency into