Company: XHG
Filing Date: 2025-10-29
Form Type: F-3/A
Source: 0001213900-25-103499
Chunk: 16

Company: XChange TEC.INC
Filing Date: 2025-10-29
Form: F-3/A
Chunk 16
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We typically do not collect, hold or refer any
insurance premiums to or on behalf of the insurance companies. The insurance premium typically will be paid directly by the insurance
purchasers to the insurance companies, and the insurance companies will pay us the commission within a specified period after their receipt
of the insurance premium. After an insurance policy takes effect, we communicate and coordinate with insurance purchasers and insurance
companies to serve their respective needs. As we do not underwrite insurance policies, the insurance purchasers or policy holders do not
have any direct recourse with us for insurance claims as the insurance contract is entered into directly between the policy holders and
the insurance companies, we only play the role of facilitating the claim process.

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We generate revenue from our insurance agency
business primarily through collecting commissions from insurance companies for successful sales of their insurance products, which are
typically based on a percentage of the premium paid by insurance policy purchasers. The commission rates are typically set by insurance
companies and vary for different product types, different insurance companies and different geographic regions in which the insurance
products are sold. The commission rates are also subject to adjustments by insurance companies from time to time based on their expectation
on profits, consumer demand for insurance products in the market, the availability and pricing of comparable products from other insurance
companies, regulatory requirements and governmental policies, and other factors that affect insurance companies at the relevant time.
In this connection, the average commission rates also varied between different cities in which we operate our insurance agency business,
and in 2023 and 2024, our by-city average commission rates ranged from 9% to 33% and 4% to 35%, respectively, while its overall average
commission rate was 14% and 10%, respectively.

On October 26, 2021, December 17, 2021, and
October 31, 2023, we transferred all of our equity interests in Q&K Investment Consulting (the “Former WFOE”), Qingke
(China) Limited (“Q&K HK”), and Haoju (Shanghai) Artificial Intelligence Technology Co., Ltd. (“Haoju,” and
together with the Former WFOE and Q&K HK, the “Disposed Entities”), respectively, to Wangxiancai Limited for nominal
consideration (collectively, the “Equity Transfers”). At the time of the Equity Transfers, Wangxiancai Limited was beneficially
owned by the legal