Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 80

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 4
Chunk 80
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, we, through
the Current VIEs, conduct professional insurance agency business which provides a wide variety of insurance products underwritten by
major insurance companies, including industry leading and/or state-owned property and casualty insurance companies as well as certain
regional property and casualty insurance companies in China. Through the Current VIEs, we hold the insurance agent operating license
which is required under applicable PRC laws to conduct insurance agency business in China. As an insurance agency, we are not involved
in underwriting insurance policies. We are committed to providing insurance purchasers with comprehensive services, spanning from application
to claim settlement, through our professional and dedicated approach. We have accumulated substantial expertise and successfully expanded
our insurance product portfolio to encompass a wide range of offerings. These include life, health, group accident, and various other
property-related insurances. Leveraging the growing ubiquity of mobile internet, Alpha Mind introduced the SaaS platform in 2023. This
technological advancement has streamlined and popularized our insurance agency business, enhancing accessibility and convenience for
our customers.

Our role as an insurance agent is mainly to facilitate
insurance companies to promote market penetration of their products through our extensive nationwide sales network. Insurance companies
may leverage our marketing network to promote their products with cost efficiency rather than having to build a marketing network of
their own. With respect to end customers, or insurance purchasers, our sales representatives are able to leverage their professional
knowledge and experience to advise and recommend the most suitable insurance products and efficiently complete the contract signing process
as well as assist them with claim applications.

With our solid foundation and unwavering commitment
to excellence, we are confident in our ability to capitalize thriving Chinese insurance agency market. In 2023, we were ranked 30 among
the top 100 insurance intermediaries in China and were ranked third in Tianjin region, in terms of insurance premium facilitated. We,
through the Current VIEs, are principally engaged in the insurance agency business primarily through a “ Business to Business to
Consumer,” or B2B2C, model. We offer a wide variety of insurance products underwritten by major insurance companies in China, including
industry leading and/or state-owned property and casualty insurance companies as well as certain regional property and casualty insurance
companies in China, to insurance purchasers and generate revenue from commissions from these insurance companies, typically based on
a percentage of the premium paid by insurance purchasers. In 2023 and September 30, 2024, Alpha Mind sold more than