Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 24

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
Chunk 24
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 for insurance SaaS platform and the
future growth rate and size of the insurance SaaS market.

If our or other platforms in the insurance industry
or other industries experience security breaches, loss of customer data, disruptions in delivery or other problems, the market for SaaS
platform may suffer. If SaaS platforms do not achieve widespread adoption or the demand for SaaS platforms fails to grow due to a lack
of customer acceptance, technological challenges, weakening economic conditions, security or privacy concerns, competing technologies
and solutions, reductions in corporate spending or otherwise, our business, results of operations and financial condition could be adversely
affected.

We face risks related to natural disasters, health epidemics
or terrorist attacks in regions where we operate.

Our business could be materially and adversely
affected by natural disasters, such as earthquakes, floods, landslides, tornados and tsunamis, outbreaks of health epidemics such as
avian influenza and severe acute respiratory syndrome, or SARS, COVID-19 pandemic, and Influenza A virus, such as H5N1 subtype and H5N2
subtype flu viruses, as well as terrorist attacks, other acts of violence or war or social instability in the regions in which we operate
or those generally affecting China and regions where we operate. These events may not only lead to a sudden halt of a large number of
economic activities, but also cause a sharp tightening of global financial conditions and a significant deterioration in the economic
outlook.

For example, during the outbreak of the COVID-19
pandemic, the traditional offline model of Alpha Mind’s life and health insurance business was hindered, including product sales
and employment management. With respect to the property and casualty insurance business, the COVID-19 pandemic has adversely affected
the vehicle sales volume of the PRC automobile industry, and, in turn, the automobile insurance business. Meanwhile, COVID-19 may have
also brought extra pressure to the claims of certain types of our property and casualty insurance products. Moreover, the COVID-19 pandemic
has brought disruptions to economic activities and resulted in significant volatilities in the capital markets, which have, together
with the lower interest rates, put pressure on our investment results.

There remains uncertainty with regard to the
continued development of the COVID-19 pandemic and its implications. Any of these factors and other factors beyond our control could
have an adverse effect on the overall business environment, cause uncertainties in the regions where we conduct business, exposing our
business to unfore