Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 81

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 4
Chunk 81
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13,687,786 and 22,765,794
insurance policies with an aggregate premium of approximately RMB2,139.0 million and RMB2,219.116 million, respectively.

Alpha Mind sells insurance policies primarily
through a network of external referral sources, which comprised more than 740 external registered sales representatives and 102 strategic
channel partners as of September 30, 2024, as well as through the in-house sales force. As of September 30, 2024, Alpha Mind had branch
coverage in 16 cities in 10 provinces, autonomous regions and municipalities in China and had established collaborative relationships
with 56 insurance companies and approximately 195 of their branches in China.

Alpha Mind primarily operate in China’s
insurance market. According to CBIRC, the total insurance premium in China reached approximately RMB5.1 trillion in 2023, increased
by 9.04% from approximately RMB4.7 trillion in 2022. The insurance premium from property related insurance reached approximately RMB1.5
trillion in 2023, increased by 15.4% from approximately RMB1.3 trillion in 2022. We expect the growth of China’s insurance market
to continue, and the competition among insurance agencies to intensify.

For the risks associated with being based in or
having the majority of our operations in China, see “ Item 3. Key Information - D. Risk Factors - Risks Related to Doing
Business in China.” For the risks associated with the HFCA Act, see “ Part I - Risks Associated with the Holding Foreign
Companies Accountable Act.”

Our Insurance Agency Business

We specialized in distributing
automobile insurance policies at the earlier stage of our business and subsequently expanded our insurance product portfolio to include
other types of insurance including life, health, group accident and other property related insurances. In 2024, insurance premium from
property related insurance accounted for approximately 84.2% of the total insurance premium from Alpha Mind’s insurance policies
sold.

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