Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 19

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
Chunk 19
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 growth.

You should consider our future operations in
light of the challenges and uncertainties that we may encounter. These risks and challenges include, among other things:

  changes in national, regional or local economic, demographic  
  or insurance agency market conditions;                        
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  changes in laws and policies on the insurance agency  
  industry;                                             
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  changes in job markets and employment levels on a national,  
  regional and local basis;                                    
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  health epidemics, pandemics and similar outbreaks,  

  overall conditions in the insurance agency industry;  

  our ability to integrate strategic investments, acquisitions  

  our ability to maintain or renew favorable terms with  

  our ability to maintain, deepen and broaden cooperation                  

  our ability to develop more value-added products and  

  our ability to effectively control our operating costs  

  our ability to maintain the proper functioning of our  

  disputes and potential negative publicity in connection  

  our ability to increase our brand awareness;  
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  our ability to attract and retain employees; and  

  changes in U. S. accounting standards.  
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Any one or more of these factors could adversely affect
our business, financial condition and results of operations.

If we fail to maintain stable relationships with our business
partners, our business, results of operations, financial condition and business prospects could be materially and adversely affected.

We cooperate with a variety of business partners
in conducting our businesses, including customers and suppliers in our insurance agency business. Our success depends on our ability
to, among other things, develop and maintain relationships with our existing business partners and attract new business partners.

For our insurance agency business, we provide
agency services for well-known insurance companies in China by distributing primarily automobile insurance products underwritten by them,
and receive commissions from these insurance companies. Our relationships with these insurance companies are governed by agreements between
the insurance companies and us. These contracts generally provide, among other things, the scope of our authority and our commission
rates, and typically have a term of one or two years. There is no assurance that we would be able to renew any such contracts upon their
expiry with terms that are comparable to or better than the existing ones, if at all. Any interruption to or discontinuation of our relationships
with these insurance companies