Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 95

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 4
Chunk 95
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 2013. Under the Consumer Protection Law, any business operator providing a
commodity or service to a consumer is subject to certain mandatory requirements, including the following:

  to ensure that commodities                       

  to protect the safety of  

  to disclose serious defects of a commodity or a service         

  to provide consumers with                                               

  to obtain consents of consumers and to disclose the                                                                                    

  not to set unreasonable or unfair terms for consumers                                                                             

  to remind consumers in a conspicuous manner to pay                                                                                        

  not to insult or slander consumers or to search the                                                    

Business operators in China may be subject to
civil liabilities for failing to fulfill the obligations discussed above. These liabilities include restoring the consumer’s reputation,
eliminating the adverse effects suffered by the consumer, and offering apology and compensation for any loss thus incurred to the consumer.
The following penalties may also be imposed by relevant governmental agencies upon business operators for the infraction of these obligations:
issuance of a warning, confiscation of any illegal income, imposition of a fine, an order to cease business operation, revocation of
its business license or imposition of criminal liabilities under circumstances that are specified in laws and statutory regulations.

In December 2003, the Supreme People’s
Court in China enacted the Interpretation of Some Issues Concerning the Application of Law for the Trial of Cases on Compensation for
Personal Injury, which further enhances the liabilities of business operators engaged in the operation of accommodation, restaurants,
or entertainment facilities and subjects such operators to compensatory liabilities for failing to fulfill their statutory obligations
to a reasonable extent or to guarantee the personal safety of others.

Regulation of Anti-money laundering

Based on the Circular on Strengthening Work of
Anti-Money Laundering in Insurance Industry, promulgated on August 10, 2010 by the CB IRC, and Administrative Measures for the Anti-money
Laundering Work in the Insurance Industry, effective from October 1, 2011, the CBIRC organizes, coordinates and directs policies concerning
anti-money laundering in the insurance industry. Under these measures, insurance companies, insurance asset management companies, professional
insurance agencies and insurance brokers are required to materially improve their anti-money laundering related internal control competence
on the basis of real-name policy issuance and on the principle of complete customer materials, traceable transaction records and regulated
funds operation.

Based on provisions of the Administrative Measures
for the Anti-money Laundering Work in the Insurance Industry, insurance companies carrying out the insurance