Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 89

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 4
Chunk 89
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 effectively isolate from its affiliated parties such as shareholders, actual controllers and senior
executives of the company in such aspects as finance, business, information system and customer information protection etc.

An insurance institution conducting Internet
insurance businesses and its self-operated network platform shall meet the following conditions:

  the place of service access is within the territory  

  it shall meet the provisions of the relevant laws and                                                

  it shall have an information management system and                                                                                         

  it shall have sound cybersecurity monitoring, information                                                                               

  it shall implement the national graded protection system                                                                           

  it shall have a legal and compliant marketing model                                                                               

  it shall establish or specify an Internet insurance                                                                                 

  it shall have a sound management system and operating  

  an insurance company shall, in carrying out Internet                                                                                      

  a professional insurance intermediary shall be a national                                                                                 

  it shall meet other conditions prescribed by the CBIRC.  

According to the Internet Insurance Measures,
“ Internet insurances companies” can be established upon special approval by the CBIRC and registered in accordance with the
law without establishing branches and specialize in carrying out Internet insurance business nationwide in order to promote the integration
and innovation of insurance business with the Internet, big data and other new technologies. An Internet insurance company shall not
sell insurance products offline or through other insurance institutions.

In addition, an Internet enterprise is allowed
to use the self-operated network platform to sell Internet insurance products and provide insurance services as an insurance agent, provided
that such Internet enterprise shall obtain the insurance agency operating license for operating insurance agency business.

Non-insurance institutions may not carry out
Internet insurance business, including but not limited to the following commercial acts: (i) providing consulting services for insurance
products; (ii) comparing insurance products, trial calculation of insurance premiums and comparing quotations; (iii) designing
insurance purchase plans for insurance applicants; (iv) going through insurance purchase formalities on behalf of clients; and (v) collecting
insurance premiums as an agent.

The Internet Insurance Measures provides that
the CBIRC and its local offices are responsible for the development of the regulatory system for Internet insurance business in an overall
manner, and the CBIRC and its local offices shall, in accordance with the division of regulatory work for insurance institutions, implement
daily monitoring and regulation of Internet insurance business.

Regulation of Services Provided by
Professional Insurance Agency and Its Practitioners

Based on the Provisions on the Regulation of
Insurance Agencies, professional insurance agencies and practitioners may not take