Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 83

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 4
Chunk 83
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 management – The SaaS platform                                                                                                 

  Business management – The SaaS platform                                                                                                   

Potential insurance agents who seek to work with
us can submit online application through a gateway WeChat mini program. We will then review their application and determine if they meet
our criteria. Once they become our contracted insurance agents, they will be able to access resources and features on the SaaS platform.
Currently the insurance agents are not required to pay to access the features of the SaaS platform. As of the date of this annual report,
we have yet to have any registered user on the platform as we are still test-running the platform.

Our Insurance Products

We primarily offer automobile
insurance and other property related insurance products underwritten by major insurance companies in China.

In 2023 and September
30, 2024, Alpha Mind sold 13,687,786 and 22,765,794 insurance policies of various insurance companies, respectively. Our insurance policies
generally have a term of one to two years. These policies are underwritten by insurance companies directly, and we are not a party to
the insurance policy or other agreements with the purchasers of the policies.

Our Referral System

Our insurance agency
business has developed a referral system that relies on the external registered sales representatives (i. e., insurance agents), distribution
channel partners, and our in-house sales force.

Our registered sales
representatives are qualified salespersons who have completed the necessary registration process through our WeChat mini program or offline
offices. Working in collaboration, we share the commission generated from the sales of insurance products. By engaging these registered
sales representatives, we can enhance our sales capabilities and ensure a wider reach for our insurance offerings.

Our distribution channel
partners are non-insurance companies, including auto dealerships. For example, when these dealerships sell cars to their customers, they
also introduce our insurance products as a part of the car purchasing process. This strategic collaboration allows us to establish a
network of potential customers who are in need of insurance coverage for their newly purchased vehicles. By maintaining relationship
between the auto dealerships and their customers, we can effectively promote our insurance products to more customers.

According to the agreements
we entered into with distribution channel partners, the suppliers are authorized to introduce our insurance products to their customers
as part of the referral process. These agreements also outline the service fees that will be charged for their referral services. In
addition, the confidentiality clauses also include terms to protect customer information and maintain privacy of