Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 88

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 4
Chunk 88
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 insurance sales activities
in the phases of pre-sales, in-sales, and post-sales activities.

Qualification Management for Practitioners
of Insurance Agencies

Based on the Provisions on the Regulation of
Insurance Agencies, the CBIRC is authorized by law and the State Council to exercise centralized supervision and administration competence
over practitioners of insurance agencies by category. Under the Provisions on the Regulation of Insurance Agencies, the term “practitioners
of insurance agencies” refers to individuals of insurance agencies who engage in sale of insurance products or the relevant loss
survey.

Based on the Provisions on the Regulation of
Insurance Agencies, the Circular of the China Insurance Regulatory Commission on Issues concerning the Administration of Insurance Intermediary
Practitioners promulgated by the CBIRC on August 3, 2015 and Notice on Cancelling and Adjusting a Group of Administrative Approval
Items promulgated by the CBIRC on August 7, 2015, prior to practice of practitioners of insurance agencies, the employer should
file practice registration information for such personnel on the CBIRC insurance intermediaries monitoring information system, without
requiring a qualification certificate as a prerequisite for practice registration management.

Professional insurance agencies, including us,
are obligated to monitor the sales activities of the salespersons and restrict and prohibit the misconduct of such insurance sales practitioners
employed by or cooperated with such professional insurance agencies. Any failure to do so may result in rectification orders, penalties
or fines to the practitioners of insurance agencies and the professional insurance agencies themselves.

Regulation of Internet Insurance

On December 7, 2020, CBIRC issued Measures
for the Regulation of Internet Insurance Businesses (the “ Internet Insurance Measures”). Pursuant to the Internet Insurance
Measures, no institutions or individuals other than insurance institutions, which refer to insurance companies, insurance agency companies,
insurance brokerage companies and other qualified insurance intermediaries, may engage in the internet insurance business. Under the
Internet Insurance Measures, an insurance institution may sell insurance products or provide insurance brokerage services via the Internet
and self-service terminal equipment, so that consumers can independently learn the product information and complete insurance purchase
on their own through such insurance institution’s self-operated network platform or the self-run network platforms of other insurance
institutions. However, the insurance application pages must belong to the self-run network platform of such insurance institution. “ Self-operated
online platforms” refer to online platforms set up by insurance institutions with independent operation and complete data authority.
Self-operated online platforms shall