Company: XHG
Filing Date: 2025-09-09
Form Type: F-3
Source: 0001213900-25-086186
Chunk: 13

Company: XChange TEC.INC
Filing Date: 2025-09-09
Form: F-3
Chunk 13
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 our sales representatives are able to leverage their professional knowledge
and experience to advise and recommend the most suitable insurance products and efficiently complete the contract signing process as well
as assist them with claim applications.

With our solid foundation and unwavering commitment
to excellence, we are confident in our ability to capitalize thriving Chinese insurance agency market. In 2024, we were ranked 40 among
the top 100 insurance intermediaries in China and were ranked third in Tianjin region, in terms of insurance premium facilitated. We,
through the Current VIEs, are principally engaged in the insurance agency business primarily through a “Business to Business to
Consumer,” or B2B2C, model. We offer a wide variety of insurance products underwritten by major insurance companies in China, including
industry leading and/or state-owned property and casualty insurance companies as well as certain regional property and casualty insurance
companies in China, to insurance purchasers and generate revenue from commissions from these insurance companies, typically based on a
percentage of the premium paid by insurance purchasers. In 2023 and 2024, we sold more than 13,687,786 and 22,765,794 insurance policies
with an aggregate premium of approximately RMB2,139.0 million and RMB2,219.116 million, respectively.

We sell insurance policies primarily through a
network of external referral sources, which comprised more than 740 external registered sales representatives and 102 strategic channel
partners as of December 31, 2024, as well as through the in-house sales force. As of December 31, 2024, we had branch coverage in 16 cities
in 10 provinces, autonomous regions and municipalities in China and had established collaborative relationships with 56 insurance companies
and approximately 195 of their branches in China.

We specialize in distributing automobile insurance
policies at the earlier stage of our business and subsequently expanded our insurance product portfolio to include other types of insurance
including life, health, group accident and other property related insurances. In 2024, insurance premium from property related insurance
accounted for approximately 84.2% of the total insurance premium from insurance policies sold.

We typically do not collect, hold or refer any
insurance premiums to or on behalf of the insurance companies. The insurance premium typically will be paid directly by the insurance
purchasers to the insurance companies, and the insurance companies will pay us the commission within a specified period after their receipt
of the insurance premium. After an insurance policy takes