Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 96

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 4
Chunk 96
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 business via professional
insurance agencies or financial institution-based insurance joint offering agencies must include anti-money laundering provisions in
their cooperation agreements. Professional insurance agencies and brokers must establish anti-money laundering internal control systems
and prohibit equity investments with funds from illicit sources.

Senior management personnel of professional insurance
agencies and brokers must be versed in anti-money laundering laws and regulations. Professional insurance agencies and brokers must provide
anti-money laundering training and education, properly manage major money laundering cases involving itself, facilitate anti-money laundering
monitoring and inspection, administrative investigation and investigation of criminal activities involving money laundering, and keep
confidential any information related to lawful anti-money laundering initiatives.

Regulations relating to Information Security and Censorship

Internet content in China is also strictly regulated
and restricted from a state security standpoint. Pursuant to the Decision Regarding the Protection of Internet Security enacted by the
SCNPC on December 28, 2000, which was amended on August 27, 2009, any attempt to undertake the following actions may be subject to criminal
punishment in China:

  gaining improper entry                                       

  disseminating politically  

  leaking government secrets;  

  spreading false commercial  

  infringing intellectual  

The MPS has also promulgated a series of measures
that prohibit the use of the internet in ways that, among other things, result in the leakage of government secrets or the spread of
socially destabilizing content. The MPS and its local counterparts have supervision and inspection powers in this regard, and we may
be subject to the jurisdiction of the local security bureaus. If an internet information service provider violates these measures, the
PRC government may revoke its license and shut down its website. In 1997, the MPS issued the Administration Measures on the Security
Protection of Computer Information Network with International Connections, which was amended by the State Council on January 8, 2011
and prohibited using internet in ways which, among others, resulted in a leakage of state secrets or spreading of socially destabilizing
content.

Moreover, on December 7, 2016, the SCNPC promulgated
the Cybersecurity Law of the People’s Republic of China, which became effective on June 1, 2017, pursuant to which, network operators
shall comply with laws and regulations and fulfill their obligations to safeguard security of the network when conducting business and
providing services. Those who provide services through networks shall take technical measures and other necessary measures pursuant to
laws, regulations and compulsory national requirements to