XChange TEC. INC is a Cayman Islands holding company that conducts its operations primarily through subsidiaries in China. The company is engaged in the insurance agency and insurance technology business, providing a wide range of insurance products underwritten by major insurance companies in China. Its core activities involve facilitating the sale of insurance policies through a network of external sales representatives, channel partners, and an in-house sales force, while leveraging a SaaS platform to enhance operational efficiency and customer service.

XChange TEC. INC generates revenue primarily through commissions received from insurance companies for the successful sale of their insurance products. These commissions are typically based on a percentage of the premium paid by insurance purchasers. The company does not underwrite insurance policies or collect premiums directly; instead, it acts as an intermediary, earning fees for connecting insurance buyers with insurers and supporting the policy issuance and claims process. Revenue is derived from the sale of various insurance products including automobile, life, health, group accident, and other property-related insurance policies.

The company operates through the following segments: Insurance Agency Business and Insurance Technology Business.

• The Insurance Agency Business segment focuses on distributing insurance products through a B2B2C model, where the company partners with insurance companies to reach end consumers via external referral sources and an in-house sales team. As of September 30, 2025, Alpha Mind, the company's wholly-owned subsidiary, had established relationships with 24 insurance companies and 221 distribution channel partners across China, supported by a network of over 765 external registered sales representatives and an in-house sales force. This segment generated revenue from commissions on insurance policies sold, with 22,765,794 policies sold in 2024 and 6,348,844 policies sold in the period ended September 30, 2025, representing aggregate premiums of approximately RMB2,219.116 million and RMB2,660.119 million respectively.

• The Insurance Technology Business segment centers on the development and operation of a SaaS platform introduced in 2023 to support the insurance agency operations. The platform functions as an internal operational management system that enhances efficiency and scalability through features such as personnel management, financial management for commission settlements, business management for insurance product information, and customer-facing tools for insurance agents and end users. It integrates with external insurance databases and systems to enable real-time data sharing, streamline online policy contracting, and assist with claims processing. While the SaaS platform does not directly generate revenue, it provides foundational infrastructure that supports the scalability and service quality of the insurance agency business, including online training for agents and digital tools for customer engagement.

XChange TEC. INC operates in a competitive insurance agency market in China, facing competition from other insurance agency companies, online insurance platforms, insurers' direct sales channels, and in-house sales forces of insurance companies. The company believes it competes favorably due to its strong technology infrastructure, deep relationships with insurance companies, and effective marketing capabilities. Its national sales network, SaaS platform integration, and expertise in insurance product distribution enable it to offer insurers a cost-efficient way to expand market penetration without building their own distribution networks.

The company serves individual end consumers as its primary customers for insurance products, who are reached through its network of external sales representatives, distribution channel partners such as auto dealerships, and its in-house sales team. These end consumers purchase insurance policies facilitated by the company, with the insurance contract being directly between the purchaser and the underwriting insurance company. XChange TEC. INC does not enter into direct agreements with end consumers but supports them through policy advisory, application assistance, and claims settlement guidance.