XChange TEC.INC
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsXChange TEC.INC is a Cayman Islands holding company conducting insurance agency and technology operations in China through variable interest entities, listed on Nasdaq under the symbol XHG.
What they do
The company operates through its subsidiaries and two China-based variable interest entities, Huaming Insurance Agency Co., Ltd. and Huaming Yunbao (Tianjin) Technology Co., Ltd., and its current WFOE, Jiachuang Yingan (Beijing) Information & Technology Co., Ltd. It is registered under SIC code 7399 and is classified in the Insurance Agents, Brokers & Service industry. Upon consummation of the Acquisition, Alpha Mind Technology Limited became part of the group. XChange TEC.INC has no operations of its own.
Revenue drivers
- Insurance agency services — The company operates Huaming Insurance Agency Co., Ltd. in China, which based on the SIC classification and description of the company as an insurance agency and technology operator generates revenue from insurance agency distribution.
- Insurance technology services — The company operates Huaming Yunbao (Tianjin) Technology Co., Ltd., a technology entity that supports the insurance-related operations.
- Acquired Alpha Mind business — Following consummation of the Acquisition, Alpha Mind Technology Limited and its consolidated entities are part of the group and contribute to revenue.
Recent performance
Annual revenue declined from $177.9 million in 2020 to $160.8 million in 2021, $91.7 million in 2022, and $41.1 million in 2024, before recovering to $51.3 million in 2025. Net income swung from a loss of $88.3 million in 2021 to income of $115.3 million in 2022, followed by losses of $9.8 million in 2023, $32.3 million in 2024, and $105.1 million in 2025. Operating cash flow has been negative each year, including -$1.6 million in 2025. As of March 31, 2026, total assets were $9.4 million, total liabilities were $135.8 million, and shareholders' equity was negative $126.3 million. Diluted EPS was $0.00 or below in each of 2023 through 2025, reflecting the large share count.
Strategy
The company completed the Acquisition of Alpha Mind Technology Limited and conducts operations through its Current WFOE and Current VIEs in China. The filings reference a Disposal and Disposed Business, indicating that the company has divested certain operations. No other specific strategic priorities, investments, or capital plans are disclosed in the excerpts provided.
Risks
- Going concern and liquidity — Shareholders' equity was negative $126.3 million and cash and equivalents were only $644,000 as of March 31, 2026, against total liabilities of $135.8 million.
- Recurring net losses — The company reported net losses of $32.3 million in 2024 and $105.1 million in 2025.
- Revenue decline — Revenue fell from $91.7 million in 2022 to $41.1 million in 2024.
- Negative operating cash flow — Operating cash flow was negative in each year from 2021 through 2025, including -$1.6 million in 2025.
Outlook
The excerpts provided do not include management's forward-looking guidance beyond the statement that the company continues to operate through its Current WFOE, Current VIEs, and the acquired Alpha Mind business. Management's outlook is not described in the provided materials.