XChange TEC.INC Announces Proposed U.S. AI Business Expansion and Reduction of Mainland China Operations

SHANGHAI, Oct. 6, 2026 /PRNewswire/ -- XChange TEC.INC (Nasdaq: XHG) ("XChange" or the "Company"), a technology-focused company currently engaged in insurance agency and insurance technology businesses, today announced a strategic initiative to explore the expansion of its artificial intelligence (AI) business in the United States. As part of this initiative, the Company intends to gradually reduce its operations in mainland China and plans to invest between $5 million and $10 million in the U.S. market to support this expansion.

Strategic Rationale

The decision, which was approved by the Company's Board of Directors, reflects the Company's assessment of evolving market dynamics and its commitment to maximizing shareholder value by allocating capital to high-growth sectors. The U.S. AI market continues to attract substantial capital and talent, with AI-related companies capturing a growing share of venture investment and corporate spending. The Company believes this strategic shift will better position it for long-term growth.

Mainland China Business Transition

In line with this strategic pivot, the Company plans to gradually reduce its operational footprint in mainland China over the next several months. This transition is expected to be executed in an orderly manner, with due consideration for stakeholders, regulatory requirements, and applicable laws. The Company intends to maintain transparent communication with its stakeholders throughout this process.

Planned U.S. AI Investment

Depending on the availability of financing, market conditions and the identification of suitable opportunities, the Company plans to deploy $5 million to $10 million in the United States over the next several months, with a primary focus on artificial intelligence applications and related technology infrastructure. The investment is expected to support:

AI Technology Development: Building and acquiring AI capabilities in areas such as intelligent automation and data analytics;

Talent Acquisition: Attracting experienced AI engineers, data scientists, and product leaders to establish a U.S.-based innovation team;

Strategic Partnerships: Collaborating with U.S.-based AI companies and research institutions to accelerate product development and market entry;

Infrastructure and Compliance: Establishing the necessary operational, legal, and regulatory infrastructure to support U.S. business activities.

The Company is evaluating both organic development and strategic acquisition opportunities.

About XChange TEC.INC

XChange TEC.INC, through its subsidiaries and consolidated variable interest entities, operates insurance agency and insurance technology business. The insurance agency is PRC-licensed and operates nationwide in the PRC with a wide range of insurance products underwritten by major insurance companies, including industry leading and/or state-owned property and casualty insurance companies as well as certain regional property and casualty insurance companies in the PRC. The insurance technology business is focused on operating and developing insurance technology in the PRC, including developing SaaS platform to connect consumers and underwriting support.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts, including statements regarding the Company's proposed expansion into the AI market in the United States; the nature, amount, timing, allocation and sources of funding of the Company's planned investment in such expansion; the development or acquisition of AI capabilities; the recruitment of personnel; the establishment of strategic partnerships; the identification, negotiation and completion of potential acquisitions or other strategic transactions; the establishment of operational, legal, regulatory and technology infrastructure in the United States; and the timing, manner, scope, costs and effects of the proposed reduction of the Company's operations in mainland China. The Company's actual results may differ materially from those expressed in any forward-looking statements as a result of various factors and uncertainties. The reports filed by the Company with the SEC discuss these and other important factors and risks that may affect the Company's business, results of operations and financial conditions. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

View original content:https://www.prnewswire.com/news-releases/xchange-tecinc-announces-proposed-us-ai-business-expansion-and-reduction-of-mainland-china-operations-302899567.html

SOURCE XChange TEC.INC