XChange TEC.INC

The Company uses the management approach to determine its operating and reportable segments. The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer, who reviews the unaudited condensed consolidated results of operations when making decisions about allocating resources and assessing performance of the Company. The CODM considers that the Company has only one principal revenue stream, which is insurance agency services. The Company’s long-lived assets are all located in the PRC and all of the Company’s revenues are derived from within the PRC.

The Company's CODM regularly uses consolidated net loss as the measure of segment profit or loss to evaluate operating performance and allocate resources.

The significant expense categories regularly provided to the CODM include cost of revenues, selling and marketing expenses and general and administrative expenses, which are presented in the unaudited consolidated statements of operations and comprehensive loss. The CODM reviews consolidated operating results and does not separately review assets or liabilities by segment in allocating resources or assessing performance.