SHANGHAI, Aug. 13, 2026 /PRNewswire/ -- XChange TEC.INC (Nasdaq: XHG) ("XChange" or the "Company"), an insurance agency and insurance technology platform serving consumers across the People's Republic of China and Hong Kong, today announced that it has signed a non-binding letter of intent to acquire First Cycle, INC. ("First Cycle"), a growing artificial intelligence ("AI") technology company headquartered in Hong Kong. The proposed acquisition represents a pivotal step in XChange's strategic vision to become an AI-driven insurance ecosystem platform in the Asia-Pacific region.

Advancing Insurance Solution with Agentic AI

Since pivoting to insurance agency and technology businesses through the acquisition of Alpha Mind Technology Limited in December 2023, XChange has evolved from its origins in automobile insurance distribution into a comprehensive insurance platform offering life, health, group accident, and property-related insurance products. The Company operates a SaaS platform that connects consumers with underwriting support. The acquisition of First Cycle marks the next logical evolution of this transformation.

First Cycle is a technology company specializing in the development of AI-driven solutions. The company's technology leverages advanced machine learning, natural language processing, and agentic AI technologies to enable insurers and brokers to reduce manual workloads, accelerate decision-making, and enhance accuracy across core insurance workflows. First Cycle's technology addresses two of the most critical pain points in traditional insurance: underwriting speed and claims efficiency. Its AI agents coordinate across digital, voice, and mobile channels to capture, validate, and route claims in real time, improving data quality at first contact, reducing cycle times, and lowering loss adjustment expenses while enhancing the policyholder experience. Moreover, applying AI-driven decision support to intake, triage, and enrich submissions, helps insurers prioritize opportunities and accelerate quote turnaround. By integrating the AI agentic insurance capabilities into the Company's SaaS ecosystem, XChange aims to offer clients faster, more accurate underwriting, streamlined claims handling, and an improved customer experience.

The acquisition of First Cycle is central to XChange's long-term strategic vision of becoming a comprehensive, technology-enabled insurance ecosystem serving clients across Greater China and international markets. The Company has been systematically building its insurance technology capabilities since 2023 and recently expanded into Hong Kong through the acquisition of a licensed insurance brokerage firm in April 2025. First Cycle's technology is expected to enhance XChange's ability to serve high-net-worth individuals, multinational corporations, and cross-border investors seeking sophisticated risk management solutions.

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. 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.