XChange TEC (formerly FLJ Group) reported its first financial results since pivoting to insurance agency business through the acquisition of Alpha Mind in December 2023. For H1 2024, the company generated revenue of RMB76.7 million ($10.6 million) with a gross profit of RMB4.2 million from insurance agency services.The company's net loss from continuing operations increased to RMB16.0 million ($2.2 million) from RMB4.0 million in H1 2023, primarily due to higher interest expenses of RMB10.8 million related to acquisition financing. However, the company recorded a net gain of RMB403.4 million from discontinued operations due to the disposal of its rental business in October 2023.Looking ahead, XChange TEC plans to focus on expanding its insurance agency network and SaaS platform capabilities. The company faces near-term challenges including repayment of acquisition-related promissory notes and working capital needs, which it aims to address through equity offerings or operational cash flow. Management noted substantial doubt about the company's ability to continue as a going concern due to accumulated deficits and negative operating cash flow.

XChange TEC (formerly FLJ Group) reported its first financial results since pivoting to insurance agency business through the acquisition of Alpha Mind in December 2023. For H1 2024, the company generated revenue of RMB76.7 million ($10.6 million) with a gross profit of RMB4.2 million from insurance agency services.The company's net loss from continuing operations increased to RMB16.0 million ($2.2 million) from RMB4.0 million in H1 2023, primarily due to higher interest expenses of RMB10.8 million related to acquisition financing. However, the company recorded a net gain of RMB403.4 million from discontinued operations due to the disposal of its rental business in October 2023.Looking ahead, XChange TEC plans to focus on expanding its insurance agency network and SaaS platform capabilities. The company faces near-term challenges including repayment of acquisition-related promissory notes and working capital needs, which it aims to address through equity offerings or operational cash flow. Management noted substantial doubt about the company's ability to continue as a going concern due to accumulated deficits and negative operating cash flow.