Company: YSXT
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001410578-25-001545
Chunk: 35

Company: YSX Tech Co., Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 3
Chunk 35
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, increased costs and distribution delays that could harm our business and customer relationships. In addition, this concentration can exacerbate the exposure to risks associated with the termination by key customers of agreements or any adverse change in the terms of such agreements, which could have an adverse impact on our revenues and profitability. There are a number of factors, other than our performance, that could cause loss of, or decrease in the volume of business from, a customer. We cannot assure you that we will continue to maintain the business cooperation with these customers at the same level, or at all.

Our business is subject to concentration risk with regard to the vendors with which the YSX Operating Companies subcontract to provide services to customers. Our growth and revenue could be materially and adversely affected if the YSX Operating Companies lose any major collaborating vendors, or if any significant vendor fails to cooperate with the YSX Operating Companies at anticipated levels.

For fiscal year 2025, the YSX Operating Companies had four collaborating vendors accounting for more than 10% of the procurement costs, for a total of 69.7% (with each vendor accounting for 23.4%, 23.3%, 13.0% and 10.0% of total purchases, respectively). For fiscal year 2024, the YSX Operating Companies had four collaborating vendors accounting for more than 10% of the procurement costs, for a total of 61.2% (with each vendor accounting for 22.6%, 17.7%, 10.8% and 10.1% of total purchases, respectively). For fiscal year 2023, the YSX Operating Companies had three collaborating vendors accounting for more than 10% of the procurement costs, for a total of 47.7% (with each vendor accounting for 17.6%, 16.7% and 13.4% of total purchases, respectively). The YSX Operating Companies rely on the third-party collaborating vendors to deliver a variety of services to enterprise customers. There is no assurance that the YSX Operating Companies will be able to continuously maintain positive relationships with their major collaborating vendors, or continue to work with them on terms favorable to the YSX Operating Companies, or if any significant vendor fails to cooperate with the YSX Operating Companies at anticipated levels, or at all. If any of the foregoing occurs, our business growth, results of operations and financial condition will be adversely affected.

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Our business is subject to concentration risks arising from dependence on two principal markets.

Guang