Company: YSXT
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001410578-25-001545
Chunk: 36

Company: YSX Tech Co., Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 3
Chunk 36
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dong Province and Xinjiang Province are YSX Operating Companies’ two principal markets. The majority of YSX Operating Companies’ customers are located in Guangdong Province and Xinjiang Province. For fiscal year 2025, a total of 99.9% of our revenue was generated in Guangdong Province and Xinjiang Province. In particular, a total of 98.8% of our total revenue was generated in Guangdong Province during such period. For fiscal year 2024, a total of 98.0% of our revenue, was generated in Guangdong Province and Xinjiang Province. In particular, a total of 92.9% of our total revenue was generated in Guangdong Province during such period. For fiscal year 2023, a total of 98.8% of our revenue was generated in Guangdong Province and Xinjiang Province. In particular, a total of 85.9% of our total revenue was generated in Guangdong Province during such period. As such, we are subject to concentration risks arising from dependence on two principal markets. Although Guangdong Province has consistently ranked in the top 3 provinces in terms of premium income in recent years, according to China Banking and Insurance Regulatory Commission, we cannot assure you that the insurance market in Guangdong Province will remain robust in the future, or that the YSX Operating Companies will be able to maintain their existing customers or acquire new customers in Guangdong Province or Xinjiang Province in the future.

We are subject to credit risks from customers.

The YSX Operating Companies typically grant credit for periods of 30 to 90 days to enterprise customers. While they are principally insurance companies and brokerages, there is no assurance that income receivable by YSX Operating Companies will not be subject to disputes with clients and partners. Given the scale of the clients and the negotiating positions they enjoy, in case of dispute, the YSX Operating Companies are typically in a less favorable position to succeed in recovering the trade receivables and our financial position and results of operations may be negatively impacted as a result.

Our outstanding accounts receivable are not covered by collateral or credit insurance. While we have procedures to monitor and limit exposure to credit risk on our accounts receivable, which risk is heightened during periods of uncertain economic conditions, there can be no assurance such procedures will effectively limit our credit risk and enable us to avoid losses, which could have a material adverse effect on our financial condition and operating results. Our net accounts receivable balance was (i) US$22,987,814 (