Company: YSXT
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001410578-25-001545
Chunk: 33

Company: YSX Tech Co., Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 3
Chunk 33
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 laws and regulations currently applicable to customers could change rapidly which could negatively impact our financial results.

The majority of the YSX Operating Companies’ customers are insurance companies and brokerages, who operate in a highly regulated industry. The laws and regulations of the Chinese insurance industry are evolving and may change dramatically within time, which could change the competitive environment of the insurance service industry significantly and cause the YSX Operating Companies to lose some or all of customers. In recent years, the China State Financial Regulatory Administration of China (“ CSFRA”) and its predecessor have increasingly tightened regulations and supervision of the Chinese insurance market. The CSFRA has extensive authority to supervise and regulate the insurance industry in China as prescribed by law. In exercising its authority, the CSFRA is given wide discretion, and the administration, interpretation and enforcement of the laws and regulations applicable to the YSX Operating Companies’ customers involve uncertainties that could materially and materially and adversely affect the YSX Operating Companies’ business and results of operations.

Competition in the YSX Operating Companies’ industry is intense and, if the YSX Operating Companies are unable to compete effectively with both existing and new market participants, we may lose customers, and our financial results may be negatively affected.

The insurance service industry in China is highly competitive, and we expect competition to persist and intensify. The YSX Operating Companies compete in various aspects, including brand recognition, value for money, user experience, customer services, reputation, and talents, among others. Intensified competition may result in pricing pressures and reduced profitability and may impede the YSX Operating Companies’ ability to achieve sustainable growth in revenues or cause them to lose market share. Many of the YSX Operating Companies’ competitors, both existing and newly emerging, may have longer operating history, greater financial and marketing resources than they do and may be able to offer services that the YSX Operating Companies do not currently offer and may not offer in the future. If the YSX Operating Companies are unable to compete effectively against those competitors, they may lose customers, and our financial results may be negatively affected.

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Our future success depends on the continuing efforts of our senior management team and other key personnel, and our business may be harmed if we lose their services.

Our future success depends heavily upon the continuing services of the members of our senior management team and other key personnel, in particular, Mr. Jie Xiao, our CEO, and Mr. Wei Qiang Zheng, one of our executive directors. If one or more of our senior executives or other key personnel