Company: YSXT
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001410578-25-001545
Chunk: 143

Company: YSX Tech Co., Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 5
Chunk 143
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 Chinese Economy Could Materially and Adversely Affect Our Business and Our Financial Condition

The rapid growth of the Chinese economy has slowed down since 2012 and this slowdown may continue in the future. There is considerable uncertainty over trade conflicts between the United States and China and the long-term effects of the expansionary monetary and fiscal policies adopted by the central banks and financial authorities of some of the world’s leading economies, including the United States and China. The withdrawal of these expansionary monetary and fiscal policies could lead to a contraction. There continue to be concerns over unrest and terrorist threats in the Middle East, Europe, and Africa, which have resulted in volatility in oil and other markets. Potential conflicts in relation to territorial disputes among Asian countries, if any, may worsen the relationship between the affected countries. The eruption of armed conflict could adversely affect global or Chinese discretionary spending, either of which could have a material and adverse effect on our business, results of operation in financial condition. Economic conditions in China are sensitive to global economic conditions, as well as changes in domestic economic and political policies and the expected or perceived overall economic growth rate in China. Any severe or prolonged slowdown in the global or Chinese economy would likely materially and adversely affect our business, results of operations and financial condition. In addition, continued turbulence in the international markets may adversely affect our ability to access capital markets to meet liquidity needs.

Impact of COVID-19 on Our Business

COVID-19 had negatively affected our business and financial results in fiscal year 2023, but did not materially affect our business operations in fiscal years 2025 and 2024. The Company’s total revenue increased by $12.9 million, or 18.9%, when comparing fiscal year 2025 to fiscal year 2024, and increased by $9.3 million, or 18.9%, when comparing fiscal year 2024 to fiscal year 2023. However, the net income only slightly decreased by approximately $0.5 million or 6.9% in fiscal year 2025 as compared to fiscal year 2024, and also decreased by $0.3 million, or 6.9%, in fiscal year 2024 as compared to fiscal year 2023, primarily due to the increased operating expenses during fiscal year 2025 and 2024.

Although COVID-19 appears to be under control as of the date of this annual report, the extent to which COVID-19 may impact our future financial results will depend on future developments, such as