Company: YSXT
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001410578-25-001545
Chunk: 117

Company: YSX Tech Co., Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 5
Chunk 117
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’ business was negatively affected by the COVID-19 pandemic. For detailed discussion, see “ Impact of COVID-19 on Our Business”. Since December 2022, the overall demand for YSX Operating Companies’ services, particularly, the vehicle maintenance related services, increased significantly since the fourth quarter of fiscal year 2023, and, as a result, the Company’s revenue from vehicle maintenance related services increased markedly in fiscal year 2024.

Third, in fiscal year 2024, we obtained more service contracts from insurance brokerages, instead of insurance companies, and our service contracts with insurance brokerages require YSX Operating Companies to provide more vehicle maintenance related services to auto insurance policy holders, than other value-added services. These combined factors led to the increased revenue from vehicle maintenance related services in fiscal year 2024.

However, the service volume for vehicle safety inspection and check services, and vehicle driving risk screening services decreased by 58,387 service calls, or 39.3%, and 40,409 service calls, or 32.0%, respectively, in fiscal year 2024 as compared to fiscal year 2023, and as a result, revenue from these services decreased by $1,751,610 and $1,795,936, respectively. The decreases were primarily because the service contracts we obtained from insurance brokerages during fiscal year 2024 required us to provide more vehicle maintenance related services to insurance policy holders instead of providing vehicle safety inspection and check services and vehicle risk screening services to them. In contrast, during fiscal year 2023, we signed more service contracts with insurance companies, which required us to provide more vehicle safety inspection and check services, and vehicle risk screening services to insurance policy holders. Due to the change in our service mix during fiscal year 2024, our revenues from these two services decreased as compared to fiscal year 2023.

Table of Contents

A single insurance company can only offer its own products (whether that could be life insurance, property and casualty, liability, health, commercial policies, workers’ compensation or some combination thereof) at higher prices and, accordingly, gives more back to insurance product consumers in terms of value-added services. An insurance brokerage, on the other hand, can offer insurance coverage from many different insurance companies. This flexibility not only impacts the types of policies a customer can choose but also how affordable those policies are. However, although insurance companies may offer their product consumers in the form of value-added services, such value-added services may be restricted to tailor only the insurance