Company: YSXT
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001410578-25-001545
Chunk: 16

Company: YSX Tech Co., Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 3
Chunk 16
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 as of March 31, 2025, we estimate that the amount of outstanding housing funds was approximately $56,374 and the amount of late fees was approximately $14,461. If the YSX Operating Companies fail to adequately address the outstanding amounts and fees, the relevant authorities could file applications to competent courts for compulsory enforcement of payment and deposit.

According to our PRC counsel, however, it is unlikely that the PRC operating entities would be ordered to pay the overdue social insurance premiums or housing funds, considering that (i) some of the employees of the PRC operating entities are over the age limit to be paid social insurance premiums and housing funds; (ii) the requirement of social insurance and housing fund has not been implemented consistently by the local governments in China given the different levels of economic development in different locations; (iii) pursuant to the Emergency Notice on Practicing Principles of the State Council Executive Meeting and Stabilizing Work on Collecting Social Insurance Premiums promulgated by the Ministry of Human Resources and Social Security on September 21, 2018, local authorities are prohibited from recovering unpaid social insurance premiums from enterprises; (iv) as of the date of this annual report, the PRC operating entities have not received any notice or order from the relevant government authorities requesting them to pay social insurance premiums or housing funds in full; (v) as of the date of this annual report, the PRC operating entities have not received any complaint or report on outstanding social insurance premiums or housing funds, nor have them had any labor dispute or lawsuit with their employees on payments of social insurance premiums or housing funds; and (vi) the relevant local authorities certified in writing that there were no acts of violating human resources regulations or labor management regulations by the operating entities. As a result, we did not accrue or record the amounts of outstanding social insurance premiums or housing funds before June 30, 2023, and the amount was deemed not material. Starting from July 2023, we have adequately accrued the social premiums and housing funds and the estimated late fees for all of our eligible full-time employees in accordance with the aforementioned PRC laws and regulations, if applicable, and have not received any notice or order for payment as of the date of this annual report.

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PRC regulations relating to offshore investment activities by PRC residents may subject our PRC resident beneficial owners or WFOE to liability or penalties, limit our ability to inject capital into WFOE, limit WFOE’s ability to increase its registered