Company: YSXT
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001410578-25-001545
Chunk: 66

Company: YSX Tech Co., Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 4
Chunk 66
---
, which is approximately equal to the net income of each VIE after deduction of the required PRC statutory reserve.

The Exclusive Business Cooperation and Service Agreement shall remain in effect for twenty years, and can only be terminated earlier if one of the parties defaults or enters into a liquidation process (either voluntary or compulsory), or is prohibited to conduct business by the governmental authority liquidated. WFOE is entitled to renew the agreement by providing a written notice to each VIE.

The CEO of WFOE, Mr. Xiao, who is the CEO of Xinjiang YSX, is currently managing Xinjiang YSX pursuant to the terms of the Exclusive Business Cooperation and Service Agreement between WFOE and Xinjiang YSX. One director of YSX Cayman, Mr. Weiqiang Zheng, who is a shareholder of the Company and executive director of Xihang, is currently managing Xihang pursuant to the terms of the Exclusive Business Cooperation and Service Agreement between WFOE and Xihang. WFOE has absolute authority relating to the management of each VIE, including, but not limited to decisions with regard to expenses, salary raises and bonuses, hiring, firing and other operational functions. The Company’s audit committee is required to review and approve in advance any related party transactions, including transactions involving WFOE or VIEs.

Equity Interest Pledge Agreement

Under the Equity Interest Pledge Agreement among WFOE, each VIE and its respective shareholders, each VIE’s shareholders pledged all of its equity interests in the VIE to WFOE to guarantee the performance of each VIE’s obligations under the Exclusive Business Cooperation and Service Agreement. Under the terms of the Equity Pledge Agreement, in the event that each VIE or the VIE’s shareholder breach their respective contractual obligations under the Exclusive Business Cooperation and Service Agreement, WFOE, as pledgee, will be entitled to certain rights, including, but not limited to, the right to collect dividends generated by the pledged equity interests. The VIEs’ shareholders also agreed that upon the occurrence of any event of default, as set forth in the Equity Pledge Agreement, WFOE is entitled to dispose of the pledged equity interest in accordance with applicable PRC laws. The VIEs’ shareholders have further agreed not to dispose of the pledged equity interests or take any actions that would prejudice WFOE’s interest.

The Equity Interest Pledge Agreement is effective until all payments due under the Exclusive Business Cooperation and Service Agreement have been paid by each VIE