Company: YSXT
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001410578-25-001545
Chunk: 75

Company: YSX Tech Co., Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 4
Chunk 75
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 2023, we generated the majority of our revenue, in the amount of $63,398,860, $45,561,529 and $42,438,636, or 88.7%, 77.8%, and 86.2%, of our total revenue, respectively, from auto insurance aftermarket value-added services.

Service Agreements with Insurance Company and Brokerage Customers

Prior to any service engagement with customers for auto insurance aftermarket value-added services, the YSX Operating Companies enter into framework service agreements with customers. These framework service agreements are usually for a term of one or two years, and specify the following: (i) the type of auto insurance aftermarket value-added services to be provided to the insurance policy holders, (ii) the prices for each service or a group of services to be provided, (iii) the payment terms of the service fee, (iv) other responsibilities of the YSX Operating Companies, such as monitoring and inspection of the service providers, performing quality control of the services to be provided, resolving customer complaints and disputes, among others, (v) if insurance policy holders complain or dispute services provided by the YSX Operating Companies and it is determined that the YSX Operating Companies are at fault with respect to such complaints or disputes, then the YSX Operating Companies are required to provide specific remedies to the insurance policy holders, such as providing the disputed services at no additional costs to the insurance policy holders, and (vi) the services should be provided in accordance with the requirements of the customers, and if the YSX Operating Companies do not rectify any problems or issues where they are at fault within a certain period of time, then the customers will have the right to terminate the contract, may refuse to pay any remaining balances, and may reserve the right to recover any losses. The framework service agreements typically do not specify the amount of services to be ordered. The customers send their service orders to the YSX Operating Companies when they are ready to order the services, on either a periodical basis or as-needed basis.

Service Agreements with Third-party Vendors

The YSX Operating Companies collaborate with third-party vendors, who are typically auto service platforms, dealerships, brick and mortar service and maintenance shops, to perform value-added services for insurance policy holders. To ensure that the YSX Operating Companies only work with qualified third-party vendors, the management has adopted a standard process to evaluate these vendors. The YSX Operating Companies conduct thorough due diligence reviews of the vendors prior to entering into service agreements with them.