Company: YSXT
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001410578-25-001545
Chunk: 124

Company: YSX Tech Co., Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 5
Chunk 124
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 gross margin were also affected by different service mixes during each reporting period. In fiscal year 2025, we earned more revenue from services with higher costs and lower margin than we did in fiscal year 2024. These factors led to the decrease in our gross margin by 1.6% in fiscal year 2025 as compared to fiscal year 2024.

Our gross profit decreased by $188,323, or 2.6%, from $7,151,250 in fiscal year 2023 to $6,962,927 in fiscal year 2024. Our gross margin decreased by 2.6% from 14.5% in fiscal year 2023 to 11.9% in fiscal year 2024. Our gross profit and gross margin were affected by changes in average service price we charge our customers for our services, changes in our subcontract costs with various external vendors who performed our outsourced services, and changes in service volume and different service mix during each reporting period. The decrease in our gross profit from fiscal year 2023 to fiscal year 2024 was largely due to our increased subcontract costs as a result of the increase in the service volume of car wash, car towing, vehicle inspection and maintenance services, etc. In addition, during the fiscal year 2024, our subcontract costs for other scenario-based customized services also increased by approximately 238.6%. Although our total revenue increased by $9.3 million, or 18.9%, in fiscal year 2024, our total costs of revenue increased by $9.5 million or 22.6%, the increase in cost of revenue outpaced the revenue growth by approximately $0.2 million, which led to a decrease in our gross margin in fiscal year 2024 as compared to fiscal year 2023. The decrease in our gross margin was primarily attributable to the decrease in the average service price as the YSX Operating Companies obtained more service contracts from various insurance brokerages paying us lower service fees to perform the value-added services. Our gross profit and gross margin were also affected by different service mixes during each reporting period. In fiscal year 2024, we earned more revenue from services with higher costs and lower margin than we did on fiscal year 2023. These factors led to the decrease in our gross margin in fiscal year 2024.

Table of Contents

Operating expenses

The following table sets forth the breakdown of our operating expenses for the fiscal years ended March 31, 2025, 2024