Company: YSXT
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001410578-25-001545
Chunk: 111

Company: YSX Tech Co., Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 5
Chunk 111
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 such services decreased by approximately $187,514, or 51.8%, from $361,916 in fiscal year 2023 to $174,402 in fiscal year 2024.

Gross Profit

Gross profit is equal to net revenue minus cost of revenues. Our cost of revenues primarily includes subcontract costs, service management and maintenance costs, labor costs and sales taxes. The cost of revenue generally changes as affected by factors including the availability of the external vendors to perform certain auto insurance aftermarket value-added services we outsource to them, subcontract costs, service volume and service mix changes. Our cost of revenue accounted for 89.7%, 88.1% and 85.5% of our total revenue for the fiscal year 2025, 2024 and 2023, respectively. We expect our cost of revenue to increase as we further expand our operations in the foreseeable future.

Table of Contents

Our gross margin was 10.3% for fiscal year 2025, a decrease by 1.6% from the gross margin of 11.9% in fiscal year 2024. Our gross margin was 11.9% for fiscal year 2024, a decrease by 2.6% from the gross margin of 14.5% in fiscal year 2023. Our gross profit and gross margin are affected by sales of different service mix during each reporting period. Our gross margin increases when more revenue comes from our service offerings with lower costs and higher margin, while our gross margin decreases when more revenue comes from service offering with higher costs and lower margin. In fiscal year 2025 and 2024, we earned more revenue from value-added services with higher costs and lower margin. As a result, our total gross margin decreased by 1.6% when comparing the fiscal year 2025 to fiscal year 2024 and our gross margin decreased by 2.6% when comparing the fiscal year 2024 to fiscal year 2023. See detailed discussion under “ Comparison of Results of Operations for the Fiscal Years Ended March 31, 2025, 2024 and 2023.”

Operating Expenses

Our operating expenses consist of selling expenses, general and administrative expenses and research and development expenses.

Our selling expenses primarily include salary and welfare benefit expenses paid to the YSX Operating Companies’ sales personnel, office rental expense, business travel, meals and entertainment expenses, and other sales and marketing activity-related expenses. Our selling expenses accounted for 0.2%, 0