Company: YSXT
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001410578-25-001545
Chunk: 30

Company: YSX Tech Co., Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 3
Chunk 30
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 the territory of mainland China and, accordingly, will fall within the scope of Article 177. In that case, the U. S. securities regulatory agencies may have to consider establishing cross-border cooperation with the competent securities regulatory authorities of the PRC by way of judicial assistance, diplomatic channels or establishing a regulatory cooperation mechanism with the competent securities regulatory authority of the PRC. However, there is no assurance that the U. S. securities regulatory agencies will succeed in establishing such cross-border cooperation in this particular case and/or establish such cooperation in a timely manner.

Table of Contents

Furthermore, Article 26 of the Trial Measures stipulate that, where an overseas securities regulatory agency intends to carry out an investigation and evidence collection regarding overseas offering and listing activities by a domestic company, and requests assistance of the CSRC under relevant cross-border securities regulatory cooperation mechanism, the CSRC may provide necessary assistance in accordance with law. As of the date of this annual report, the CSRC and the SEC have communicated on cross-border securities regulatory cooperation mechanisms and signed a Sino-U. S. audit regulatory cooperation agreement on August 26, 2022, but further discussions are needed on how to implement broader cross-border securities regulatory cooperation. As such, the lack of a practical securities regulatory cooperation mechanism between the CSRC and the SEC may result in uncertainties as to the specific procedures and requisite timing for you in obtaining information needed for investigations and litigation conducted outside of mainland China. If the U. S. securities regulatory agencies are unable to conduct such investigations, there exists a risk that they may determine to suspend or de-register our registration with the SEC and may also delist our securities from Nasdaq or other applicable trading market within the U. S.

Risks Relating to Our Business

The YSX Operating Companies’ business largely depend on the relationships with customers. If the YSX Operating Companies cannot maintain good relationships or provide satisfactory services to them, our results of operations may be materially and adversely affected.

For the auto insurance after-market services, the YSX Operating Companies secure service contracts with a substantial number of the enterprise customers through a bidding or centralized procurement process. These contracts generally have a term of one or two years which, upon expiration, the YSX Operating Companies are typically subject to a new round of bidding or centralized procurement process to be awarded a renewed contract. We cannot assure you that the YSX Operating Companies will always be invited to participate in the bidding or procurement process of existing customers upon expiration of the existing contract terms or potential customers that the YSX Operating Companies strive