Company: YSXT
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001410578-25-001545
Chunk: 122

Company: YSX Tech Co., Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 5
Chunk 122
---
 primarily consists of subcontract costs, service management and monitoring costs, labor costs and business taxes. Other overhead costs were immaterial, which was mainly due to the Company’s light-asset business model. We have relatively few capital assets, and we have kept a lean corporate structure to remain flexible and efficient in our operation. We have adopted a strategy to outsource auto insurance aftermarket value-added services to external vendors, who are typically automobile service platforms, dealerships, and brick and mortar service and maintenance shops, to perform the value-added services for the insurance policy holders to efficiently work on contracts obtained from insurance companies and brokerages.

For the years ended March 31, 2025 and 2024, more auto insurance aftermarket value-added insurance service tasks were outsourced to external services providers that serve as our sub-contractors providing such services. Our cost of revenues increased by $12,482,346, or 24.2%, from $51,583,802 in fiscal year 2024 to $64,066,148 in fiscal year 2025, primarily due to the increased subcontract costs associated with our value-added services as a result of the service volume of vehicle driving risk screening, car towing, vehicle inspection and maintenance services, etc. increasing by 0.93 million service calls, or 24.6%, from fiscal year 2024 to fiscal year 2025. As a result of an increase in service volume, we engaged more external vendors to serve as our subcontractors which led to significant increase in our subcontract costs. On the other hand, due to decreased demand for our other scenario-based customized services and software development and information technology services, our subcontract costs associated with these two business lines decreased by approximately $3.5 million and $0.5 million, respectively, in fiscal year 2025 as compared to fiscal year 2024.

Table of Contents

For the years ended March 31, 2024 and 2023, more auto insurance aftermarket value-added insurance service tasks were outsourced to external services providers that serve as our sub-contractors providing such services. Our cost of revenues increased by $9,501,505, or 22.6%, from $42,082,297 in fiscal year 2023 to $51,583,802 in fiscal year 2024, primarily due to the increased subcontract costs as a result of the service volume of car wash, car towing, vehicle inspection and maintenance services, etc. increasing by 1.02 million service calls, or 37