Company: YSXT
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001410578-25-001545
Chunk: 123

Company: YSX Tech Co., Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 5
Chunk 123
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.0%, from fiscal year 2023 to fiscal year 2024. 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. In addition, during the fiscal year 2024, our subcontract costs associated with providing other scenario-based customized services also increased by approximately $7.0 million, or 238.6%, because the number of our customers for other scenario-based customized services increased by 41.7% from 12 customers in the fiscal year 2023 to 17 customers in the fiscal year 2024.

For the year ended March 31, 2023, the YSX Operating Companies outsourced certain auto insurance aftermarket value-added service to a related party, Chongqing Yinzhi Business Service Co. Ltd. (“ Chongqing Yinzhi”), an entity affiliated with Mr. Yizhuo Tan, director of Xinjiang YSX and also one of the shareholders of Xinjiang YSX, and accordingly, we reported a total of $382,098 cost of revenue paid to the related party for the fiscal year 2023. There was no cost of revenue paid to related parties in fiscal year 2024 and fiscal year 2025. As we plan to expand our operations to other geographic areas, we expect to subcontract with a growing number of third-party vendors and do not expect to continue to derive a substantial amount of costs of revenue from related parties in future periods.

Gross profit

Our gross profit increased by $423,661, or 6.1%, from $6,962,927 in fiscal year 2024 to $7,386,588 in fiscal year 2025. Our gross margin decreased by 1.6% from 11.9% in fiscal year 2024 to 10.3% in fiscal year 2025. 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 increase in our gross profit from fiscal year 2024 to fiscal year 2025 was largely due to our increased revenue. The decrease in our gross margin was primarily attributable to the decrease in the average service price by 40.3% that the YSX Operating Companies charged to customers for providing other scenario-based customized services as discussed above. Our gross profit and