Company: YSXT
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001410578-25-001545
Chunk: 38

Company: YSX Tech Co., Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 3
Chunk 38
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 is dependent on, among other things, the state of the capital markets at the time of any proposed offering, market reception of the Company and the likelihood of the success of its business model and offering terms. There is no assurance that we will be able to obtain any such additional capital through asset sales, equity or debt financing, or any combination thereof, on satisfactory terms or at all. Additionally, no assurance can be given that any such financing, if obtained, will be adequate to meet our capital needs and to support our operations. If we do not obtain adequate capital on a timely basis and on satisfactory terms, our revenues and operations and the value of our securities, including our Class A Ordinary Shares, would be materially negatively impacted and we may cease our operations.

Table of Contents

We face risks related to health epidemics, including from resurgences of COVID-19, severe weather conditions and other catastrophes, which could materially and adversely affect our business.

Our business could be materially and adversely affected by the outbreak of health epidemics, severe weather conditions or other catastrophes. In December 2019, COVID-19 was first detected in China and then quickly in other countries. The COVID-19 pandemic had a material adverse impact on Chinese economy and China’s insurance industry, and negatively affected our business and financial results in fiscal years 2020-2023. Due to the various restrictions, the third-party vendors that contracted by the YSX Operating Companies were not able to effectively perform services for insurance policy holders, and the YSX Operating Companies were not able to effectively promote or expand the business. Specifically, during the periods of lockdowns, the YSX Operating Companies experienced reduced demands for services and longer service times by the third-party vendors, which led to reduced service volume and delays in service fee settlements with insurance companies and brokerages. In the end of 2022, China loosened its COVID-19 policy and certain negative effect due to the COVID-19 pandemic on our business have since been mitigated. For details, please see “ Item 5. Operating and Financial Review and Prospects - A. Operating Results - Impact of COVID-19 on Our Business.” However, there remain significant uncertainties surrounding COVID-19. The extent to which further resurgences of COVID-19 may impact our results will depend on its future developments, which are highly uncertain and cannot be predicted.

In addition to public health risks, our operations are also exposed to severe weather events, including floods, snowstorms, and extreme heat conditions, which have