YSX Tech Co., Ltd (NASDAQ: YSXT)

YSX Cayman provides comprehensive business solutions to enterprise customers, mainly insurance companies and brokerages, in China. The company focuses on auto insurance aftermarket value added services, software development and information technology services, and other scenario based customized services. These services are delivered through its variable interest entities Xinjiang YSX and Xihang. YSX Cayman was established as the ultimate holding company after a reorganization completed on December 31 2022. It completed its initial public offering on December 19 2024 raising approximately $5.75 million in gross proceeds.

For the fiscal year ended March 31 2025 the company generated total revenue of $71,452,736. Auto insurance aftermarket value added services contributed $63,398,860 or 88.7% of that total. Other scenario based customized services added $7,437,448 representing 10.4% of revenue. Software development and information technology services generated $616,428 or 0.9% of sales. In the prior fiscal year ended March 31 2024 total revenue was $58,546,729 with auto insurance aftermarket value added services accounting for $45,561,529 or 77.8%. Other scenario based customized services contributed $11,764,389 or 20.1% and software development and information technology services contributed $1,220,811 or 2.1%. For the fiscal year ended March 31 2023 total revenue reached $49,233,547 of which auto insurance aftermarket value added services provided $42,438,636 or 86.2%. Other scenario based customized services accounted for $3,537,667 or 7.2% and software development and information technology services contributed $3,257,244 or 6.6%. The company’s customer base consists primarily of insurance companies and brokerages but also includes technology manufacturing and trade firms.

YSX Cayman holds a strong position in the Chinese auto insurance aftermarket value added service market due to its long term relationships with major insurers and its technical capabilities. The company benefits from deep cooperation with leading insurers such as PICC Ping An CPIC and CUIG. An in house technical team of eight full time employees led by Ruomei Wu has developed proprietary systems like Driver's Suite that improve service quality and efficiency. Operating through Xinjiang YSX which is located in the Kashgar Economic Development Zone grants the company full corporate income tax exemption for the first five years and a partial reduction of 10% to 15% thereafter. The management team brings extensive industry experience with CEO Jie Xiao having over 23 years in the financial industry before founding Xinjiang YSX in 2015. Director Weiqiang Zheng has nearly 30 years in the insurance industry and Wenpeng Wang previously served at large insurers including China United Insurance and Taiping Insurance. YSX Cayman’s diversified service offering allows it to act as a one stop provider for insurance customers seeking both standard and customized solutions. Although the industry is highly competitive and fast changing with rivals that may possess greater assets the company’s reputation strong technical capabilities continuous marketing efforts and customer oriented approach enable it to compete effectively. Seasonal patterns affect sales with higher demand typically observed from September through December aligned with insurance premium cycles.

The company’s customer base consists mainly of insurance companies and brokerages located in Guangdong Province and Xinjiang Province. Notable customers include PICC Property and Casualty Company Limited, China Ping An Property Insurance Co Ltd, China Pacific Insurance (Group) Co Ltd and China United Insurance Group Company Ltd. For the fiscal year ended March 31 2025 the company serviced a total of 46 customers of which 25 were insurance companies or brokerages. In the same year four customers each accounted for more than 10% of total revenue at 27.8%, 23.5%, 21.6% and 16.0% respectively. The remainder of the client list comprises technology, manufacturing and trade companies that engage YSX Cayman for software development, information technology and scenario based customized services. YSX Cayman works with a network of third party vendors including automobile service platforms, dealerships and brick and mortar maintenance shops to deliver value added services to policy holders. As of the date of this annual report the company maintained relationships with 16 vendors. Geographically approximately 98.7% of revenue was generated in Guangdong Province and 1.2% in Xinjiang Province for the fiscal year ended March 31 2025.