YSX Tech Co., Ltd Announces Unaudited Financial Results for the Six Months Ended September 30, 2025
MWN-AI** Summary
YSX Tech Co., Ltd. (NASDAQ: YSXT), a Cayman Islands-based company providing business solutions primarily for insurance companies and brokerages in China, released its unaudited financial results for the six months ending September 30, 2025. The report indicates a robust performance, with total revenue rising by 20.2% to approximately $41.0 million from $34.1 million year-over-year. This growth was primarily driven by the company's core auto insurance aftermarket value-added services, which saw a notable 42.8% increase in service calls, totaling about 3.0 million.
Gross profit rose by 10.6% to $4.0 million, though the gross margin decreased from 10.6% to 9.7% due to a shift in service mix and higher associated costs. Net income saw a significant increase of 39.0% to approximately $2.7 million, attributed to both revenue growth and a decrease in operating expenses, which fell by 14.2% to around $1.1 million.
The company emphasized its strategic partnerships, highlighting a new commercial collaboration aimed at enhancing capabilities in auto insurance and supply chain finance with Huijian Information Technology Co., Ltd. These efforts are part of YSX's broader plan to expand market presence and generate additional cross-selling opportunities.
Despite challenges, including a 71.3% decline in revenue from certain other customized services, YSX Tech navigated these dynamics successfully. As of September 30, 2025, YSX maintained a liquidity position with cash equivalents of approximately $0.3 million and working capital of about $32.4 million, sufficient to meet its operational needs for the coming year. Overall, YSX Tech’s results reflect ongoing growth potential in a competitive market.
MWN-AI** Analysis
YSX Tech Co., Ltd. (NASDAQ: YSXT) has reported promising financial results for the six months ended September 30, 2025, showcasing significant growth in revenue and net income. With total revenue of approximately $41 million—up 20.2% year-over-year—the company demonstrates a strong foothold in the insurance technology sector, particularly within auto insurance aftermarket value-added services, which alone accounted for about 96% of revenue.
Investors should note that YSX’s gross profit has also shown positive growth, increasing by 10.6% to $4 million. However, the gross margin has decreased slightly from 10.6% to 9.7%, primarily due to a shift in service mix. The 42.8% rise in service calls to 3 million highlights escalating demand for their offerings.
One of the more compelling aspects of YSX’s performance is their significant increase in net income by 39% to approximately $2.7 million, underpinned by effective cost management strategies that reduced operating expenses. This bodes well for the company's operational efficiency and profitability moving forward.
Despite the positive trajectory, the decrease in sales from customized scenario-based services (down 71.3% year-over-year) and software development services (down 86.6%) raises concerns. These declines reflect challenges that may affect future growth.
Looking ahead, the strategic alliances with Huijian Information Technology Co., Ltd. and partnerships aimed at enhancing service capabilities indicate potential for further revenue streams. However, investors should monitor the execution of these strategies closely.
Considering YSX Tech’s strong revenue growth coupled with declining implementations in certain segments, the stock presents both opportunities and risks. Prospective investors may consider buying into YSXT for its growth potential while remaining cautious of its specialized service segments. A balanced approach, leveraging the company's performance alongside market trends, would be prudent for navigating future investments.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
GUANGZHOU, China, Feb. 03, 2026 (GLOBE NEWSWIRE) -- YSX TECH. CO., LTD (NASDAQ: “YSXT”) (the “Company”), a Cayman Islands exempted company that, through its variable interest entities in China, provides comprehensive business solutions mainly for insurance companies and brokerages in China, today announced its unaudited financial results for the six months ended September 30, 2025.
Financial Highlights for the Six Months Ended September 30, 2025
- Total revenue increased by 20.2% to approximately $41.0 million, compared to approximately $34.1 million for the same period in the prior year.
- Gross profit increased by 10.6% to approximately $4.0 million, compared to approximately $3.6 million for the same period in the prior year.
- Net income increased by 39.0% to approximately $2.7 million, compared to approximately $1.9 million for the same period in the prior year.
- Total volume for auto insurance aftermarket value-added services increased by 42.8% to approximately 3.0 million service calls for the same period in the prior year.
| 2025 | 2024 | Variance | |||||||||||||||||
| In USD million except percentages, differences due to rounding. | Amount | % of revenue | Amount | % of revenue | % | ||||||||||||||
| Total Revenue | $ | 41.0 | 100.0 | % | $ | 34.1 | 100.0 | % | 20.2 | % | |||||||||
| Cost of revenues | (37.0 | ) | (90.3 | )% | (30.5 | ) | (89.4 | )% | 21.4 | % | |||||||||
| Gross profit | 4.0 | 9.7 | % | 3.6 | 10.6 | % | 10.6 | % | |||||||||||
| Total operating expenses | 1.1 | 2.6 | % | 1.2 | 3.6 | % | (14.2 | )% | |||||||||||
| Income from operations | 2.9 | 7.9 | % | 2.4 | 6.9 | % | 23.7 | % | |||||||||||
| Net income | $ | 2.7 | 6.5 | % | 1.9 | 5.7 | % | 39.0 | % | ||||||||||
“We are pleased to report our growth in both revenue and net income for the six months ended September 30, 2025,” said Mr. Jie Xiao, the CEO of the Company. “Our strategic focus on deepening relationships with insurance brokerages has yielded positive results, driving a 42.8% increase in service volume in our core auto insurance aftermarket business. Despite a shift in the service mix that slightly impacted gross margins, our ability to control administrative costs and streamline operations allowed us to deliver a 39% increase in net income.”
“We believe that the results demonstrate the scalability of our platform and the strength of our insurer and brokerage partnerships. New contract acquisitions and greater utilization of value-added services, including, inspections, risk screening, rescue and maintenance services also facilitated our growth during the reporting period.
“Looking ahead, the Company is focused on converting recent strategic initiatives into revenue and margin gains. New commercial collaborations, including the strategic alliance aimed at enhancing auto insurance and supply chain finance capabilities with Huijian Information Technology Co., Ltd., as well as our previously announced partnership with a car distributor targeted at building a technology-oriented physical automotive service platform, are expected to expand our market presence, broaden insurance and financing solutions, and generate additional cross?selling opportunities for both the Company and our partners,” Mr. Xiao added.
Financial Results for the Six Months Ended September 30, 2025
Revenue
Total revenue was approximately $41.0 million, representing an increase of approximately $6.9 million, or 20.2%, from approximately $34.1 million in the same period in the prior year. This growth was primarily driven by the Company’s core auto insurance aftermarket value-added services segment.
- Auto Insurance Aftermarket Value-Added Services
Revenue increased by 39.5% to approximately $39.4 million, accounting for 96.0% of the Company’s total revenue. The increase was fueled by growth in service volume by approximately 899,096 service calls, or 42.8%, from about 2.1 million calls in the six months ended September 30, 2024 to about 3.0 million calls in the six months ended September 30, 2025. In particular, revenue from vehicle driving risk screening services increased by 40.7% to approximately $35.7 million, and revenue from vehicle maintenance and other value-added services increased by 61.1% to approximately $1.4 million.
- Other Scenario-Based Customized Services
Revenue decreased by 71.3% to approximately $1.6 million in the six months ended September 30, 2025, primarily due to a reduction in the number of customers of the services from 17 customers in the six months ended September 30, 2024 to five customers in the six months ended September 30, 2025.
- Software Development and Information Technology Services
Revenue decreased by 86.6% to approximately $400,000 from approximately $0.3 million, reflecting decreases in both customer count and average service price.
Cost of Revenue
Total cost of revenue for the six months ended September 30, 2025 increased by 21.4% from approximately $30.5 million in the same period of the prior year to approximately $37.0 million. This increase was primarily driven by higher subcontractor costs.
Gross Profit and Margin
Gross profit increased by 10.6% to approximately $4.0 million. Gross margin was 9.7% in the six months ended September 30, 2025, compared to 10.6% in the same period in the prior year. The decrease in margin was attributable to a change in service mix, as the Company performed a higher volume of value-added services which carry higher associated costs compared to other service lines.
Operating Expenses
Total operating expenses decreased by 14.2% to approximately $1.1 million in the six months ended September 30, 2025 compared to the same period of the prior year.
- Selling expenses decreased by 11.8% to approximately $600,000, primarily due to lower salary and benefit expenses.
- General and administrative expenses decreased by 16.4% to approximately $0.9 million. This reduction was largely driven by a 35.5% decrease in professional and consulting fees following the completion of the Company's initial public offering, partially offset by increased office and salary expenses related to the Company’s business expansion.
- Research and development expenses increased by 5.0% to approximately $0.12 million, reflecting the Company’s continued investment in software optimization.
Net Income
As a result of the foregoing, net income was approximately $2.7 million in the six months ended September 30, 2025, representing an increase of approximately $0.8 million, or 39.0%, from approximately $1.9 million in the same period in the prior year. This increase was primarily driven by the total revenue growth combined with decreased operating expenses for the six months ended September 30, 2025.
Liquidity
As of September 30, 2025, the Company had cash and cash equivalents of approximately $0.3 million and working capital of approximately $32.4 million. The Company believes its current cash position and cash flows from operations will be sufficient to meet working capital needs for the next 12 months.
About YSX TECH. CO., LTD
YSX TECH. CO., LTD is a Cayman Islands exempted company that, through its variable interest entities in China, provides comprehensive business solutions mainly for insurance companies and brokerages in China. The Company possesses in-depth knowledge of the Chinese insurance industry accumulated from years of servicing customers, and specializes in auto insurance aftermarket value-added services, software development and information technology services, as well as other scenario-based customized services, such as products and customer development services. For more information please visit: https://ir.ysxtechcay.com and https://www.ysxnet.com.
Forward-Looking Statement
This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate,” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and other factors discussed in the Company’s filings with the United States Securities and Exchange Commission, which are available for review at www.sec.gov. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For more information, please contact:
YSX Tech. Co., Ltd
marketing@ysxnet.com
+86 (20) 2984 2002
Investor Relations
WFS Investor Relations Inc.
Email: services@wealthfsllc.com
Phone: +1 628 283 9214
| YSX TECH. CO., LTD AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | ||||||||
| As of | ||||||||
| September 30, 2025 | March 31, 2025 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash | $ | 319,103 | $ | 7,105,085 | ||||
| Accounts receivable, net of credit loss of $861,117 and $653,470, respectively | 26,060,151 | 17,606,279 | ||||||
| Accounts receivable, net, related parties | 9,517,048 | 5,381,535 | ||||||
| Advances to vendors | 9,007,720 | 9,400,197 | ||||||
| Due from related parties | 717,836 | 198,611 | ||||||
| Other current assets | 1,379,450 | 929,680 | ||||||
| Total current assets | 47,001,308 | 40,621,387 | ||||||
| Property and equipment, net | 165,415 | 194,878 | ||||||
| Right-of-use operating lease assets | 392,163 | 144,535 | ||||||
| Deferred tax assets | 235,086 | 140,377 | ||||||
| Total non-current assets | 792,664 | 479,790 | ||||||
| TOTAL ASSETS | 47,793,972 | 41,101,177 | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Short-term bank loans | 4,743,644 | 4,131,354 | ||||||
| Current portion of long-term loans | 98,328 | 578,775 | ||||||
| Accounts payable | 3,669,874 | 2,258,129 | ||||||
| Deferred revenue | 1,523 | 1,007 | ||||||
| Taxes payable | 3,947,648 | 3,274,881 | ||||||
| Due to related parties | 173,712 | 141,235 | ||||||
| Operating lease liabilities, current | 134,994 | 93,719 | ||||||
| Accrued expense and other current liabilities | 1,795,567 | 1,651,681 | ||||||
| Total current liabilities | 14,565,290 | 12,130,781 | ||||||
| Operating lease liabilities, non-current | 285,360 | 66,926 | ||||||
| Long-term loans | 2,107,038 | 1,281,574 | ||||||
| Total non-current liabilities | 2,392,398 | 1,348,500 | ||||||
| Total liabilities | 16,957,688 | 13,479,281 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity | ||||||||
| Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 23,437,500 shares issued and outstanding, including: | ||||||||
| Class A ordinary shares, $0.0001 par value, 470,000,000 shares authorized, 22,260,175 shares issued and outstanding | 2,226 | 2,226 | ||||||
| Class B ordinary shares, $0.0001 par value, 30,000,000 shares authorized, 1,177,325 shares issued and outstanding | 118 | 118 | ||||||
| Additional paid-in capital | 10,420,096 | 10,420,096 | ||||||
| Statutory reserve | 1,145,692 | 908,214 | ||||||
| Retained earnings | 20,017,480 | 17,575,571 | ||||||
| Accumulated other comprehensive loss | (749,328 | ) | (1,284,329 | ) | ||||
| Total shareholders’ equity | 30,836,284 | 27,621,896 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 47,793,972 | $ | 41,101,177 |
| YSX TECH. CO., LTD AND ITS SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||
| For the six months ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| Revenue | ||||||||
| Revenue | $ | 29,263,334 | $ | 24,747,746 | ||||
| Revenue, related parties | 11,728,470 | 9,346,622 | ||||||
| Total revenue | 40,991,804 | 34,094,368 | ||||||
| Cost of revenue | 37,010,330 | 30,493,854 | ||||||
| Gross profit | 3,981,474 | 3,600,514 | ||||||
| Operating expenses: | ||||||||
| Selling and marketing | 58,604 | 66,471 | ||||||
| General and administrative | 889,714 | 1,064,198 | ||||||
| Research and development | 119,339 | 113,652 | ||||||
| Total operating expenses | 1,067,657 | 1,244,321 | ||||||
| Income from operations | 2,913,817 | 2,356,193 | ||||||
| Other income (expenses) | ||||||||
| Interest expense | (114,206 | ) | (62,438 | ) | ||||
| Interest income | 195 | 654 | ||||||
| Investment income | — | 20,282 | ||||||
| Other income | 452,162 | 64,598 | ||||||
| Other non-operating expenses | (66,239 | ) | (17,393 | ) | ||||
| Total other income (expenses), net | 271,912 | 5,703 | ||||||
| Income before income tax provisions | 3,185,729 | 2,361,896 | ||||||
| Provision for income taxes | 506,342 | 434,701 | ||||||
| Net income | 2,679,387 | 1,927,195 | ||||||
| Other comprehensive income | ? | ? | ||||||
| Foreign currency translation adjustment | 535,001 | 603,745 | ||||||
| Comprehensive income | $ | 3,214,388 | $ | 2,530,940 | ||||
| Earnings per share- basic and diluted | $ | 0.11 | $ | 0.09 | ||||
| Weighted average number of ordinary shares- basic and diluted | 23,437,500 | 22,000,000 |
FAQ**
How has YSX Tech. Co. Ltd YSXT adapted its business strategy in response to the 39.5% increase in revenue from its auto insurance aftermarket value-added services during the six months ended September 30, 2025?
In what ways does YSX Tech. Co. Ltd YSXT plan to leverage its strategic alliance with Huijian Information Technology Co., Ltd to enhance its auto insurance and supply chain finance capabilities moving forward?
Considering the 71.decline in revenue from scenario-based customized services, what steps is YSX Tech. Co. Ltd YSXT taking to regain customer interest and improve this product segment?
How does YSX Tech. Co. Ltd YSXT plan to manage its cash position of approximately $0.3 million to ensure operational stability and support future growth initiatives over the next 12 months?
**MWN-AI FAQ is based on asking OpenAI questions about YSX Tech. Co. Ltd (NASDAQ: YSXT).
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