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 % of % of
to rounding. Amount revenue Amount 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 ServicesRevenue 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 ServicesRevenue 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 ServicesRevenue 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.
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, March 31,
2025 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
========== ==========
(END) Dow Jones Newswires
February 03, 2026 08:00 ET (13:00 GMT)