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YSX TECH. CO., LTD Announces Financial Results for Fiscal Year 2025

1. YSXT's revenue grew 22% to $71.5 million in FY 2025. 2. Auto insurance services contributed 88.7% of total revenue growth. 3. Net income declined 11.9% to $4.0 million indicating profitability challenges. 4. Gross margin decreased due to lower-priced service pressure. 5. Cash reserves increased from $4.3 million to $7.1 million year-over-year.

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$2.9908/01 10:44 PM EDTLatest Updated
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FAQ

Why Bullish?

Strong revenue growth indicates demand for services, despite net income decline. Historical parallels suggest that strong revenues can bolster share prices, albeit slower due to profit pressures.

How important is it?

With the significant top-line growth in FY 2025, investors may expect improved future cash flows, though net income pressures temper excitement.

Why Short Term?

The quarterly results can affect stock price quickly, especially with high growth rates observed. Stock reactions often follow immediate quarterly news before longer-term trends emerge.

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GUANGZHOU, China, Aug. 01, 2025 (GLOBE NEWSWIRE) -- YSX TECH. CO., LTD (the “Company,” “our,” “us” or “YSXT”), 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 financial results for the fiscal year ended March 31, 2025. Key Financial Metrics for Fiscal Year 2025 Total revenue grew by approximately 22.0% to approximately $71.5 million in the fiscal year ended March 31, 2025 from approximately $58.5 million in the fiscal year ended March 31, 2024, driven by expanded service contracts with insurance companies and brokerages.Revenue generated from auto insurance aftermarket value-added services rose approximately 39.1% to approximately $63.4 million in fiscal year 2025 from approximately $45.6 million the fiscal year ended March 31, 2024, accounting for approximately 88.7% of our total revenue, and reflecting an approximately 24.6% increase in service volume (approximately 4.72 million calls) from fiscal year 2024 to fiscal year 2025 and an approximately 11.7% increase in average revenue per call from fiscal year 2024 to fiscal year 2025.Driving risk screening service volume experienced an approximately 2,978% increase, and the Company recorded gains in both volume and revenue from providing safety inspection and check services, and designated-driver and rescue services, with only a modest pullback in vehicle maintenance related services from fiscal year 2024 to fiscal year 2025.Gross profit rose approximately 6.1% to approximately $7.39 million in the fiscal year ended March 31, 2025 from approximately $6.96 million in the fiscal year ended March 31, 2024, while gross margin narrowed to approximately 10.3% in the fiscal year ended March 31, 2025 from approximately 11.9% in the fiscal year ended March 31, 2024.Net income declined approximately 11.9% to approximately $4.0 million in the fiscal year ended March 31, 2025 from approximately $4.6 million in the fiscal year ended March 31, 2024. Mr. Jie Xiao, our CEO and chairman of the board of directors, stated: “We are pleased to deliver strong top-line growth in fiscal year 2025, led by our core auto insurance aftermarket value-added services. We believe the approximately 39.1% increase in revenue from our auto insurance aftermarket value-added services – and a 24.6% increase in service volume from fiscal year 2024 to fiscal year 2025 in this business segment – demonstrates the strength of our partnerships with insurers and brokerages. Although margin pressure from lower-priced scenario-based services weighed on overall profitability, we have a clear roadmap to optimize our service mix, control costs and invest in technology that drives efficiency. We anticipate that our cash position and continued focus on innovation will position us well to sustain growth and enhance long-term shareholder value.”   For fiscal years ended March 31In USD Millions, except percentages 20252024Variances   AmountAmount% Total revenue 71.558.522.0 Cost of revenue 64.151.624.2 Gross profit 7.47.06.1 Income from operations 4.85.0(4.0) Net income 4.04.9(11.9)        Financial Results for Fiscal Year 2025 Total revenue increased by approximately $12.9 million, or approximately 22.0% year-over-year to approximately $71.5 million for the fiscal year ended March 31, 2025 from approximately $58.5 million in the fiscal year ended March 31, 2024, driven by the Company’s expansion of service contracts with insurance companies and brokerages. Revenue from auto insurance aftermarket value-added services, accounting for approximately 88.7% of our total revenue, grew by approximately $17.8 million, or approximately 39.1% to approximately $63.4 million in the fiscal year ended March 31, 2025 from approximately $45.6 million in the fiscal year ended March 31, 2024, due to an increase of approximately 24.6% in the service volume of auto insurance aftermarket value-added services to approximately 4.7 million service calls in the fiscal year ended March 31, 2025 from approximately 3.8 million in the fiscal year ended March 31, 2024. Average revenue per call also increased by approximately 11.7% from the fiscal year ended March 31, 2024 to the fiscal year ended March 31, 2025. In particular, growth in both service volume and revenue was driven by the following factors: i) vehicle driving risk screening services recorded approximately 2.6 million calls in the fiscal year ended March 31, 2025, an approximately 2,978.4% increase compared to 85,706 calls in the fiscal year ended March 31, 2024, and an approximately $32.0 million, or approximately 1,236.0%, increase in revenue compared to approximately $2.6 million in the fiscal year ended March 31, 2024; and ii) safety inspection and check services, and designated-driver and rescue services also saw volume increases of 24,170 calls and 18,921 calls, respectively, with corresponding revenue growth of approximately $172,970 and $65,842, respectively, in the fiscal year ended March 31, 2025 compared to 90,108 calls and 10,928 calls, respectively, for the same services in the fiscal year ended March 31, 2024.Such increases were partially offset by decreases in service volume and revenue for vehicle maintenance related services, which decreased by approximately 46.3% and 35.9%, respectively, in the fiscal year ended March 31, 2025 as compared to fiscal year ended March 31, 2024. Revenue from providing scenario-based services, accounting for approximately 10.4% of our total revenue, decreased by approximately $4.3 million, or 36.8%, from approximately $11.8 million in the fiscal year ended March 31, 2024 to approximately $7.4 million in the fiscal year ended March 31, 2025 due to a reduction in the average service price.Revenue from software services, accounting for approximately 0.9% of our total revenue, decreased by approximately $0.6 million, or approximately 49.5%, from approximately $1.2 million in the fiscal year ended March 31, 2024 to approximately $0.6 million in the fiscal year ended March 31, 2025, with a decrease in customer numbers. Cost of revenue increased by approximately $12.5 million, or approximately 24.2%, to approximately $64.1 million in the fiscal year ended March 31, 2025 from approximately $51.6 million in the fiscal year ended March 31, 2024, driven by increased subcontract costs for auto insurance aftermarket value-added services. This was partially offset by reduced demand for scenario-based customized services and software development and information technology services, leading to an approximately $3.5 million and $0.5 million decrease in subcontract costs for these services, respectively, in the fiscal year ended March 31, 2025 compared to the fiscal year ended March 31, 2024. Gross profit rose by $423,661, or approximately 6.1%, to approximately $7.39 million in the fiscal year ended March 31, 2025 from approximately $6.96 million in the fiscal year ended March 31, 2024, while gross margin narrowed to approximately 10.3% in the fiscal year ended March 31, 2025 from approximately 11.9% in the fiscal year ended March 31, 2024. The profit gain reflected higher overall revenue, but margin contracted due to an approximately 40.3% decline in average fees for scenario-based services and a greater proportion of higher-cost, lower-margin offerings in our service mix. Total operating expenses increased by $625,966, or approximately 31.9%, to approximately $2.6 million in the fiscal year ended March 31, 2025 from approximately $1.9 million in the fiscal year ended March 31, 2024. Selling expenses rose approximately 6.5% to $121,681 in the fiscal year ended March 31, 2025, driven by an approximately 8.4% increase in sales staff compensation in line with an approximately 24.6% increase in service volume compared to the fiscal year ended March 31, 2024. General and administrative expenses increased approximately 37.6% to approximately $2.2 million in the fiscal year ended March 31, 2025, led by an approximately 10.2% increase in professional fees, an approximately 4.7% rise in administrative payroll and a $418,618 uptick in credit-loss provisions, as compared to the fiscal year ended March 31, 2024. Office costs fell approximately 11.0% in the fiscal year ended March 31, 2025, while entertainment and travel increased approximately 89.5% in the fiscal year ended March 31, 2025 to support expanded operations. Research and development (“R&D”) expenses increased approximately 4.4% to $240,052 in the fiscal year ended March 31, 2025, reflecting an approximately 6.4% rise in R&D staff compensation. Net income decreased by $544,120, or approximately 11.9%, to approximately $4.0 million in the fiscal year ended March 31, 2025 from approximately $4.6 million in the fiscal year ended March 31, 2024. Cash and cash equivalents were approximately $7.1 million as of March 31, 2025, as compared to approximately $4.3 million as of March 31, 2024. On December 19, 2024, YSX TECH. CO., LTD successfully completed its initial public offering and commenced trading on Nasdaq Capital Market on December 18, 2024, raising total gross proceeds of approximately $5 million, plus an additional $750,000 from the full exercise of the underwriters’ over-allotment option before deducting underwriting discounts and other offering expenses. About YSX TECH. CO., LTD Primarily operating in Xinjiang province and Guangdong province in China, YSX TECH. CO., LTD is a holding company incorporated in the Cayman Islands 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 Statements 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 U.S. 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: At the Company marketing@ysxnet.com +86 (20) 2984 2002 Investor Relations WFS Investor Relations Inc. Janice Wang Email: services@wealthfsllc.com Phone: +86 13811768599 +1 628 283 9214    YSX TECH. CO., LTD AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS    As of March 31,　 2025 2024　    ASSETS     Current Assets    Cash $7,105,085  $4,283,794 Short-term investment  -   2,103,762 Accounts receivable, net of $653,470 and $382,731, respectively  17,606,279   9,163,752 Accounts receivable, related parties  5,381,535   2,871,872 Advances to vendors  9,400,197   8,123,120 Due from related parties  198,611   2,197 Deferred initial public offering costs  -   118,103 Other current assets  929,680   848,185 Total current assets   40,621,387   27,514,785 　    Non-current Assets    Property and equipment, net  194,878   54,486 Right-of-use operating lease assets  144,535   224,835 Deferred tax assets  140,377   76,821 Total non-current assets  479,790   356,142 　    TOTAL ASSETS   41,101,177   27,870,927 　    LIABILITIES AND SHAREHOLDERS' EQUITY    　    Current liabilities    Short-term bank loans  4,131,354   1,563,452 Current portion of long-term loans  578,775   138,481 Accounts payable  2,258,129   1,525,192 Deferred revenue  1,007   14,099 Taxes payable  3,274,881   2,579,976 Due to related parties  141,235   417,557 Operating lease liabilities, current  93,719   83,477 Accrued expense and other current liabilities  1,651,681   883,805 Total current liabilities   12,130,781     7,206,039  　 　 　Operating lease liabilities, non-current  66,926   160,706 Long-term loans  1,281,574   484,684 Long term loan, related party  -   1,384,811 Total non-current liabilities   1,348,500     2,030,201  　 　 　Total liabilities    13,479,281     9,236,240  　 　 　Commitment and contingencies  　 　　 　 　Shareholders' equity  　 　Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 23,437,500 and 22,000,000 shares issued and outstanding as of March 31, 2025 and 2024, respectively, including: 　 　Class A ordinary shares, $0.0001 par value, 470,000,000 shares authorized, 22,260,175 and 20,822,675 shares issued and outstanding as of March 31, 2025 and 2024, respectively  2,226   2,082 Class B Ordinary shares, $0.0001 par value, 30,000,000 shares authorized, 1,177,325 shares issued and outstanding as of March 31, 2025 and 2024, respectively  118   118 Additional paid-in capital  10,420,096   5,346,674 Statutory reserve  908,214   741,584 Retained earnings  17,575,571   13,720,353 Accumulated other comprehensive loss  (1,284,329)   (1,176,124) Total shareholders' equity   27,621,896     18,634,687  　 　 　TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 41,101,177   $ 27,870,927   YSX TECH. CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME  For the years ended March 31,　 2025 2024 2023　      Revenues      Revenues $51,558,098  $46,618,820  $42,132,930 Revenue, related parties  19,894,638   11,927,909   7,100,617 Total revenue  71,452,736   58,546,729   49,233,547 　      Cost of revenues      Cost of revenue  64,066,148   51,583,802   41,700,199 Cost of revenue, related parties  -   -   382,098 Total cost of revenue  64,066,148   51,583,802   42,082,297 　      Gross profit   7,386,588   6,962,927   7,151,250 　      Operating expenses:      Selling and marketing  121,681   114,300   117,032 General and administrative  2,225,447   1,616,980   1,116,376 Research and development  240,052   229,934   254,246 Total operating expenses  2,587,180   1,961,214   1,487,654 　      Income from operations  4,799,408   5,001,713   5,663,596 　      Other income (expenses)      Interest expense  (159,298)   (139,752)   (83,543) Interest income  1,100   1,468   964 Investment income  20,295   33,013   31,506 Other income  65,021   218,697   338,951 Other non-operating expenses, net  (27,257)   (11,400)   (11,677) Total other income (expense), net  (100,139)   102,026   276,201 　      Income before income tax provisions  4,699,269   5,103,739   5,939,797 　      Income tax provision  677,421   537,771   1,035,247 　      Net income  4,021,848   4,565,968   4,904,550 　      Other comprehensive income      Foreign currency translation adjustment  (108,205)   (751,042)   (765,836) Comprehensive income  $3,913,643  $3,814,926  $4,138,714 　      Earnings per share- basic and diluted $0.18  $0.21  $0.22 　      Weighted average number of ordinary shares - basic and diluted  22,401,712   22,000,000   22,000,000 　      

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