YSX TECH. CO. LTD Announces Unaudited Financial Results for the Six Months Ended September 30, 2024
GUANGZHOU, China, Feb. 24, 2025 (GLOBE NEWSWIRE) -- YSX TECH. CO., LTD (the “Company” 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 unaudited financial results for the six months ended September 30, 2024.
Key highlights
Total revenue increased by approximate $7.6 million, or 28.7%, to approximately $34.1 million for the six months ended September 30, 2024, from $26.5 million during the same period in 2023.
Revenue from auto insurance aftermarket value-added services increased by 31.8% from approximately $21.4 million to $28.2 million, which was mainly due to 879.2% revenue increase of vehicle driving risk screening services, from approximately $2.6 million to $25.4 million for the six months ended September 30, 2024.
Total number of value-added services performed (service volume) increased by 59.7% to approximately 2.1 million for the six months ended September 30, 2024 from the same period in 2023.
Gross profit increased by 6.6% to approximately $3.6 million for the six months ended September 30, 2024 from the same period in 2023, but gross margin declined to 10.6% from 12.7%.
Net income declined by approximately $0.6 million, or 22.0%, to approximately $1.9 million for the six months ended September 30, 2024 from $2.5 million in 2023.
Mr. Jie Xiao, CEO of YSX TECH CO. LTD, stated: “We are pleased with our revenue growth, which has highlighted the rising demand for our services and our ability to expand market share. However, profitability was impacted by changes in our customer mix and pricing dynamics. As we continue expanding geographically and diversifying our services, we plan to implement measures refining our pricing strategies to address these challenges and improve margins.”
“We expect continued revenue growth in the near future, supported by rising demand for our services, and we will continue optimizing our service mix, improving cost efficiencies, in order to keep pursuing sustainable long-term growth. The Company will provide further details about its financial results in its upcoming earnings announcement.”
Unaudited Financial Results for the Six Months Ended September 30, 2024
| For the six months ended September 30, | ||||||||
| 2024 | 2023 | Variances | ||||||
In USD Millions, except percentages | Amount | Amount | % | ||||||
Total revenue |
| 34.1 |
|
| 26.5 |
| 28.7 | % |
|
Total cost of revenue |
| 30.5 |
|
| 23.1 |
| 31.9 | % |
|
Gross profit |
| 3.6 |
|
| 3.4 |
| 6.6 | % |
|
Income from operations |
| 2.4 |
|
| 2.8 |
| (16.4 | )% |
|
Net income | $ | 1.9 |
| $ | 2.5 |
| (22.0 | )% |
|
|
|
|
|
|
|
|
|
|
|
Total revenue increased by approximate $7.6 million, or 28.7%, to approximately $34.1 million for the six months ended September 30, 2024, from $26.5 million during the same period in 2023. The increase was primarily due to the Company having obtained more service contracts from various insurance companies and brokerages.
Revenue from auto insurance aftermarket value-added services grew by approximately $6.8 million, or 31.8%, due to a significant 59.7% increase in the service volume of Auto Insurance Aftermarket Value-added Services, from approximately 1.3 million service calls in the six months ended September 30, 2023 to 2.1 million service calls in the six months ended September 30, 2024.
Revenue from other scenario-based customized services grew by approximately $1.3 million, or 31.2%, driven by increased customer demand and higher average service prices.
However, revenue from software development and information technology services decreased by approximately $0.5 million, or 63.5%, compared to the prior period, primarily due to decrease in the average service price the Company charged customers for such services.
Cost of revenue increased by $7.4 million, or 31.9%, from $23.1 million in the six months ended September 30, 2023 to $30.5 million in the six months ended September 30, 2024, primarily due to the increased subcontract costs as a result of the service volume of car wash, car towing, vehicle inspection and maintenance services, etc. increasing by 59.7% from the six months ended September 30, 2023 to the six months ended September 30, 2024.
Gross profit increased by 6.6% to approximately $3.6 million for the six months ended September 30, 2024 from the same period in 2023, but gross margin declined to 10.6% from 12.7%, reflecting pricing pressure on contracts with insurance brokerages.
Total operating expenses increased by $0.7 million, or 121.8% from $0.6 million in the six months ended September 30, 2023 to $1.2 million in the six months ended September 30, 2024, primarily driven by increases in selling expenses, general and administrative expenses and research and development expenses.
Net income declined by approximately $0.6 million, or 22.0%, to approximately $1.9 million for the six months ended September 30, 2024 from $2.5 million in 2023, due to reduced gross margin and higher operational expenses.
Cash and cash equivalents was approximately $5.4 million as of September 30, 2024, as compared to approximately $4.3 million as of March 31, 2024.
About YSX TECH. CO., LTD
Primarily operating in Xinjiang and Guangdong provinces, 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 SEC, 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 SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
|
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|
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| ||
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| As of | ||||||
|
| September 30, 2024 |
| March 31, 2024 | ||||
|
| (Unaudited) |
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| |||
ASSETS |
|
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|
|
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CURRENT ASSETS |
|
|
|
|
|
| ||
Cash |
| $ | 5,444,920 |
|
| $ | 4,283,794 |
|
Short-term investment |
|
| 437,115 |
|
|
| 2,103,762 |
|
Accounts receivable, net of $657,014 and $382,731, respectively |
|
| 9,858,094 |
|
|
| 9,163,752 |
|
Accounts receivable, related parties |
|
| 4,024,951 |
|
|
| 2,871,872 |
|
Advances to vendors |
|
| 10,690,258 |
|
|
| 8,123,120 |
|
Due from related parties |
|
| — |
|
|
| 2,197 |
|
Deferred initial public offering costs |
|
| 153,987 |
|
|
| 118,103 |
|
Other current assets |
|
| 757,038 |
|
|
| 848,185 |
|
TOTAL CURRENT ASSETS |
|
| 31,366,363 |
|
|
| 27,514,785 |
|
|
|
|
|
|
|
| ||
Property and equipment, net |
|
| 44,560 |
|
|
| 54,486 |
|
Right-of-use operating lease assets |
|
| 190,240 |
|
|
| 224,835 |
|
Deferred tax assets |
|
| 116,609 |
|
|
| 76,821 |
|
TOTAL NONCURRENT ASSETS |
|
| 351,409 |
|
|
| 356,142 |
|
TOTAL ASSETS |
| $ | 31,717,772 |
|
| $ | 27,870,927 |
|
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
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CURRENT LIABILITIES |
|
|
|
|
|
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Short-term bank loans |
| $ | 1,635,887 |
|
| $ | 1,563,452 |
|
Current portion of long-term loans |
|
| 142,499 |
|
|
| 138,481 |
|
Accounts payable |
|
| 1,845,371 |
|
|
| 1,525,192 |
|
Deferred revenue |
|
| 8,010 |
|
|
| 14,099 |
|
Taxes payable |
|
| 3,110,014 |
|
|
| 2,579,976 |
|
Due to related parties |
|
| 562,644 |
|
|
| 417,557 |
|
Operating lease liabilities, current |
|
| 91,387 |
|
|
| 83,477 |
|
Accrued expenses and other current liabilities |
|
| 1,257,021 |
|
|
| 883,805 |
|
TOTAL CURRENT LIABILITIES |
|
| 8,652,833 |
|
|
| 7,206,039 |
|
|
|
|
|
|
|
| ||
Operating lease liabilities, non-current |
|
| 118,076 |
|
|
| 160,706 |
|
Long-term loans |
|
| 427,497 |
|
|
| 484,684 |
|
Long term loan, related party |
|
| 1,353,739 |
|
|
| 1,384,811 |
|
TOTAL NONCURRENT LIABILITIES |
|
| 1,899,312 |
|
|
| 2,030,201 |
|
|
|
|
|
|
|
| ||
TOTAL LIABILITIES |
|
| 10,552,145 |
|
|
| 9,236,240 |
|
|
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COMMITMENTS AND CONTINGENCIES |
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SHAREHOLDERS’ EQUITY |
|
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Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 22,000,000 shared issued and outstanding, including:* |
|
| — |
|
|
| — |
|
Class A ordinary shares, $0.0001 par value, 470,000,000 shares authorized, 20,822,675 shares issued and outstanding as of September 30, 2024 and March 31, 2024 |
|
| 2,082 |
|
|
| 2,082 |
|
Class B ordinary shares, $0.0001 par value, 30,000,000 shares authorized, 1,177,325 shares issued and outstanding as of September 30, 2024 and March 31, 2024 |
|
| 118 |
|
|
| 118 |
|
Additional paid-in capital |
|
| 5,346,674 |
|
|
| 5,346,674 |
|
Statutory reserve |
|
| 818,465 |
|
|
| 741,584 |
|
Retained earnings |
|
| 15,570,667 |
|
|
| 13,720,353 |
|
Accumulated other comprehensive loss |
|
| (572,379 | ) |
|
| (1,176,124 | ) |
TOTAL SHAREHOLDERS’ EQUITY |
|
| 21,165,627 |
|
|
| 18,634,687 |
|
|
|
|
|
|
|
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
| $ | 31,717,772 |
|
| $ | 27,870,927 |
|
|
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YSX TECH CO. LTD. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
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|
| For the Six Months ended September 30, | ||||||
|
| 2024 |
|
| 2023 |
| ||
REVENUES: |
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|
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|
|
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Revenues |
| $ | 24,747,746 |
|
| $ | 22,199,058 |
|
Revenues, related parties |
|
| 9,346,622 |
|
|
| 4,298,763 |
|
Total revenue |
|
| 34,094,368 |
|
|
| 26,497,821 |
|
|
|
|
|
|
|
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COST OF REVENUES: |
|
|
|
|
|
| ||
Cost of revenues |
|
| 30,493,854 |
|
|
| 19,362,131 |
|
Cost of revenues, related parties |
|
| — |
|
|
| 3,757,075 |
|
Total cost of revenues |
|
| 30,493,854 |
|
|
| 23,119,206 |
|
Gross profit |
|
| 3,600,514 |
|
|
| 3,378,615 |
|
|
|
|
|
|
|
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OPERATING EXPENSES: |
|
|
|
|
|
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Selling and marketing |
|
| 66,471 |
|
|
| 57,991 |
|
General and administrative |
|
| 1,064,198 |
|
|
| 400,617 |
|
Research and development |
|
| 113,652 |
|
|
| 102,331 |
|
Total operating expenses |
|
| 1,244,321 |
|
|
| 560,939 |
|
|
|
|
|
|
|
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INCOME FROM OPERATIONS |
|
| 2,356,193 |
|
|
| 2,817,676 |
|
|
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OTHER INCOME (EXPENSES): |
|
|
|
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Interest expense |
|
| (62,438 | ) |
|
| (50,324 | ) |
Interest income |
|
| 654 |
|
|
| 819 |
|
Investment income |
|
| 20,282 |
|
|
| 13,731 |
|
Other income |
|
| 64,598 |
|
|
| 181,885 |
|
Other non-operating expenses, net |
|
| (17,393 | ) |
|
| (6,243 | ) |
Total other income, net |
|
| 5,703 |
|
|
| 139,868 |
|
|
|
|
|
|
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INCOME BEFORE INCOME TAX PROVISION |
|
| 2,361,896 |
|
|
| 2,957,544 |
|
|
|
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|
|
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PROVISION FOR INCOME TAXES |
|
| 434,701 |
|
|
| 485,787 |
|
|
|
|
|
|
|
| ||
NET INCOME |
|
| 1,927,195 |
|
|
| 2,471,757 |
|
|
|
|
|
|
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OTHER COMPREHENSIVE INCOME |
|
|
|
|
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Foreign currency translation adjustment |
|
| 603,745 |
|
|
| (920,145 | ) |
COMPREHENSIVE INCOME |
| $ | 2,530,940 |
|
| $ | 1,551,612 |
|
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Earnings per ordinary share- basic and diluted |
| $ | 0.09 |
|
| $ | 0.11 |
|
|
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Weighted average number of ordinary shares- basic and diluted |
|
| 22,000,000 |
|
|
| 22,000,000 |
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