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
As of
----------------------------------------
September 30, 2024 March 31, 2024
-------------------- ------------------
(Unaudited)
ASSETS
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
=============== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES
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
--------------- -----------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
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
--------------- -----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 31,717,772 $ 27,870,927
=============== ===========
YSX TECH CO. LTD. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the Six Months ended September 30,
------------------------------------------------
2024 2023
-------------------- -------------------
REVENUES:
Revenues $ 24,747,746 $ 22,199,058
Revenues, related
parties 9,346,622 4,298,763
---------------- ---------------
Total revenue 34,094,368 26,497,821
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
---------------- ---------------
OPERATING EXPENSES:
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
---------------- ---------------
INCOME FROM OPERATIONS 2,356,193 2,817,676
---------------- ---------------
OTHER INCOME
(EXPENSES):
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
---------------- ---------------
INCOME BEFORE INCOME TAX
PROVISION 2,361,896 2,957,544
PROVISION FOR INCOME
TAXES 434,701 485,787
---------------- ---------------
NET INCOME 1,927,195 2,471,757
OTHER COMPREHENSIVE
INCOME
Foreign currency
translation adjustment 603,745 (920,145)
---------------- ---------------
COMPREHENSIVE INCOME $ 2,530,940 $ 1,551,612
================ ===============
Earnings per ordinary
share- basic and
diluted $ 0.09 $ 0.11
================ ===============
Weighted average number
of ordinary shares-
basic and diluted 22,000,000 22,000,000
---------------- ----------
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