YSX TECH. CO. LTD Reports Full Year 2026 Financial Results
16.8% Revenue Growth and 28.8% Service Volumes Increase
GUANGZHOU, China, July 10, 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 financial results for the fiscal year ended March 31, 2026.
Management Commentary
“Fiscal 2026 was a year of operational scaling and strategic realignment for YSX,” said Mr. Jie Xiao, CEO of YSX TECH. CO., LTD. “We drove our top-line revenue to $83.5 million, representing a 16.8% year-over-year increase, fueled primarily by a 28.8% increase in our service volumes. By intentionally pivoting our business development efforts toward insurance brokerages rather than single insurance companies, we broadened our market reach. This transition led to a 112.1% increase in volume in our vehicle driving risk screening services alone.”
“While this deliberate shift in our service mix toward higher-volume services yielded lower average margins and impacted our near-term net income, the Fiscal 2026 results show that this approach captured enhanced market share, and we believe that it strengthened our position as a competitive intermediary platform. More importantly, we spent the past year laying the technological groundwork for our next phase of growth. Through our newly forged partnerships with active industry participants like Huijian, Qingfeng Automobile Group, and XUnit, we are endeavoring to integrating supply-chain finance, physical dealership networks, and Web3 asset digitization into our ecosystem. With $34.8 million in working capital, we believe that we are well-capitalized to execute this ‘Technology + Physical’ roadmap and deliver long-term value to our shareholders.”
Operational and Strategic Milestones
Strategic Shift Toward Insurance Brokerages
A key driver of the Company’s volume growth was its pivot toward partnering with insurance brokerages. Unlike individual insurance companies that restrict services to their own policies, brokerages offer products from multiple carriers, allowing the Company to reach a broader base of policyholders. For the fiscal year ended March 31, 2026, 62.3% of the Company’s value-added service contracts were obtained through brokerages.
Surge in Risk Screening Services
Aligning with brokerage demands, the Company expanded its vehicle driving risk screening services. Service volume in this category increased by 112.1% to approximately 5.6 million service calls, generating approximately $74.4 million in revenue, representing a 115.1% year-over-year increase for the segment.
Full Year 2026 Financial Highlights
- Total Revenue increased by $12.0 million, or 16.8%, to $83.5 million for the fiscal year ended March 31, 2026, up from $71.5 million in fiscal year ended March 31, 2025.
- Revenue from auto insurance aftermarket value-added services increased by 27.4% to $80.8 million, accounting for 96.7% of total revenue.
- Over 6.07 million service calls were processed in 2026, an increase of 1.36 million calls, or 28.8%, compared to the prior year.
- Net income was $2.8 million for fiscal 2026, compared to $4.0 million in fiscal year ended March 31, 2025.
- Robust Liquidity as the Company ended the fiscal year with $5.9 million in cash and a working capital balance of $34.8 million.
Full Year 2026 Financial Results
| Selected Financial Data (in millions USD) | Year Ended March 31, 2026 | Year Ended March 31, 2025 | Variance (%) | ||
| Total Revenue | $83.5 | $71.5 | 16.8% | ||
| Value-Added Services | $80.8 | $63.4 | 27.4% | ||
| Other Customized Services | $2.7 | $7.4 | (64.2%) | ||
| Software & IT Services | $0.1 | $0.6 | (91.7%) | ||
| Cost of Revenue | $(76.3) | $(64.1) | 19.1% | ||
| Gross Profit | $7.2 | $7.4 | (2.6%) | ||
| Total Operating Expenses | $3.7 | $2.6 | 41.2% | ||
| Income from Operations | $3.5 | $4.8 | (26.2%) | ||
| Net Income | $2.8 | $4.0 | (30.3%) | ||
Total Revenue
Total revenue increased by approximately $12.0 million, or 16.8%, to approximately $83.5 million for the fiscal year ended March 31, 2026, compared to approximately $71.5 million for the fiscal year ended March 31, 2025. The increase was primarily driven by an increase in revenue from our auto insurance aftermarket value-added services, which grew by approximately $17.4 million, or 27.4%, as the Company secured more service contracts from insurance brokerages and achieved a 28.8% increase in overall service volume (totaling approximately 6.1 million service calls).
This growth was partially offset by a decrease in revenue from our other scenario-based customized services of approximately $4.8 million, or 64.2%, driven by a reduction in the number of customers for such services, and a decrease in revenue from software development and information technology services of approximately $0.6 million, or 91.7%, driven by a reduction in the number of customers for such services.
Cost of Revenue
Cost of revenue increased by approximately $12.2 million, or 19.1%, to approximately $76.3 million for the fiscal year ended March 31, 2026, compared to approximately $64.1 million for the prior fiscal year. This increase was primarily attributable to increased subcontract costs resulting from the volume expansion of our value-added services, as we engaged more external vendors to fulfill the approximately 6.1 million service calls processed during the year. The increase was partially offset by decreased subcontract costs associated with our customized services and IT services business lines.
Gross Profit
Gross profit decreased by approximately $0.2 million, or 2.6%, to approximately $7.2 million for the fiscal year ended March 31, 2026, compared to approximately $7.4 million for the fiscal year 2025. Our gross margin correspondingly decreased from 10.3% in fiscal 2025 to 8.6% in fiscal ended March 31, 2026. The decrease in gross profit and gross margin was primarily attributable to a change in service mix, as more revenue was derived from value-added services, which carry higher costs and lower margins, and less revenue was derived from our customized and IT service lines, which carry higher margins. Additionally, our average price charged to customers for value-added services decreased slightly by 1.1% as a result of changes in the service mix.
Operating Expenses
Total operating expenses increased by approximately $1.1 million, or 41.2%, to approximately $3.7 million for the fiscal year ended March 31, 2026, compared to approximately $2.6 million for the fiscal year ended March 31, 2025. The variance in operating expenses was driven by the following factors:
- Selling expenses decreased by 14.6% to approximately $0.1 million, primarily due to lower office rent expenses following the relocation of the office of our subsidiary, Guangzhou Yishengxin Network Technology Co., Ltd.
- General and administrative expenses decreased by approximately $0.7 million, or 33.6%, to approximately $1.5 million. This decrease was mainly attributable to a 50.2% drop in professional and consulting fees following the completion of our IPO in December 2024, as well as a 74.0% decrease in expected credit loss expenses, partially offset by an increase in administrative headcount and related salary expenses.
- Share-based compensation expenses were approximately $1.8 million in the fiscal year ended March 31,2026, compared to nil in the prior year. This non-cash expense relates to restricted stock awards granted to employees and consultants under our 2025 Equity Incentive Plan.
- Research and development expenses increased by 4.4% to approximately $0.3 million, supporting the continued optimization of our data management systems and mobile applications.
Net Income
Net income for the fiscal year ended March 31, 2026, was approximately $2.8 million, compared to a net income of approximately $4.0 million for the fiscal year ended March 31, 2025. This decrease of approximately $1.2 million was largely driven by our strategic shift in service mix toward volume growth, higher income tax provisions resulting from increased taxable income, and the non-cash share-based compensation expenses recognized during the year.
Cash, Cash Equivalents, and Liquidity
As of March 31, 2026, the Company’s cash on hand stood at approximately $5.9 million, compared to approximately $7.1 million as of March 31, 2025. Net cash used in operating activities amounted to approximately $2.7 million for the fiscal year ended March 31, 2026, primarily driven by increases in accounts receivable and advances to vendors associated with our growing service volumes. The Company maintained a working capital balance of approximately $34.8 million as of March 31, 2026, which management believes is sufficient to meet its working capital needs over 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 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 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@wfsir.com
Phone: +1 628 283 9214
YSX TECH. CO., LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| As of March 31, | ||||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash | $ | 5,889,033 | $ | 7,105,085 | ||||
| Accounts receivable, net of $780,608 and $653,470, respectively | 24,579,776 | 17,606,279 | ||||||
| Accounts receivable, a related party | 18,674,421 | 5,381,535 | ||||||
| Advances to vendors | 5,020,775 | 9,400,197 | ||||||
| Due from related parties | — | 198,611 | ||||||
| Other current assets | 147,306 | 167,862 | ||||||
| Total current assets | 54,311,311 | 39,859,569 | ||||||
| Non-current Assets | ||||||||
| Property and equipment, net | 245,394 | 194,878 | ||||||
| Right-of-use operating lease assets | 283,410 | 144,535 | ||||||
| Deferred tax assets | 117,091 | 140,377 | ||||||
| Total non-current assets | 645,895 | 479,790 | ||||||
| TOTAL ASSETS | 54,957,206 | 40,339,359 | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Short-term bank loans | 6,229,342 | 4,131,354 | ||||||
| Current portion of long-term loans | 159,467 | 578,775 | ||||||
| Accounts payable | 7,317,603 | 2,258,129 | ||||||
| Deferred revenue | 300,831 | 1,007 | ||||||
| Taxes payable | 4,486,926 | 3,274,881 | ||||||
| Due to related parties | 175,785 | 141,235 | ||||||
| Operating lease liabilities, current | 75,409 | 93,719 | ||||||
| Accrued expense and other current liabilities | 720,799 | 889,863 | ||||||
| Total current liabilities | 19,466,162 | 11,368,963 | ||||||
| Operating lease liabilities, non-current | 219,293 | 66,926 | ||||||
| Long-term loans | 1,601,914 | 1,281,574 | ||||||
| Total non-current liabilities | 1,821,207 | 1,348,500 | ||||||
| Total liabilities | 21,287,369 | 12,717,463 | ||||||
| Commitment and contingencies | ||||||||
| Shareholders’ equity | ||||||||
| Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 27,882,500 and 23,437,500 shares issued as of March 31, 2026 and 2025, respectively, and 24,071,000 and 23,437,500 shares outstanding as of March 31, 2026 and 2025, respectively, including: | ||||||||
| Class A ordinary shares, $0.0001 par value, 470,000,000 shares authorized, 26,705,175 and 22,260,175 shares issued as of March 31, 2026 and 2025, respectively, and 22,893,675 and 22,260,175 shares outstanding as of March 31, 2026 and 2025, respectively | 2,671 | 2,226 | ||||||
| Class B Ordinary shares, $0.0001 par value, 30,000,000 shares authorized, 1,177,325 shares issued and outstanding as of March 31, 2026 and 2025, respectively | 118 | 118 | ||||||
| Additional paid-in capital | 12,242,693 | 10,420,096 | ||||||
| Subscription receivable | (445 | ) | — | |||||
| Statutory reserve | 1,197,331 | 908,214 | ||||||
| Retained earnings | 20,091,312 | 17,575,571 | ||||||
| Accumulated other comprehensive income (loss) | 136,157 | (1,284,329 | ) | |||||
| Total shareholders’ equity | 33,669,837 | 27,621,896 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 54,957,206 | $ | 40,339,359 | ||||
YSX TECH. CO., LTD AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
| For the years ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenues | ||||||||
| Revenues | $ | 60,503,275 | $ | 51,558,098 | ||||
| Revenue, related parties | 22,964,495 | 19,894,638 | ||||||
| Total revenue | 83,467,770 | 71,452,736 | ||||||
| Cost of revenues | ||||||||
| Cost of revenue | 76,273,430 | 64,066,148 | ||||||
| Cost of revenue, related parties | — | — | ||||||
| Total cost of revenue | 76,273,430 | 64,066,148 | ||||||
| Gross profit | 7,194,340 | 7,386,588 | ||||||
| Operating expenses: | ||||||||
| Selling and marketing | 103,933 | 121,681 | ||||||
| General and administrative | 1,476,653 | 2,225,447 | ||||||
| Share-based compensation | 1,822,597 | — | ||||||
| Research and development | 250,671 | 240,052 | ||||||
| Total operating expenses | 3,653,854 | 2,587,180 | ||||||
| Income from operations | 3,540,486 | 4,799,408 | ||||||
| Other income (expenses) | ||||||||
| Interest expense | (250,553 | ) | (159,298 | ) | ||||
| Interest income | 244 | 1,100 | ||||||
| Investment income | — | 20,295 | ||||||
| Other income | 499,350 | 65,021 | ||||||
| Other non-operating income (expenses), net | 64,510 | (27,257 | ) | |||||
| Total other income (expense), net | 313,551 | (100,139 | ) | |||||
| Income before income tax provisions | 3,854,037 | 4,699,269 | ||||||
| Income tax provision | 1,049,179 | 677,421 | ||||||
| Net income | 2,804,858 | 4,021,848 | ||||||
| Other comprehensive income | ||||||||
| Foreign currency translation adjustment | 1,420,486 | (108,205 | ) | |||||
| Comprehensive income | $ | 4,225,344 | $ | 3,913,643 | ||||
| Earnings per share- basic and diluted | $ | 0.11 | $ | 0.18 | ||||
| Weighted average number of ordinary shares – basic and diluted | 25,772,226 | 22,401,712 | ||||||
YSX TECH. CO. LTD., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the years ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 2,804,858 | $ | 4,021,848 | ||||
| Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 49,489 | 26,497 | ||||||
| Loss from disposal of fixed assets | 16,115 | — | ||||||
| Amortization of operating lease right-of-use assets | 87,554 | 83,916 | ||||||
| Allowance for expected credit loss | 72,957 | 280,787 | ||||||
| Deferred tax provision | 29,711 | (64,284 | ) | |||||
| Stock-based compensation for services | 1,822,597 | — | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (5,975,272 | ) | (8,808,278 | ) | ||||
| Accounts receivable, related parties | (12,641,032 | ) | (2,537,631 | ) | ||||
| Advance to vendors | 4,729,066 | (1,324,078 | ) | |||||
| Other current assets | 45,986 | (92,803 | ) | |||||
| Due from related parties | 202,966 | (207,676 | ) | |||||
| Accounts payable | 4,800,769 | 744,481 | ||||||
| Advances from customers | 291,201 | (13,095 | ) | |||||
| Advances from customers, related parties | — | — | ||||||
| Taxes payable | 1,011,969 | 711,429 | ||||||
| Net changes in operating right-of-use assets and lease liabilities | 174,618 | (87,077 | ) | |||||
| Accrued expense and other current liabilities | (209,182 | ) | 776,481 | |||||
| Net cash used in operating activities | (2,685,630 | ) | (6,489,483 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | (88,716 | ) | (167,932 | ) | ||||
| Proceeds from termination of the long-term investment | — | — | ||||||
| Purchase of short-term investment | — | — | ||||||
| Proceeds upon maturity of short-term investment | — | 2,105,016 | ||||||
| Net cash (used in) provided by investing activities | (88,716 | ) | 1,937,084 | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from short-term bank loans | 5,913,252 | 4,989,677 | ||||||
| Repayment of short-term bank loans | (4,083,932 | ) | (2,399,922 | ) | ||||
| Proceeds from long-term bank loans | 422,476 | 1,385,636 | ||||||
| Repayment of long-term bank loans | (612,590 | ) | (138,564 | ) | ||||
| Proceeds from a related party loan | — | — | ||||||
| Repayment of a related party loan | — | (1,385,636 | ) | |||||
| Proceeds from (repayment of) borrowing from related parties | 33,562 | (275,627 | ) | |||||
| Payment for deferred initial public offering costs | — | — | ||||||
| Net proceeds from completion of the initial public offering | — | 5,073,566 | ||||||
| Net cash provided by financing activities | 1,672,768 | 7,249,130 | ||||||
| Effect of exchange rate change on cash | (114,474 | ) | 124,560 | |||||
| Net (decrease) increase in cash | (1,216,052 | ) | 2,821,291 | |||||
| Cash, beginning of year | 7,105,085 | 4,283,794 | ||||||
| Cash, end of year | $ | 5,889,033 | $ | 7,105,085 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid for income tax | $ | 40,110 | $ | 29,966 | ||||
| Cash paid for interest | $ | 250,553 | $ | 159,298 | ||||
| Supplemental disclosure of non-cash investing and financing activities | ||||||||
| Right-of-use assets obtained in exchange for operating lease obligations | $ | 300,784 | $ | — | ||||
