YSX TECH. CO., LTD Forges Strategic Alliance for Auto Insurance and Supply Chain Finance with Huijian Information Technology Co., Ltd.

Rhea-AI Summary

YSX TECH (NASDAQ:YSXT) entered a two-year Framework Cooperation Agreement with Huijian Information Technology on Dec 15, 2025 to collaborate on three areas: enhanced auto insurance after-sales services, supply chain finance, and data-driven insurance products.

The companies plan to combine Huijian’s automotive lifecycle and AI data capabilities with YSX’s insurer network and industry resources to standardize after-sales service delivery, build credit profiles for supply-chain participants to enable credit enhancement services, and develop customized insurance products such as usage-based auto insurance and parts warranty insurance. Specific projects will be defined in supplemental agreements and supported by a dedicated joint team, meetings, and training activities.

Key Figures

Agreement term 2 years Framework Cooperation Agreement with Huijian

Huijian founded 2015 Establishment year of Huijian

Total revenue $71.5 million Fiscal year 2025, up 22.0%

Auto insurance services revenue $63.4 million FY2025, 39.1% growth and 88.7% of total revenue

Aftermarket calls 4.72 million Auto insurance aftermarket calls, up 24.6% in FY2025

Driving risk screening growth 2,978% Increase in service volume FY2025

Net income $4.0 million FY2025, down 11.9%

IPO proceeds $5.75 million Nasdaq IPO in December 2024 including over-allotment

Market Reality Check

$1.30 Last Close

Volume Volume 1,305,762 vs. 20-day average 866,195, a relative volume of 1.51x ahead of the partnership news. high

Technical Shares at $1.49 are trading below the 200-day moving average of $3.49 and far under the $9.96 52-week high.

Peers on Argus

Peers in Specialty Business Services showed mixed moves, with names like PMEC up 2.83% and TISI down 4.02%, suggesting YSXT’s 2.76% gain was more company-specific than sector-driven.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 11	R&D expansion	Positive	+3.6%	Relocation to R&D facility with 30% more space to support growth.
Sep 16	Strategic partnership	Positive	+1.1%	MOU with XUnit to build compliance-driven real-world asset platform.
Jul 31	Annual earnings	Neutral	-0.3%	Revenue growth in auto services offset by lower net income and margins.

Pattern Detected

Operational and partnership announcements have coincided with modest positive moves, while earnings produced only a slight negative reaction, indicating news flow has had limited but generally constructive impact.

Recent Company History

Over the last six months, YSXT reported FY2025 results with revenue up 22.0% to $71.5 million but net income down 11.9% to $4.0 million, alongside margin pressure. The company then highlighted strategic and operational expansion, including a 30% larger R&D center completed on September 27, 2025, and an MOU to build an RWA standardization platform. Today’s two-year alliance with Huijian extends this trajectory of tech- and data-driven collaborations in insurance and auto services.

Market Pulse Summary

The stock moved +6.7% in the session following this news. A strong positive reaction aligns with YSXT’s pattern of constructive responses to expansion and partnership news, such as prior R&D relocation and platform collaborations. However, the stock still traded far below its $9.96 52-week high and under its $3.49 200-day average, highlighting prior weakness. Investors would have weighed execution risk around integrating Huijian’s data and networks with YSXT’s insurer base when assessing the sustainability of any sharp move.

Key Terms

variable interest entities financial

"through its variable interest entities in China, provides comprehensive business"

A variable interest entity (VIE) is a business that a company controls through contracts or special arrangements instead of owning a majority of its shares, like steering a puppet without holding its ticket. Investors care because these arrangements can hide who really bears the financial risks and rewards, affect how assets and liabilities appear on financial statements, and create extra legal or enforcement uncertainty that can change the value and risk of an investment.

supply chain finance financial

"three key areas: enhancing auto insurance services, strengthening supply chain finance capabilities"

Supply chain finance is a set of financing arrangements that let suppliers get paid earlier while the buyer pays later, using a bank or platform to bridge the timing gap. Think of it like a short-term, approved loan that speeds cash to suppliers based on the buyer’s credit rather than the supplier’s credit. Investors care because it affects companies’ cash flow, working capital needs, supplier stability and hidden credit exposure, all of which can influence profitability and risk.

artificial intelligence technical

"It leverages artificial intelligence to lead data management"

Artificial intelligence is the ability of computers and machines to perform tasks that typically require human thinking, such as understanding language, recognizing patterns, or making decisions. For investors, it matters because AI can enhance efficiency, uncover new insights, and enable smarter strategies, potentially impacting the value and performance of companies that develop or utilize this technology.

intellectual property technical

"and holds intellectual property portfolio in automotive data processing"

Intellectual property are legal rights that protect creations of the mind—such as inventions, brand names, designs, software, or secret formulas—giving the owner control over who can use, copy or sell them. For investors, IP is like owning a blueprint or recipe: it can generate steady income through exclusive sales or licensing, boost a company’s competitive edge and valuation, and also create costs or risks if rights must be defended or challenged in court.

credit profiles financial

"the Company aims to build credit profiles for participants in the automotive supply chain"

A company's credit profiles describe its ability to meet debt obligations, combining factors like cash flow, outstanding debt, repayment history, and externally assigned credit ratings. Think of it as a financial health check or credit report for a business: a stronger profile means lower risk of default and cheaper borrowing, while a weaker profile signals higher risk and can raise funding costs or depress bond and equity prices—information investors use to gauge risk and value.

credit guarantee insurance financial

"the Company intends to provide credit enhancement services, such as credit guarantee insurance"

A credit guarantee insurance policy is a contract that pays lenders or investors if a borrower fails to repay a loan or meet other credit obligations, effectively acting like a financial backup plan. It matters to investors because it lowers the risk of losses, can lead to better loan terms and higher recoveries, and changes how a company’s credit exposure and asset quality appear on the balance sheet—similar to buying an umbrella for rainy days to protect your investment returns.

usage-based auto insurance financial

"These may include usage-based auto insurance, parts warranty insurance"

Usage-based auto insurance charges drivers based on how, when and how much they actually drive, using data from devices or apps to track mileage, speed and driving habits — think of it like a utility bill for car use instead of a flat monthly fee. It matters to investors because it can change insurers' revenue and profit patterns, attract safer customers, reduce claim costs through better risk pricing, and raise questions about data costs and privacy that can affect growth and valuation.

underwriting financial

"data are anticipated to optimize insurance pricing and underwriting"

Underwriting is the process where a financial institution agrees to buy and then resell new stocks or bonds to investors. It matters because it helps companies raise money quickly and smoothly, while the bank takes on the risk of selling those securities at the agreed price. Think of it like a booker guaranteeing to sell all tickets for a concert before opening the doors.

AI-generated analysis. Not financial advice.

GUANGZHOU, China, Dec. 15, 2025 (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 that the Company has entered into a two-year Framework Cooperation Agreement (the “Agreement”) with Huijian Information Technology Service Co., Ltd. (“Huijian”), which focuses on three key areas: enhancing auto insurance services, strengthening supply chain finance capabilities, and developing insurance products.

Established in 2015, Huijian offers automotive lifecycle services. It leverages artificial intelligence to lead data management, and holds intellectual property portfolio in automotive data processing and supply chain analysis.

Pursuant to the Agreement, the Company expects to bring into the partnership its insurer network, industry resources, and professional services. Leveraging the combined strengths, Huijian and the Company intend to work together on the following three core areas:

Enhanced Auto Insurance After-Sales Services

The Company plans to utilize Huijian’s supply chain network for exclusive service delivery to car owners when securing service orders from insurer partners This is expected to enable the Company to provide standardized, high-quality after-sales services for car owners and strengthen the Company’s offline presence.

Supply Chain Finance

Leveraging Huijian’s operational and credit data from its business, the Company aims to build credit profiles for participants in the automotive supply chain. Through its insurer network and, based on and subject to such credit profiles, the Company intends to provide credit enhancement services, such as credit guarantee insurance for participants, to facilitate streamlined access to financing from banks and other financial institutions. This is anticipated to strengthen Huijian’s supply chain network and develop a new business for the Company.

Data-Driven Insurance Products

By combining Huijian’s supply chain data with the Company’s insurer resources, the companies aim to develop differentiated, customized insurance products. These may include usage-based auto insurance, parts warranty insurance, and policies tailored to specific models and driving behavior. Huijian’s data are anticipated to optimize insurance pricing and underwriting, with a goal of allowing insurers to target markets more effectively and enhance the collaboration between the Company and its insurer partners.

The Agreement establishes a framework for collaboration, featuring a dedicated team for project advancement and exploration of new opportunities, supported by regular meetings and feedback. It is also intended to promote mutual training and business exchange through workshops and events. Specific projects under the Agreement will be governed by supplementary agreements that define procedures, the respective rights and obligations, and financial terms.

Mr. Jie Xiao, CEO of the Company, emphasized that this strategic partnership with Huijian is expected to integrate “insurer and supply chain network, technical capabilities, and industry experience.” “Over the next two years, we plan to deepen collaboration with Huijian and leverage complementary resources and innovation, which are expected to create value for car owners and insurers,” he added.

“This partnership is designed not only to create new growth opportunities for both companies, but also to drive the cross-industry integration of automotive services, finance, and insurance. Leveraging data and technology, it is anticipated to foster the development of a collaborative industrial ecosystem,” Mr. Xiao stated.

About Huijian Information Technology Service Co., Ltd.

Established in 2015, Guangzhou Huijian Information Technology Service Co., Ltd. is a technology company specializing in automotive lifecycle services. The firm focuses on intelligent data integration and management, leveraging artificial intelligence as its core driving force. It has built a comprehensive service ecosystem covering automotive information data processing and supply chain data analysis. All information herein regarding Huijian has been reviewed and approved by Huijian.

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

FAQ

What does YSXT's two-year agreement with Huijian on Dec 15, 2025 cover?

The agreement covers enhanced auto after-sales services, supply chain finance, and data-driven insurance product development over two years.

How will the YSXT–Huijian partnership improve auto insurance after-sales services?

YSXT plans to use Huijian’s supply chain network for exclusive service delivery to car owners, aiming to provide standardized, high-quality offline after-sales services.

What supply chain finance capabilities will YSXT pursue with Huijian (YSXT)?

They intend to build credit profiles from Huijian’s operational and credit data and offer credit enhancement services like credit guarantee insurance to ease financing access.

What types of insurance products will YSXT and Huijian develop together (YSXT)?

Planned products include usage-based auto insurance, parts warranty insurance, and policies tailored to specific models and driving behavior.

How will projects under the YSXT–Huijian framework be governed and executed?

Specific projects will be governed by supplementary agreements that define procedures, rights, obligations, and financial terms, supported by a dedicated team and regular meetings.