YSX Tech. Co., Ltd. (NASDAQ: YSXT) and Guangdong Qingfeng Automobile Group Co., Ltd. entered into a non‑binding Memorandum of Understanding on December 9 2025 to combine YSX Tech’s digital platform and SaaS capabilities with Qingfeng’s extensive offline sales and service network. The collaboration will create a converged “Technology + Physical” automotive service platform that integrates digital tools, certification, and management of repair shops, parts suppliers, and service providers into a searchable, auditable system.
The partnership is designed to accelerate digital transformation for Qingfeng’s dealer and service network while expanding YSX Tech’s footprint into the automotive distribution sector. By embedding YSX Tech’s “Drivers Suite” technology—an end‑to‑end digital ecosystem for vehicle service management—into Qingfeng’s physical infrastructure, the two companies aim to improve operational efficiency, enhance customer experience, and unlock new revenue streams through co‑developed SaaS products and service standards that can be replicated or commercialized beyond the initial alliance.
FY2025 financial results for YSX Tech provide context for the strategic move. The company reported revenue of $71.45 million, up 22.0% year‑over‑year, but net income fell 11.9% to $4.02 million and gross margin contracted to 10.3% from 11.9% in FY2024. The margin compression reflects a shift toward lower‑margin, higher‑volume services and pricing pressure in the core insurance‑aftermarket segment, while the revenue growth is driven by strong demand for digital solutions in the insurance and brokerages markets. The partnership offers a pathway to diversify revenue sources and mitigate margin pressure by leveraging Qingfeng’s high‑volume physical network.
CEO Jie Xiao said the alliance represents a “strategic opportunity to translate YSX Tech’s technology and product strengths into measurable on‑the‑ground value for dealerships, service centers and vehicle owners.” He added that the collaboration will “accelerate regional adoption of digital best practices and create scalable commercial opportunities for both parties.” The statement underscores management’s confidence that the partnership will strengthen YSX Tech’s competitive position and provide a new growth engine amid margin challenges.
The deal positions YSX Tech and Qingfeng to set a benchmark for technology‑enabled physical service models in the Guangdong region. By combining YSX Tech’s SaaS platform with Qingfeng’s distribution capabilities, the alliance could generate incremental revenue from subscription services, data analytics, and certification fees, while also improving service quality and customer retention for Qingfeng’s dealer network. The partnership signals YSX Tech’s intent to broaden its market reach beyond insurance and brokerages, potentially offsetting the recent margin compression and supporting long‑term growth.
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