YSX Tech. Co., Ltd. (NASDAQ: YSXT) and Guangzhou‑based Huijian Information Technology Service Co., Ltd. entered into a two‑year framework cooperation agreement on December 15, 2025. The partnership will combine YSX Tech’s insurer network and professional services with Huijian’s supply‑chain network and AI‑driven data analytics to deliver enhanced auto‑insurance after‑sales services, supply‑chain finance solutions, and data‑driven insurance products.
The alliance is designed to address three core collaboration areas: 1) standardized, high‑quality after‑sales services for car owners sourced from insurer partners; 2) development of credit‑profile‑based supply‑chain finance products, including credit‑guarantee insurance, to facilitate bank financing for supply‑chain participants; and 3) creation of usage‑based and parts‑warranty insurance products that leverage Huijian’s data to optimize pricing and underwriting. By integrating Huijian’s AI platform, YSX Tech aims to introduce usage‑based insurance products that can capture a larger share of China’s growing auto‑insurance aftermarket, especially as new‑energy vehicle adoption accelerates.
FY2025 financial results provide context for the partnership. YSX Tech reported revenue of $71.5 million, up 22.0% from the prior year, while net income fell 11.9% to $4.0 million. The revenue growth was driven by stronger demand in the core auto‑insurance aftermarket and software‑development segments, offset by margin pressure from increased operating expenses and investments in new product development. The net‑income decline reflects higher cost of sales and one‑time restructuring charges associated with expanding the company’s technology platform.
CEO Jie Xiao emphasized the strategic fit: “By combining our insurer network with Huijian’s AI‑powered data platform, we can deliver differentiated, usage‑based insurance products and supply‑chain finance solutions that create value for car owners, insurers, and dealers.” Xiao noted that the partnership will deepen YSX Tech’s offline presence and broaden its revenue mix, positioning the company to compete more effectively against larger incumbents in China’s automotive‑insurance ecosystem.
The alliance aligns with key market trends. China’s insurance sector is rapidly adopting AI for underwriting and product innovation, while supply‑chain finance is a high‑growth area for automotive suppliers and dealers. The partnership also taps into the new‑energy vehicle wave, which is reshaping risk assessment and product design. By leveraging Huijian’s data, YSX Tech can accelerate the rollout of usage‑based insurance and supply‑chain finance products, potentially unlocking new revenue streams and improving pricing accuracy.
Overall, the two‑year agreement represents a significant strategic pivot for YSX Tech, expanding its capabilities beyond traditional after‑sales services into AI‑driven product development and financial solutions. While the partnership carries execution risk—particularly in integrating data platforms and aligning incentives across the supply chain—the potential upside in market share, margin expansion, and diversification of revenue streams makes it a material development for investors.
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