YSX Tech Forges AI Alliances to Reshape China's Insurance Landscape

GUANGZHOU, China – March 23, 2026 – YSX TECH. CO., LTD (NASDAQ: YSXT) has announced two pivotal partnerships set to accelerate the integration of advanced technology into China's massive insurance sector. By teaming up with insurance appraisal firm Guangzhou Hengzhun Insurance Appraisal Co., Ltd. (Guangzhou HZIA) and AI specialist Tanbao Network Technology, YSX is making a strategic bid to redefine core insurance workflows, from claims adjusting to risk assessment, using a suite of next-generation digital tools.

The move signals a significant deepening of the company's “Technology + Service” strategy, aiming to carve out a leadership position in a market already characterized by rapid digital adoption and fierce competition from established giants and nimble insurtech startups alike.

A Strategic Play in a High-Stakes Market

YSX's announcement comes as China's insurtech market continues its explosive growth, driven by a digitally native consumer base and strong government support for technological innovation. The country is already a global leader in applying AI across the insurance value chain, with major players like Ping An and ZhongAn Online setting a high bar for digital integration. Ant Financial's insurance arm, for instance, already processes millions of health claims almost entirely through AI-driven automation.

Within this dynamic environment, YSX’s partnerships appear to be a calculated move to enhance its competitive edge. The company, which specializes in auto insurance after-sales services and software solutions, is positioning itself not just as a service provider but as a key technological enabler for the industry. While its stock has seen volatility over the past year, its revenues have been growing steadily, driven primarily by its auto insurance aftermarket services. These new alliances are designed to embed its technology deeper into the more lucrative core operations of insurance, potentially unlocking new revenue streams and boosting market share.

Industry analysts note that digital transformation can slash insurance claim costs by up to 30%, a powerful incentive in a market focused on efficiency. By aligning with specialized partners, YSX is aiming to deliver these efficiencies while innovating beyond the capabilities of its competitors.

Revolutionizing Claims with AI, Drones, and Blockchain

The first partnership, a Technical Services Cooperation Agreement with Guangzhou HZIA, directly targets the often cumbersome and lengthy process of insurance claims adjusting. YSX plans to leverage its software development prowess to deploy a powerful combination of technologies aimed at bringing speed, accuracy, and transparency to claim assessments.

Key innovations include:

• AI Image Recognition: For auto insurance claims, this technology can rapidly assess vehicle damage from photos, automating a process that traditionally requires manual inspection and reducing the potential for human error and fraud.
• Drone-Based Disaster Assessment: In the event of large-scale incidents like floods or typhoons, drones can be deployed to quickly survey damage across wide areas. This provides adjusters with critical data far faster than ground-based teams could, accelerating relief and claim payouts.
• Blockchain Evidence Storage: To ensure the integrity of the claims process, evidence such as photos, reports, and communications can be stored on a blockchain. This creates an immutable, tamper-proof record that can increase trust among all parties and streamline audits.

By integrating these tools onto a unified platform, YSX and Guangzhou HZIA aim to create a seamless “one-stop” experience. This approach introduces professional adjusting expertise earlier in the process, promising a smoother and faster journey for policyholders from the moment a claim is filed to its final settlement.

Deepening AI Capabilities Through Strategic Alliance

While the Guangzhou HZIA partnership focuses on applying existing technologies, the second agreement—a two-year framework with Tanbao Network—is about co-developing the next wave of insurtech solutions. YSX's subsidiary, Xinjiang Yishengxin, will collaborate with Tanbao, a firm specializing in patented AI-driven video-communication and financial-data processing.

This collaboration is designed to build a more sophisticated AI engine for YSX's ecosystem. The partners intend to leverage Tanbao’s AI video analysis to create an efficient remote auto claims assessment system, allowing experts to evaluate damage in real-time without being physically present. They also plan to build a sophisticated risk identification platform, using data processing capabilities to spot potential fraud and assess risk with greater precision.

Furthermore, the partnership will explore the creation of digital models for insurance-related assets, combining YSX's deep industry knowledge with Tanbao's financial data analysis technologies. This could open doors to new digital asset management services and more innovative insurance products. The agreement establishes a dedicated cooperation department to streamline project execution, signaling a deep commitment from both sides to accelerate the delivery of market-ready products.

The Road Ahead: Promise and Practicalities

In a statement, YSX Chairman and CEO Mr. Jie Xiao emphasized the strategic importance of these collaborations. “These two partnerships represent a significant step forward in our 'Technology + Service' strategy,” he stated. “By combining Guangzhou HZIA's industry experience with our digital capabilities, we intend to contribute to the digital transformation of the insurance claims adjusting sector... At the same time, our strategic partnership with Tanbao Network aligns industry resources with technological strength.”

The path forward, however, is not without challenges. Implementing these advanced technologies at scale requires navigating China’s evolving regulatory landscape for data privacy and AI, governed by bodies like the China Banking and Insurance Regulatory Commission (CBIRC). Ensuring data quality, mitigating algorithmic bias, and achieving seamless interoperability with legacy systems are significant technical hurdles that YSX and its partners must overcome.

Despite these challenges, the potential upside is substantial. By automating workflows and improving risk modeling, YSX stands to enhance its value proposition for its insurance clients significantly. Mr. Xiao added that the collaborations are anticipated to “create new growth opportunities, advance the widespread and standardized use of AI in insurance, and propel the insurtech sector into a new era of advanced development.” Through these alliances, YSX is not merely adapting to the digital shift but is actively working to shape its future, with a clear focus on delivering more intelligent, efficient, and customer-centric service solutions to the broader Chinese insurance market.