YSX Tech Co., Ltd

(b) Long-term loans:

(1)On September 13, 2023, Xihang entered into a loan agreement with BOC to borrow RMB 3.4 million (approximately $477,595) for its working capital needs fortwo years, with a loan maturity date of September 12, 2025. In addition, on September 15, 2023, Xihang entered into another loan agreement with BOC to borrow an additional RMB 1.6 million (approximately $224,751) for its working capital needs fortwo years, with a loan maturity date of September 14, 2025. The loans bear an effective interest rate of 3.70% per annum. Pursuant to the loan agreements, Xihang (i) is required to maintain an asset-liability ratio of less than 70%; (ii) must obtain a written consent from the bank if it conducts any activities associated with a business merger, acquisition, spinoff, reduction of the registered capital, share transfer, investment in external parties, significant transfer of assets and liabilities, etc.; (iii) is subject to the inspection and monitoring by BOC and must provide a fund usage report to BOC on a monthly basis; (iv) must prioritize repayment of the loans in the event of any liquidation transaction; (v) is not allowed to declare shareholder dividends until repayment of the loans; and (vi) is prohibited from disposing of its assets if such disposition would materially impair its debt repayment ability and is required to maintain the maximum external guarantee amount below the limit as set forth in the its articles of incorporation. If there is any violation of any of these loan covenant requirements, BOC has the right to terminate the loan agreements and request Xihang to repay the loans prior to the maturity dates. The loans are unsecured. As of March 31, 2025, the aggregate outstanding principal loan balance that Xihang borrowed from BOC amounted to RMB 3.5 million (approximately $491,642). The loans were fully repaid during the six months ended September 30, 2025.

On September 10, 2025, Xihang entered into another loan agreement with BOC to borrow RMB 3.0 million (approximately $421,408) for its working capital needs fortwo years, with a loan maturity date of September 10, 2027 and an effective interest rate of 2.60% per annum. Pursuant to loan agreement, Xihang is required to maintain the asset-liability ratio of less than 70%. The loan is repayable infive installments, with the first installment of RMB 150,000 due on October 3, 2025, followed bythree semi-annual installments of RMB 150,000 each, and the remaining balance payable upon maturity of the loan. As of September 30, 2025, the current portion and non-current portion of the loan amounted to RMB 300,000 (approximately $42,141) and RMB 2.7 million (approximately $379,267), respectively.

On December 24, 2024, YSX Network entered into a loan agreement with BOC to borrow RMB 5.0 million (approximately $702,346) for its working capital needs forthree years, with a loan maturity date of December 23, 2027 and an effective interest rate of 3.05% per annum. Mr. Jie Xiao and Xinjiang YSX each entered into a loan guarantee agreement with BOC to guarantee loans of up to RMB 5.0 million (approximately US$702,346) that YSX Network may borrow from BOC during the period from December 20, 2024 to December 31, 2034. As of March 31, 2025, the current portion and non-current portion of the loan amounted to $55,121 and $633,897, respectively. During the six months ended September 30, 2025, YSX Network repaid RMB 200,000 (approximately $28,094) to BOC and the outstanding principal balance of the loan as of September 30, 2025 was RMB 4.8 million (approximately $674,252).

On March 27, 2025, Guangzhou YSX entered into a loan agreement with BOC to borrow RMB 5.0 million (approximately $702,346) for its working capital needs forthree years, with a loan maturity date of March 26, 2028 and an effective interest rate of 3.10% per annum. Mr. Jie Xiao and Xinjiang YSX each entered into a loan guarantee agreement with BOC to guarantee loans of up to RMB 5.0 million (approximately $702,346) that Guangzhou YSX may borrow from BOC during the period from March 10, 2025 to December 31, 2035. As of March 31, 2025, the current portion and non-current portion of the loan amounted to $41,341 and $647,677, respectively. During the six months ended September 30, 2025, Guangzhou YSX repaid RMB 100,000 (approximately $14,047) to BOC and the outstanding principal balance of the loan as of September 30, 2025 was RMB 4.9 million (approximately $688,299).

(2)On July 25, 2025, YSX Network entered into a loan agreement with WeBank to borrow RMB 2.0 million (approximately $280,938) for its working capital needs fortwo years, with a loan maturity date of July 25, 2027. In addition, on August 13, 2025, YSX Network entered into another loan agreement with WeBank to borrow RMB 1.0 million (approximately $140,469) for its working capital needs fortwo years, with a loan maturity date of August 25, 2027. The effective interest rate for thesetwo loans was 7.99% per annum. The loans were unsecured. YSX Network repaid WeBank and RMB 2.0 million on January 8, 2025 and RMB 1.0 million on January 5, 2026. As a result, the loans were fully repaid.

With respect to the long-term loans borrowed from BOC and WeBank, the current aggregate outstanding principal portion of long-term loans was $98,328 and the non-current aggregate outstanding principal portion of long-term loans was $2,107,038 as of September 30, 2025.

For the above-mentioned short-term and long-term loans from PRC banks and financial institutions, interest expense amounted to $114,206 and $62,438 for the six months ended September 30, 2025 and 2024, respectively.

NOTE 7 — TAXES