Youxin Technology Ltd Reports First Half of Fiscal Year 2025 Financial Results

GUANGZHOU, China, July 15, 2025 /PRNewswire/ — Youxin Technology Ltd (Nasdaq: YAAS) (the “Company” or “Youxin Technology”), a software as a service (“SaaS”) and platform as a service (“PaaS”) provider committed to helping retail enterprises digitally transform their businesses, today announced its unaudited financial results for the first half of fiscal year 2025 ended March 31, 2025. 

Mr. Shaozhang Lin, Chief Executive Officer of Youxin Technology Ltd, commented, “The first half of fiscal year 2025 reflects our ongoing commitment to long-term strategic priorities and our continued investment in growth, despite near-term pressure on margins and net results. We are especially proud to have successfully completed our listing on the Nasdaq in December 2024, a significant milestone that can not only strengthen our global visibility but also enhance our ability to execute long-term strategic plans. We are encouraged by the 21% year-over-year revenue growth in the first half of fiscal year 2025, which was driven by the resumption of our customized CRM system development service which reinforced our ability to deliver tailored digital solutions. Presently, we continue promoting the broader adoption of our products and strengthening customer engagement through attractive pricing and increased marketing efforts.”

Mr. Lin continued, “We remain confident in our path forward. We plan to continue optimizing our PaaS platform and SaaS services to deepen customer value and loyalty, while reinforcing our collaboration with strategic vendors to deliver solutions that better meet the individualized needs of our clients. We are confident that these initiatives will strengthen our foundation for sustainable growth and better position us to capture future opportunities.”

First Half of Fiscal Year 2025 Financial Overview

  • Revenue was $346,013 for the six months ended March 31, 2025, an increase of 21% from $285,392 for the same period of last year.
  • Gross profit was $129,627 for the six months ended March 31, 2025, compared to $193,746 for the same period of last year.
  • Gross margin was 37% for the six months ended March 31, 2025, compared to 68% for the same period of last year.
  • Net loss was $1.7 million for the six months ended March 31, 2025, compared to $0.9 million for the same period of last year, mainly due to an increase in professional fees after being listed and investment loss.
  • Cash was $1,636,920 as of March 31, 2025, compared to $18,372 as of September 30, 2024.

First Half of Fiscal Year 2025 Financial Results

Revenues

Total revenues were $346,013 for the six months ended March 31, 2025, or an increase of 21% from $285,392 for the same period of last year. The increase was mainly because the Company gradually restarted the operating of the customized CRM system development services.

For the six months ended March 31,

2025

2024

($)

Revenue

Cost of
Revenue

Gross
Margin

Revenue

Cost of
Revenue

Gross
Margin

Professional
services

326,793

213,217

35

%

121,366

74,247

39

%

Payment channel
services

17,098

100

%

140,663

100

%

Others

2,122

3,169

(49)

%

23,363

17,399

26

%

Total

346,013

216,386

37

%

285,392

91,646

68

%

Revenue from professional services was $326,793 for the six months ended March 31, 2025, or an increase of 169% from $121,366 for the same period of last year.

  • Revenue from customized CRM system development services was $220,454 for the six months ended March 31, 2025. The Company did not generate revenue from customized CRM system development services in the same period of last year. The increase was mainly due to the Company restarted the operating of Customized CRM system development service.
  • Revenue from the additional function development services was $9,211 for the six months ended March 31, 2025, or an increase of 40% from $6,577 for the same period of last year. The increase was mainly due to the more new needs of the function development from the existing clients for the six months ended March 31, 2025.
  • Revenue from subscription services was $97,128 for the six months ended March 31, 2025, or a decrease of 15% from $114,789 for the same period of last year. The decrease was mainly due to the decreasing customized CRM system development services from 2024, which led to the Company to provide less subscription service in the following periods.

Revenue from payment channel services was $17,098 for the six months ended March 31, 2025, or a decrease of 88% from $140,663 for the same period of last year. The decrease was mainly due to reduced clients demand, and resulted in fewer transactions through the payment system.

Cost of Revenues

Cost of revenues was $216,386 for the six months ended March 31, 2025, an increase of 136% from $91,646 for the same period of last year.

Gross Profit

Gross profit was $129,627 for the six months ended March 31, 2025, compared to $193,746 for the same period of last year.

Gross margin was 37% for the six months ended March 31, 2025, a decrease from 68% for the same period of last year.  

Operating Expenses

Operating expenses were $1.4 million for the six months ended March 31, 2025, compared to $1.2 million for the same period of last year.

  • Selling expenses were $100,558 for the six months ended March 31, 2025, an increase of 24% from $81,016 for the same period of last year. The increase was mainly due to the increase in advertising and promotion expense. The increase of advertising and promotion expense by 100% was primarily due to more effort used in the business promotion to achieve the business expansion for the six months ended March 31, 2025, compared to the same period of last year.
  • General and administrative expenses were $1.2 million for the six months ended March 31, 2025, an increase of 262% from $0.3 million for the same period of last year. The increase was primarily due to an increase in professional fee of 421% compared to the same period of last year as the increase of professional agents involved after being listed.
  • Research and development expenses were $140,262 for the six months ended March 31, 2025, a decrease of 83% from $847,311 for the same period of last year. The decrease was primarily attributed to the decrease in labor related costs including salary and welfare by 89% for the six months ended March 31, 2025 compared to the same period of last year.

Other Income (Expense), Net

Total net other expense was $463,769 for the six months ended March 31, 2025, compared to a net other income of $132,303 for the same period of last year.

Net Loss

Net loss was $1.7 million for the six months ended March 31, 2025, compared to $0.9 million for the same period of last year.

Basic and Diluted Loss per Share

Basic and diluted loss per share was $0.05 for the six months ended March 31, 2025, compared to $0.03 for the same period of last year.

Financial Condition

As of March 31, 2025, the Company had cash of $1,636,920, compared to $18,372 as of September 30, 2024.

Net cash used in operating activities was $2.3 million for the six months ended March 31, 2025, compared to $0.6 million for the same period of last year.

Net cash used in investing activities was $3.4 million for the six months ended March 31, 2025. There were no cash outflows from investing activities for the same period of last year.

Net cash provided by financing activities was $7.2 million for the six months ended March 31, 2025, compared to $0.3 million for the same period of last year.

About Youxin Technology Ltd

Youxin Technology Ltd is a SaaS and PaaS provider committed to helping retail enterprises digitally transform their businesses using its cloud-based SaaS product and PaaS platform to develop, use and control business applications without the need to purchase complex IT infrastructure. Youxin Technology provides a customized, comprehensive, fast-deployment omnichannel digital solutions that unify all aspects of commerce with store innovations, distributed inventory management, cross-channel data integration, and a rich set of ecommerce capabilities that encompass mobile applications, social media, and web-based applications. The Company’s products allow mid-tier brand retailers to use offline direct distribution to connect the management team, distributors, salespersons, stores, and end customers across systems, apps, and devices. This provides retailers with a comprehensive suite of tools to instantly address issues using real-time sales data. For more information, please visit the Company’s website: https://ir.youxin.cloud.

Cautionary Note Regarding Forward-Looking Statements

The foregoing material may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation the Company’s statements regarding the Company’s product development and business prospects, and can be identified by the use of words such as “may,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Should one or more of these risks or uncertainties materialize, or the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the security laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

For investor and media inquiries, please contact:

Youxin Technology Ltd.
Investor Relations Department
Email: [email protected]

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: [email protected]

 

YOUXIN TECHNOLOGY LTD

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2025 AND SEPTEMBER 30, 2024

(Expressed in U.S. dollars, except for the number of shares)

March 31,

2025

September 30,

2024

ASSETS

CURRENT ASSETS

Cash

$

1,636,920

$

18,372

Restricted cash

23,837

24,649

Accounts receivable, net

210,530

176,607

Short-term investments

2,982,758

Prepaid expenses and other current assets

633,450

122,676

Total current assets

5,487,495

342,304

NON-CURRENT ASSETS

Property and equipment, net

3,104

3,948

Deferred offering costs

478,108

Operating lease right-of-use assets

98,646

123,170

Other non-current assets

10,258

10,608

Total non-current assets

112,008

615,834

TOTAL ASSETS

$

5,599,503

$

958,138

LIABILITIES

CURRENT LIABILITIES

Short-term bank loan

$

312,814

$

323,472

Accounts payable

33,762

31,350

Contract liabilities

9,198

215,768

Amount due to related parties

88,525

1,067,119

Operating lease liabilities – current

42,547

42,277

Payroll payable

1,619,068

1,869,436

Accrued expenses and other current liabilities

61,845

40,299

Total current liabilities

2,167,759

3,589,721

Operating lease liabilities – non-current

58,253

82,674

Total non-current liabilities

58,253

82,674

TOTAL LIABILITIES

$

2,226,012

$

3,672,395

SHAREHOLDERS’ EQUITY (DEFICIT)

Class A ordinary shares, ($0.0001 par value, 400,000,000 shares
authorized, 24,604,693 and 22,304,693 shares issued and outstanding
as of March 31, 2025 and September 30, 2024, respectively)

2,460

2,230

Class B ordinary shares, ($0.0001 par value, 100,000,000 shares
authorized, 8,945,307 shares issued and outstanding as of March 31,
2025 and September 30, 2024, respectively)

895

895

Share subscription receivables

(3,125)

(3,125)

Additional paid-in capital

19,890,941

12,154,929

Accumulated deficit

(17,157,465)

(15,419,765)

Accumulated other comprehensive income

639,785

550,579

Total shareholders’ equity (deficit)

3,373,491

(2,714,257)

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
(DEFICIT)

$

5,599,503

$

958,138

 

YOUXIN TECHNOLOGY LTD

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS

FOR THE SIX MONTHS ENDED MARCH 31, 2025 AND 2024

(Expressed in U.S. dollars, except for the number of shares)

Six Months Ended March 31,

2025

2024

REVENUES

$

346,013

$

285,392

COST OF REVENUES

(216,386)

(91,646)

GROSS PROFIT

129,627

193,746

OPERATING EXPENSES

Selling expenses

(100,558)

(81,016)

General and administrative expenses

(1,162,739)

(321,457)

Research and development expenses

(140,261)

(847,311)

Total operating expenses

(1,403,558)

(1,249,784)

NET LOSS FROM OPERATIONS

(1,273,931)

(1,056,038)

OTHER INCOME, NET

Other income

184

139,154

Other expense

(6,711)

(6,851)

Investment loss

(457,242)

Total other income (expense), net

(463,769)

132,303

NET LOSS BEFORE TAXES

(1,737,700)

(923,735)

Income tax expense

(3,097)

NET LOSS

(1,737,700)

(926,832)

Net loss attributable to ordinary shareholders

(1,737,700)

(926,832)

NET LOSS

(1,737,700)

(926,832)

Other comprehensive loss

Foreign currency translation gain (loss)

89,206

(1,164)

TOTAL COMPREHENSIVE LOSS

$

(1,648,494)

$

(927,996)

Basic and diluted loss per share

$

(0.05)

$

(0.03)

Weighted average number of ordinary shares outstanding – basic and
diluted

32,489,444

31,250,000

 

YOUXIN TECHNOLOGY LTD

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED MARCH 31, 2025 AND 2024

(Expressed in U.S. dollars, except for the number of shares)

Six Months Ended March 31,

2025

2024

Cash flows from operating activities

Net loss

$

(1,737,700)

$

(926,832)

Adjustments to reconcile net loss to cash used in operating
activities:

Loss on disposal of property and equipment

616

Amortization of right-of-use assets

24,524

75,056

Depreciation

716

5,090

Loss from termination of right-of-use assets

2,419

Loss from investment

457,242

Changes in assets and liabilities

Accounts receivable

(33,923)

95,467

Prepaid expenses and other current assets

(510,774)

20,221

Other non-current assets

350

(10,419)

Accounts payable

2,412

(24,555)

Operating lease liabilities

(24,151)

(77,258)

Payroll Payable

(250,368)

239,510

Accrued expenses and other current liabilities

21,546

751

Contract liabilities

(206,570)

(41,956)

Net cash used in operating activities

(2,256,696)

(641,890)

Cash flows from investing activities

Purchase short-term investments

(3,440,000)

Net cash provided by investing activities

(3,440,000)

Cash flows from financing activities

Loan from related parties

640,319

Repayment to related parties

(978,594)

Proceeds from issuance of ordinary shares

10,350,000

Payment of deferred offering cost

(2,133,785)

(335,458)

Net cash provided by financing activities

7,237,621

304,861

Effect of exchange rates on cash and cash equivalents

76,811

2,097

Net increase (decrease) in cash and cash equivalents

1,617,736

(334,932)

Cash and cash equivalents and restricted cash at beginning of period

43,021

399,050

Cash and cash equivalents and restricted cash at end of year

$

1,660,757

$

64,118

Cash and cash equivalents

1,636,920

64,118

Restricted cash

23,837

Cash and cash equivalents and restricted cash at end of period

$

1,660,757

$

64,118

Cash paid for interest expenses

$

$

Cash paid for income tax

$

$

SUPPLEMENTAL DISCLOSURE OF NON-CASH FLOW INFORMATION:

Deduction of issuance proceeds of prior years deferred offering cost

$

478,108

$