GUANGZHOU, China, July 14, 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 $285,392 for the same period of last year. The increase was mainly because the Company gradually restarted the operating of the customized CRM system development services.
For the six months ended March 31,
-------------------------------------------------------
2025 2024
------------------------- ------------------------
Cost of Gross Cost of Gross
($) Revenue Revenue Margin Revenue Revenue 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: ir@youxin.cloud
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
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, September 30,
2025 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 $ -
============= ==========
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SOURCE Youxin Technology Ltd
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July 14, 2025 13:00 ET (17:00 GMT)