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

Rhea-AI Summary

Youxin Technology (NASDAQ:YAAS), a SaaS and PaaS provider for retail enterprise digital transformation, reported mixed financial results for H1 FY2025. Revenue increased 21% year-over-year to $346,013, primarily driven by the resumption of customized CRM system development services. However, the company experienced margin pressure with gross margin declining to 37% from 68% in the previous year.

The company's net loss widened to $1.7 million compared to $0.9 million in the prior year period, mainly due to increased professional fees post-Nasdaq listing in December 2024. Cash position strengthened to $1.6 million as of March 31, 2025, up from $18,372 in September 2024. Professional services revenue saw significant growth of 169% to $326,793, while payment channel services revenue declined 88% to $17,098.

Positive

• None.

Negative

• Net loss widened to $1.7 million from $0.9 million year-over-year
• Gross margin declined significantly to 37% from 68%
• Payment channel services revenue dropped 88% to $17,098
• Operating expenses increased to $1.4 million from $1.2 million
• Net cash used in operating activities increased to $2.3 million from $0.6 million

Insights

Financial Analyst

Youxin shows 21% revenue growth but declining margins and widening losses amid post-IPO strategic investments.

Youxin Technology's H1 FY2025 results present a mixed financial picture. While the company achieved $346,013 in revenue, representing a 21% year-over-year increase, this growth came at the expense of profitability. The revenue expansion was primarily driven by the resumption of customized CRM system development services, which generated $220,454 in the period after generating nothing in the comparable period last year.

Despite the top-line growth, Youxin's gross margin significantly contracted to 37% from 68% in the prior year period. This 31 percentage point decline reflects a substantial shift in business mix and potentially higher costs to drive growth. The company's net loss widened to $1.7 million from $0.9 million, attributed largely to increased professional fees following their December 2024 Nasdaq listing and investment losses.

Looking at segment performance reveals concerning trends in higher-margin businesses. Payment channel services revenue plummeted 88% to $17,098, while subscription services declined 15% to $97,128. Both services historically carried higher margins than professional services, which now dominate the revenue mix at 94% of total revenue.

Operating expenses increased to $1.4 million, with general and administrative expenses surging 262% primarily due to a 421% increase in professional fees post-listing. The company did manage to reduce R&D expenses by 83% through decreased labor costs, though this could potentially impact future innovation capabilities.

The cash position improved significantly to $1.6 million from just $18,372 at fiscal year-end, likely bolstered by the $7.2 million in financing activities. However, cash burn accelerated with $2.3 million used in operations (versus $0.6 million in the prior period) and $3.4 million in investing activities.

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
($)		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: 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, 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			$	-

 

 

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SOURCE Youxin Technology Ltd

FAQ

What were Youxin Technology's (YAAS) key financial results for H1 FY2025?

Youxin reported revenue of $346,013 (up 21% YoY), with a net loss of $1.7 million. Gross margin decreased to 37% from 68% in the previous year.

How much did Youxin Technology's (YAAS) professional services revenue grow in H1 FY2025?

Professional services revenue grew 169% to $326,793, primarily driven by the restart of customized CRM system development services.

What is the current cash position of Youxin Technology (YAAS)?

As of March 31, 2025, Youxin had cash of $1,636,920, a significant increase from $18,372 as of September 30, 2024.

What caused Youxin Technology's (YAAS) increased net loss in H1 FY2025?

The increased net loss was mainly due to higher professional fees after Nasdaq listing and investment losses, resulting in a $1.7 million loss compared to $0.9 million in the previous year.

When did Youxin Technology (YAAS) complete its Nasdaq listing?

Youxin Technology completed its Nasdaq listing in December 2024, marking a significant milestone for the company's global visibility and strategic execution capabilities.