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
News Market Reaction
On the day this news was published, YAAS declined 3.53%, reflecting a moderate negative market reaction. This price movement removed approximately $512K from the company's valuation, bringing the market cap to $14M at that time.
Data tracked by StockTitan Argus on the day of publication.
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
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 21% from$285,392 - Gross profit was
$129,627 $193,746 - Gross margin was
37% for the six months ended March 31, 2025, compared to68% for the same period of last year. - Net loss was
$1.7 million $0.9 million - Cash was
$1,636,920 $18,372
First Half of Fiscal Year 2025 Financial Results
Revenues
Total revenues were
For the six months ended March 31, | ||||||||||||||||||||||||
2025 | 2024 | |||||||||||||||||||||||
($) | Revenue | Cost of | Gross | Revenue | Cost of | Gross | ||||||||||||||||||
Professional | 326,793 | 213,217 | 35 | % | 121,366 | 74,247 | 39 | % | ||||||||||||||||
Payment channel | 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
- Revenue from customized CRM system development services was
$220,454
- Revenue from the additional function development services was
$9,211 40% from$6,577
- Revenue from subscription services was
$97,128 15% from$114,789
Revenue from payment channel services was
Cost of Revenues
Cost of revenues was
Gross Profit
Gross profit was
Gross margin was
Operating Expenses
Operating expenses were
- Selling expenses were
$100,558 24% from$81,016 100% 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 262% from$0.3 million 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 83% from$847,311 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
Net Loss
Net loss was
Basic and Diluted Loss per Share
Basic and diluted loss per share was
Financial Condition
As of March 31, 2025, the Company had cash of
Net cash used in operating activities was
Net cash used in investing activities was
Net cash provided by financing activities was
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
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 | ||||||||
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, ( | 2,460 | 2,230 | ||||||
Class B ordinary shares, ( | 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 | $ | 5,599,503 | $ | 958,138 | ||||
YOUXIN TECHNOLOGY LTD | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND | ||||||||
FOR THE SIX MONTHS ENDED MARCH 31, 2025 AND 2024 | ||||||||
(Expressed in | ||||||||
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 | 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 | ||||||||
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 | ||||||||
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 | $ | - | ||||
View original content:https://www.prnewswire.com/news-releases/youxin-technology-ltd-reports-first-half-of-fiscal-year-2025-financial-results-302504468.html
SOURCE Youxin Technology Ltd
FAQ
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