GUANGZHOU, China, Jan. 29, 2026 /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 financial results for the fiscal year ended September 30, 2025.
Mr. Shaozhang Lin, Chief Executive Officer of Youxin Technology Ltd, commented, "In fiscal year 2025, we successfully completed our initial public offering and a follow-on offering, which substantially improved the Company's liquidity and strengthened financial foundation. A key part of the R&D progress was the successful integration of AI models into our PaaS platform, enabling the generation of complex customized code through natural language and conversational interaction, which significantly enhanced development efficiency and user experience. With AI-enhanced solutions, we have already attracted clients from a broader range of industries, including cosmetics and cruise lines, and have reinforced the scalability of our platform. In parallel, by serving customers across multiple industries, we continued to expand the functionality of our PaaS platform and build multi-industry service capabilities, laying a solid foundation for a potential performance inflection in fiscal year 2026."
Mr. Lin added, "Fiscal year 2025 marked a year of execution and capability building. Total revenues reached $0.54 million, representing a 3% increase from fiscal year 2024, primarily driven by the restart of our customized customer relationship management (CRM) system development services. Our net loss for the year was largely attributable to non-recurring items, including IPO- and follow-on-offering-related professional fees, warrant-related expenses, and investment losses, rather than any deterioration in our core operating performance."
Mr. Lin continued, "The successful acquisition of Celnet Technology Co., Ltd. on October 29, 2025 advanced our internationalization strategy and enhanced our ability to serve multinational and large domestic enterprises through its extensive Salesforce implementation experience, further improving the practicality and enterprise readiness of our PaaS platform. Looking ahead, we plan to fully commercialize our R&D achievements and aim to achieve operating breakeven by fiscal year 2026. We will continue to promote our PaaS and SaaS solutions across various sectors and, together with our partners, pursue opportunities to expand into international markets, positioning the Company to support customers' overseas expansion and sustainable growth in 2026 and beyond."
Fiscal Year 2025 Financial Overview
-- Revenue was $0.54 million in fiscal year 2025, an increase of 3% from
$0.52 million in fiscal year 2024.
-- Gross profit was $0.18 million in fiscal year 2025, compared to $0.34
million in fiscal year 2024.
-- Gross margin was 33% in fiscal year 2025, compared to 66% in fiscal year
2024.
-- Net loss was $9.65 million in fiscal year 2025, compared to $1.28 million
in fiscal year 2024, mainly due to the professional fees incurred during
the IPO and the follow-up offering, investment loss, and loss on issuance
of warrant liabilities.
-- Cash was $9.91 million as of September 30, 2025, compared to $0.02
million as of September 30, 2024, significantly increasing cash reserves
and liquidity.
Fiscal Year 2025 Financial Results
Revenues
Total revenues were $0.54 million in fiscal year 2025, an increase of 3% from $0.52 million in fiscal year 2024. The increase was mainly because the Company restarted the customized CRM system development services.
For the years ended September 30,
----------------------------------------------------
2025 2024
------------------------- -------------------------
Cost of Gross Cost of Gross
($) Revenue Revenue Margin Revenue Revenue Margin
------------- -------- ------- ------ ------- ------- -------
Professional
services 515,684 356,807 31 % 275,314 158,880 42 %
Payment channel
services 21,590 - 100 % 206,526 - 100 %
Others 2,200 2,702 (23) % 39,401 20,768 47 %
Total 539,474 359,509 33 % 521,241 179,648 66 %
Revenue from professional services was $0.52 million in fiscal year 2025, an increase of 87% from $0.28 million in fiscal year 2024.
-- Revenue from customized CRM system development services was $0.29 million
in fiscal year 2025. The Company did not generate revenue from customized
CRM system development services in fiscal year 2024. The increase was
mainly due to the Company restarting the customized CRM system
development service.
-- Revenue from the additional function development services was $38,808 in
fiscal year 2025, a decrease of 9% from $42,758 in fiscal year 2024. The
decrease was mainly due to the less new needs of the function development
from the existing clients for fiscal year 2025.
-- Revenue from subscription services was $0.19 million in fiscal year 2025,
a decrease of 18% from $0.23 million in fiscal year 2024. The decrease
was mainly due to the decreasing customized CRM system development
services from 2023 to 2024, which led to the Company to provide less
subscription service in the following periods.
Cost of Revenues
Cost of revenues was $0.36 million in fiscal year 2025, an increase of 100% from $0.18 million in fiscal year 2024.
Gross Profit
Gross profit was $0.18 million in fiscal year 2025, compared to $0.34 million in fiscal year 2024.
Gross margin was 33% in fiscal year 2025, compared to 66% in fiscal year 2024.
Operating Expenses
Operating expenses were $3.04 million in fiscal year 2025, compared to $1.73 million in fiscal year 2024.
-- Selling expenses were $0.13 million in fiscal year 2025, an increase of
38% from $0.09 million in fiscal year 2024. The increase was mainly due
to the increase in advertising and promotion expenses. The increase of
advertising and promotion expenses by $25,661 or 3,270% was primarily due
to an increase in putting effort to the business promotion to expand
customer base for fiscal year 2025, compared to fiscal year 2024.
-- General and administrative expenses were $2.75 million in fiscal year
2025, an increase of 454% from $0.50 million in fiscal year 2024. The
increase for fiscal year 2025 was primarily due to the professional fees
incurred during the IPO and the follow-up offering that were not directly
attributable of the offerings were expensed as incurred.
-- Research and development expenses were $0.16 million in fiscal year 2025,
a decrease of 86% from $1.14 million in fiscal year 2024. The decrease
was primarily attributed to the decrease in labor related costs including
salary and welfare by $0.90 million or 94% for fiscal year 2025 compared
to fiscal year 2024.
Other Income (Expense), Net
Total net other expense was $6.79 million in fiscal year 2025, compared to total net other income of $0.11 million in fiscal year 2024, primarily due to loss from investments of $2.74 million, issuance costs allocated to warrant liabilities of $0.88 million, and loss on issuance of warrant liabilities of $5.80 million in fiscal year 2025, partly offset by gains from change in fair value of warrant liabilities of $2.65 million.
Net Loss
Net loss was $9.65 million in fiscal year 2025, compared to $1.28 million in fiscal year 2024.
Basic and Diluted Loss per Share
Basic and diluted loss per share was $1.04 in fiscal year 2025, compared to $0.14 in fiscal year 2024.
Financial Condition
As of September 30, 2025, the Company had cash of $9.91 million, compared to $0.02 million as of September 30, 2024.
Net cash used in operating activities was $3.91 million in fiscal year 2025, compared to $0.73 million in fiscal year 2024.
Net cash used in investing activities was $3.03 million in fiscal year 2025, compared to net cash provided by investing activities of $360 in fiscal year 2024.
Net cash provided by financing activities was $16.79 million in fiscal year 2025, compared to $0.43 million in fiscal year 2024.
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.
Forward-Looking Statements
This press release contains "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 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 more information, 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
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2025 and 2024
(Expressed in U.S. dollars, except for the number of shares)
September 30, 2025 September 30, 2024
-------------------- --------------------
ASSETS
CURRENT ASSETS
Cash $ 9,912,327 $ 18,372
Restricted cash 24,298 24,649
Accounts receivable, net 213,772 176,607
Deferred contract costs 13,103 -
Amount due from a related
party 17,486 -
Prepaid expenses and other
current assets 295,559 122,676
---------------- ----------------
Total current assets 10,476,545 342,304
---------------- ----------------
NON-CURRENT ASSETS
Property and equipment,
net 2,518 3,948
Deferred offering costs - 478,108
Operating lease
right-of-use assets 78,862 123,170
Other non-current assets 10,457 10,608
Prepayment for acquisition 210,704 -
---------------- ----------------
Total non-current assets 302,541 615,834
---------------- ----------------
TOTAL ASSETS $ 10,779,086 $ 958,138
================ ================
LIABILITIES
CURRENT LIABILITIES
Short-term bank loan $ 318,865 $ 323,472
Accounts payable 34,190 31,350
Contract liabilities 30,024 215,768
Amount due to related
parties - 1,067,119
Operating lease
liabilities - current 46,190 42,277
Payroll payable 1,134,532 1,869,436
Warrant liabilities 902,287 -
Accrued expenses and other
current liabilities 87,439 40,299
---------------- ----------------
Total current liabilities 2,553,527 3,589,721
---------------- ----------------
Operating lease
liabilities -
non-current 35,306 82,674
---------------- ----------------
Total non-current
liabilities 35,306 82,674
---------------- ----------------
TOTAL LIABILITIES $ 2,588,833 $ 3,672,395
================ ================
COMMITMENTS AND
CONTINGENCIES (NOTE 17)
SHAREHOLDERS' EQUITY
(DEFICIT)
Class A ordinary shares,
($0.008 par value,
5,000,000 shares
authorized, 2,325,550 and
278,809 shares issued and
outstanding as of
September 30, 2025 and
2024, respectively) (1) 18,604 2,230
Class B ordinary shares,
($0.0001 par value,
100,000,000 shares
authorized, 8,945,307
shares issued and
outstanding as of
September 30, 2025 and
2024, respectively) 895 895
Share subscription
receivables - (3,125)
Additional paid-in capital 32,614,603 12,154,929
Accumulated deficit (25,065,907) (15,419,765)
Accumulated other
comprehensive income 622,058 550,579
---------------- ----------------
Total shareholders' equity
(deficit) 8,190,253 (2,714,257)
---------------- ----------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
(DEFICIT) $ 10,779,086 $ 958,138
================ ================
(1) All per share amounts and shares outstanding for all periods have been
retroactively adjusted to reflect the 80-for-1 reverse share split for
Class A ordinary share of Youxin Technology Ltd, which was effective on
September 30, 2025.
YOUXIN TECHNOLOGY LTD
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
FOR THE YEARS ENDED SEPTEMBER 30, 2025, 2024 and 2023
(Expressed in U.S. dollars, except for the number of shares)
2025 2024 2023
------------ ------------ ------------
Years Ended September 30,
----------------------------------------
2025 2024 2023
------------ ------------ ------------
REVENUES $ 539,474 $ 521,241 $ 895,978
COST OF REVENUES (359,509) (179,648) (352,676)
----------- ----------- -----------
GROSS PROFIT 179,965 341,593 543,302
----------- ----------- -----------
OPERATING
EXPENSES
Selling expenses (130,792) (94,481) (225,926)
General and
administrative
expenses (2,746,298) (496,006) (589,372)
Research and
development
expenses (158,190) (1,139,922) (2,152,602)
----------- ----------- -----------
Total operating
expenses (3,035,280) (1,730,409) (2,967,900)
----------- ----------- -----------
NET LOSS FROM
OPERATIONS (2,855,315) (1,388,816) (2,424,598)
----------- ----------- -----------
OTHER (EXPENSE)
INCOME
Other income 539 134,802 99,053
Other expense (24,271) (21,435) (17,693)
Loss from
investments (2,736,514) - -
Issuance costs
allocated to
warrant
liabilities (876,282) - -
Loss on issuance
of warrant
liabilities (5,802,241) - -
Change in fair
value of warrant
liabilities 2,647,942 - -
----------- ----------- -----------
Total other
(expense) income,
net (6,790,827) 113,367 81,360
----------- ----------- -----------
NET LOSS BEFORE
TAXES (9,646,142) (1,275,449) (2,343,238)
Income tax expense - (5,212) -
----------- ----------- -----------
NET LOSS (9,646,142) (1,280,661) (2,343,238)
Accretion to
redeemable
preferred equity - - (326,837)
Net loss
attributable to
ordinary
shareholders (9,646,142) (1,280,661) (2,670,075)
----------- ----------- -----------
NET LOSS (9,646,142) (1,280,661) (2,343,238)
Other
comprehensive
income (loss)
Foreign currency
translation
income (loss) 71,479 (72,056) (212,292)
----------- ----------- -----------
TOTAL
COMPREHENSIVE
LOSS $(9,574,663) $(1,352,717) $(2,555,530)
=========== =========== ===========
Basic and diluted
loss per share
(1)(2) $ (1.04) $ (0.14) $ (0.29)
=========== =========== ===========
Weighted average
number of
ordinary shares
outstanding -
basic and diluted
(1) (2) 9,311,589 9,224,116 9,224,116
=========== =========== ===========
(1) All per share amounts and shares outstanding for all periods have been
retroactively adjusted to reflect the 80-for-1 reverse share split for
Class A ordinary share of Youxin Technology Ltd, which was effective on
September 30, 2025.
(2) Giving retroactive effect to the issuance of ordinary shares effected
on April 21, 2023.
YOUXIN TECHNOLOGY LTD
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED SEPTEMBER 30, 2025, 2024 and 2023
(Expressed in U.S. dollars, except for the number of shares)
2025 2024 2023
------------ ------------ ------------
Years Ended September 30
----------------------------------------
2025 2024 2023
------------ ------------ ------------
Cash flows from
operating
activities
Net loss $(9,646,142) $(1,280,661) $(2,343,238)
Adjustments to
reconcile net
loss to cash used
in operating
activities:
Loss (gain) on
disposal of
property and
equipment - 572 (357)
Amortization of
right-of-use
assets 42,002 101,888 204,715
Loss from
Investments, net 2,814,514 - -
Change in fair
value of warrant
liabilities (2,647,942) - -
Issuance costs
allocated to
warrants
liabilities 876,282 - -
Loss on issuance
of warrant
liabilities 5,802,241 - -
Depreciation 1,355 6,816 12,293
Credit loss
provision - 4,664 -
Loss from
termination of
right-of-use
assets - 183 369
Changes in
operating assets
and liabilities
Accounts
receivable (39,166) 52,210 94,595
Prepaid expenses
and other current
assets (172,366) 18,020 69,605
Deferred contract
costs (13,103) - 30,192
Amount due from a
related party (17,260) - -
Other non-current
assets - 16,950 28,368
Accounts payable 2,840 (21,098) (14,007)
Operating lease
liabilities (43,455) (100,073) (207,881)
Payroll payable (734,904) 404,216 102,096
Accrued expenses
and other current
liabilities 47,096 19,107 (18,026)
Contract
liabilities (185,744) 49,140 (268,907)
----------- ----------- -----------
Net cash used in
operating
activities (3,913,752) (728,066) (2,310,183)
----------- ----------- -----------
Cash flows from
investing
activities
Proceeds from
dispose of
property and
equipment - 360 815
Purchase of
short-term
investment (3,800,000) - -
Redemption of
short-term
investment 979,031 - -
Prepayment for
acquisition (207,972) - -
Net cash (used in)
provided by
investing
activities (3,028,941) 360 815
----------- ----------- -----------
Cash flows from
financing
activities
Loan from related
parties - 792,283 284,292
Repayment to
related parties (1,038,283) - -
Repayment of
short-term bank
loan (314,731) (315,090) -
Proceeds from
short-term bank
loan 314,731 315,090 321,834
Proceeds from
issuance of
ordinary shares
upon initial
public offering,
net of
underwriting
commissions,
discounts and
other offering
costs of
$1,253,000 9,097,000 - -
Proceeds from
issuance of units
upon follow-on
offering, net of
underwriting
commissions,
discounts and
other offering
costs of
$730,000 5,270,064 - -
Proceeds from
issuance of
ordinary shares
upon exercise of
Series A
Warrants 4,486,999 - -
Proceeds from
issuance of
ordinary shares
upon exercise of
Series B
Warrants 731 - -
Payment of
offering costs (1,028,932) (360,893) (121,248)
Collection of
subscription
receivable 3,125 - -
----------- ----------- -----------
Net cash provided
by financing
activities 16,790,704 431,390 484,878
----------- ----------- -----------
Effect of exchange
rates on cash and
restricted cash 45,593 (59,713) 5,194
----------- ----------- -----------
Net increase
(decrease) in
cash and
restricted cash 9,893,604 (356,029) (1,819,296)
Cash and
restricted cash
at beginning of
year 43,021 399,050 2,218,346
----------- ----------- -----------
Cash and
restricted cash
at end of year $ 9,936,625 $ 43,021 $ 399,050
=========== =========== ===========
Cash $ 9,912,327 $ 18,372 $ 399,050
Restricted cash $ 24,298 $ 24,649 $ -
Cash and
restricted cash
at end of year $ 9,936,625 $ 43,021 $ 399,050
Supplemental
disclosure of
cash flow
information
Cash paid for
interest
expenses $ 9,377 $ 10,237 $ 257
=========== =========== ===========
Cash paid for
income tax $ 264 $ - $ -
=========== =========== ===========
Supplemental
disclosure of
non-cash
investing and
financing
activities:
Accretion to
redeemable
preferred equity $ - $ - $ 326,837
=========== =========== ===========
Exchange
redeemable
preferred equity
with Class A
ordinary shares $ - $ - $ 12,154,929
=========== =========== ===========
Operating lease
right-of-use
assets obtained
in exchange for
operating lease
liabilities $ - $ 140,844 $ -
=========== =========== ===========
Deferred offering
costs charged
against
additional
paid-in capital $ 478,108 $ - $ -
=========== =========== ===========
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SOURCE Youxin Technology Ltd
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January 29, 2026 16:30 ET (21:30 GMT)