Press Release: Youxin Technology Ltd Reports Financial Results for Fiscal Year 2025

Dow Jones
Jan 30

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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