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

1. YAAS reports 21% revenue growth in H1 FY2025. 2. Gross margin dropped from 68% to 37% year-over-year. 3. Net loss increased to $1.7 million from $0.9 million last year. 4. Cash position improved significantly to $1.6 million. 5. Continued investment in growth amid near-term margin pressures.

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Why Neutral?

While revenue growth is encouraging, the increase in net loss and decline in gross margin indicate financial strain. Historically, companies facing similar issues often experience stock price fluctuations until financial stability is achieved.

How important is it?

The article provides direct insights into YAAS's financial health, which investors closely monitor, though overall sentiment is lukewarm due to losses.

Why Short Term?

The immediate impact from the financial figures will likely be reflected in stock price movements within the next quarter as investors react to changing profitability margins and cash flows.

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, /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 ofRevenue GrossMargin Revenue Cost ofRevenue GrossMargin 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 DepartmentEmail: [email protected] Ascent Investor Relations LLCTina XiaoPhone: +1-646-932-7242Email: [email protected] 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 $ - SOURCE Youxin Technology Ltd WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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