#China #Guangzhou #SaaS #Youxin Technology #PAAS

Youxin Technology Reports Financial Results for Fiscal Year 2025

GUANGZHOU, China – Youxin Technology Ltd, publicly traded on Nasdaq under the ticker YAAS, has revealed its financial results for the fiscal year that concluded on September 30, 2025. The company, which specializes in Software as a Service (SaaS) and Platform as a Service (PaaS) solutions aimed at assisting retail enterprises with digital transformation, delivered a performance that encapsulates both promising growth opportunities and significant challenges.

Financial Overview

The company's total revenue for the fiscal year reached $0.54 million, a slight increase of 3% from the previous year's total of $0.52 million. This growth can be primarily attributed to the restart of its customized customer relationship management (CRM) development services. Despite this revenue growth, Youxin experienced a considerable net loss of $9.65 million, a steep rise compared to the $1.28 million loss recorded in the prior year. The increased losses were largely due to non-recurring expenditures related to its initial public offering (IPO) and subsequent fundraising efforts.

CEO Shaozhang Lin stated, “Fiscal year 2025 was pivotal for Youxin Technology. Our successful IPO has bolstered our liquidity, enabling us to enhance our operational foundation. Furthermore, our innovative integration of AI models into our PaaS platform has showcased our commitment to offering cutting-edge solutions to our clients.”

Strategic Developments

During this fiscal year, Youxin also marked the acquisition of Celnet Technology Co., Ltd., a move that is expected to further its international expansion strategy. This acquisition will allow Youxin to leverage Celnet's expertise in Salesforce implementations, enhancing the scalability and readiness of its PaaS offerings for larger multinational enterprises.

Lin added that this year was about “execution and capability building.” He highlighted the necessity of developing diverse service capabilities across multiple industry sectors, particularly in cosmetics and cruise lines, as part of strengthening the platform's market position. By doing so, Youxin Technology aims to attract a wider range of clients, reflecting its commitment to enhancing user experience while simultaneously boosting development efficiency through AI-enhanced solutions.

In-Depth Financial Metrics

To delve deeper into their financial specifics:

• - Gross profit for the year stood at $0.18 million, which represents a gross margin of 33%, a notable decline from 66% in the previous year. This contraction in margin was largely due to increased costs associated with revenues and operational activities.
• - Operating expenses ballooned to $3.04 million from $1.73 million, attributed mainly to higher advertising, promotion expenses, and IPO-related professional fees. Notably, selling expenses saw a significant increase spilling over 38% to $0.13 million due to these promotional efforts.
• - In stark contrast to revenue trends, net cash available to the company improved significantly. As of September 30, 2025, cash reserves climbed to $9.91 million, compared to just $0.02 million in the prior year, thanks to successful financing activities which yielded a net inflow of $16.79 million.

Looking Ahead

Looking toward the future, Youxin Technology is focused on fully commercializing its R&D accomplishments with a strategic goal to reach operational breakeven by fiscal year 2026. The company plans to actively promote its SaaS and PaaS solutions across various sectors while exploring international markets. As Lin optimistically states, “We are poised to support our clients’ overseas growth and sustainable development into 2026 and beyond.”

In summary, while Youxin Technology Ltd has reported some growth indicators with respect to revenue, the significant net losses due to mandatory costs related to its IPO raise concerns about its financial sustainability in the immediate term. Nonetheless, its strategic moves and technological advancements present potential pathways for future profitability and market relevance.