Youxin Technology Ltd Reports First Half of Fiscal Year 2026 Financial Results

GUANGZHOU, China, Aug. 27, 2026 /PRNewswire/ -- Youxin Technology Ltd (Nasdaq: YAAS) ("Youxin Technology" or the "Company"), a software as a service ("SaaS") and platform as a service ("PaaS") provider, today announced its unaudited financial results for the first half of fiscal year 2026 ended March 31, 2026.

Mr. Shaozhang Lin, Chief Executive Officer of Youxin Technology Ltd, commented, "We delivered strong revenue growth for the first half of fiscal year 2026, with revenue increasing 444% and gross profit increasing 496%. Gross margin increased to 41% from 37% in the prior-year period. The increase in revenue was primarily attributable to the consolidation of Celnet Technology Co., Ltd. ("Celnet"), with the acquisition completed on October 29, 2025 (the "Acquisition"), together with the gradual growth from our customized CRM system development services.

"We are encouraged by the growing recognition of our third-generation PaaS platform as we expand partnerships with distributors, leading more customers to adopt and pay for our services. As we expand our distributor network and customer base, we anticipate additional opportunities to generate revenue from platform licenses and professional services. At the same time, as of March 31, 2026, we had continued advancing our PaaS platform from the third to fifth generation, incorporating an AI-powered digital enablement solution ("AI + PaaS") while enhancing its functionality and performance in response to customer feedback and evolving market demand.

"Looking ahead, we will continue to strengthen relationships with distributors, prospective customers, government agencies, and industry partners to support the adoption of our platform. We also plan to continue investing in research and development to advance our AI-enabled digital solutions and support the commercialization and market development of our fifth-generation AI-powered PaaS platform. We believe these efforts will further strengthen our platform capabilities, broaden our customer and distribution network, and position us for long-term business growth."

First Half of Fiscal Year 2026 Financial Overview

First Half of Fiscal Year 2026 Financial Results

Revenues

Total revenues were $1.88 million for the six months ended March 31, 2026, an increase of 444% from $0.35 million for the same period of last year. The increase was mainly because the Company completed the acquisition of Celnet's results of operations following the Acquisition on October 29, 2025, together with the gradual growth from its customized CRM system development services.

For the six months ended March 31,

2026

2025

($)

Revenue

Cost of

Revenue

Gross

Margin

Revenue

Cost of

Revenue

Gross

Margin

Professional services

1,751,139

1,015,595

229,665

142,405

Subscription service

88,879

63,976

97,128

70,812

Payment channel services and others

43,236

31,203

19,220

3,169

Total

1,883,254

1,110,774

346,013

216,386

Revenue from professional services was $1.75 million for the six months ended March 31, 2026, or an increase of 662% from $0.23 million for the same period of last year.

Revenue from subscription service was $0.09 million for the six months ended March 31, 2026, or a decrease of 8% from $0.10 million for the same period of last year.

Revenue from payment channel services and others was $0.04 million for the six months ended March 31, 2026, or an increase of 125% from $0.02 million for the same period of last year.

Cost of Revenues

Cost of revenues was $1.11 million for the six months ended March 31, 2026, an increase of 413% from $0.22 million for the same period of last year.

Gross Profit

Gross profit was $0.77 million for the six months ended March 31, 2026, compared to $0.13 million for the same period of last year.

Gross margin was 41% for the six months ended March 31, 2026, an increase from 37% for the same period of last year.

Operating Expenses

Operating expenses were $2.65 million for the six months ended March 31, 2026, compared to $1.40 million for the same period of last year.

Other Income (Expense), Net

Total net other income was $0.03 million for the six months ended March 31, 2026, compared to a net other expense of $0.46 million for the same period of last year.

Net Loss

Net loss was $1.87 million for the six months ended March 31, 2026, compared to $1.74 million for the same period of last year.

Net Loss Attributable to Ordinary Shareholders

Net loss attributable to ordinary shareholders was $1.93 million for the six months ended March 31, 2026, compared to $1.74 million for the same period of last year.

Basic and Diluted Loss per Share

Basic and diluted loss per share was $0.20 for the six months ended March 31, 2026, compared to $0.19 for the same period of last year.

Financial Condition

As of March 31, 2026, the Company had cash of $4.55 million, compared to $9.91 million as of September 30, 2025.

Net cash used in operating activities was $1.21 million for the six months ended March 31, 2026, compared to $2.26 million for the same period of last year.

Net cash used in investing activities was $4.18 million for the six months ended March 31, 2026, compared to $3.44 million for the same period of last year.

Net cash provided by financing activities was $0.09 million for the six months ended March 31, 2026, compared to $7.24 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 through its cloud-based SaaS product and PaaS platform. The Company provides customized, comprehensive and fast-deployment omnichannel digital solutions to its customers. For more information, please visit the Company's website: https://ir.youxin.cloud.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "approximates," "assesses," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. References and links (including QR codes) to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.

For investor and media inquiries, please contact:

Youxin Technology Ltd

Investor Relations Department

Email: [email protected]

Ascent Investor Relations LLC

Tina Xiao

Phone: +1-646-932-7242

Email: [email protected]

YOUXIN TECHNOLOGY LTD

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2026 AND SEPTEMBER 30, 2025

(Expressed in U.S. dollars, except for the number of shares)

March 31, 2026

September 30, 2025

(Unaudited)

ASSETS

CURRENT ASSETS

Cash

4,552,381

9,912,327

Restricted cash

25,077

24,298

Accounts receivable, net

491,723

213,772

Contract assets

592,412

Deferred contract costs

24,124

13,103

Amount due from a related party

22,251

17,486

Prepaid expenses and other current assets

792,249

295,559

Total current assets

6,500,217

10,476,545

NON-CURRENT ASSETS

Property and equipment, net

44,280

2,518

Intangible assets, net

432,300

Operating lease right-of-use assets

149,120

78,862

Other non-current assets

10,792

10,457

Long-term prepayments

3,004,769

Prepayment for acquisition

210,704

Goodwill

1,223,018

Deferred tax assets, net

133,834

Total non-current assets

4,998,113

302,541

TOTAL ASSETS

11,498,330

10,779,086

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

Short-term bank loan

608,872

318,865

Accounts payable

76,407

34,190

Contract liabilities

253,659

30,024

Accrued expenses and other current liabilities

72,363

87,439

Payroll payable

1,429,372

1,134,532

Warrant liabilities

335,852

902,287

Amount due to related parties

582,748

Long-term bank loan - current

51,740

Operating lease liabilities - current

103,299

46,190

Deferred acquisition consideration - current

156,101

Total current liabilities

3,670,413

2,553,527

NON-CURRENT LIABILITIES

Operating lease liabilities - non-current

44,421

35,306

Deferred acquisition consideration - non-current

151,116

Total non-current liabilities

195,537

35,306

TOTAL LIABILITIES

3,865,950

2,588,833

COMMITMENTS AND CONTINGENCIES (NOTE 19)

SHAREHOLDERS' EQUITY

Class A ordinary shares, ($0.04 par value, 40,950,000 shares

authorized, 545,512 and 465,110 shares issued and outstanding as of

March 31, 2026 and September 30, 2025, respectively) (1)

21,820

18,604

Class B ordinary shares, ($0.0001 par value, 20,000,000 shares

authorized, 8,945,307 shares issued and outstanding as of March 31,

2026 and September 30, 2025)

895

Additional paid-in capital

33,261,226

32,614,603

Accumulated deficit

(26,997,783)

(25,065,907)

Accumulated other comprehensive income

594,179

622,058

Total Youxin Technology Ltd shareholders' equity

6,880,337

8,190,253

Non-controlling interests

752,043

Total shareholders' equity

7,632,380

8,190,253

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

11,498,330

10,779,086

(1)

All per share amounts and shares outstanding for all periods have been retroactively adjusted to reflect the 1-for-

80 reverse share split and 1-for-5 reverse share split for Class A ordinary share of Youxin Technology Ltd, which

was effective on September 30, 2025 and July 30, 2026, respectively.

YOUXIN TECHNOLOGY LTD

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE SIX MONTHS ENDED MARCH 31, 2026 AND 2025

(Expressed in U.S. dollars, except for the number of shares)

Six Months Ended March 31,

2026

2025

REVENUES

1,883,254

346,013

COST OF REVENUES

(1,110,774)

(216,386)

GROSS PROFIT

772,480

129,627

OPERATING EXPENSES

Selling expenses

(257,887)

(100,558)

General and administrative expenses

(2,047,803)

(1,162,739)

Research and development expenses

(341,420)

(140,261)

Total operating expenses

(2,647,110)

(1,403,558)

LOSS FROM OPERATIONS

(1,874,630)

(1,273,931)

OTHER INCOME (EXPENSE)

Other income

44,152

184

Other expense

(61,425)

(6,711)

Investment loss

(518,235)

(457,242)

Change in fair value of warrant liabilities

560,596

Total other income (expense), net

25,088

(463,769)

LOSS BEFORE TAXES

(1,849,542)

(1,737,700)

Income tax expense

(19,655)

NET LOSS

(1,869,197)

(1,737,700)

Less: Net income attributable to non-controlling interests

62,679

Net loss attributable to ordinary shareholders

(1,931,876)

(1,737,700)

NET LOSS

(1,869,197)

(1,737,700)

Other comprehensive loss:

Foreign currency translation (loss) income

(24,315)

89,206

TOTAL COMPREHENSIVE LOSS

(1,893,512)

(1,648,494)

Less: Comprehensive income attributable to non-controlling interests

66,243

Total comprehensive loss attributable to ordinary shareholders

(1,959,755)

(1,648,494)

Basic and diluted loss per share

(0.20)

(0.19)

Weighted average number of ordinary shares outstanding - basic and

diluted (1)

9,441,459

9,004,167

(1)

All per share amounts and shares outstanding for all periods have been retroactively adjusted to reflect the 1-for-

80 reverse share split and 1-for-5 reverse share split for Class A ordinary share of Youxin Technology Ltd, which

was effective on September 30, 2025 and July 30, 2026, respectively.

YOUXIN TECHNOLOGY LTD

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED MARCH 31, 2026 AND 2025

(Expressed in U.S. dollars, except for the number of shares)

Six Months Ended March 31,

2026

2025

Cash flows from operating activities

Net loss

(1,869,197)

(1,737,700)

Adjustments to reconcile net loss to cash used in operating

activities:

Expected credit loss of doubtful accounts

43,163

Amortization of operating right-of-use assets

29,167

24,524

Depreciation and amortization

48,196

716

Investment loss

518,235

457,242

Change in fair value of warrant liabilities

(560,596)

Amortization of discount on deferred acquisition consideration

4,118

Stock-based compensation

644,000

Deferred income taxes

19,655

Changes in operating assets and liabilities

Accounts receivable

342,521

(33,923)

Amount due from related parties

(4,764)

Amount due to related parties

14,682

Deferred contract costs

(11,021)

Contract assets

(266,686)

Prepaid expenses and other current assets

55,004

(510,774)

Other non-current assets

350

Accounts payable

11,328

2,412

Operating lease liabilities

(28,713)

(24,151)

Payroll Payable

(176,530)

(250,368)

Accrued expenses and other current liabilities

(140,633)

21,546

Contract liabilities

114,636

(206,570)

Net cash used in operating activities

(1,213,435)

(2,256,696)

Cash flows from investing activities

Purchase of property and equipment

(38,642)

Purchase of short-term investments

(619,031)

(3,440,000)

Redemption of short-term investments

100,915

Prepayment for purchase of property

(2,969,213)

Acquisition of subsidiaries, net of cash acquired of $58,651

(155,497)

Loan to a third party

(500,000)

Net cash used in investing activities

(4,181,468)

(3,440,000)

Cash flows from financing activities

Loan from a related party

282,613

Repayment to a related party

(141,260)

(978,594)

Proceeds from short-term bank loans

285,467

Repayment of short-term bank loans

(324,006)

Repayment of long-term bank loans

(15,881)

Issuance of ordinary shares upon warrant series b exercise

Issuance of ordinary shares upon IPO

10,350,000

Payment of offering costs

(2,133,785)

Net cash provided by financing activities

86,935

7,237,621

Effect of exchange rates on cash

(51,199)

76,811

Net (decrease) increase in cash and restricted cash

(5,359,167)

1,617,736

Cash and restricted cash at beginning of period

9,936,625

43,021

Cash and restricted cash at end of period

4,577,458

1,660,757

Reconciliation of cash and restricted cash with consolidated

balance sheets:

Cash

4,552,381

1,636,920

Restricted cash

25,077

23,837

Cash and restricted cash at end of period

4,577,458

1,660,757

SUPPLEMENTAL DISCLOSURE OF CASH FLOW

INFORMATION

Cash paid for interest expenses

7,194

Cash paid for income tax

SUPPLEMENTAL DISCLOSURE OF NON-CASH FLOWS

INFORMATION:

Operating lease assets obtained in exchange for operating lease

obligations

7,423

Deduction of issuance proceeds of prior years deferred offering cost

478,108

Deferred consideration recognized for acquisition

298,561

SOURCE Youxin Technology Ltd