Youxin Technology Ltd

What they do

Youxin Technology develops and sells a SaaS-based CRM platform, offering subscription services, customized CRM system development, additional function development, and professional services. The company operates primarily in China through its subsidiaries, including Guangzhou Youxin Technology Co., Ltd. and Hainan Youxin Mutual Enterprise Management Co., Ltd. Revenue is generated from software subscriptions and one-off development projects.

Revenue drivers

• Subscription Service — Recurring revenue from CRM software subscriptions; this is a core component of the business, though total revenue has been shrinking.
• Customized CRM System Development Service — One-time fees for building and deploying tailored CRM systems for clients; contributes to revenue but is project-based and lumpy.
• Additional Function Development Service — Revenue from developing extra features or modules on top of existing CRM installations, providing incremental income.
• Professional Services — Fees for implementation, training, or consulting services tied to CRM deployments; smaller revenue stream.

Recent performance

For fiscal 2025 (year ended September 30, 2025), revenue was $539,474, nearly flat versus $521,241 in fiscal 2024 and down sharply from $895,978 in fiscal 2023 and $1.3 million in fiscal 2022. Net loss widened to $9.6 million in fiscal 2025 from $1.3 million in fiscal 2024, with diluted EPS of $-1.04 versus $-0.14. Operating cash flow was negative at $-3.9 million, improving from $-728,066 in the prior year. As of September 30, 2025, the company held $9.9 million in cash and equivalents with total assets of $10.8 million and shareholder equity of $8.2 million.

Strategy

The company is focused on growing its SaaS CRM business in China, though revenue has declined in recent years. Management has not disclosed a detailed forward strategy in the provided excerpts. It completed an IPO in December 2024 and a subsequent public offering in September 2025, which brought in cash. The company continues to invest in product development and sales, but faces significant operational challenges.

Risks

• Revenue decline — Annual revenue has fallen from $1.3 million in 2022 to $539,474 in 2025, indicating shrinking demand or loss of customers.
• Persistent net losses — Net losses have continued, including a $9.6 million loss in fiscal 2025, and the company has negative operating cash flow.
• Dependence on China market — Operations are concentrated in China, exposing the company to regulatory, economic, and geopolitical risks specific to that market.
• Limited scale — With annual revenue under $1 million, the company operates at a very small scale and may not achieve profitability.

Outlook

Management has not provided specific forward guidance in the provided excerpts. The company's cash position of $9.9 million provides a runway, but given the revenue trend and losses, sustainability is uncertain. Future performance will depend on reversing the revenue decline and controlling costs.