Youxin Technology Ltd.

Company Overview

Business Model: Youxin Technology Ltd is a SaaS (Software as a Service) and PaaS (Platform as a Service) provider focused on digitally transforming retail enterprises. The company's core value proposition is to enable clients to develop, use, and control business applications without needing to purchase complex IT infrastructure. Revenue is primarily generated from professional services (customized CRM system development, additional function development, and subscription services), payment channel services, and licensing fees for its SaaS products.

Market Position: Youxin Technology Ltd operates in the emerging and evolving cloud service market in China, specifically targeting mid-tier brands that rely heavily on offline direct distribution with high IT update requirements. The company positions itself as one of the few PaaS platforms in Mainland China capable of building complex external digital applications (transaction-related distribution, store, and e-commerce clouds). Its competitive advantages include end-to-end unified enterprise solutions, best-in-class features and functionality (including AI models for customized code generation via natural language), abundant retail industry experience, and reduced costs for clients compared to traditional IT solutions.

Recent Strategic Developments:

• Third-Generation PaaS Platform: During the November 2022 Guangzhou city lockdown, Youxin Technology Ltd shifted operations to remote work and implemented its third-generation PaaS platform. This platform requires less personnel for implementation due to embedded functionalities.
• AI Integration: In fiscal year 2025, the R&D department introduced AI models to generate complex customized code through natural language, enhancing product delivery capabilities and enabling conversational interaction in user scenarios.
• Strategic Acquisition: On October 29, 2025, Hainan Youxin Mutual Enterprise Management Co., Ltd. (a wholly foreign-owned enterprise in Mainland China, or WFOE, and a subsidiary of Youxin Technology Ltd) acquired 51% of the equity interest of Celnet Technology Co., Ltd., one of the largest partners and platinum partners of Salesforce in China.
• Yunzhuidan SaaS Product: Launched in February 2023 for mid-tier brands in the Chinese retail industry, offering a more standardized SaaS product. However, by the end of fiscal year 2024, the company largely pulled back from offering trials or investing capital for large-scale sales of Yunzhuidan.
• Partnership Expansion: Youxin Technology Ltd is a member of Tencent Holdings Ltd's Cloud Native Accelerator, leveraging cooperation in technology, business, community, and funding. It also partners with Beijing Jiujiatong Technology Co. Ltd. for SMS service, Ali Cloud for cloud storage, Bluelinksys for implementation, and Tencent Cloud Computing Beijing Co, Ltd. for network services.

Geographic Footprint: Youxin Technology Ltd is a holding company incorporated in the Cayman Islands. Its operating subsidiary, Guangzhou Youxin Technology Co., Ltd., and its WFOE, Hainan Youxin Mutual Enterprise Management Co., Ltd., conduct all operations in Mainland China. All clients are PRC persons. The company also has holding subsidiaries in the British Virgin Islands and Hong Kong.

Cross-Border Operations:

• Subsidiaries:
  • Youxin Cloud (BVI) Ltd (British Virgin Islands) - 100% held by Youxin Technology Ltd.
  • Youxin Cloud (HK) Limited (Hong Kong) - 100% held by Youxin Cloud (BVI) Ltd.
  • Hainan Youxin Mutual Enterprise Management Co., Ltd. (PRC) - 100% held by Youxin Cloud (HK) Limited.
  • Guangzhou Youxin Technology Co., Ltd. (PRC) - 100% held by Hainan Youxin Mutual Enterprise Management Co., Ltd.
  • Celnet Technology Co., Ltd. (PRC) - 51% acquired by Hainan Youxin Mutual Enterprise Management Co., Ltd. on October 29, 2025.
• Regulatory Compliance: The company is subject to PRC laws and regulations, including those related to cybersecurity, data privacy, and foreign investment. It has completed filing procedures with the China Securities Regulatory Commission (CSRC) for its overseas offering and listing.

Financial Performance

Revenue Analysis

Profitability Metrics (FY2025 vs. FY2024):

• Gross Margin: 33% (vs. 66%)
• Operating Margin: -529% (vs. -266%)
• Net Margin: -1,788% (vs. -245%)

Investment in Growth:

• R&D Expenditure: $158,190 (29% of revenue) in FY2025, a decrease of 86% from $1,139,922 in FY2024.
• Capital Expenditures: Not explicitly stated as a separate line item, but net cash used in investing activities was $3,028,941 in FY2025, primarily due to the purchase of short-term investments and prepayment for acquisition.
• Strategic Investments: Prepayment for the acquisition of Celnet Technology Co., Ltd. amounted to $210,704 as of September 30, 2025.

Currency Impact Analysis:

• Youxin Technology Ltd's reporting currency is the U.S. dollar, while its operating subsidiary, Guangzhou Youxin Technology Co., Ltd., uses RMB as its functional currency.
• Fluctuations in the RMB against the U.S. dollar can affect reported financial results in U.S. dollar terms.
• The company's exposure to foreign exchange risk primarily relates to financial assets denominated in U.S. dollars.
• No specific quantitative foreign exchange impact on revenue and earnings or detailed hedging strategies were disclosed beyond general statements.

Business Segment Analysis

Cloud Services

Financial Performance: Youxin Technology Ltd operates as a single operating and reportable segment, providing SaaS and PaaS services.

• Revenue Breakdown (FY2025 vs. FY2024):
  • Professional services: $515,684 (96% of total revenue) in FY2025, up from $275,314 (53% of total revenue) in FY2024.
    • Customized CRM system development service: $285,188 in FY2025 (vs. nil in FY2024), due to restarting this service.
    • Additional function development service: $38,808 in FY2025, down 9% from $42,758 in FY2024.
    • Subscription service: $191,688 in FY2025, down 18% from $232,556 in FY2024, attributed to decreasing customized CRM system development services in prior periods.
  • Payment channel services: $21,590 (4% of total revenue) in FY2025, down 90% from $206,526 (40% of total revenue) in FY2024.
  • Other revenues: $2,200 in FY2025, down 94% from $39,401 in FY2024.
• Operating Margin: Not provided for this segment specifically, as it is the sole segment.
• Key Growth Drivers: The company anticipates revenue growth from new distributors and customers purchasing licenses and professional services for its third-generation PaaS platform. The integration of AI models to generate customized code via natural language is expected to enhance product delivery capabilities and attract clients.

Product Portfolio:

• PaaS Platform (Youxin Cloud): Designed to enable mid-tier brands to operate flexibly and in a distributed manner. It supports building complex external digital applications (distribution, store, and e-commerce clouds) and offers high customization. Key features include scalability, accessibility, data security (ISO27001, Level 3 Equal Protection, encryption), a highly secured multi-tenant system, industry-standard components (Linux, MySQL, Spring Cloud microservices, Kubernetes), and a Micro Cloud Service Architecture for high concurrency, stability, and adaptability. It includes four core applications (Distribution Cloud, Store Cloud, E-Commerce Cloud, Customer Cloud) and various engines (Object, Interface, Process, All-user Communication, Integration, Data, Data and Security, Exap Domain Language).
• SaaS Product (Yunzhuidan): Launched in February 2023, this ready-to-use product provides standardized solutions for mid-tier brands in the Chinese retail industry, enabling interaction across multiple digital channels. However, large-scale sales and trials were largely pulled back by end of FY2024.
• AI+PaaS Solution: Leverages PaaS expertise to offer an AI-powered digital enablement solution for mid-tier brands, focusing on accelerating real-time online communication, satisfying customized demands, adapting to organizational changes, user-friendliness, and affordability.

Market Dynamics: The company primarily serves mid-tier brands in the fast-moving consumer goods, cosmetics, and food and drink sectors in Mainland China. These clients typically have over 50 sales personnel, 500-1,000 dealers, and distribute to 50,000-200,000 terminal stores, with annual sales between RMB100 million and 1 billion. The market for retail public cloud services in China is experiencing rapid growth, with public cloud services expected to reach RMB 1,155 billion in 2027. SaaS and PaaS are identified as future growth drivers.

Geographic Revenue Distribution:

• Mainland China: Substantially all revenues are derived from Mainland China.
• Growth Markets: The company's marketing team and partners are attempting to introduce the PaaS platform into the international market to meet the needs of overseas-bound companies in 2026.

International Operations & Geographic Analysis

Revenue by Geography: The company's assets are substantially all located in the PRC, and substantially all revenues and expenses are derived in the PRC. Therefore, no geographical segments are presented.

International Business Structure:

• Subsidiaries:
  • Youxin Cloud (BVI) Ltd (British Virgin Islands)
  • Youxin Cloud (HK) Limited (Hong Kong)
  • Hainan Youxin Mutual Enterprise Management Co., Ltd. (PRC WFOE)
  • Guangzhou Youxin Technology Co., Ltd. (PRC operating subsidiary)
  • Celnet Technology Co., Ltd. (PRC, 51% acquired by WFOE)
• Joint Ventures: Not explicitly mentioned in the filing.
• Licensing Agreements: Not explicitly mentioned as cross-border licensing arrangements for revenue generation, but the company charges a license fee to companies that provide services to their own customers based on its SaaS products.

Cross-Border Trade:

• Export Markets: Not explicitly detailed.
• Import Dependencies: Not explicitly detailed.
• Transfer Pricing: The company seeks to structure its business in a tax-efficient manner, and its transfer pricing policies are subject to scrutiny by PRC tax authorities.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: Not disclosed.
• Dividend Payments: Youxin Technology Ltd has never declared or paid any cash dividends and does not anticipate or intend to pay cash dividends in the foreseeable future, intending to retain future earnings for business operations and expansion.
• Dividend Yield: Not applicable.
• Future Capital Return Commitments: Not disclosed.

Balance Sheet Position (as of September 30, 2025):

• Cash and Equivalents: $9,912,327
• Total Debt: $318,865 (short-term bank loan)
• Net Cash Position: $9,593,462
• Credit Rating: Not disclosed.
• Debt Maturity Profile: Short-term bank loan of $318,865 due within one year (July 26, 2026).

Cash Flow Generation (FY2025):

• Operating Cash Flow: -$3,913,752 (Net cash used in operating activities)
• Free Cash Flow: Not explicitly calculated, but significant cash used in investing activities ($3,028,941) and net cash provided by financing activities ($16,790,704).
• Cash Conversion Metrics: Not explicitly disclosed.

Currency Management:

• Cash holdings are primarily in RMB within the PRC, which is not freely convertible.
• The company's functional currency is RMB for its operating subsidiary and USD for the holding company.
• No specific natural hedging through operational diversification or financial hedging instruments and strategies were explicitly detailed.

Operational Excellence

Production & Service Model: Youxin Technology Ltd provides customized system development services and cloud-based connectivity through its PaaS platform. The service model emphasizes rapid deployment (approximately two months for customized applications), high customization, and efficient management of complex IT infrastructure for mid-tier retail brands. The company aims to create approximately 90% standardized SaaS products from its PaaS platform while allowing for additional customization.

Global Supply Chain Architecture: Key Suppliers & Partners:

• SMS Service: Beijing Jiujiatong Technology Co. Ltd.
• Cloud Storage: Ali Cloud
• Implementation: Bluelinksys
• Network Services: Tencent Cloud Computing Beijing Co, Ltd.
• Other Hardware/Software Vendors: Relies on third-party computer hardware, software, and cloud computing platforms.

Facility Network:

• Manufacturing: Not applicable as a software/cloud service provider.
• Research & Development: The R&D team consisted of 15 staff as of September 30, 2025. R&D expenses were $158,190 in FY2025.
• Distribution:
  • Guangzhou Office: Room 1005, 1006, 1007, No. 122 Huangpu Avenue West, Tianhe District, Guangzhou (162.22 sq. meters, lease expires May 9, 2027).
  • Celnet Offices (acquired Oct 2025): Guangzhou (371.53 sq. meters, lease expires Nov 30, 2027), Shanghai (lease expires Apr 30, 2026), Beijing (48.87 sq. meters, lease expires Aug 15, 2026).

Operational Metrics:

• Employee Headcount: Decreased from 57 in FY2023 to 32 in FY2024, and further to 22 in FY2025, primarily due to the shift to the third-generation PaaS platform which requires less personnel for implementation.
• Certifications: ISO27001 accreditation (information security management), Level 3 Equal Protection certification (information system security).

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Primary approach, conducted by an experienced industry-focused sales team.
• Channel Partners: Youxin Technology Ltd seeks to increase partnerships with distributors for its third-generation PaaS platform, where distributors handle customer acquisition, sales, implementation, and delivery. Current strategic partners include Tencent Holdings Ltd (Cloud Native Accelerator), Beijing Jiujiatong Technology Co. Ltd., Ali Cloud, and Bluelinksys.
• Digital Platforms: Not explicitly detailed beyond the nature of cloud services.

Customer Portfolio: Enterprise Customers:

• Target Market: Mid-tier brands in Mainland China, particularly those relying on offline direct distribution with high IT update requirements. These customers typically have over 50 sales personnel, 500-1,000 dealers, and distribute to 50,000-200,000 terminal stores, with annual sales between RMB100 million and 1 billion.
• Key Industries: Fast-moving consumer goods, cosmetics, and food and drink sectors.
• Strategic Partnerships: P&G Guangzhou and Lancang Ancient Tea are mentioned as leading brands for whom customized CRM SaaS products were developed.
• Customer Concentration:
  • FY2025: Customer B (39%), Customer E (21%), Customer F (16%). Top 3 customers accounted for 76% of total net revenue.
  • FY2024: Customer A (37%), Customer B (26%), Customer D (14%). Top 3 customers accounted for 77% of total net revenue.
  • FY2023: Customer A (30%), Customer B (16%), Customer C (16%), Customer D (14%). Top 4 customers accounted for 76% of total net revenue.
  • Accounts Receivable (Sep 30, 2025): Customer B (83%), Customer A (11%), Customer E (1%). Top 3 customers accounted for 95% of total gross accounts receivable.

Regional Market Penetration: The company's current revenue is largely derived from China. Efforts are underway to introduce the PaaS platform into the international market for overseas-bound companies in 2026.

Competitive Intelligence

Global Market Structure & Dynamics

Industry Characteristics: The PaaS cloud service market in China is in an early stage of development but has experienced rapid growth. The overall China cloud services market grew from RMB 69.2 billion in 2017 to RMB 442.7 billion in 2022 (CAGR of 44.9%) and is projected to reach RMB 1,466.8 billion in 2027 (CAGR of 27.1%). Public cloud services in China grew from RMB 26.5 billion in 2017 to RMB 309.9 billion in 2022 (CAGR of 63.5%) and are expected to reach RMB 1,155 billion in 2027 (CAGR of 30.1%). SaaS and PaaS comprised 25.7% of public cloud service revenue in 2022, with PaaS having a CAGR of 92.8% (2017-2022) and an estimated CAGR of 31.9% (2022-2027), and SaaS having a CAGR of 36.1% (2017-2022) and an expected CAGR of 29.8% (2022-2027).

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• PaaS Platforms (China): Yongyou, Xuanwu Cloud.
• SaaS Products (China): Force.com, ClickPaas, Mingdao Cloud, Youzan.
• Other: Companies with internally developed applications, vendors of packaged business software, software companies providing products as services, vendors offering specialized software, traditional business intelligence suppliers, marketing vendors, established and emerging cloud-only vendors, traditional platform development environments.

Regional Competitive Dynamics: Youxin Technology Ltd believes its products offer distinct advantages over competitors, including comprehensive communication support, low-code integration of external services, platform performance, interoperability, scalability, pre-configured domain-level services, ability to build a supply retail chain ecosystem, full support for internal and external applications, highly customizable front-end interface, full support for APP, Official Account, Mini Program, and support for secondary development.

Risk Assessment Framework

Strategic & Market Risks

• Global Market Dynamics: The company operates in an emerging and evolving market in China, subject to rapid technological change, evolving industry standards, and changing client needs. Failure to adapt or compete effectively could harm operating results.
• Technology Disruption: Risks from new technologies offering competitive products at lower prices or more efficiently. The company must continuously develop new solutions and enhance existing products to keep pace with rapid technological developments.
• Customer Concentration: A significant portion of net revenues is derived from a small number of major clients (85% from top customers in FY2025). Loss of these clients or reduced usage could materially affect revenue.
• Brand Reputation: Failure to maintain and enhance brand identity, particularly associations with trust, client priority, and innovation, could adversely affect business.

Operational & Execution Risks

• Global Supply Chain Vulnerabilities: Reliance on a limited number of suppliers, manufacturers, and logistics partners, particularly for components and parts, increases supply chain risk. Lack of long-term binding commitments with suppliers.
• Regional Disruptions: Operations are dependent on third-party data center hosting facilities and cloud computing platform providers in China, vulnerable to damage or interruption from natural disasters, power loss, telecommunications failures, cyberattacks, or local administrative actions.
• IT System Security: Services involve storage and transmission of sensitive client data. Security breaches or compromises of IT systems or third-party infrastructure could lead to reputational harm, legal exposure, and financial liabilities.
• Service Defects/Disruptions: Complexity of services and reliance on third-party software may lead to errors or defects, causing downtime, reputational damage, and potential claims from clients.
• Personnel Resources & Infrastructure Strain: Significant growth in client base and personnel could strain management, administrative, operational, and financial infrastructure. Failure to scale operations and increase productivity effectively could hinder business plan execution.
• Key Personnel Loss: Success depends on continued services of executive officers and key development/operations personnel. Competition for talent is substantial.
• Third-Party Developer/Provider Dependence: Success relies on third-party developers and implementation engineers building complementary applications and integrations. Clients seeking warranties for third-party applications could expose the company to liabilities.

Financial & Regulatory Risks

• Currency & Financial Risks: Fluctuations in RMB exchange rates against the U.S. dollar could adversely affect reported revenues and financial condition. Proceeds from offerings are in U.S. dollars, while most expenses are in RMB.
• Interest Rate Risk: Exposure relates to excess cash in short-term instruments.
• Credit & Liquidity: Recurring net cash outflows from operating activities since inception. Reliance on public offerings for funding. Accumulated deficit of $25.1 million as of September 30, 2025.
• Multi-Jurisdictional Compliance: Operating in China involves complex and evolving regulatory environments (e.g., internet, data privacy, foreign investment, M&A rules, CSRC oversight). Failure to obtain/maintain licenses or comply with regulations could lead to penalties, business disruption, or delisting from U.S. exchanges (HFCAA).
• Tax Regulations: Risk of being deemed a PRC resident enterprise, subjecting global income to PRC taxation. Uncertainties in interpretation and enforcement of PRC tax laws, including those related to indirect transfers and withholding taxes on dividends. Loss of preferential tax treatments (e.g., HNTE status for Guangzhou Youxin Technology Co., Ltd.) could increase tax rates.
• Legal Proceedings: Involvement in legal disputes (e.g., labor arbitration claims) could result in substantial costs, reputational damage, and diversion of resources.

Geopolitical & External Risks

• Country-Specific Risks (China): Substantial operations in China expose the company to economic, political, and legal developments, including government oversight, regulatory interference, and potential changes in laws (e.g., cybersecurity, data privacy, anti-monopoly).
• Economic Risk: Business is sensitive to general economic conditions in China and globally. Downturns could reduce demand for services.
• Regulatory Changes: Rapidly evolving PRC laws and regulations, particularly in the internet and technology sectors, can be vague and uncertain, potentially impairing profitability or requiring costly compliance actions. Increased scrutiny over overseas listings and cross-border data flows by Chinese authorities.
• International Trade Policies: Trade disputes, tariffs, or protectionist measures between the U.S. and China could harm international commerce and negatively impact the company's markets and clients.
• PCAOB Inspection Risk: While the auditor is based in New York and has been inspected, future regulatory changes in China could prevent audit documentation from being provided to the PCAOB, potentially leading to delisting under the HFCAA.

Innovation & Technology Leadership

Research & Development Focus: Youxin Technology Ltd allocates a substantial portion of its operating expenses to R&D, including upgrading infrastructure, improving cloud technology, and developing new products and solutions. The R&D team consisted of 15 staff as of September 30, 2025. The company's strategy is to enhance technological capabilities to provide a suite of software products that can be delivered rapidly, affordably, flexibly, and iteratively to mid-tier brands in China. Recent focus includes integrating AI models to generate complex customized code via natural language.

Global R&D Network:

• R&D Center Location: Primarily in Mainland China, with Guangzhou Youxin Technology Co., Ltd. as the operating subsidiary.
• Innovation Pipeline: Development of the third-generation PaaS platform, AI-powered digital enablement solutions, and new features for existing products. The company has designed over 80 PaaS cloud solutions covering retail, religion, and cosmetic industries.

Intellectual Property Portfolio:

• Patent Strategy: Owns 2 granted patents and 8 pending patents in the PRC.
• Licensing Programs: Charges a license fee to companies that provide services to their own customers based on its SaaS products.
• IP Litigation: Risks of claims by third parties for intellectual property infringement due to the complex and evolving nature of the software and internet industries.
• Copyrights: Owns 65 software copyrights and 2 literary copyrights in China.
• Domain Names: Owns 7 effective domain names in China.

Technology Partnerships:

• Strategic Alliances: Member of Tencent Holdings Ltd's Cloud Native Accelerator, collaborating on technology, business, community, and investment.
• Research Collaborations: Not explicitly detailed beyond the Tencent partnership.

Leadership & Governance

Executive Leadership Team

International Management Structure: Not explicitly detailed, but the executive team has international experience (e.g., Xirui Guo, Richard Wee Yong Seow, Edward C. Ye). Regional leadership and reporting relationships are not specified.

Board Composition: The Board of Directors consists of five directors, with three independent directors (Qing Gao, Richard Wee Yong Seow, and Edward C. Ye) who satisfy Nasdaq's independence requirements. The audit committee is composed of these three independent directors, with Qing Gao serving as Chair. Edward C. Ye and Qing Gao are designated as "financial experts." The company is a "controlled company" under Nasdaq rules due to Shaozhang Lin's beneficial ownership of 61.89% of total voting power, but does not intend to rely on this exemption for at least one year post-IPO.

Regulatory Environment & Compliance

Multi-Jurisdictional Regulatory Framework:

• Cayman Islands: Incorporated here, not subject to income, corporation, or capital gains tax. No withholding tax on dividends.
• British Virgin Islands: Subsidiary Youxin Cloud (BVI) Ltd incorporated here, not subject to income or capital gains tax. No withholding tax on dividends.
• Hong Kong: Subsidiary Youxin Cloud (HK) Limited incorporated here, subject to 16.5% Hong Kong profits tax on activities conducted in Hong Kong. Exempted from income tax on foreign-derived income, no withholding tax on dividend remittances.
• PRC: Operating subsidiaries (Hainan Youxin Mutual Enterprise Management Co., Ltd. and Guangzhou Youxin Technology Co., Ltd.) are subject to PRC enterprise income tax (EIT) at a unified 25% rate. Guangzhou Youxin Technology Co., Ltd. was entitled to a reduced 15% rate as a High and New Technology Enterprise (HNTE) from 2021-2023 but lost this status after December 20, 2024, and is now subject to 25%. It qualifies for preferential tax rates for small and low-profit enterprises.
• VAT: Subject to 6% VAT and related surcharges on services in the PRC.

Cross-Border Compliance:

• CSRC Filing: Completed filing procedures with the CSRC for its overseas offering and listing, receiving a filing notice on February 7, 2024.
• Cybersecurity & Data Privacy: Subject to PRC Cybersecurity Law, Data Security Law, Personal Information Protection Law, and Cybersecurity Review Measures. The company has implemented strict data protection policies, an Information Security Committee, and obtained ISO 27001 and Level 3 Equal Protection certifications. It does not believe it is a "critical information infrastructure operator" or "online platform operator" requiring cybersecurity review for overseas listing, but acknowledges uncertainties in interpretation.
• Foreign Exchange Controls: RMB is not freely convertible. Dividend payments from PRC subsidiaries to the Cayman Islands holding company are subject to PRC foreign exchange regulations and withholding tax (potentially 5% for Hong Kong entity if conditions met).
• Anti-Corruption: Subject to U.S. Foreign Corrupt Practices Act (FCPA) and Chinese anti-corruption laws. Implementing an anti-corruption program.

International Tax Strategy:

• Transfer Pricing: Not explicitly detailed, but the company structures its business in a tax-efficient manner, subject to potential challenge by PRC tax authorities.
• Tax Treaties: Hong Kong subsidiary may benefit from a reduced 5% withholding tax rate on dividends from PRC entities if specific conditions are met.
• BEPS Compliance: Not explicitly detailed.

Environmental & Social Impact

Global Sustainability Strategy: Not explicitly detailed in the filing.

Regional Sustainability Initiatives: Not explicitly detailed in the filing.

Social Impact by Region:

• Labor Standards (China): Required to pay various statutory employee benefits (pensions, medical, work-related injury, unemployment, maternity insurance, housing provident fund). The company has made contributions of $227,152 in FY2025. There have been instances of non-compliance with social insurance and housing provident fund contributions and compensations for laid-off employees, which could lead to penalties.

Currency Management & Financial Strategy

Multi-Currency Operations:

• Functional Currency: RMB for Guangzhou Youxin Technology Co., Ltd., USD for Youxin Technology Ltd and its BVI/HK subsidiaries.
• Currency Exposure: Primarily exposed to RMB fluctuations against the U.S. dollar, as most revenues and expenses are RMB-denominated, but proceeds from offerings are in U.S. dollars.
• Cash Holdings: Substantially all cash is held in financial institutions in the PRC.

Hedging Strategies:

• Foreign Exchange Risk Management: The company has not been, and does not expect to be, exposed to material interest rate risks, and therefore has not used any derivative financial instruments to manage its interest risk exposure. No specific financial hedging instruments or strategies were detailed for currency risk.