Youxin Technology Ltd (NASDAQ: YAAS)

Youxin Technology Ltd is a SaaS and PaaS provider committed to helping retail enterprises digitally transform their businesses by enabling the development, use, and control of business applications without requiring complex IT infrastructure. The company leverages its AI + PaaS platform to deliver highly customized digital scenarios for clients, extending beyond CRM services to include HRM and office automation solutions. Its platform provides a comprehensive, real-time view of business operations across multiple interfaces, empowering clients to make critical decisions anytime and anywhere.

Youxin Technology Ltd generates revenue from professional services, payment channel services, and other revenues. Professional services include CRM system development, additional function development, and subscription services for ongoing maintenance and updates. Payment channel services enable users to perform transactions such as top-ups and withdrawals through the CRM system, with the company charging an agreed proportion of each transaction. Additional revenue comes from licensing fees charged to companies that use the firm’s SaaS products to serve their own customers.

The company operates through the following segments:

• Professional Services: This segment provides CRM system development services, additional function development, and subscription-based maintenance and updates. The CRM system development services encompass process design, project management, system deployment, implementation, and launch to trial operation and acceptance. Additional function development services fulfill customized customer needs for tailored CRM systems. Subscription revenues are derived from ongoing maintenance or update services to customers using the constructed CRM system.

• Payment Channel Services: This segment enables users to make payments such as top-ups, withdrawals, and transactions through the CRM system. The company charges an agreed proportion of the transaction value for facilitating these payment services. Revenue is generated based on transaction volume processed via the platform. This service enhances the utility of the CRM system by integrating financial operations directly into the business workflow.

• Other Revenues: This segment includes license fees charged to companies that provide services to their own customers based on Youxin Technology Ltd’s SaaS products. These licensing arrangements allow third parties to leverage the firm’s standardized SaaS offerings under their own brand. The segment supports broader market reach through partner-enabled distribution of the company’s core technology. Revenue is recurring and tied to the usage of licensed SaaS products by end-users.

Youxin Technology Ltd holds a niche position in China’s cloud services market as one of the few domestic providers capable of supporting external digital applications, particularly transaction-related distribution, store, and e-commerce clouds. The company differentiates itself through its low-code integration capabilities, pre-configured complex domain-level objects, and full support for internal and external applications. Its competitive advantages include a highly customizable front-end interface, compatibility with mobile terminals such as APP, Official Account, Mini Program, and enterprise WeChat, and support for secondary development using its own domain-specific language. Key competitors include Yongyou, Xuanwu Cloud, Force.com, ClickPaas, Mingdao Cloud, and Youzan.

Youxin Technology Ltd primarily serves mid-tier brands in Mainland China that rely on offline direct distribution and have significant IT upgrading needs. The company’s customers are concentrated in the fast-moving consumer goods, cosmetics, and food and drink sectors. Specific customers referenced in the filing include P&G Guangzhou and Lancang Ancient Tea, which have utilized the company’s PaaS platform to develop customized CRM SaaS products. The company generally enters into annual cloud service contracts with PaaS customers and project-based contracts for enterprise PaaS cloud service customers.