Youlife (YOUL) Registration filing summary

Company overview and business model

• Operates as a leading blue-collar lifetime service provider in China, offering vocational education, HR recruitment, employee management, and market services to blue-collar talent and corporate clients.

• Business model integrates school management, curriculum development, HR recruitment, labor outsourcing, and value-added market services, creating a synergistic ecosystem.

• Largest blue-collar lifetime service platform in China by 2023 revenue, with a strong focus on digitalization and technology-driven service delivery.

• Expanded nationwide with 25 managed vocational schools, 25 curriculum projects, and 91 offline service sites as of December 31, 2024.

• Key clients include over 7,000 corporates, including 120+ Fortune 500 companies, and the company has a growing overseas presence.

Financial performance and metrics

• Revenue grew from RMB724.1 million in 2022 to RMB1,365.9 million in 2023 (88.6% YoY), and to RMB1,585.6 million (US$217.2 million) in 2024 (16.1% YoY).

• Gross profit increased from RMB127.1 million in 2022 to RMB200.4 million in 2023 (57.6% YoY), and to RMB229.1 million (US$31.3 million) in 2024 (14.3% YoY).

• Net results: RMB223.5 million net loss in 2022, RMB99.3 million net profit in 2023, and RMB52.4 million net loss (US$7.2 million) in 2024.

• Gross margin declined from 17.6% in 2022 to 14.7% in 2023 and 14.5% in 2024, mainly due to business mix shifts.

• Cash and cash equivalents at year-end 2024 were RMB126.5 million (US$17.3 million); net cash from operating activities was RMB6.3 million (US$0.9 million) in 2024.

• Accumulated losses as of December 31, 2024 were RMB621.8 million (US$85.2 million).

Use of proceeds and capital allocation

• Proceeds up to US$87.6 million may be received from warrant exercises, but exercise is unlikely at current ADS price (US$2.01 vs. US$11.50 exercise price).

• Any proceeds from warrant exercises will be used for general corporate purposes.

• No proceeds will be received from the resale of securities by selling securityholders.