# EDGAR Filing Document

**Accession Number:** 0002028177
**File Stem:** 0001213900-26-067589
**Filing Date:** 2026-6
**Character Count:** 909433
**Document Hash:** f5ba77ae7d721b814504a61ce014d9da
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-067589.hdr.sgml**: 20260611

**ACCESSION NUMBER**: 0001213900-26-067589

**CONFORMED SUBMISSION TYPE**: POS AM

**PUBLIC DOCUMENT COUNT**: 132

**FILED AS OF DATE**: 20260611

**DATE AS OF CHANGE**: 20260611

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Youlife Group Inc.
- **CENTRAL INDEX KEY:** 0002028177
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-EDUCATIONAL SERVICES [8200]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 000000000

**FILING VALUES:**
- **FORM TYPE:** POS AM
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-289480
- **FILM NUMBER:** 261081628

**BUSINESS ADDRESS:**
- **STREET 1:** ROOM C431, CHANGJIANG SOFTWARE PARK
- **STREET 2:** NO.180 SOUTH CHANGJIANG ROAD
- **CITY:** SHANGHAI
- **STATE:** F4
- **ZIP:** 201900
- **BUSINESS PHONE:** 862161736744

**MAIL ADDRESS:**
- **STREET 1:** ROOM C431, CHANGJIANG SOFTWARE PARK
- **STREET 2:** NO.180 SOUTH CHANGJIANG ROAD
- **CITY:** SHANGHAI
- **STATE:** F4
- **ZIP:** 201900

?xml version='1.0' encoding='ASCII'?

**As filed with the U.S. Securities and Exchange Commission on June 11, 2026.**

**Registration No. 333-289480**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Post-effective Amendment No.1**

**to**

**FORM F-1**

**REGISTRATION STATEMENT**

***Under***

***The Securities Act of 1933***

 ****

**Youlife Group Inc.**

(Exact name of Registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **The Cayman Islands** | **8200** | **Not Applicable** |
| (State or other jurisdiction of<br> incorporation or organization) | (Primary Standard Industrial<br> Classification Code Number) | (I.R.S. Employer<br> Identification Number) |

---

**Room C431, Changjiang Software Park**

**No.180 South Changjiang Road**

**Baoshan District, Shanghai 201900, China**

**+86 21 6173-6744**

(Address, including zip code, and telephone number, including area code, of Registrant's principal executive offices)

**Cogency Global Inc.**

**122 East 42nd Street, 18th Floor**

**New York, NY 10168**

**(800) 221-0102**

(Name, address, including zip code, and telephone number, including area code, of agent for service)

 ****

***Copies to:***

**Dan Ouyang, Esq.**

**K. Ronnie Li, Esq. Baker & Mckenzie LLP**

**Suite 3401, China World Office 2 China World Trade Centre**

**No. 1 Jianguomenwai Avenue Chaoyang District**

**Beijing 100004** 

**The People's Republic of China**

**(86) 10 6535-3800**

**Approximate date of commencement of proposed sale to the public:**

As soon as practicable after this registration statement becomes effective.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box. ☒

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933.

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

**The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant will file a further amendment which specifically states that this registration statement will thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the registration statement will become effective on such date as the U.S. Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.**

† The term "new or revised financial accounting standard"
 refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards
 Codification after April 5, 2012.

**EXPLANATORY NOTE**

On August 29, 2025, the registration statement on Form F-1 (File No. 333-289480) (the "Registration Statement") of Youlife Group Inc. (the "Registrant") was declared effective by the U.S. Securities and Exchange Commission (the "SEC"). The Registrant is filing this post-effective amendment No. 1 to the Registration Statement to include its financial statements as of and for the year ended December 31, 2025 and to update certain other information contained in the Registration Statement.

No additional securities are being registered by this post-effective amendment No. 1. All applicable registration fees were paid at the time of the original filing of the Registration Statement.

**The information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell nor does it seek an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.**

**SUBJECT TO COMPLETION, DATED June 11, 2026**

**PRELIMINARY PROSPECTUS**

**UP TO 7,617,500 CLASS A ORDINARY SHARES REPRESENTED BY AMERICAN DEPOSITARY SHARES ISSUABLE UPON THE EXERCISE OF WARRANTS** 

**UP TO 5,964,450 CLASS A ORDINARY SHARES REPRESENTED BY AMERICAN DEPOSITARY SHARES AND 545,000 WARRANTS TO PURCHASE CLASS A ORDINARY SHARES REPRESENTED BY AMERICAN DEPOSITARY SHARES OFFERED BY SELLING SECURITYHOLDERS**

**OF**

**YOULIFE GROUP INC.**

This prospectus relates to the issuance by Youlife Group Inc. ("we," "us," "Youlife," "our company," or the "Company") of up to 7,617,500 Class A ordinary shares represented on a one-for-one basis by American depositary shares, par value US$0.0001 per share, of the Company (the "ADSs"), issuable upon the exercise of warrants to purchase ADSs at an exercise price of US$11.50, which were issued on July 9, 2025 (the "Closing Date") in exchange for (1) 6,900,000 public warrants of Distoken Acquisition Corporation ("Distoken") that were issued in the initial public offering of Distoken (the "Public Warrants"), and (2) 545,000 private warrants of Distoken that were issued to Xiaosen Sponsor LLC ("Xiaosen" or the "Sponsor") in a concurrent private placement to the initial public offering of Distoken (the "Sponsor Warrants"), and (3) 172,500 private warrants of Distoken that were issued to I-Bankers Securities, Inc. ("I-Bankers") (the "Representative Warrants," collectively with the "Sponsor Warrants," the "Private Warrants," and collectively with the "Public Warrants," the "Warrants").

This prospectus also relates to the potential offer and sale from time to time by the selling securityholders named in this prospectus or their pledgees, donees, transferees, assignees or other successors in interest (that receive any of the securities as a gift, distribution, or other non-sale related transfer) (collectively, the "Selling Securityholders") of up to (A) 5,964,450 Class A ordinary shares represented by ADSs, including (1) 2,324,500 issued and outstanding Class A ordinary shares held by Xiaosen (the "Sponsor Shares"), comprising (a) 1,725,000 Class A ordinary shares exchanged from 1,725,000 Distoken founder shares, which were purchased by the Sponsor at a price of approximately US$0.0145 per share, (b) 545,000 Class A ordinary shares exchanged from 545,000 Distoken private shares, and (c) 54,500 Class A ordinary shares exchanged from 54,500 Distoken private rights; (2) 545,000 Class A ordinary shares issuable upon the exercise of the Sponsor Warrants, which (including the private shares, private rights and Sponsor Warrants) were purchased by the Sponsor as part of and in the form of Private Units at a price of US$10.00 per unit; (3) 390,001 issued and outstanding Class A ordinary shares issued to XIAOLINGO INVESTMENT CO., LTD ("Xiaolingo") which were acquired for nominal consideration; (4) 1,184,949 issued and outstanding Class A ordinary shares currently held by Anji Fenghan Investment Limited ("Anji"), which were issued to Anji in a private placement for a purchase price at US$10.00 per share; (5) 1,350,000 issued and outstanding Class A ordinary shares currently held by Mouette Capital Company Ltd. ("Mouette"), which were issued to Mouette in a private placement for a purchase price at US$10.00 per share; (6) 100,000 issued and outstanding Class A ordinary shares currently held by Empire Light International Media Limited ("Empire Light"), which were issued to Empire Light in a private placement for a purchase price at US$10.00 per share; (7) 20,000 issued and outstanding Class A ordinary shares currently held by Hopeful Pte. Ltd. ("Hopeful"), which were issued to Hopeful in a private placement for a purchase price at US$10.00 per share; and (8) 50,000 issued and outstanding Class A ordinary shares currently held by SKS Global Ltd. ("SKS"), which were issued to SKS in a private placement for a purchase price at US$10.00 per share; and (B) 545,000 Sponsor Warrants.

The securities registered herein are identified in this prospectus as the "Registered Securities." We are registering the offer and sale of the Registered Securities, in part, to satisfy certain registration rights we have granted. The Selling Securityholders may offer all or part of the Registered Securities for resale from time to time through public or private transactions, at either prevailing market prices or at privately negotiated prices. The Registered Securities are being registered to permit the Selling Securityholders to sell securities from time to time, in amounts, at prices and on terms determined at the time of offering. The Selling Securityholders may sell the Registered Securities through ordinary brokerage transactions, in underwritten offerings, directly to market makers of our securities or through any other means described in the section entitled "Plan of Distribution" herein. In connection with any sales of the Registered Securities offered hereunder, the Selling Securityholders, any underwriters, agents, brokers or dealers participating in such sales may be deemed to be "underwriters" within the meaning of the Securities Act of 1933, as amended.

The ADSs, each representing one Class A Ordinary Share, are listed on the Nasdaq Stock Market LLC ("Nasdaq"), under the trading symbol "YOUL." On June 8, 2026, the closing price for the ADSs on Nasdaq was US$0.3367.

Subject to the lock-up restrictions described in this prospectus under the section titled "Plan of Distribution," the Selling Securityholders can sell, under this prospectus, up to 5,964,450 Class A ordinary shares represented by ADSs constituting (on a post-exercise basis) approximately 7.4% of our issued and outstanding ordinary shares as of the date of this prospectus (assuming the exercise of all of our outstanding Warrants). Despite a potential decline in the public trading price of the ADSs, certain Selling Securityholders may still experience a positive rate of return on the securities that they sell pursuant to this prospectus as they have acquired the securities registered hereunder at prices substantially below current market prices, and may therefore have an incentive to sell their securities. The holders of Public Warrants and Sponsor Warrants may experience a potential profit on their warrants if the price of the ADSs exceeds US$11.50 per share. The holders of Representative Warrants may experience a potential profit on their warrants if the price of the ADSs exceeds US$12.00 per share. However, the public holders of our securities may not experience a similar rate of return on the securities they purchase due to differences in the applicable purchase price and trading price.

Given the substantial number of securities being registered for potential resale by the Selling Securityholders pursuant to this prospectus, the sale of such securities by the Selling Securityholders, or the perception in the market that the Selling Securityholders may or intend to sell all or a significant portion of such securities, could increase the volatility of the market price of the ADSs or result in a significant decline in the public trading price of the ADSs.

We will not receive any proceeds from the sale of the securities by the Selling Securityholders. We will receive proceeds from the exercise of Warrants if the Warrants are exercised for cash. The likelihood that warrant holders will exercise the Warrants and any cash proceeds that we would receive is dependent upon the market price of the ADSs. Based on the closing price of the ADSs at US$0.3367 on June 8, 2026, which is less than the exercise price of US$11.50 per share pursuant to the terms of the Public Warrants and Representative Warrants and US$12.00 per share pursuant to the terms of the Representative Warrants, we believe the warrant holders will be unlikely to exercise their Warrants, and we are unlikely to receive proceeds from the exercise of Warrants. We will pay the expenses associated with registering the sales by the Selling Securityholders, as described in more details in the section titled "Use of Proceeds" appearing elsewhere in this prospectus.

We may amend or supplement this prospectus from time to time by filing amendments or supplements as required. You should read this entire prospectus and any amendments or supplements carefully before you make your investment decision.

The Company is a Cayman Islands holding company and not a Chinese operating company. We carry out our business in China through our wholly-owned PRC subsidiaries. We face various legal and operational risks and uncertainties associated with being based in or having substantially all of our operations in China. We are subject to complex and evolving laws and regulations in China. The PRC government has indicated an intent to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers, and initiated various regulatory actions and made various public statements, some of which are published with very short notice, including cracking down on illegal activities in the securities market, enhancing supervision over China-based companies listed overseas, adopting new measures to extend the scope of cybersecurity reviews, and expanding efforts in anti-monopoly enforcement. For instance, we face risks associated with regulatory approvals on overseas offerings and oversight on cybersecurity and data privacy, which may impact our ability to conduct certain business, accept foreign investments, or list and conduct offerings on a U.S. or other foreign stock exchange. These risks could result in a material adverse change in our operations and the value of the ADSs, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, or cause the value of such securities to significantly decline or become worthless. For details, see "Risk Factors — Risks Relating to Doing Business in China."

We are subject to a number of prohibitions, restrictions and potential delisting risk under the Holding Foreign Companies Accountable Act, as amended by the Consolidated Appropriations Act, 2023 (the "HFCAA"). On December 16, 2021, the PCAOB issued a report notifying the U.S. Securities Exchange Commission (the "SEC"), of its determination that it was unable to inspect or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong. Pursuant to the HFCAA and related regulations, if we have filed an audit report issued by a registered public accounting firm that the PCAOB has determined that it is unable to inspect and investigate completely, the SEC will identify us as a "Commission-identified Issuer," and the trading of our securities on any U.S. national securities exchanges, as well as any over-the-counter trading in the United States, will be prohibited if following the completion of the Business Combination, we are identified as a Commission-identified Issuer for two consecutive years. Our auditor, Onestop Assurance PAC, an independent registered public accounting firm headquartered in Singapore that issues the audit report included elsewhere in this prospectus, is a public accounting firm registered with the PCAOB and will be subject to laws in the United States pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards. Onestop Assurance PAC is inspected by the PCAOB on a regular basis and was not subject to the determination announced by the PCAOB on December 16, 2021. On December 15, 2022, the PCAOB issued a report that vacated its December 16, 2021 determination and removed mainland China and Hong Kong from the list of jurisdictions where it is unable to inspect or investigate completely registered public accounting firms. Each year, the PCAOB will determine whether it can inspect and investigate completely audit firms in mainland China and Hong Kong, among other jurisdictions. If the PCAOB determines in the future that it no longer has full access to inspect and investigate completely accounting firms in mainland China and Hong Kong, among other jurisdictions, and if we use an accounting firm headquartered in one of these jurisdictions to issue an audit report on our financial statements filed with the SEC, we would be identified as a Commission-Identified Issuer following the filing of the annual report on Form 20-F for the relevant fiscal year. There can be no assurance that we would not be identified as a Commission-Identified Issuer for any future fiscal year, and if we were so identified for two consecutive years, we would become subject to the prohibition on trading under the HFCAA. For more details, see "Risk Factors — Risks Relating to Doing Business in China — Our securities may be prohibited from trading in the United States under the Holding Foreign Companies Accountable Act, or the HFCAA, if the PCAOB is unable to inspect or investigate completely auditors located in China. The delisting of our securities, or the threat of their being delisted, may materially and adversely affect the value of your investment."

Cash may be transferred among the Company and our PRC subsidiaries, in the following manners: (1) funds may be transferred to our PRC subsidiaries from the Company as needed through our subsidiaries in the British Virgin Islands ("BVI") and Hong Kong in the form of capital contribution or shareholder loan, as the case may be; (2) dividends or other distributions may be paid by our PRC subsidiaries to the Company through our subsidiaries in the BVI and Hong Kong; and (3) our PRC subsidiaries may lend to and borrow from each other from time to time for business operation purposes. In 2023, 2024 and 2025, there was no cash transfer within our organization, and no assets other than cash were transferred within our organization. As of the date of this prospectus, none of the Company and our subsidiaries in the BVI, Hong Kong and PRC has paid any dividends or made any distributions to their respective shareholder(s), including U.S. investors if any, nor do we have any present plan to pay any cash dividends on our ordinary shares in the foreseeable future. For details, see "Prospectus Summary — Implication of Being a Company with the Holding Company Structure — Cash and asset flows through our organization." We are in the process of adopting our formal cash management policies which will dictate the purpose, amount and procedure of cash transfers among our holding company and subsidiaries. We will determine the payment of dividends and fund transfer based on our specific business needs in accordance with the applicable laws and regulations. See "Prospectus Summary — Implication of Being a Company with the Holding Company Structure — Dividend distribution and taxation."

On February 17, 2023, the China Securities Regulatory Commission (the "CSRC") promulgated Trial Administrative Measures of the Overseas Securities Offering and Listing by Domestic Companies (the "Overseas Listing Trial Measures") and circulated five supporting guidelines, which became effective on March 31, 2023. The Overseas Listing Trial Measures regulate both direct and indirect overseas offering and listing of PRC domestic companies' securities by adopting a filing-based regulatory regime. We completed the filing procedures in connection with the business combination with Distoken (the "Business Combination") under the Overseas Listing Trial Measures on February 6, 2025, and the result of such CSRC approval was posted on the official website of the CSRC on the same date. We are not required to complete the CSRC filing procedures and obtain the CSRC approval under the Overseas Listing Trial Measures in connection with the resale of Registered Securities as described in this prospectus, because the resale of Registered Securities, including the ADSs issuable from the exercise of Warrants, does not trigger the obligation to apply for the CSRC filing procedures and obtain the CSRC approval.

Pursuant to the Overseas Listing Trial Measures, we may need to complete filing procedures for future offshore fund-raising activities, including conducting follow-on offering in the United States. Any failure or perceived failure by us to comply with such filing requirements under the Overseas Listing Trial Measures may result in forced rectification, warnings and fines against us and could materially hinder our ability to raise fund overseas. In addition, we cannot guarantee that new rules or regulations promulgated in the future will not impose any additional requirement or otherwise tightening the regulations on companies with contractual arrangements. If we violate or are deemed to have violated any current or future rules or regulations, regulatory agencies in China may impose fines and penalties on our operations in China, limit our operating privileges in China, delay or restrict the repatriation of the proceeds from offshore fund-raising activities into the PRC or take other actions that could materially adversely affect our business, financial condition and results of operations, as well as the trading price of the ADSs. See "Summary of the Prospectus — Regulatory Matters" and "Risk Factors — Risks Relating to Doing Business in China — The approval of and filing with the CSRC or other PRC government authorities is required in connection with this Business Combination or our listing under laws of the PRC."

To the extent our cash or assets in the business are in mainland China or Hong Kong or a mainland China or Hong Kong subsidiary, the funds or assets may not be available to fund operations or for other use outside of mainland China or Hong Kong due to interventions in or the imposition of restrictions and limitations on the ability of the Company and our subsidiaries to transfer cash or assets. The PRC government imposes certain restrictions on the convertibility of RMB into foreign currencies and the remittance of funds out of China, which may restrict the transfer of cash between the Company and our PRC subsidiaries or the investors. Under PRC laws and regulations, our PRC subsidiaries are subject to certain restrictions with respect to payment of dividends or otherwise transfers of any of their net assets to us. Remittance of dividends by our PRC subsidiaries out of China is also subject to certain procedures with the banks designated by the PRC State Administration of Foreign Exchange. These restrictions are benchmarked against the paid-up capital and the statutory reserve funds of our PRC subsidiaries. In addition, while there are currently no such restrictions on foreign exchange and our ability to transfer cash or assets between the Company and our Hong Kong Subsidiaries, if certain PRC laws and regulations, including existing laws and regulations and those enacted or promulgated in the future were to become applicable to our Hong Kong Subsidiaries in the future, and to the extent our cash or assets are in Hong Kong or a Hong Kong entity, such funds or assets may not be available due to interventions in or the imposition of restrictions and limitations on our ability to transfer funds or assets by the PRC government. Furthermore, we cannot assure you that the PRC government will not intervene or impose restrictions on the Company and our PRC subsidiaries to transfer or distribute cash within the organization, which could result in an inability of or prohibition on making transfers or distributions to entities outside of mainland China and Hong Kong. For details, see "Prospectus Summary — Implication of Being a Company with the Holding Company Structure — Cash and asset flows through our organization," "Risk Factors — Risks Relating to Doing Business in China — We may rely on dividends and other distributions on equity paid by our PRC subsidiaries to fund any cash and financing requirements we may have, and any limitation on the ability of our PRC subsidiaries to make payments to us could have a material and adverse effect on our ability to conduct our business," and "Risk Factors — Risks Relating to Doing Business in China — Governmental control of currency conversion may limit our ability to utilize our revenues effectively."

We are an "emerging growth company" as that term is used in the Jumpstart Our Business Startups Act of 2012, as amended, and, as such, may elect to comply with certain reduced public company reporting requirements in future reports.

We are a foreign private issuer within the meaning of the rules under the Exchange Act, and as such we are exempt from certain provisions of the securities rules and regulations in the United States that are applicable to U.S. domestic issuers, such as the rules regulating solicitation of proxies and certain insider reporting and short-swing profit rules. Moreover, the information we are required to file with or furnish to the SEC will be less extensive and less timely compared to that required to be filed with the SEC by U.S. domestic issuers. In addition, as a company incorporated in the Cayman Islands, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly from the corporate governance standards of the Nasdaq Stock Market.

**Investing in our securities involves a high degree of risk. See "Risk Factors" beginning on page 14 of this prospectus and other risk factors contained in the documents incorporated by reference herein for a discussion of information that should be considered in connection with an investment in our securities.**

**Neither the U.S. Securities and Exchange Commission nor any other regulatory body has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

**PROSPECTUS DATED&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [ABOUT THIS PROSPECTUS](#you_001) | ii |
| [FINANCIAL STATEMENT PRESENTATION](#you_002) | iii |
| [INDUSTRY AND MARKET DATA](#you_003) | iv |
| [FREQUENTLY USED TERMS](#you_004) | v |
| [FORWARD-LOOKING STATEMENTS](#you_005) | xi |
| [SUMMARY OF THE PROSPECTUS](#you_006) | 1 |
| [THE OFFERING](#you_007) | 12 |
| [RISK FACTORS](#you_008) | 14 |
| [CAPITALIZATION](#you_009) | 50 |
| [SELECTED HISTORICAL FINANCIAL DATA](#you_010) | 51 |
| [USE OF PROCEEDS](#you_011) | 54 |
| [DIVIDEND POLICY](#you_012) | 55 |
| [CORPORATE HISTORY AND STRUCTURE](#you_013) | 56 |
| [ENFORCEABILITY OF CIVIL LIABILITIES AND AGENT FOR SERVICE OF PROCESS IN THE UNITED STATES](#you_014) | 59 |
| [BUSINESS](#you_015) | 61 |
| [GOVERNMENT REGULATIONS](#you_016) | 81 |
| [MANAGEMENT'S DISCUSSION AND FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#you_017) | 94 |
| [MANAGEMENT](#you_018) | 109 |
| [BENEFICIAL OWNERSHIP OF SECURITIES](#you_020) | 116 |
| [SELLING SECURITYHOLDERS](#you_019) | 117 |
| [CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS](#you_021) | 119 |
| [DESCRIPTION OF OUR SECURITIES](#you_022) | 120 |
| [DESCRIPTION OF AMERICAN DEPOSITARY SHARES](#you_024) | 136 |
| [SHARES ELIGIBLE FOR FUTURE SALE](#you_025) | 147 |
| [TAXATION](#you_026) | 148 |
| [PLAN OF DISTRIBUTION](#you_027) | 156 |
| [EXPENSES RELATED TO THE OFFERING](#you_028) | 159 |
| [LEGAL MATTERS](#you_029) | 160 |
| [EXPERTS](#you_030) | 161 |
| [WHERE YOU CAN FIND MORE INFORMATION](#you_031) | 162 |
| [INDEX TO FINANCIAL STATEMENTS](#you_032) | F-1 |

---

**You should rely only on the information contained or incorporated by reference in this prospectus or any supplement. Neither we nor the Selling Securityholders have authorized anyone else to provide you with different information. The securities offered by this prospectus are being offered only in jurisdictions where the offer is permitted. You should not assume that the information in this prospectus or any supplement is accurate as of any date other than the date on the front of each document. Our business, financial condition, results of operations and prospects may have changed since that date.**

Except as otherwise set forth in this prospectus, neither we nor the Selling Securityholders have taken any action to permit a public offering of these securities outside the United States or to permit the possession or distribution of this prospectus outside the United States. Persons outside the United States who come into possession of this prospectus must inform themselves about and observe any restrictions relating to the offering of these securities and the distribution of this prospectus outside the United States.

i

**ABOUT THIS PROSPECTUS**

This prospectus is part of a registration statement on Form F-1 filed with the SEC by Youlife Group Inc. The Selling Securityholders named in this prospectus may, from time to time, sell the securities described in this prospectus in one or more offerings. This prospectus includes important information about us, the securities being offered by the Selling Securityholders and other information you should know before investing. Any prospectus supplement may also add, update, or change information in this prospectus. If there is any inconsistency between the information contained in this prospectus and any prospectus supplement, you should rely on the information contained in that particular prospectus supplement. This prospectus does not contain all of the information provided in the registration statement that we filed with the SEC. You should read this prospectus together with the additional information about us described in the section below entitled "Where You Can Find More Information." You should rely only on information contained in this prospectus. We have not, and the Selling Securityholders have not, authorized anyone to provide you with information different from that contained in this prospectus. The information contained in this prospectus is accurate only as of the date on the front cover of the prospectus. You should not assume that the information contained in this prospectus is accurate as of any other date.

The Selling Securityholders may offer and sell the securities directly to purchasers, through agents selected by the Selling Securityholders, or to or through underwriters or dealers. A prospectus supplement, if required, may describe the terms of the plan of distribution and set forth the names of any agents, underwriters or dealers involved in the sale of securities. See "Plan of Distribution."

Discrepancies in any table between totals and sums of the amounts listed are due to rounding. Certain amounts and percentages have been rounded; consequently, certain figures may add up to be more or less than the total amount and certain percentages may add up to be more or less than 100% due to rounding. In particular and without limitation, amounts expressed in millions contained in this prospectus have been rounded to a single decimal place for the convenience of readers.

ii

**FINANCIAL STATEMENT PRESENTATION**

The Business Combination was accounted for as a "reverse recapitalization" in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Under this method of accounting, Distoken was treated as the "acquired" company for financial reporting purposes. This determination is primarily based on the shareholders of the Company comprising the majority of the voting power of the Company and having the ability to nominate the members of our Board, the Company's operations prior to the acquisition comprising the only ongoing operations of us, and the Company's senior management comprising a majority of our senior management. Accordingly, for accounting purposes, the financial statements of the post-combination company represent a continuation of the financial statements of the Company with the Business Combination treated as the equivalent of the Company issuing shares for the net assets of Distoken Acquisition Corporation, accompanied by a recapitalization. The net assets of Distoken are stated at historical costs, with no goodwill or other intangible assets recorded. Operations prior to the Business Combination will be presented as those of the Company in future reports of us.

Our audited consolidated balance sheet as of December 31, 2023, 2024 and 2025, the related audited consolidated statements of operations and comprehensive loss, of changes in shareholders' deficit and of cash flows for the years ended December 31, 2023, 2024 and 2025, and the related notes included in this prospectus have been prepared in accordance with U.S. GAAP.

iii

**INDUSTRY AND MARKET DATA**

This prospectus contains estimates, projections and other information concerning our industry, including market size and growth of the markets in which we participate, that are based on industry publications, reports and forecasts prepared by our management. In some cases, we do not expressly refer to the sources from which these estimates and information are derived. This information involves a number of assumptions and limitations, and you are cautioned not to give undue weight to these estimates. The industry in which we operate is subject to a high degree of uncertainty and risk due to a variety of factors, including those described in the section titled "Risk Factors." These and other factors could cause results to differ materially from those expressed in these publications and reports.

The sources of certain statistical data, estimates, and forecasts contained in this prospectus include independent industry reports from China Insights Consultancy ("CIC"), a third-party research firm commissioned by us.

Certain estimates of market opportunity, including internal estimates of our addressable market and forecasts of market growth, included in this prospectus may prove inaccurate. Market opportunity estimates and growth forecasts, whether obtained from third-party sources or developed internally, are subject to significant uncertainty and are based on assumptions and estimates that may prove to be inaccurate. The estimates and forecasts in this prospectus relating to the size of our target market, market demand and adoption, capacity to address this demand, and pricing may prove to be inaccurate. The addressable market we estimate may not materialize for many years, if ever, and even if the markets in which we compete meet the size estimates in this prospectus, our business could fail to successfully address or compete in such markets, if at all.

iv

**FREQUENTLY USED TERMS**

Unless otherwise stated or unless the context otherwise requires in this prospectus:

● "ADS(s)" means the American Depositary Share(s) of Youlife, each ADS representing one Class A Ordinary Share of the Company.

● "Board" refers to the board of directors of the Company, as constituted from time to time.

● "Business Combination" refers to the business combination contemplated by the Business Combination Agreement.

● "Business Combination Agreement" refers to that certain business combination agreement, dated as of May 17, 2024, as amended on November 13, 2024 and January 17, 2025, as it may be further amended or supplemented, by and among Distoken, the Company, the Sponsor, First Merger Sub, Second Merger Sub and Youlife International.

● "Class A Ordinary Shares" refers to the Class A ordinary shares of the Company, par value $0.0001 per share.

● "Class B Ordinary Shares" refers to the Class B ordinary shares of the Company, par value $0.0001 per share.

● "Closing" refers to the closing of the transactions contemplated by the Business Combination Agreement.

● "Closing Date" refers to the date on which the Business Combination is consummated, which was July 9, 2025.

● "Code" refers to the Internal Revenue Code of 1986, as amended.

● "Cayman Companies Act" refers to the Companies Act (As Revised) of the Cayman Islands, as amended, supplemented or otherwise modified from time to time.

● "Company Founder Lock-up Agreement" refers to the amended and restated lock-up agreement entered into prior to the Closing by and among by Mr. Yunlei Wang, in favor of and for the benefit of the Company, Distoken, Youlife International and each of the Company's, Distoken's and/or the Youlife International's present and future affiliates, successors and direct and indirect Subsidiaries, amending and restating the lock-up agreement, dated as of May 17, 2024.

● "Company Lock-up Agreement" refers to the lock-up agreement entered into prior to the Closing by and among by certain securityholder of Youlife International (other than Mr. Yunlei Wang), in favor of and for the benefit of the Company, Distoken, Youlife International and each of the Company's, Distoken's and/or the Youlife International's present and future affiliates, successors and direct and indirect Subsidiaries, or the amended and restated lock-up agreement amending and restating the lock-up agreement, dated as of May 17, 2024, entered into by certain of the securityholders of Youlife International.

● "Continental" refers to Continental Stock Transfer & Trust Company.

v

● "depositary" refers to Citibank, N.A.

● "Distoken" refers to Distoken Acquisition Corporation, a Cayman Islands exempted company.

● "EarlyBirdCapital" refers to EarlyBirdCapital, Inc.

● "Exchange Act" refers to the Securities Exchange Act of 1934, as amended.

● "Exchange Ratio" refers to the quotient obtained by dividing (i) the Company Merger Shares as of the First Merger Effective Time by (ii) the number of Company Securities.

● "First Merger" refers to the merger by First Merger Sub with and into Youlife International, with Youlife International surviving and continuing as a wholly-owned subsidiary of the Company.

● "First Merger Effective Time" refers to the effective time of the First Merger.

● "First Merger Sub" refers to Youlife I Limited, a Cayman Islands exempted company and a wholly-owned subsidiary of the Company.

● "Founder Lock-up Agreement" refers to the amended and restated lock-up agreement entered into by the Sponsor prior to the Closing, in favor of and for the benefit of the Company, Distoken, Youlife International and each of the Company's, Distoken's and/or the Youlife International's present and future affiliates, successors and direct and indirect Subsidiaries, amending and restating the lock-up agreement, dated as of May 17, 2024, and superseding the terms of the Insider Letter Agreement with respect to the Founder Shares (but not the Private Units, Private Rights, Private Shares or Private Warrants or the securities to be issued upon conversion of Working Capital Loans).

● "Founder Shares" refers to 1,725,000 Distoken Ordinary Shares held by the Sponsor, which were converted into the ADSs at the Second Merger Effective Time and are subject to a one-year lock-up period pursuant to the Founder Lock-up Agreement. The ADSs to be exchanged from the Founder Shares will be released from such lockup if the ADSs equal or exceed $12.50 for at least 20 trading days out of any 30 consecutive trading days commencing at least 150 days after the Closing Date.

● "HKD" or "HK$" refers to the Hong Kong dollar, the lawful currency of the Hong Kong Special Administrative Region of the PRC.

vi

● "Hong Kong Subsidiaries" refers to the subsidiaries of Youlife International incorporated in Hong Kong, the Hong Kong Special Administrative Region of the PRC, including Youlife Technology Limited and You Service Industrial Company Limited.

● "HR" refers to human resources.

● "I-Bankers" refers to I-Bankers Securities, Inc., representative of the underwriters in Distoken's Initial Public Offering.

● "Insider Letter Agreement" refers to the letter agreement, dated February 15, 2023, among Distoken, the Sponsor and the executive officers and directors of Distoken.

● "IRS" refers to the U.S. Internal Revenue Service.

● "IT" refers to information technology.

● "JOBS Act" refers to Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012, as amended.

● "Mergers" refers to, collectively, (a) the First Merger and (b) the Second Merger.

● "Nasdaq" refers to The Nasdaq Stock Market.

● "Non-Competition and Non-Solicitation Agreements" refers to the non-competition and non-solicitation agreements, dated as of May 17, 2024, entered into by certain Youlife International Shareholders in favor of Distoken, the Company and Youlife International in connection with the Business Combination Agreement.

● "Ordinary Shares" refers to, collectively, the Class A Ordinary Shares and the Class B Ordinary Shares of the Company.

● "PCAOB" refers to the Public Company Accounting Oversight Board (or any successor thereto).

● "PFIC" refers to a passive foreign investment company.

● "PIPE Subscription Agreements" refers to certain subscription agreements, dated April 16, 2025 and April 28, 2025, as subsequently amended, entered into by the Company, Distoken, and certain PIPE investors.

● "PRC" or "China" refers to the People's Republic of China.

vii

● "Private Rights" refers to the rights underlying the Private Units. Each Private Right entitles the holder to receive one-tenth (1/10) of one Distoken Ordinary Share upon the consummation of an initial business combination and certain registration rights under the Registration Rights Agreement. The Private Right (including the securities underlying the Private Rights) may not, subject to certain limited exceptions, be transferred, assigned or sold until 30 days after the completion of an initial business combination. Each issued and outstanding Private Right was automatically converted into one-tenth of one Company Class A Ordinary Share upon consummation of the Business Combination.

● "Private Shares" refers to the Ordinary Shares underlying the Private Units, which entitles the holder to certain registration rights under the Registration Rights Agreement.

● "Private Units" refers to the units issued by Distoken to the Sponsor in the private placement simultaneously with Distoken's initial public offering, as well as any units that may be issued upon conversion of Working Capital Loans. Each Private Unit consists of one Private Share, one Private Right and one Private Warrant. The Private Units (including the securities underlying the Private Units) may not, subject to certain limited exceptions, be transferred, assigned or sold until 30 days after the completion of an initial business combination. The holders of Private Units and any securities underlying the Private Units are entitled to registration rights pursuant to the Registration Rights Agreement.

● "Private Warrants" refers to the Warrants underlying the Private Units. Each whole Private Warrant will be exercisable for one Distoken Ordinary Share at a price of $11.50 per share, subject to adjustment. Each Private Warrant entitles the holder to certain registration rights under the Registration Rights Agreement. The Private Warrants (including the securities underlying the Private Warrants) may not, subject to certain limited exceptions, be transferred, assigned or sold until 30 days after the completion of an initial business combination.

● "Public Rights" refers to Distoken rights sold as part of the Public Units in its Initial Public Offering (whether they were purchased in the Initial Public Offering or thereafter in the open market). Each Public Right entitles the holder thereof to receive one-tenth (1/10) of one Distoken Ordinary Share upon the consummation of an initial business combination. Each issued and outstanding Public Right was automatically converted into one-tenth of one Company Class A Ordinary Share upon consummation of the Business Combination (in the form of ADSs).

● "Public Shares" refers to the Distoken Ordinary Shares sold as part of the Units in its Initial Public Offering (whether they were purchased in the Initial Public Offering or thereafter in the open market).

● "Public Units" refers to the units sold by Distoken in its Initial Public Offering (whether they were purchased in Distoken's initial public offering or thereafter in the open market), which consist of one Public Share, one Public Warrant and one Public Right.

viii

● "Public Warrants" refers to the redeemable warrants sold as part of the Public Units in its Initial Public Offering (whether they were purchased in Distoken's initial public offering or thereafter in the open market). Each whole Public Warrant will be exercisable for one Distoken Ordinary Share at a price of $11.50 per share, subject to adjustment.

● "Registration Rights Agreement" refers to that certain registration rights agreement, dated February 15, 2023, entered into by Distoken, the Sponsor and the other parties thereto.

● "Representative Shares" refers to the 278,000 Distoken Ordinary Shares issued to EarlyBirdCapital, I-Bankers and their designees, entitling the holders to certain registration rights under the Registration Rights Agreement.

● "Representative Warrants" refers to the Warrants Distoken issued to I-Bankers exercisable to purchase 172,500 Ordinary Shares at a price of $12.00 per share, subject to adjustment. The Representative Warrants entitle its holders to certain registration rights under the Registration Rights Agreement and may be exercised for cash or on a cashless basis, at the holders' option, at any time during the period commencing on the later of the first anniversary of the effective date of the registration statement for the Initial Public Offering and the closing of an initial business combination and terminating on the fifth anniversary of such effectiveness date.

● "Rights" refer to Distoken's outstanding rights, which include the Public Rights and the Private Rights.

● "RMB" refers to Renminbi, the lawful currency of the PRC.

● "Sarbanes-Oxley Act" refers to the Sarbanes-Oxley Act of 2002.

● "SEC" refers to the U.S. Securities and Exchange Commission.

● "Second Merger" refers to the merger by Second Merger Sub with and into Distoken, with Distoken surviving and continuing as a wholly-owned subsidiary of the Company.

● "Second Merger Effective Time" refers to the effective time of the Second Merger.

● "Second Merger Sub" refers to Youlife II Limited, a Cayman Islands exempted company and a wholly-owned subsidiary of the Company.

● "Securities Act" refers to the U.S. Securities Act of 1933, as amended.

● "Shareholder Support Agreement" refers to that certain shareholder support agreement, dated as of May 17, 2024, entered into by and among Distoken, Youlife International and certain shareholders of Youlife International in connection with the Business Combination Agreement.

● "Sponsor" refers to Xiaosen Sponsor LLC, a Cayman Islands limited liability company, which is primarily responsible for creating and managing Distoken, identifying target companies and providing or raising capitals for Distoken.

ix

● "Transactions" refers to the Business Combination, including the Mergers and all of the transactions contemplated by the Business Combination Agreement and the Ancillary Documents.

● "Trust Account" refers to the trust account of Distoken, established at the time of Distoken's initial public offering, containing the net proceeds of the sale of the Public Units in that offfering, including from over-allotment securities sold by Distoken's underwriters, and the sale of Private Units concurrently with the closing of that offering.

● "Trust Agreement" refers to that certain Investment Management Trust Agreement, dated as of February 15, 2023, as it may be amended, by and between Distoken and the Trustee.

● "Trustee" refers to Continental Stock Transfer & Trust Company, in its capacity as trustee under the Trust Agreement.

● "Units" refers to Distoken's units, which include the Public Units and the Private Units.

● "U.S. GAAP" refers to accounting principles generally accepted in the United States of America.

● "US$", "$" or "USD" refers to the United States dollar, the lawful currency of the United States of America.

● "Warrants" refers to collectively, the Public Warrants, the Sponsor Warrants and the Representative Warrants.

● "Working Capital Loans" refers to working capital loans that the Sponsor, an affiliate of the Sponsor, or certain of Distoken's officers and directors or their affiliates may, but are not obligated to, loan to Distoken.

● "Youlife," "we," "us," "our," "our company," or "the Company" refers to Youlife Group Inc. and its subsidiaries.

● "Youlife International" refers to Youlife International Holdings Inc., a Cayman Islands exempted company, a wholly owned subsidiary of the Company following the Business Combination.

● "Youlife International Founder Shares" refers an aggregate of 54,649,139 ordinary shares of Youlife International held by Youtch Investment Co., Ltd. (which is indirectly wholly owned by Mr. Yunlei Wang, Chief Executive Officer and Chairman of the Board of Youlife International and the Company) that are issued and outstanding immediately prior to the time the First Merger is effective.

● "Youlife International Ordinary Shares" refers to the ordinary shares, par value $0.0001 per share, of Youlife International.

● "Youlife International Shareholders" refers to, collectively, the holders of Youlife International Ordinary Shares.

Unless otherwise noted, all translation of Renminbi into U.S. dollars has been made at RMB6.9931 to US$1.00, the noon buying rate on December 31, 2025 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. We make no representation that any Renminbi or U.S. dollar amounts could have been, or could be, converted into U.S. dollars or Renminbi, as the case may be, at any particular rate, or at all.

x

**FORWARD-LOOKING STATEMENTS**

This prospectus contains "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this prospectus, including statements regarding our future financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "contemplate," "believe," "estimate," "predict," "potential" or "continue" or the negative of these terms or other similar expressions. Forward-looking statements include, without limitation, our expectations concerning the outlook for our business, productivity, plans and goals for future operational improvements and capital investments, operational performance, future market conditions or economic performance and developments in the capital and credit markets and expected future financial performance, as well as any information concerning our possible or assumed future results of operations as set forth in this prospectus.

Forward-looking statements involve a number of risks, uncertainties and assumptions, and actual results or events may differ materially from those projected or implied in those statements. Important factors that could cause such differences include, but are not limited to:

● the outcome of any legal proceedings that have been or may be instituted against us;

● the ability to maintain the listing of the ADSs on Nasdaq;

● our markets are rapidly evolving and may decline or experience limited growth;

● our ability to retain and expand our customer base;

● our ability to compete effectively in the markets in which we operate;

● the performance of our technology in full-scale operations at customer locations;;

● failure to maintain and enhance our brand;

● the rapidly changing and increasingly stringent laws, contractual obligations and industry standards relating to our operations; and

● the other matters described in the section titled "Risk Factors".

We caution you against placing undue reliance on forward-looking statements, which reflect current beliefs and are based on information currently available to us as of the date a forward-looking statement is made. Forward-looking statements set forth herein speak only as of the date of this prospectus. We do not undertake any obligation to revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs. In the event that any forward-looking statement is updated, no inference should be made that we will make additional updates with respect to that statement, related matters, or any other forward-looking statements. Any corrections or revisions and other important assumptions and factors that could cause actual results to differ materially from forward-looking statements, including discussions of significant risk factors, may appear, in our public filings with the SEC, which are accessible at www.sec.gov, and which you are advised to consult.

Market, ranking and industry data used throughout this prospectus, including statements regarding market size, is based on independent industry surveys and publications, including reports by CIC. These data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. While we are not aware of any misstatements regarding the industry data presented herein, such estimates involve risks and uncertainties and are subject to change based on various factors, including those discussed in the section entitled "Risk Factors" and elsewhere in this prospectus may adversely affect us.

xi

**SUMMARY OF THE PROSPECTUS**

 

*This summary highlights selected information that is presented in greater detail elsewhere in this prospectus. This summary does not contain all of the information you should consider before investing in our securities. You should read this entire prospectus carefully, including the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and the related notes included elsewhere in this prospectus, before making an investment decision.*

**Business Overview** 

We provide blue-collar talent with comprehensive and lifetime services, including vocational education services, HR recruitment services, employee management services and market services, to improve their vocational knowledge, practical skills, and life quality for their enhanced employment opportunities as well as better life. The following diagram illustrates our comprehensive and all-around services.

As testament to our industry leading position, service excellence and renowned brands, we have received numerous awards and accreditation over the years, such as the awards of Top 100 Human Resource Service Provider for four consecutive years from 2021 to 2024, the award of New Flag Annual Solution in 2023, Digital HR Technology Service Provider of the Year (for institution) in 2022, Top 20 Innovation Brands of HRTech Product for the year of 2022, HRFLAG AWARDS: Brand Awards in HR Services Industry for the two consecutive years from 2022 to 2023, Compass System obtained the award of Innovation Brands of HRTech Product in 2022, and Innovation Award of Chinese Vocational Education Shengzhen Huanyu Award in 2017.

Leveraging our strong capability to capture the unmet demand for blue-collar lifetime services in China as well as the growth opportunities in the market, we have historically achieved steady growth in revenue, despite the negative impact brought by the outbreak of COVID-19. Our revenue was RMB1,365.9 million, RMB1,585.6 million and RMB1,854.3 million (US$265.2 million) in 2023, 2024 and 2025, respectively.

Our principal executive office is Room C431, Changjiang Software Park, No.180 South Changjiang Road, Baoshan District, Shanghai 201900, China and its telephone number is +86 21 6173-6744. Our website address is https://www.youlife.cn/. The information contained on the website does not form a part of, and is not incorporated by reference into, this prospectus. The following diagram depicts a simplified organizational structure of the Company as of the date of this prospectus.

![](ea029053901_img1.jpg)

**Implication of Being a Company with the Holding Company Structure** 

The Company is a holding company with no material operations of our own. We conduct our operations primarily through our PRC subsidiaries in China. As a result, although other means are available for us to obtain financing at the holding company level, our ability to pay dividends to the shareholders and to service any debt we may incur may depend upon dividends paid by our PRC subsidiaries.

If our existing PRC subsidiaries or any newly formed ones incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends to us. In addition, our wholly foreign-owned subsidiaries in China are permitted to pay dividends to us only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Under PRC law, each of our PRC subsidiaries in China is required to set aside at least 10% of its after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of their registered capital. In addition, our wholly foreign-owned subsidiaries in China may allocate a portion of their after-tax profits based on PRC accounting standards to enterprise expansion funds and staff bonus and welfare funds at their discretion. Statutory reserve funds and discretionary funds are not distributable as cash dividends. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated by SAFE. Our PRC subsidiaries have not paid dividends and will not be able to pay dividends until they generate accumulated profits and meet the requirements for statutory reserve funds.

**Cash and asset flows through our organization**

Cash may be transferred within the group in the following manner: (1) we may transfer funds to our subsidiaries by way of equity investments or intercompany loans, and (2) our subsidiaries may make dividends or other distributions to us. As of the date of this prospectus, except that (1) in 2023, cash in the form of intercompany loans in the amount of US$1.7 million was transferred from Youlife International to The Youlife Technologies, and (2) in 2023 and 2024, cash in the form of intercompany loans in the amount of US$4.5 million and US$0.6 million was transferred from Youlife Technology to Shanghai Youerlan, respectively, (3) in 2025, cash in the form of equity investments in the amount of US$6.4 million was transferred from Youlife International to its Hong Kong Subsidiaries, and cash in the form of equity investments in the amount of US$6.4 million was transferred from the Hong Kong Subsidiaries to Zhejiang Youlan International, no other transfers, dividends or distributions have been made among us and our subsidiaries, or to investors in 2023, 2024 and 2025, and no other cash flows and transfers of other assets by type have occurred between us and our subsidiaries in 2023, 2024 and 2025. None of us or our subsidiaries intends to distribute earnings or settle amounts owed. We have established stringent controls and procedures for cash flows within the organization. Each transfer of cash among us and our subsidiaries is subject to internal approval. Our finance department manages and supervises the transfers of funds based on internal policy. Under this policy, the amount of inter-company transfer of funds is determined based on the working capital needs of the subsidiaries and inter-company transactions, and is subject to internal approval process and funding arrangements. Our finance department closely monitors and manages the cash transfers through the organization by preparing monthly reports and annual budget plans. Each transfer of cash is also subject to internal report and approval process by reference to such policy. No other transfers, dividends or distributions have been made among us and our subsidiaries, or to investors; and no other cash flows and transfers of other assets by type have occurred among us and our subsidiaries. As of the date of this prospectus, none of us and our subsidiaries has paid any dividends or made any distributions to their respective shareholder(s), including U.S. investors if any, nor do we have any present plan to pay any cash dividends on the ADSs in the foreseeable future. We currently do not maintain any cash management policies that specifically dictate how funds may be transferred throughout our organization and investors. Rather, funds can be transferred within the group based on the specific business needs and in accordance with the applicable laws and regulations of mainland China.

**Dividend distribution and taxation**

As of the date of this prospectus, none of the Company and our subsidiaries in the BVI, Hong Kong and PRC has paid any dividends or made any distributions to their respective shareholder(s), including U.S. investors if any, nor do we have any present plan to pay any cash dividends on the ADSs in the foreseeable future. We currently intend to retain most, if not all, of our available funds and any future earnings to operate and expand our business. See "Dividend Policy" for details.

Subject to the "passive foreign investment company" rules, the gross amount of any distribution that we make to a U.S. Holder (as defined in "*Taxation — United States Federal Income Taxation*") with respect to the ADSs (including any amounts withheld to reflect PRC withholding taxes) will be taxable as a dividend for United States federal income tax purposes, to the extent paid out of our current or accumulated earnings and profits, as determined under United States federal income tax principles. In addition, if we are considered a PRC tax resident enterprise for tax purposes, any dividends we pay to our overseas shareholders may be regarded as China-sourced income and as a result may be subject to PRC withholding tax. See "Taxation" for details.

**The Holding Foreign Companies Accountable Act**

We are subject to a number of prohibitions, restrictions and potential delisting risk under the Holding Foreign Companies Accountable Act, as amended by the Consolidated Appropriations Act, 2023 (the "HFCAA"). On December 16, 2021, the PCAOB issued a report notifying the SEC, of its determination that it was unable to inspect or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong. Pursuant to the HFCAA and related regulations, if we have filed an audit report issued by a registered public accounting firm that the PCAOB has determined that it is unable to inspect and investigate completely, the SEC will identify us as a "Commission-identified Issuer," and the trading of our securities on any U.S. national securities exchanges, as well as any over-the-counter trading in the United States, will be prohibited if following the completion of the Business Combination, we are identified as a Commission-identified Issuer for two consecutive years. Our auditor, Onestop Assurance PAC, an independent registered public accounting firm headquartered in Singapore which issues the audit report included elsewhere in this registration statement, is a public accounting firm registered with the PCAOB and will be subject to laws in the United States pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards. Onestop Assurance PAC is inspected by the PCAOB on a regular basis and was not subject to the determination announced by the PCAOB on December 16, 2021. On December 15, 2022, the PCAOB issued a report that vacated its December 16, 2021 determination and removed mainland China and Hong Kong from the list of jurisdictions where it is unable to inspect or investigate completely registered public accounting firms. Each year, the PCAOB will determine whether it can inspect and investigate completely audit firms in mainland China and Hong Kong, among other jurisdictions. If the PCAOB determines in the future that it no longer has full access to inspect and investigate completely accounting firms in mainland China and Hong Kong, among other jurisdictions, and if we use an accounting firm headquartered in one of these jurisdictions to issue an audit report on our financial statements filed with the SEC, we would be identified as a Commission-Identified Issuer following the filing of the annual report on Form 20-F for the relevant fiscal year. There can be no assurance that we would not be identified as a Commission-Identified Issuer for any future fiscal year, and if we were so identified for two consecutive years, we would become subject to the prohibition on trading under the HFCAA. For more details, see "Risk Factors—Risks Relating to Doing Business in China—Our securities may be prohibited from trading in the United States under the Holding Foreign Companies Accountable Act, or the HFCAA, if the PCAOB is unable to inspect or investigate completely auditors located in China. The delisting of our securities, or the threat of their being delisted, may materially and adversely affect the value of your investment."

**Regulatory Matters**

**CSRC Filing**

On February 17, 2023, the CSRC promulgated Trial Administrative Measures of the Overseas Securities Offering and Listing by Domestic Companies (the "Overseas Listing Trial Measures") and circulated five supporting guidelines, which became effective on March 31, 2023. The Overseas Listing Trial Measures regulate both direct and indirect overseas offering and listing of PRC domestic companies' securities by adopting a filing-based regulatory regime.

According to the Overseas Listing Trial Measures, PRC domestic companies that seek to offer and list securities in overseas markets, either in direct or indirect means, are required to fulfill the filing procedure with the CSRC and report relevant information. The Overseas Listing Trial Measures provides that an overseas listing or offering is explicitly prohibited, if any of the following: (1) such securities offering and listing is explicitly prohibited by provisions in laws, administrative regulations and relevant state rules; (2) the intended securities offering and listing may endanger national security as reviewed and determined by competent authorities under the State Council in accordance with law; (3) the domestic company intending to make the securities offering and listing, or its controlling shareholder(s) and the actual controller, have committed relevant crimes such as corruption, bribery, embezzlement, misappropriation of property or undermining the order of the socialist market economy during the latest three years; (4) the domestic company intending to make the securities offering and listing is currently under investigations for suspicion of criminal offenses or major violations of laws and regulations, and no conclusion has yet been made thereof; or (5) there are material ownership disputes over equity held by the domestic company's controlling shareholder(s) or by other shareholder(s) that are controlled by the controlling shareholder(s) and/or actual controller.

The Overseas Listing Trial Measures also provides that if the issuer meets both the following criteria, the overseas securities offering and listing conducted by such issuer will be deemed as indirect overseas offering by PRC domestic companies: (1) 50% or more of any of the issuer's operating revenue, total profit, total assets or net assets as documented in its audited consolidated financial statements for the most recent fiscal year is accounted for by domestic companies; and (2) the main parts of the issuer's business activities are conducted in mainland China, or its main place(s) of business are located in mainland China, or the majority of senior management staff in charge of its business operations and management are PRC citizens or have their usual place(s) of residence located in mainland China. Where an issuer submits an application for initial public offering to competent overseas regulators, such issuer must file with the CSRC within three business days after such application is submitted. In addition, the Overseas Listing Trial Measures provides that the direct or indirect overseas listings of the assets of domestic companies through one or more acquisitions, share swaps, transfers or other transaction arrangements shall be subject to filing procedures in accordance with the Overseas Listing Trial Measures, which filing shall be submitted within three business days after the issuer submits its application documents relating to the initial public offering and/or listing or after the first public announcement of the relevant transaction (if the submission of relevant application documents is not required). The Overseas Listing Trial Measures also requires subsequent reports to be filed with the CSRC on material events, such as change of control or voluntary or forced delisting of the issuer(s) who have completed overseas offerings and listings.

Guidance for Application of Regulatory Rules, Overseas Offering and Listing No. 1, promulgated by CSRC together with the Overseas Listing Trial Measures, provides that if a domestic enterprise completes an overseas offering through an overseas special purposes acquisition company, it shall submit the filing materials within three business days after such overseas special purposes acquisition company publicly announces such acquisition transaction. In addition, according to the Notice on Administration for the Filing of Overseas Offering and Listing by Domestic Enterprises published by CSRC on its official website on February 17, 2023, companies that have already been listed on overseas stock exchanges prior to March 31, 2023 or the companies that have obtained the approval from overseas supervision administrations or stock exchanges for its offering and listing prior to March 31, 2023 and will complete their overseas offering and listing prior to September 30, 2023 are not required to make immediate filings for its listing, but are required to make filings for subsequent offerings in accordance with the Overseas Listing Trial Measures. Companies that have already submitted an application for an initial public offering to overseas supervision administrations but have not yet obtained the approval from overseas supervision administrations or stock exchanges for the offering and listing prior to March 31, 2023 may arrange for the filing within a reasonable time period and should complete the required CSRC filing procedure, the completion of which will be published on the CSRC website, before such companies' overseas issuance and listing.

We completed the filing procedures in connection with the business combination with Distoken (the "Business Combination") under the Overseas Listing Trial Measures on February 6, 2025, and the result of such CSRC approval was posted on the official website of the CSRC on the same date. We are not required to complete the CSRC filing procedures and obtain the CSRC approval under the Overseas Listing Trial Measures in connection with the resale of Registered Securities as described in this prospectus, because the resale of Registered Securities, including the ADSs issuable from the exercise of Warrants, does not trigger the obligation to apply for the CSRC filing procedures and obtain the CSRC approval.

Pursuant to the Overseas Listing Trial Measures, we may need to complete filing procedures for future offshore fund-raising activities, including conducting follow-on offering in the United States. Any failure or perceived failure by us to comply with such filing requirements under the Overseas Listing Trial Measures may result in forced rectification, warnings and fines against us and could materially hinder our ability to raise fund overseas. In addition, we cannot guarantee that new rules or regulations promulgated in the future will not impose any additional requirement or otherwise tightening the regulations on companies with contractual arrangements. If we violate or are deemed to have violated any current or future rules or regulations, regulatory agencies in China may impose fines and penalties on our operations in China, limit our operating privileges in China, delay or restrict the repatriation of the proceeds from offshore fund-raising activities into the PRC or take other actions that could materially adversely affect our business, financial condition and results of operations, as well as the trading price of the ADSs. See "Risk Factors — Risks Relating to Doing Business in China — The approval of and filing with the CSRC or other PRC government authorities is required in connection with this Business Combination or our listing under laws of the PRC."

On February 24, 2023, the CSRC, the Ministry of Finance, the National Administration of State Secrets Protection and the National Archives Administration released the revised Provisions on Strengthening Confidentiality and Archives Administration of Overseas Securities Offering and Listing by Domestic Companies (the "Archives Rules"), which became effective on March 31, 2023. The Archives Rules regulate both overseas direct offerings and overseas indirect offerings, providing that, among other things:

● in relation to the overseas listing activities of PRC enterprises, the PRC enterprises are required to strictly comply with the relevant requirements on confidentiality and archives management, establish a sound confidentiality and archives system, and take necessary measures to implement their confidentiality and archives management responsibilities;

● during the course of an overseas offering and listing, if a PRC enterprise needs to publicly disclose or provide to securities companies or securities service providers and overseas regulators, any materials that contain relevant state secrets, government work secrets or information that has a sensitive impact (i.e., be detrimental to national security or the public interest if divulged), the PRC enterprise should complete the relevant approval/filing and other regulatory procedures; and

● working papers produced in the PRC by securities companies and securities service providers, which provide PRC enterprises with securities services during their overseas issuance and listing, should be stored in the PRC, and competent PRC authorities must approve the transmission of all such working papers to recipients outside the PRC.

Any failure or perceived failure by us to comply with the Archives Rules and the confidentiality requirements and other PRC laws and regulations may result in us being held legally liable by competent authorities.

**Permissions and Licenses Required from the PRC Authorities for Our Operations and Overseas Securities Offerings** 

We conduct our business in the PRC primarily through our PRC subsidiaries. Our operations in the PRC are governed by laws and regulations of the PRC. As of the date of this prospectus, our PRC subsidiaries had obtained the necessary licenses and permits from the PRC government authorities, including (1) the Human Resources Service Licenses for the operation of the employment intermediary activities and other human resources services; (2) the Labor Dispatch Operation Licenses for the operation of the labor dispatch business; (3) the Value-added Telecommunications Business License for the future operation of the electronic commerce business; (4) the Food Business Licenses for the sales of food; and (5) the Publication Business Licenses for the operation of the business of book retailing.

If (1) we do not receive or maintain any required permissions or approvals, (2) we inadvertently concluded that certain permissions or approvals have been acquired or are not required, or (3) applicable laws, regulations or interpretations thereof change and we become subject to the requirement of additional permissions or approvals in the future, there is no assurance that we will be able to obtain such permissions or approvals in a timely manner, or at all, and such approvals may be rescinded even if obtained. Any such circumstance could subject us to sanctions imposed by the PRC regulatory authorities, which could include fines and penalties, proceedings against us, and other forms of sanctions, and our business, financial condition and results of operations may be materially and adversely affected. For more detailed information, see "Risk Factors — Risks Relating to Doing Business in China — The approval of and filing with the CSRC or other PRC government authorities is required in connection with this Business Combination or our listing under laws of the PRC."

The PRC government has sought to exert more regulation and supervision on China-based companies raising capital offshore and such efforts may continue or intensify in the future. On July 6, 2021, the relevant PRC authorities promulgated the Opinions on Severely Cracking Down on Illegal Securities Activities. According to Law, which emphasized the need to strengthen the supervision over overseas listings by mainland China-based companies. Effective measures, such as promoting the establishment of relevant regulatory systems, are to be taken to deal with the risks and incidents of mainland China-based overseas-listed companies, cybersecurity and data privacy protection requirements and similar matters. The revised Measures for Cybersecurity Review issued by Cyberspace Administration of China (the "CAC") and several other administrations on December 28, 2021 (which took effect on February 15, 2022) also requires that, in addition to critical information infrastructure operators purchasing network products or services that affect or may affect national security, any "online platform operator" carrying out data processing activities that affect or may affect national security should also be subject to a cybersecurity review, and any "online platform operator" possessing personal information of more than one million users must apply for a cybersecurity review before its listing overseas. In the event a member of the cybersecurity review working mechanism is in the opinion that any network product or service or any data processing activity affects or may affect national security, the Office of Cybersecurity Review shall report the same to the Central Cyberspace Affairs Commission for its approval under applicable procedures and then conduct cybersecurity review in accordance with the revised Measures for Cybersecurity Review. On September 24, 2024, the Administrative Regulations on Cyber Data Security was promulgated by the State Council and has come into effect on January 1, 2025. The Administrative Regulations on Cyber Data Security, among other things, specifies the legal requirements for personal information, important data, cross-border data transfer, network platform services, and data security. Among others, this regulation requires that if the cyber data processing activities affects or may affect national security, such activities shall be subject to national security review in accordance with relevant laws and regulations.

**Risk Factor Summary**

Our business and our industry are subject to significant risks. You should carefully consider all of the information set forth in this prospectus and in our other filings with the SEC, including the following risk factors, in evaluating our business. If any of the following risks actually occur, our business, financial condition, results of operations, and growth prospects would likely be materially and adversely affected. This prospectus also contains forward-looking statements that involve risks and uncertainties. See the section entitled "Forward-Looking Statements."

**Risks Relating to Our Business and Industry**

Risks and uncertainties relating to our business and industry include, but are not limited to, the following:

● We have a limited operating history in the evolving blue-collar lifetime service industry, which makes it difficult to evaluate our future prospects.

● We may not compete successfully in the blue-collar lifetime service industry.

● Our business and results of operations depend on our ability to price our services and our ability to maintain and raise the fees we charge.

● If we are unable to keep pace with the rapidly evolving industry in which we operate, our business may suffer.

● The industry we operate in is highly regulated in the PRC and subject to complicated PRC laws and regulations. Failure to comply with such PRC laws and regulations may adversely affect our reputation, business and results of operations.

● We depend on our five largest suppliers to provide construction projects and infrastructure services, and the failure to develop and maintain successful relationships with these suppliers could materially and adversely affect our business, operations and financial condition.

● We derive a significant percentage of our total revenue from our top five customers, and the failure to keep the recurring customers or develop new customers could materially and adversely impact our financial performance and business prospects.

● We rely on the market recognition of our brands. Our failure to maintain or enhance our brand recognition could materially and adversely affect our business, financial condition and results of operations.

● Any unfavorable changes in our collaboration with third parties may adversely affect our business.

● Demand for our HR recruitment services and employee management services may decline or disappear in certain industry sectors where human labor is being or may be replaced by or disrupted by new technology, which may adversely affect our business.

● If we fail to timely source adequate blue-collar talent who meet the requirements of our corporate customers, our reputation, business, and results of operations may be adversely affected.

● Our only significant asset is the ownership of Youlife International, and such ownership may not be sufficient to pay dividends or make distributions or obtain loans to enable us to pay any dividends on the ADSs, pay our expenses or satisfy other financial obligations.

● We will incur higher costs post-Business Combination as a result of being a public company.

● Our management team has limited experience managing and operating a U.S. public company.

***Risks Relating to Doing Business in China***

We face various legal and operational risks and uncertainties related to being based in and having significant operations in China, and therefore are subject to risks associated with doing business in China generally. Risks and uncertainties relating to Doing business in China could result in a material adverse change in our operations, significantly limit or completely hinder our ability to offer our securities to investors, and cause the value of our securities to significantly decline or become worthless. Such risks and uncertainties include, but not limited to, the following:

● The PRC government's significant oversight and discretion over our business operations could result in a material adverse change in our operations and the value of the ADSs and Class A ordinary shares. The Chinese government has recently exerted more oversight and control over overseas securities offerings and other capital markets activities and foreign investment in China-based companies like us. Such actions may significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or be worthless. See "Risk Factors — Risks Relating to Doing Business in China — The PRC government's significant oversight and discretion over our business operations could result in a material adverse change in our operations and the value of our securities."

● The Chinese government exerts substantial influence over the conduct of our business and may intervene with or influence our operations as the government deems appropriate to further regulatory, political and societal goals. The Chinese government has recently published new policies that significantly affected certain industries, and we cannot rule out the possibility that it will in the future release regulations or policies regarding our industry that could adversely affect our business, financial condition and results of operations. See "Risk Factors — Risks Relating to Doing Business in China — The PRC government exerts substantial influence over the conduct of our business operations. It may influence or intervene in our operations at any time as part of its efforts to enforce PRC law, which could result in a material adverse change in our operations and the value of our securities."

● Uncertainties exist with respect to how the PRC Foreign Investment Law may impact the viability of our current corporate structure and operations. See "Risk Factors — Risks Relating to Doing Business in China — Uncertainties exist with respect to how the PRC Foreign Investment Law may impact the viability of our current corporate structure and operations."

● We face various legal and operational risks and uncertainties as a company based in and primarily operating in China. Changes in China's economic, political or social conditions or government policies could have a material adverse effect on our business and operations. See "Risk Factors — Risks Relating to Doing Business in China — Changes in China's economic, political or social conditions or government policies could have a material adverse effect on our business, financial condition, results of operations, and the value of our securities."

● The approval of and filing with the CSRC or other PRC government authorities is required in connection with this Business Combination or our listing under laws of the PRC. See "Risk Factors — Risks Relating to Doing Business in China — The approval of and filing with the CSRC or other PRC government authorities is required in connection with this Business Combination or our listing under laws of the PRC."

● Greater oversight by the CAC over data security, particularly for companies seeking to list on a foreign exchange, could significantly limit or completely hinder our ability in capital raising activities and materially and adversely affect our business and the value of your investment. See "Risk Factors — Risks Relating to Doing Business in China — Greater oversight by the CAC over data security, particularly for companies seeking to list on a foreign exchange, could significantly limit or completely hinder our ability in capital raising activities and materially and adversely affect our business and the value of your investment."

● Our securities may be prohibited from trading in the United States under the Holding Foreign Companies Accountable Act, or the HFCAA, if the PCAOB is unable to inspect or investigate completely auditors located in China. The delisting of our securities, or the threat of their being delisted, may materially and adversely affect the value of your investment. See "Risk Factors — Risks Relating to Doing Business in China — Our securities may be prohibited from trading in the United States under the Holding Foreign Companies Accountable Act, or the HFCAA, if the PCAOB is unable to inspect or investigate completely auditors located in China. The delisting of our securities, or the threat of their being delisted, may materially and adversely affect the value of your investment."

● We could be adversely affected by changes and developments with respect to the Chinese legal system. Rules and regulations in China may change quickly with little advance notice. In addition, the interpretation and enforcement of Chinese laws and regulations involve additional uncertainties. Since administrative and court authorities in China have discretion in interpreting and implementing statutory provisions, it may be difficult to evaluate the outcome of administrative and court proceedings and the level of legal protection we enjoy. See "Risk Factors — Risks Relating to Doing Business in China — Changes and developments in the PRC legal system and the interpretation and enforcement of PRC laws, rules and regulations may subject us to uncertainties."

● Additional disclosure requirements to be adopted by and regulatory scrutiny from the SEC in response to risks related to companies with substantial operations in China, which could increase our compliance costs, subject us to additional disclosure requirements, and/or suspend or terminate our future securities offerings, making capital-raising more difficult. See "Risk Factors — Risks Relating to Doing Business in China — Additional disclosure requirements to be adopted by and regulatory scrutiny from the SEC in response to risks related to companies with substantial operations in China, which could increase our compliance costs, subject us to additional disclosure requirements, and/or suspend or terminate our future securities offerings, making capital-raising more difficult."

● China's M&A Rules and certain other regulations establish complex procedures for certain acquisitions of PRC companies by foreign investors, which could make it more difficult for us to pursue growth through acquisitions in China. See "Risk Factors — Risks Relating to Doing Business in China — China's M&A Rules and certain other regulations establish complex procedures for certain acquisitions of PRC companies by foreign investors, which could make it more difficult for us to pursue growth through acquisitions in China."

● Regulation of loans to and direct investment in PRC entities by offshore holding companies and governmental control of currency conversion may delay or prevent us from making loans to or make additional capital contributions to our PRC subsidiaries, which could materially and adversely affect our liquidity and our ability to fund and expand our business. See "Risk Factors — Risks Relating to Doing Business in China — Regulation of loans to and direct investment in PRC entities by offshore holding companies and governmental control of currency conversion may delay or prevent us from making loans to or make additional capital contributions to our PRC subsidiaries, which could materially and adversely affect our liquidity and our ability to fund and expand our business."

● Increases in labor costs and enforcement of stricter labor laws and regulations in China may adversely affect our business and our profitability. See "Risk Factors — Risks Relating to Doing Business in China — Increases in labor costs and enforcement of stricter labor laws and regulations in China may adversely affect our business and our profitability."

● Regulations of the PRC relating to offshore investment activities by PRC residents may limit our PRC subsidiaries' ability to increase their registered capital or distribute profits to us or otherwise expose us or our PRC resident beneficial owners to liability and penalties under laws of the PRC. See "Risk Factors — Risks Relating to Doing Business in China — Regulations of the PRC relating to offshore investment activities by PRC residents may limit our PRC subsidiaries' ability to increase their registered capital or distribute profits to us or otherwise expose us or our PRC resident beneficial owners to liability and penalties under laws of the PRC."

● Any failure to comply with regulations of the PRC regarding the registration requirements for employee stock incentive plans may subject the PRC plan participants or us to fines and other legal or administrative sanctions. See "Risk Factors — Risks Relating to Doing Business in China — Any failure to comply with regulations of the PRC regarding the registration requirements for employee stock incentive plans may subject the PRC plan participants or us to fines and other legal or administrative sanctions."

**Risks Relating to Our Securities and this Offering**

● The price of our securities may be volatile, and the value of our securities may decline.

● Reports published by analysts, including projections in those reports that differ from our actual results, could adversely affect the price and trading volume of the ADSs.

● An active, liquid trading market for the ADSs and Warrants may not develop, which may limit your ability to sell the ADSs, ADSs or Warrants.

● We may or may not pay cash dividends in the foreseeable future.

● It may be difficult to enforce a U.S. judgment against us or our directors and officers outside the United States, or to assert U.S. securities law claims outside of the United States.

● We may redeem your unexpired Public Warrants prior to their exercise at a time that is disadvantageous to you, thereby making your Public Warrants worthless.

● We are a foreign private issuer within the meaning of the rules under the Exchange Act, and as such we are not subject to U.S. proxy rules and are exempt from certain provisions applicable to U.S. domestic public companies.

● As a company incorporated in the Cayman Islands, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly from Nasdaq corporate governance listing standards, which may afford less protection to shareholders than they would enjoy if we complied fully with the Nasdaq corporate governance listing standards.

**Emerging Growth Company**

We are an "emerging growth company," as defined in Section 2(a) of the Securities Act, as modified by JOBS Act, and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. We have elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, we, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of our financial statements with another public company that is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

We will remain an emerging growth company until the earlier of: (1) the last day of the fiscal year (i) following the fifth anniversary of the consummation of the Business Combination, (ii) in which we have total annual gross revenue of at least US$1.235 billion, or (iii) in which we are deemed to be a large accelerated filer, which means the market value of the ADSs that are held by non-affiliates exceeds US$700 million as of the last business day of its most recently completed second fiscal quarter; and (2) the date on which we have issued more than US$1.00 billion in non-convertible debt securities during the prior three-year period. References herein to "emerging growth company" have the meaning associated with it in the JOBS Act.

**Foreign Private Issuer**

We are a foreign private issuer within the meaning of the rules under the Exchange Act and, as such, we are permitted to follow the corporate governance practices of our home country, the Cayman Islands, in lieu of the corporate governance standards of Nasdaq applicable to U.S. domestic companies. For example, we are not required to have a majority of the board consisting of independent directors nor have a compensation committee or a nominating and corporate governance committee consisting entirely of independent directors. We intend to follow our home country's corporate governance practices as long as we remain a foreign private issuer. As a result, our shareholders may not have the same protection afforded to shareholders of U.S. domestic companies that are subject to Nasdaq corporate governance requirements. As a foreign private issuer, we are also subject to reduced disclosure requirements and are exempt from certain provisions of the U.S. securities rules and regulations applicable to U.S. domestic issuers such as the rules regulating solicitation of proxies and certain insider reporting and short-swing profit rules.

**THE OFFERING**

 

*The summary below describes the principal terms of the offering. The "Description of Share Capital" section of this prospectus contains a more detailed description of the ordinary shares.*

---

| | |
|:---|:---|
| **Issuance of ADSs Pursuant to Exercise of Warrants** |  |
| Ordinary Shares issued and outstanding prior to exercise of all Warrants | 69,855,502 Class A ordinary shares and 11,160,808 Class B ordinary shares |
| Ordinary Shares issuable upon exercise of all Warrants registered herein | 7,617,500 Class A ordinary shares represented by ADSs |
| Use of proceeds | We will receive up to an aggregate of US$87,601,250 from the exercise of all Warrants, assuming the exercise in full of all of the Warrants for cash. The exercise price of the Public Warrants and Sponsor Warrants is US$11.50 per share, and the exercise price of the Representative Warrants is US$12.00 per share, subject to adjustment as described herein. The likelihood that warrant holders will exercise the Warrants and any cash proceeds that we would receive is dependent upon the market price of the ADSs. Based on the closing price for the ADSs at US$0.3367 on June 8, 2026, which is less than the exercise prices pursuant to the terms of the Warrants, we believe warrant holders will be unlikely to exercise their Warrants, and we are unlikely to receive proceeds from the exercise of Warrants. To the extent that we receive any net proceeds in connection with the exercise of Warrants, we expect to use such net proceeds for general corporate purposes. See the section titled "Use of Proceeds" appearing elsewhere in this prospectus for more information. |
| **Resale of ADSs and Warrants** |  |
| ADSs offered by the Selling Securityholders consisting of | Up to 5,964,450 Class A ordinary shares represented by ADSs, (1) 2,324,500 Sponsor Shares; (2) 545,000 Class A ordinary shares issuable upon the exercise of the Sponsor Warrants; (3) 390,001 Class A ordinary shares currently held by Xiaolingo; (4) 1,184,949 Class A ordinary shares currently held by Anji; (5) 1,350,000 Class A ordinary shares currently held by Mouette; (6) 100,000 Class A ordinary shares currently held by Empire Light; (7) 20,000 Class A ordinary shares currently held by Hopeful; and (8) 50,000 Class A ordinary shares currently held by SKS. |
| Warrants offered by the Selling Securityholders | Up to 545,000 Private Warrants |

---

---

| | |
|:---|:---|
| Offering price | The securities offered by this prospectus may be offered and sold at prevailing market prices, privately negotiated prices or such other prices as the Selling Securityholders may determine. See "Plan of Distribution." |
| Use of proceeds | All of the securities offered by the Selling Securityholders pursuant to this prospectus will be sold by the Selling Securityholders for their respective accounts. We will not receive any of the proceeds from such sales. |
| Warrants issued and outstanding | Up to 7,617,500 Warrants, consisting of 6,900,000 Public Warrants and 717,500 Private Warrants |
| Dividend Policy | We have never declared or paid any cash dividend on our Class A Ordinary Shares. We currently intend to retain any future earnings and do not expect to pay any dividends in the foreseeable future. Any further determination to pay dividends on the ADSs would be at the discretion of our board of directors, subject to applicable laws, and would depend on our financial condition, results of operations, capital requirements, general business conditions, and other factors that our board of directors may deem relevant. |
| Lock-up arrangement | The securities being registered for resale by certain Selling Securityholders named in the prospectus are subject to a 180-calendar-day lock-up period from July 9, 2025, subject to certain exceptions. The holders of Sponsor Shares are subject to lock-up requirement of up to one year following the consummation of the Business Combination, subject to certain exceptions. See "Corporate History and Structure — Additional Agreements in connection with the Business Combination — Lock-up Agreements. |
| Market for the ADSs and Warrants | The ADSs, representing our Class A Ordinary Shares, are listed on Nasdaq under the trading symbols "YOUL." The Warrants are currently not listed or quoted on any national stock exchange or over-the-counter market and, as such, there is no public trading market for the Warrants and you will need to exercise the Warrants for Class A Ordinary Shares and deposit them with our depositary in exchange for the ADSs in order to liquidate your investment in the Warrants, if at all. |
| Risk factors | Prospective investors should carefully consider the "Risk Factors" for a discussion of certain factors that should be considered before buying the securities offered hereby |

---

**RISK FACTORS**

 

*Our business and our industry are subject to significant risks. You should carefully consider all of the information set forth in this prospectus and in our other filings with the SEC, including the following risk factors, in evaluating our business. If any of the following risks actually occur, our business, financial condition, results of operations, and growth prospects would likely be materially and adversely affected. This prospectus also contains forward-looking statements that involve risks and uncertainties. See the section entitled "Forward-Looking Statements."*

**Risks Relating to Our Business and Industry**

***We have a limited operating history in the evolving blue-collar lifetime service industry, which makes it difficult to evaluate our future prospects.***

Although we initiated our business in 2009 as a blue-collar vocational education service provider, we have upgraded our business model over the years to incorporate employee management services and market services and solutions, and became a blue-collar lifetime service provider in China in 2014. Therefore, we have a limited operating history in the evolving blue-collar lifetime service industry. Our business is difficult to evaluate due to a lack of operational history, and our prospects will be dependent on our ability to meet a number of challenges, including difficulties in our ability to achieve market acceptance of our business model and attract and retain blue-collar talent, as well as increasing competition and increasing expenses as we continue to grow our business. Because we have a limited operating history, you may not be able to evaluate our future prospects accurately. Furthermore, we may from time to time decide to make further changes to our business model due to a variety of factors, including changes in the market and competitors introducing new services. If we are not able to successfully meet these challenges, our prospects, business, financial condition and results of operations would be materially adversely affected.

***We have incurred net losses and accumulated losses in the past and may not be able to achieve profitability in the future.***

We had net losses in the past and may not be able to achieve or maintain profitability in the future. We recorded net profit of RMB79.3 million, net losses of RMB52.4 million and net profit of RMB42.7 million (US$6.1 million) in 2023, 2024 and 2025, respectively. Our ability to achieve and maintain profitability will depend on, among other factors, our ability to attract and retain blue-collar talent, diversify vocational education services, enhance customer satisfaction, develop new technologies, compete effectively and successfully and develop new service offerings, which may be beyond our control. If we are unable to generate adequate revenue and manage our costs and expenses, we may continue to incur losses in the future and may not be able to achieve or subsequently maintain profitability.

In addition, we recorded an accumulated loss of RMB549.8 million, RMB621.8 million and RMB579.8 million (US$82.9 million) in 2023, 2024 and 2025, respectively. We cannot assure you that our accumulated losses would turn into retained profits. If we are not able to continue to improve our financial performance in the future or if we incur further losses in the future, our business, results of operations and prospects may be materially affected. So far as the accumulated losses remain, we may not be able to distribute dividends.

***Our historical growth rates may not be indicative of our future growth. If we are unable to manage the growth and increased complexity of our business, fail to control our costs and expenses, or fail to execute our strategies effectively, our business, financial condition, results of operations and prospects may be materially and adversely affected.***

We have historically achieved steady growth in our revenue. Our revenue was RMB1,365.9 million, RMB1,585.6 million and RMB1,854.3 million (US$265.2 million) in 2023, 2024 and 2025, respectively. Despite the past growth, we cannot assure you that we are able to continue to grow our business for various reasons, including uncertainty of our continuous launch of new services or expansion of our existing services that currently are of relatively small scale, intensified competition in the blue-collar lifetime service industry in China and uncertainty of customer demand on our services which may be affected by various factors. Our revenue, expenses and results of operations may vary from time to time due to factors beyond our control. As a result of these and other factors, we cannot assure you that our future revenues will increase or that we will continue to be profitable. Accordingly, investors should not rely on our historical results as an indication of our future financial or operating performance. In addition, our anticipated expansion and investment in new services may place a significant strain on our managerial, operational, financial and human resources. Our current and planned personnel, systems, procedures and controls may not be adequate to support our future operations. We cannot assure you that we will be able to effectively manage our growth or implement all such systems, procedures and control measures successfully. If we are not able to manage our growth or execute our strategies effectively, our business, financial condition, results of operations and prospects may be materially and adversely affected.

***We may not compete successfully in the blue-collar lifetime service industry.***

We face intense competition from our competitors in the blue-collar lifetime service industry and may suffer from loss of corporate customers, blue-collar talent, students and teachers. The blue-collar lifetime service industry in the PRC is rapidly evolving highly fragmented and competitive, according to CIC. The top five blue-collar lifetime service platforms aggregate accounted for approximately 0.2% of China's blue-collar lifetime service market in terms of revenue in 2025, and we were the largest blue-collar lifetime service platform in China in terms of revenue generated from blue-collar lifetime services in 2025, according to CIC. Our competitors primarily comprise other blue-collar lifetime service platforms, vocational education service providers, blue-collar transaction-based recruitment service providers, blue-collar employee management service providers and blue-collar market service providers. We compete with our competitors in the HR recruitment service, employee management service and market service industries for corporate customers and blue-collar talent, and those in the vocational education industry for students and teachers. For example, competition for blue-collar talent with proven professional skills, qualifications and experience is intense, and qualified candidates may not be available to us in sufficient numbers or on employment terms acceptable to us. Future competitors may also from time to time enter into this growing market as supported by more favorable government policies. We distinguish us among our competitors and primarily compete on a few major factors, including one-stop comprehensive service offerings for blue-collar talent, in-depth knowledge in skill improvement and lifetime career development, strong digitalization capabilities, clear focus on blue-collar talent, and favorable brand reputation. However, some of our competitors may have longer operating history, wider corporate customer and blue-collar talent base, better brand recognition and reputation, greater management and financial resources, more advanced technologies, and stronger selling and marketing capabilities. Our competitors may copy our business model and plagiarize our services. In addition, our competitors may expand their services through acquisitions and strategic alliance. We may also face potential competition from a variety of blue-collar lifetime service providers that may also build similar integrated service offerings like ours. If we are unable to compete effectively, successfully and at reasonable cost against our existing and potential competitors, our business prospects, financial condition and results of operations could be materially and adversely affected.

***Our business and results of operations depend on our ability to price our services and our ability to maintain and raise the fees we charge.***

Our results of operations are affected by our ability to price our services, including our service fees for our vocational education services and service fees for our HR recruitment services and employee management services. For example, we determine our management fees and service fees for vocational education management services and curriculum development projects based on a number of factors, primarily including the student enrollment of each school/curriculum, the type of services we provide and the geographic location of the schools our cooperate with. We determine the service fees for HR recruitment services primarily based on (1) the industries and geographic locations of the work vacancies, (2) the working environment and employee welfare, (3) the difficulties and sizes of recruitment and (4) the comparable market prices. Our ability to maintain our pricing model or to raise our fees is primarily dependent on the quality of the services and programs we offer and our brand recognition. However, our customers may enter into new agreements with us on different pricing terms and our pricing model may not be effective and competitive at all times to reflect the supply and demand of our services, which may in turn affect our ability to generate revenue and maintain profitability. Additionally, if the PRC government issues more pricing guidance for our services, it may negatively affect the prices of our services and in turn have a material adverse effect on our business and results of operations. Our corporate customers, especially large and global corporates, may gain more bargaining power and demand for greater price concessions when negotiating the prices, as a result of which, we may need to reduce our prices to maintain competitiveness and retain such customers. Furthermore, with the introduction of new services or competing services, or with voluntary price lowering by our competitors, we may be forced to lower the prices for our services to maintain competitiveness. Although we have been able to keep our pricing model and raise the fees we charged in the past, we cannot assure you that we will be able to do so in the future, failing which may adversely affect our business, results of operations and financial condition.

***If we are unable to keep pace with the rapidly evolving industry in which we operate, our business may suffer.***

We operate in the blue-collar lifetime service industry, which is rapidly evolving. For example, we design and offer diversified vocational education services in accordance with the industry trend and market demands for blue-collar talent with different skillsets. We also provide various forms of HR recruitment services and employee management services to cater to our corporate customers' evolving needs and preferences. Our corporate customers, particularly those in the new economy sectors, are experiencing rapid development, therefore their demands for blue-collar talent and in turn our services are constantly changing as well. Our past success has been built on our ability to timely identify and adapt to the evolving market trends and expand our business along the life cycle of blue-collar talent. Our ability to further grow our business and increase profitability largely depends on our capabilities to keep up with the rapid changes in the industry we operate in and our ability to predict the future market trends and demands. If we cannot keep up with the rapid changes in the industry we operate in, including our failure to accommodate our corporate customers' evolving needs for blue-collar talent with specific skillsets and to design innovative and practical curricula and programs to equip students with the latest knowledge and skillsets, our business, results of operations and prospect may be materially and adversely affected.

***The industry we operate in is highly regulated in the PRC and subject to complicated PRC laws and regulations. Failure to comply with such PRC laws and regulations may adversely affect our reputation, business and results of operations.***

The blue-collar lifetime service industry we operate in are highly regulated in the PRC and subject to complicated PRC laws and regulations in many aspects. Regulations and policies may vary from region to region and change from time to time. Misinterpretation or misapplication of such laws and regulations may result in our non-compliance. Non-compliance with any applicable laws and regulations may lead to disciplinary warnings, fines or penalties, which may in turn materially and adversely affect our business, financial condition, results of operations and prospects. Moreover, these laws and regulations may change from time to time to accommodate the development of the industry. For example, the *Interim Regulation on Human Resources Market* strengthens supervision requirements in the HR recruitment service industry. We may also be affected by any government policy that may result in increases in the minimum labor wages.

In addition, we cannot assure you that the implementation of any rules and regulations by the competent authorities will not deviate from our current understanding or interpretation of it. Compliance with any changes in existing or new government laws, regulations or policies may also increase our costs which may adversely affect our business, financial condition and results of operations. In addition, we cannot assure you that we would be able to comply with the requirements of any amended or newly promulgated laws, regulations and policies in all material aspects.

Any misinterpretation and misunderstanding of the applicable laws and regulations could render our business to be terminated or suspended by the relevant authorities, or subject us to fines or penalties, which in turn could materially and adversely affect our reputation, business, financial condition and results of operations.

***We depend on our five largest suppliers to provide the HR recruitment and employee management services and the market services, and if we are unable to develop and maintain successful relationships with these suppliers or any delay or interruption in providing these services occurs, our business, results of operations and financial condition could be adversely affected.***

 ****

We primarily rely on our five largest suppliers to provide the HR recruitment and employee management services and the market services. In 2023, 2024 and 2025, purchases from our five largest suppliers accounted for approximately 38.8%, 21.3% and 36.7% of our total purchases, respectively. There is no guarantee that we will maintain our relationships with them in the future. If we fail to maintain these relationships, in a timely and cost-effective manner, or at all, then our business, results of operations and financial condition could be adversely affected. If any of our five largest suppliers stop providing us with access to their infrastructure, fail to provide these services to us on a cost-effective basis, cease operations, or otherwise terminate these services, the delay caused by qualifying and switching to another third-party network service provider, if one is available, could have a material adverse effect on our business and results of operations.

***We typically derive a significant percentage of our total revenue from our top five customers, and any failure to keep the recurring customers or develop new customers could result in a material adverse impact on our financial performance and business prospects.***

In 2023, 2024 and 2025, we derived a significant percentage of our total revenue from a few customers. Our five largest customers in 2023, 2024 and 2025 accounted for approximately 25.5%, 30.8% and 27.8% of our total revenue, respectively. Our success is largely dependent on our ability to attract and maintain major customers and expand our customer base, which in turn is affected by our ability to deliver quality services amid a changing landscape of the blue-collar lifetime service industry in China. Although we do have recurring customers among our top customers, typically we do not enter into long-term contracts with our customers and all the orders are placed on an as-needed base. There is no guarantee that we will continue to obtain new contracts with these major customers or maintain our relationships with them in the future. Any failure in keeping the recurring customers or developing new customers may have a material adverse impact on our financial performance and business prospects.

***We rely on the market recognition of our brands. Our failure to maintain or enhance our brand recognition could materially and adversely affect our business, financial condition and results of operations.***

We rely on our brands, such as "Youlan", "Youlife", and "Tiankun Education" to expand and grow our businesses. Maintaining, protecting and enhancing the market recognition of our brands are critical to the success of our business. This will depend largely on our ability to continue to maintain our market leadership and provide quality and diversified services. In particular, when our existing corporate customers consider repeating business with us, potential customers consider establishing business relationships with us. In addition, it may be difficult to maintain the quality and consistency of our services while we continue to expand our business and service offerings, which in turn may lead to diminishing confidence in our brand recognition. If we cannot successfully maintain the quality and consistency of our services and in turn maintain the market recognition of our brands, our business and results of operations could be harmed. Furthermore, negative publicity about us and our business, shareholders, affiliates, directors, officers, employees and collaborating parties, as well as the industry in which we operate, can harm our operations.

● Our ability to maintain our brand recognition and reputation depend on a number of factors, some of which are beyond our control, including:

● the level of satisfaction of the programs offered to the blue-collar talent and the services we provide to our corporate customers and blue-collar talent;

● any negative publicity relating to our business or the blue-collar lifetime service industry in general, regardless of merit;

● the quality of our blue-collar talent resources;

● the successful recruitment of our blue-collar candidates, the initial employment rate of the students;

● the upgrade of our services and programs according to the evolving industry;

● the use of our brand names by our employees, cooperative partners or other third parties;

● the effectiveness of our data privacy and security measures and initiatives; and

● the innovation and development of our technologies and IT infrastructure.

We promote our brands to attract new corporate customers and blue-collar talent as well as expand students base by encouraging word-of-mouth referrals by our existing corporate customers, blue-collar talent and students and conducting a series of marketing activities. However, we cannot assure you that our brand-building initiatives and activities will be successful or sufficient in helping us to remain competitive. If we are unable to further enhance our brand recognition and reputation, or if we are required to incur excessive marketing and promotional expenses in order to remain competitive, our business, financial condition and results of operations may be materially and adversely affected.

***Any unfavorable changes in our collaboration with third parties may adversely affect our business.***

We have established collaboration with a number of third parties, such as local government authorities, to provide vocational education management services for secondary vocational schools, and vocational schools nationwide under curriculum development projects. As of December 31, 2025, we managed 37 vocational schools under management model and operated 146 curriculum development projects. We also provide HR recruitment services and employee management services to our corporate customers. If our relationship with such third parties deteriorates and no longer conducive to such operations, we may incur substantial amount of expenses in connection with our infrastructure, promotion, and other matters relating to our business operations, instead of the current business model, which may materially and adversely affect our business, financial condition and results of operations. In addition, we cannot assure you that the existing collaboration model with third parties, including the local government authorities and vocational schools, would not change or be terminated by such third parties, nor can we be certain that such collaboration model would not be challenged by any government authorities in the future, despite the confirmation we had obtained. We may also be unable to form cooperative relationships with third parties in the geographic areas we plan to enter and expand into, which would materially and adversely affect our ability to grow as quickly as planned or maintain historical growth rates.

Moreover, negative publicity about the abovementioned collaboration model and such third parties can harm our operations. We may be exposed to the risk of any misconduct of such third parties. Any negative publicity and claims asserted against such third parties or fines imposed upon them as a result of actual or perceived failures or any failure to comply with regulatory requirements or meet their contractual obligations with us in a timely manner, could have a material and adverse effect on our public image, reputation, financial condition and results of operations.

***Demand for our HR recruitment services and employee management services may decline or disappear in certain industry sectors where human labor is being or may be replaced by or disrupted by new technology, which may adversely affect our business.***

New technology may emerge and, individually or collectively with the existing technologies, may distort the traditional labor market, which in turn adversely affect our business. The introduction and acceptance of new technology may reduce or even replace demand for human labor in certain industry sectors, especially for standard and low-end positions, rending some of our services unattractive or redundant. For example, the use of AI, robotics and automation technologies is becoming increasingly widespread throughout different industries. Further, new technology may emerge and have the effect of replacing, or as the case may be, have a disruptive effect on certain parts of our services and processes. Adoption of new technology may lead to a decrease in demand for human labor, rendering certain parts of our HR recruitment services and employee management services obsolete and ineffective. We have been devoting resources to keeping up with the technology advancements and constantly upgrading our service offerings. However, we cannot assure you that our efforts will suffice. The occurrence of the abovementioned events could materially and adversely affect our business, results of operations and financial condition.

***If we fail to timely source adequate blue-collar talent who meet the requirements of our corporate customers, our reputation, business, and results of operations may be adversely affected.***

We generated a significant portion of our revenue from our employee management services and HR recruitment services in the past. Many of our corporate customers, particularly those in the intelligent manufacturing, modern services and other new economy industries, require immediate and large-scale hiring of blue-collar talent to fulfil their staffing needs for rapid expansion or to meet seasonal demands. Our employee management services and HR recruitment services depend on our ability to timely and continually source sufficient blue-collar talent to support the staffing needs of our corporate customers. We need to continually evaluate and upgrade our blue-collar talent pool to satisfy the evolving staffing needs of our corporate customers and to keep up with the changing market trends. We may not be able to source suitable and quality blue-collar talent with the required education background, qualification, or work experience timely or on employment terms acceptable to us. From time to time, our corporate customers may also need specialized talent that are not easy to recruit. If we are unable to source enough blue-collar candidates who possess the required skills, qualifications, or experiences for our corporate customers in a timely manner, or such blue-collar talent misbehave or carry out unsatisfactory performance, our reputation, business, and results of operations may be adversely affected.

***Substandard performance by the blue-collar talent placed to our corporate customers may adversely affect our service quality and reputation and in turn our business and results of operations.***

When providing employee management services, we rely on the blue-collar talent we placed to our corporate customers to provide quality services at the work position designated by our corporate customers. Although we provide the blue-collar talent we placed with pre-job trainings before placement from time to time to introduce the job description, service standard and work expectations of our corporate customers, there is no assurance that the blue-collar talent will perform up to our corporate customers' expectations and specifications. Further, while we designate project managers and assign onsite teams for project supervision, as the blue-collar talent may work directly under the supervision of our corporate customers, we cannot directly monitor the job performance of such blue-collar talent. If the performance of the blue-collar talent is unsatisfactory to our corporate customers, we may be required, depending on the relevant contract terms with our corporate customers, to arrange for appropriate training and/or replacement at our cost. Furthermore, we may be exposed to the risks of fraud or other misconducts committed by the blue-collar talent, which may subject us to claims or legal liabilities brought by our corporate customers and/or their customers. In the occurrence of the above events, our corporate customers' perception of our service quality and our reputation among our corporate customers may be adversely affected, which may in turn result in reduction in future demands for our services, thereby adversely affecting our business, results of operations and financial condition.

***Our efforts to launch new services or programs may subject us to additional risks.***

From time to time, we may launch new services to expand into new markets, or design new curricula or programs to diversify our services, such as operating student dormitories and providing welfare services to corporate customers. There may be substantial risks and uncertainties associated with these efforts, particularly in circumstances where the markets are not fully developed to accommodate our new services or programs. To develop and market new services or programs, we may need to invest significant time and managerial and financial resources. However, we cannot assure you that the development and marketing of our new services or programs will be successful. In addition, the operation of our new services or programs may not operate as expected and profitability targets may not be achieved as planned. External factors, such as compliance with the relevant laws and regulations and adverse market trends, may also affect the implementation of our new services or programs. Failure to successfully manage these risks in the development and operation of our new services or programs could therefore have an adverse effect on our business, results of operations and financial condition.

***We face various challenges and risks in connection with our expansion into overseas markets.***

As we expand our businesses into an increasing number of overseas markets, we will face risks associated with expanding into markets in which we have limited or no experience and in which we may be less well-known. We may be unable to attract a sufficient number of customers and business partners, fail to anticipate competitive conditions or face difficulties in operating effectively in these new markets. The expansion of our businesses will also expose us to risks inherent in operating businesses globally, including, but not limited to:

● inability to recruit talent and deal with challenges in replicating or adapting our company policies and procedures to operating environments different than those of China;

● lack of acceptance of our service offerings;

● investigations regarding anti-dumping;

● trade wars;

● geopolitical tensions, political instability and general economic or political conditions in particular countries or regions;

● challenges and increased expenses associated with staffing and managing overseas operations and managing an organization spread over multiple jurisdictions;

● trade barriers, such as import and export restrictions, tariffs, customs duties and other taxes, competition law regimes and other trade restrictions, as well as other protectionist policies;

● different and potentially adverse tax consequences;

● increased and conflicting regulatory compliance requirements;

● increased risks of being involved in legal disputes and labor disputes;

● adaption to different industry practices;

● challenges caused by distance, language and cultural differences;

● the impact of natural disasters;

● increased costs to protect the security and stability of our information technology systems, intellectual property and personal data, including compliance costs related to data localization laws;

● availability and reliability of global and cross-border payment systems; and

● exchange rate fluctuations.

As we expand further into new regions and markets, these risks could intensify, and efforts we make to expand our overseas businesses and operations may not be successful. Failure to expand our overseas businesses and operations could materially and adversely affect our business, financial condition and results of operations.

Transactions conducted through our global and overseas operation may be subject to different customs, taxes and rules and regulations, and we may be adversely affected by the complexity of and developments in customs, foreign exchange and import/export laws, rules and regulations in China and other jurisdictions.

In addition, changes to trade policies, treaties and tariffs in the jurisdictions in which we operate, or the perception that these changes could occur, could adversely affect our global and cross-border operations, financial condition and results of operations.

***Any global systemic economic and financial crisis could negatively affect our business, financial condition and results of operations.***

 ****

Our business, financial condition and results of operations may be negatively impacted by any prolonged slowdown in the global or Chinese economy. The global financial markets have experienced significant disruptions since 2008 and the United States, Europe and other economies have experienced periods of recession. The recovery from the lows of 2008 and 2009 has been uneven and there are new challenges, including the escalation of the European sovereign debt crisis from 2011 and the slowdown of Chinese economic growth since 2012, which may continue. The market panics over the global outbreak of coronavirus COVID-19 and the drop in oil price have materially and negatively affected the global financial markets in March 2020, which resulted in a slowdown of the world's economy. There have also been concerns over unrest in Ukraine, the Middle East and Africa, which have resulted in volatility in financial and other markets, concerns over the significant potential changes to United States trade policies, treaties and tariffs, including trade policies and tariffs regarding China, concerns about the economic effect of the relationship between China and surrounding Asian countries, and concerns over the rising level of inflation and worries that efforts to curb inflation may result in recession. For instance, if the inflation intensifies in China, we may have to increase the price level of our product and service offerings while our costs and operating expenses may also increase in the meantime. In that case, our profit margin will depend on our ability to pass on the additional costs and operating expenses to our customers.

***The current tensions in international trade and rising political tensions, particularly between the United States and China, may adversely impact our business, financial condition, and results of operations.***

Recently there have been heightened tensions in international economic relations, such as the one between the United States and China. In February and March 2025, the United States administration imposed an additional 20% duty on Chinese imports. Subsequently, authorities in China announced tariffs over selected United States products and regulatory investigation against United States companies in response to the tariff imposed by the United States. Furthermore, on April 2, 2025, President Trump announced that the United States would impose a 10% tariff on all countries, effective on April 5, 2025, and an individualized reciprocal higher tariff on countries with which the United States has the largest trade deficits, including a 34% additional reciprocal tariff on goods imported from China that brings the total tariff rate to 54%. On April 4, 2025, the Foreign Ministry of China announced that China would impose a retaliatory 34% tariff on goods imported from the United States. On April 8, 2025, President Trump announced an additional 50% tariff on Chinese imports. The Trump administration proceeded to implement a 104% tariff on goods imported from China on April 9, 2025. On April 10, 2025, President Trump announced a temporary suspension of reciprocal tariff measures targeting most U.S. trading partners for a 90-day period, while concurrently escalating tariffs on Chinese goods to 125%. Subsequently, on April 16, 2025, the White House announced that China faced tariffs of up to 245% on imports to the United States. Additionally, the U.S. government continues to signal that it may alter trade agreements and terms between China and the United States, including limiting trade with China, and may impose additional tariffs on imports from China and other countries. Despite a provisional agreement reached between the United States and China on May 12, 2025 and subsequently on October 30, 2025, the international trade environment remains highly uncertain.

Political tensions as a result of trade policies could reduce trade volume, cross-border investment, technological exchange, and other economic activities between major economies, resulting in a material adverse effect on global economic conditions and the stability of global financial and stock markets. Moreover, the heightened geopolitical uncertainty and potential for further escalation may discourage investments in securities issued by China-based issuers, including us, and affect the global macroeconomic environment. For example, on October 28, 2024, the U.S. Department of the Treasury (the "Treasury") issued a final rule on outbound investment (the "Final Rule") to implement the executive order of August 9, 2023. The Final Rule became effective on January 2, 2025, and restricts direct and indirect investment by U.S. persons into companies with specified connections to China that use specific technologies of concern related to three sectors: (1) semiconductors and microelectronics, (2) quantum information technologies, and (3) artificial intelligence systems. On December 18, 2025, U.S. President Trump signed into law the National Defense Authorization Act for Fiscal Year 2026, which includes the Comprehensive Outbound Investment National Security Act of 2025 (the "COINS Act"). The Final Rule remains in effect, but the COINS Act requires Treasury to propose certain revisions to the Final Rule within 450 days of December 18, 2025. Those revisions ultimately will include, among other changes to the Final Rule, an expansion of the countries of concern, an expansion of the technologies covered to include hypersonic systems, revisions to key defined terms, and the establishment of a formal advisory opinion process. Against this backdrop, China has implemented, and may further implement, measures in response to the changing trade policies, treaties, tariffs and sanctions and restrictions against Chinese companies initiated by the U.S. government. If the political tension between the United States and China intensifies and further regulations affecting our business or customers are passed, our business may be materially and adversely affected.

***Natural disasters, acts of war, occurrence of epidemics, public health problems, force majeure, and other disasters could affect our business.***

Natural disasters, epidemics such as the human swine flu, also known as Influenza A (H1N1), H5N1 avian flu, severe acute respiratory syndrome (SARS), the Ebola virus, COVID-19 and other natural disasters which are beyond our control may adversely affect the economy, infrastructure and livelihood of the people in the PRC and globally. Some regions in which we operate in the PRC or globally have been or may in the future be under the threat of flood, earthquake, fire, drought or epidemics. Natural disasters, epidemics and public health problems may disrupt our operations and adversely affect our ability to deliver our services as scheduled. Any future outbreak of flood, earthquake, fire, drought, COVID-19, SARS, avian flu or other similar adverse epidemics may, among other things, significantly disrupt our business, such as temporary closure of our business operations. For example, our vocational education business could also be disrupted if any of students or our staff has contracted or is suspected of having contracted any contagious disease or condition, since it may require them to be quarantined or our facilities to be closed down and disinfected.

***If we fail to achieve expected benefits from acquisitions, investment targets or strategic alliances, our business, growth rates and results of operations may be materially and adversely affected.***

We have in the past acquired and made investments in businesses that we believe are complementary to our existing service offerings and crucial to executing on our growth strategies. In the past, we also made minority investments in multiple companies in China. We may in the future continue to explore opportunities to acquire or invest in businesses, services or technologies that we believe could complement or expand our service offerings, enhance our technical capabilities or otherwise provide growth opportunities. The pursuit of potential acquisitions may divert the attention of management and cause us to incur various expenses in identifying, investigating and pursuing suitable acquisitions, whether or not they are consummated. Further, such acquisitions or investments could subject us to a number of risks, including our inability to influence the management of such companies in a way that is favorable to our business and growth strategies. Such businesses may also not generate operating and financial results or synergies we expected. In addition, a significant portion of the purchase price of companies we acquire may be allocated to acquired goodwill and other intangible assets, which must be assessed for impairment at least annually. In the future, if our acquisitions or investments do not yield expected returns, we may be required to take charges to our operating results based on this impairment assessment process, which could adversely affect our results of operations based on this impairment assessment process. In addition, if an acquired business fails to meet our expectations, our business, results of operations and financial position may suffer.

To implement our expansion plan, we may enter into strategic alliances with various third parties from time to time. Strategic alliances with third parties could subject us to a number of risks, including risks associated with sharing proprietary information, non-performance by the counterparty, and an increase in expenses incurred in establishing new strategic alliances, any of which may materially and adversely affect our business. We may have little ability to control or monitor third-party business partners' actions. To the extent that the third parties suffer negative publicity or harm to their reputations from events relating to their business, we may also suffer negative publicity or harm to our reputation by virtue of our association with such third parties.

***Our business may suffer if we cannot successfully manage our growth. We may not be able to obtain external financing to support our expansion plans.***

We have continuously expanded and developed our business in recent years and we intend to continue to grow our business by expanding the scale and geographic reach of our services. For example, we are leveraging our past success and brand name to expand our business and may enter into market where we had no business presence before. Entering into new market may have various risks and uncertainties, such as the acceptance level of our services by the local government authorities or customers, the quality of the blue-collar talent, and the local political and economic environment. We cannot assure you that we will be able to expand our geographic reach and address the risks and difficulties successfully. If our assumptions regarding the new markets are incorrect or change, our results of operations could differ materially from our expectations, and our business, results of operations and financial condition could be adversely affected. In addition, our anticipated future growth will likely demand significant managerial, financial, human and other resources. Managing our growth successfully will depend largely on our ability to continue to provide quality and consistent services. If we are unable to properly and prudently manage our operations as we continue to grow, or if the quality of our services deteriorates due to mismanagement, our reputation could be severely harmed, which would in turn materially and adversely affect our business, financial condition and results of operations. We may, in the future, expand our business by acquiring suitable targets. However, we cannot assure you that our acquisition plans will be successful or the acquired companies or assets will be integrated into our business and system adequately. Failure of such acquisition may incur losses and adversely affect our business, results of operations and financial condition.

We expect to incur additional operating expenses to support our expansion plans. To achieve our expansion goals, we need to continuously accumulate our blue-collar talent resources and promotion and marketing efforts, and improve our infrastructure and technology, operational procedures, and internal compliance and controls. All such expansion plans require significant capital investment. If we fail to generate sufficient cash flows in a timely manner, we may be forced to seek external financing, including obtaining additional bank loans, and may not be able to secure sufficient financing for us to expand and grow our business. If we choose to obtain additional bank loans, we may be subject to the fluctuation of interest rates and increasing interest expenses. In addition, our ability to arrange for additional funds on acceptable terms is subject to a variety of uncertainties, including future results of operations, financial condition and cash flows; economic, political conditions and market demand for our services; costs of financing, liquidity and overall condition of financial and capital markets in China and internationally; receipt of applicable business licenses, approvals and other risks associated with our businesses; and limitations on our ability to raise capital in capital markets and conditions of China and other capital markets. If we fail to secure sufficient bank loans in a timely manner or on favorable terms, our business, financial condition and results of operations could be materially and adversely affected.

***The integrity and reliability of our technology and IT infrastructure may be vulnerable to interruption and damage and may not perform as anticipated.***

The operation of our blue-collar lifetime services depends on the integrity and reliability of our technology and IT infrastructure leveraging our IT-enable capacities and experienced IT team. We rely on a combination of in-house and external technology system and infrastructure to provide our services, the failure or underperformance of which may materially disrupt our business operations. While we regularly update and enhance our IT infrastructure and systems and introduce new versions of our IT infrastructure and systems, the occurrence of errors in any such update or enhancement may cause disruptions to our services and may, as a result, damage our reputation and brand name, and materially and adversely affect our business. In addition, computer viruses and hacking may cause delays or other service interruptions to our systems. Hacking involves efforts to gain unauthorized access to information or systems or to cause intentional malfunctions, loss or corruption of data, software, hardware or other computer equipment.

We may incur significant costs to protect our systems and equipment against the threat of, and to repair any damage caused by, computer viruses and hacking. Moreover, if a computer virus or hacking affects our systems and is highly publicized, our reputation and brand name could be materially damaged, and usage of our services may decrease. In addition, the inadvertent transmission of computer viruses could expose us to a material risk of loss or litigation and possible liability.

***Concerns about our collection, storage, process and use of personal information and other privacy-related matters could damage our reputation and deter our corporate customers and blue-collar talent from using our services. Many of these laws and regulations are subject to changes and uncertain interpretations, and any failure or perceived failure to comply with these laws and regulations could result in negative publicity, legal proceedings, suspension or disruption of operations, increased operating costs, or otherwise harm our business.***

We collect, store, process and use personal information, including data of our blue-collar candidates, corporate customers and third parties in the ordinary course of our business. Any technology or IT infrastructure failure, computer viruses, or employee misbehavior may result in leakage of personal information and other confidential information. In addition, we may, from time to time, engage third-party vendors to verify certain personal identification of our users if needed.

We are subject to laws and regulations relating to the collection, storage, use, processing, transmission, retention, security and transfer of personal information and other data. The interpretation and application of laws, regulations and standards on data protection and privacy are still uncertain and evolving. In addition, regulatory requirements regarding the protection of personal information are constantly evolving and can be subject to different interpretations or significant change from time to time, making the extent of our responsibilities in that regard uncertain. For example, on December 28, 2021, the CAC and other twelve PRC regulatory authorities jointly revised and promulgated the Measures for Cybersecurity Review (the "Cybersecurity Review Measures"), which came into effect on February 15, 2022. Under the Cybersecurity Review Measures, the procurement of network products and services by critical information infrastructure operators and the data processing activities conducted by network platform operators which affect or may affect national security shall be subject to cybersecurity review.

As of the date of this prospectus, we have not been involved in any investigations on cybersecurity review initiated by the CAC and we have not received any official inquiry, notice, warning, or sanctions regarding cybersecurity and overseas listing from the CAC. Based on the opinion of our PRC legal counsel, Haiwen & Partners, according to its interpretation of the currently in-effect the PRC laws and regulations, as of the date of this prospectus, the completion of the Business Combination does not require the application or completion of the cybersecurity review from the CAC, as we do not qualify as a critical information infrastructure operator or an Internet platform operator that holds personal information of more than a million users, and our business does not involve data possessing that affects or may affect national security, implicates cybersecurity, or involves any type of restricted industry, pursuant to the Cybersecurity Review Measures. However, given (i) the evolving enactment, implementation, and interpretation of the Overseas Listing Trial Measures, including the supporting guidelines, and laws and regulations relating to data security, privacy, and cybersecurity; and (ii) that the PRC government authorities have discretion in interpreting and implementing statutory provisions in general, it cannot be assured that the relevant PRC government authorities will not take a contrary position or adopt different interpretations, or that there will not be changes in the regulatory landscape.

With the continuous expansion of our business and growth of our customer base, there can be no assurance that the recent tightening of regulations on the collection and use of personal information by relevant government authorities in the PRC will have no material adverse effect on our business operations in the future. If we cannot meet relevant requirements under the evolving applicable laws or regulations relating to data privacy, data protection or information security or any additional tax related requirements relating to data, or any compromise of security that results in unauthorized access, use or leakage of our customers' personal information, we could face damage in our reputation or other negative consequences, such as investigations, fines, or suspension of our operations, any of which could materially and adversely affect our business, financial condition and results of operations. In addition, complying with various laws and regulations on cybersecurity and data security could cause us to incur additional costs or require us to change our business practices, including our data practices, which may significantly distract our management's attention and adversely affect our business.

***If we fail to obtain or maintain all required licenses, permits, approvals and filing or if we are required to take actions that are time-consuming or costly, our business operations may be materially and adversely affected.***

The blue-collar lifetime service industry is highly regulated. Our failure to obtain and maintain requisite approvals, licenses or permits applicable to our business or any changes in government policies or regulations may have a material and adverse impact on our business, financial condition and operational results. The government authorities in the jurisdictions where we operate regulate the blue-collar lifetime service industry extensively, including regulations on vocational education services, outsourcing services, other HR solutions and market services. A number of regulatory authorities, such as the Ministry of Human Resources and Social Security, or MHRSS, together promulgate and enforce laws and regulations that cover many aspects of the blue-collar lifetime service market including entry into such industry, scope of permitted business activities, licenses and permits for various business activities and foreign investments into such industry.

We are required to obtain and maintain applicable licenses, permits and approvals from different regulatory authorities in order to conduct our existing or future business in connection with our provision of blue-collar lifetime services, including but not limited to Human Resources Service License, Labor Dispatch Operation License, Value-added Telecommunications Business License (online data processing and transaction processing business), Publication Business Operation License, Food Operation License, Certificate of Business Registration for Class II Medical Devices and Pre-packaged Food Sale Filing. However, we may need to renew such licenses, permits and approvals if our relevant operational information changes from time to time, including but not limited to our business addresses, legal representatives, registered capital and business scopes. Failure to comply with the abovementioned requirements may be subject to warning, rectification within a limited time, suspension of operation, penalties, confiscation of the respective income or revocation or cancellation of the respective licenses, permits or approvals, as the case maybe, according to the relevant laws and regulations. The government authorities may continue to pass new rules regulating the blue-collar lifetime service industry and we have been continually expanding into new business operations. They may require us to obtain additional licenses, permits or approvals so that we can continue to operate our existing or future businesses or otherwise prohibit our operation of the types of businesses to which the new requirements apply. In addition, new regulations or new interpretations of existing regulations may increase our costs of doing business and prevent us from efficiently delivering services and expose us to potential penalties and fines. Lastly, our existing licenses may expire without proper renewal or be revoked due to violations of relevant licensure maintenance requirements.

If we fail to obtain or renew any necessary licenses, permits, approvals and certificates, or if any of our entities is deemed by government authorities to be operating without appropriate permits and licenses or outside of its authorized scopes of business or otherwise fails to comply with relevant laws and regulations, we may be subject to penalties and our business and results of operations may be materially and adversely affected.

***Our continuous success depends on our ability to attract and retain our senior management and other key personnel.***

We depend on our senior management and other key personnel for the smooth operations and development of our business, particularly Mr. Yunlei Wang, our chairman and chief executive officer. Furthermore, we rely on the expertise, experience and leadership of directors and our senior management. Their extensive knowledge and experience in the blue-collar lifetime service industry, extensive managerial experience, as well as their established relationships with our customers and their experience dealing with local government authorities, have played a major role in our attainments.

If one or more of our senior management and other key personnel are unable or unwilling to continue to serve in their present positions, we may not be able to replace them with qualified personnel in a timely manner, or at all, or on employment terms acceptable to us, which may disrupt our business and materially and adversely affect our results of operations and financial condition. In addition, although we have entered into confidentiality and non-compete agreements with our senior management and key personnel, there can be no assurance that they will not join our competitors or form a competing business. If any dispute arises between our current or former key personnel and us, we may have to incur substantial costs and expenses to enforce such agreements or we may not be able to enforce them at all.

***Our management team has limited experience managing a public company.***

Part of the members of our management team have limited experience managing a publicly traded company, interacting with public company investors, and complying with the increasingly complex laws pertaining to public companies. Additionally, some members of our management team were recently hired. Our management team may not successfully or efficiently manage their new roles and responsibilities. Our transition to being a public company will subject us to significant regulatory oversight and reporting obligations under the U.S. federal securities laws and the continuous scrutiny of securities analysts and investors. These new obligations and constituents will require significant attention from our senior management and could divert their attention away from the day-to-day management of our business, which could adversely affect our business, results of operations and financial condition.

***Our results of operations may fluctuate due to seasonality.***

Our results of operations may be subject to fluctuations partly attributable to seasonality in the blue-collar lifetime service industry. The seasonality for each of our business segments may vary. For example, our HR recruitment services and employee management services generally record lower revenue in the first quarter of a year which has a number of major holidays, such as Chinese New Year, when the blue-collar talent tend to return to their hometown to celebrate with their families.

As a result, our periodic results may not be comparable to the corresponding periods of prior years, and you may not be able to predict our annual results of operations based on a half-year to half-year comparison of our results of operations. Our historical revenue performance has masked the impact of seasonality, but if our growth rate declines or business in a particular quarter becomes more pronounced, seasonality could have a material impact on our revenue, cash flows and results of operations from period to period.

***Labor activism and unrest or failure to maintain satisfactory labor relations may adversely affect our results of operation.***

The formation of labor unions, combined with weak economic conditions, may result in labor unrest and activism. Labor unrest and activism may substantially interfere with our employee management services as the delivery of such services is dependent upon the availability of blue-collar talent. Any significant dispute, unrest, activism or action could impair our ability to source sufficient blue-collar talent to our corporate customers. If we fail to maintain satisfactory labor relations with our blue-collar talent or between the blue-collar talent and our corporate customers, there will be a material adverse effect on our business, financial condition, results of operations and prospects.

***Our intellectual property may be infringed by unauthorized third parties and we may not be able to protect our intellectual property rights effectively.***

We regard our data assets, software copyrights, trademarks, domain names and similar intellectual property as critical to our success, and we rely on intellectual property laws, including confidentiality and non-compete agreements with our employees and others, to protect our proprietary rights. Despite these measures, any of our intellectual property rights could be challenged, invalidated, circumvented or misappropriated. Confidentiality, invention assignment and non-compete agreements may be breached by counterparties, and there may not be adequate remedies available to us for any such breach. Accordingly, we may not be able to protect our intellectual property rights or to enforce our contractual rights effectively and timely. Preventing any unauthorized use of our intellectual property is difficult and costly and the measures we take may be inadequate to prevent the misappropriation of our intellectual property. In the event that we resort to litigation to enforce our intellectual property rights, such litigation could result in substantial costs and a diversion of our managerial and financial resources. There can be no assurances that we will prevail in such litigation. In addition, our trade secrets may be leaked or otherwise become available to, or be independently discovered by, our competitors. Any failure in protecting or enforcing our intellectual property rights could have a material adverse effect on our business, financial condition and results of operations.

***We may be subject to intellectual property infringement claims, which may be expensive to defend and may disrupt our business and operations.***

We cannot be certain that our operations or any aspects of our business do not or will not infringe upon or otherwise violate trademarks, patents, copyrights or other intellectual property rights held by third parties. In the future, we may, from time to time, be subject to legal proceedings and claims relating to the intellectual property rights of others. In addition, there may be third-party trademarks, patents, copyrights, know-how or other intellectual property rights that are infringed by our services or other aspects of our business without our awareness. If any third-party infringement claims are brought against us, we may be forced to divert management's time and other resources from our business and operations to defend against these claims, regardless of their merits.

Additionally, the application and interpretation of intellectual property right laws and the procedures and standards for granting trademarks, patents, copyrights and other intellectual property rights are evolving and may be uncertain, and we cannot assure you that courts or regulatory authorities would agree with our legal analysis. If we were found to have violated the intellectual property rights of third parties, we may be subject to liability for our infringement activities or may be prohibited from using such intellectual property, and we may incur licensing fees or be forced to develop alternatives of our own. As a result, our business and financial condition may be materially and adversely affected.

***We may be subject to claims or legal proceedings in the ordinary course of our business. If the outcomes of these claims or proceedings are adverse to us, it could have a material adverse effect on our business, financial condition and results of operations.***

We may be subject to claims or legal proceedings from time to time in the ordinary course of our business, which could have a material adverse effect on our business, financial condition and results of operations. For example, our employee management business may be exposed to employment related claims from our corporate customers or blue-collar talent, or be vicariously liable for the misbehavior of the blue-collar talent we placed. If we fail to manage such claims, we may have to indemnify them, which in turn may materially and adversely affect our reputation, business, results of operations, financial condition, or prospects.

Furthermore, claims arising out of actual or alleged violations of laws could be asserted against us by blue-collar talent, corporate customers, employees, competitors, government authorities or other third parties in civil, administrative or criminal investigations and proceedings. These claims could be asserted under a variety of laws and regulations, including but not limited to labor and employment laws, employee benefit laws, intellectual property laws, unfair competition laws, data protection and privacy laws, tort laws and contract laws. There can be no guarantee that we will be successful in defending ourselves in legal and administrative actions or in asserting our rights under various laws. Even if we are successful in our attempt to defend ourselves in legal and administrative actions or to assert our rights under various laws and regulations, enforcing our rights against the various parties involved may be expensive, time-consuming and ultimately futile. These actions may expose us to negative publicity, substantial monetary damages and legal defense costs, injunctive relief, and criminal and civil fines and penalties, including but not limited to suspension or revocation of our licenses to conduct business, which may in turn adversely affect our business, financial condition and results of operations.

 ****

***Our leased property interest or entitlement to other facilities or assets may be defective or subject to lien and our right to lease, own or use the properties affected by such defects or lien challenged, which could cause significant disruption to our business.***

Under laws of the PRC, all lease agreements are required to be registered with the local housing authorities. The majority of the leased properties in China have not completed the registration of the leases with the relevant authorities. Failure to complete these required registrations may expose our landlords, lessors and us to potential monetary fines. If these registrations are not obtained in a timely manner or at all, we may be subject to monetary fines or may have to relocate our offices and incur the associated losses.

Some of the ownership certificates or other similar proof of certain leased properties have not been provided to us by the relevant lessors. Therefore, we cannot assure you that such lessors are entitled to lease the relevant real properties to us. If the lessors are not entitled to lease the real properties to us and the owners of such real properties decline to ratify the lease agreements between us and the respective lessors, we may not be able to enforce our rights to lease such properties under the respective lease agreements against the owners. Meanwhile, registered mortgage of property right exists over certain leased properties before such properties are leased to some of our PRC subsidiaries. In addition, since the ownership certificates of certain leased properties have not been provided to us by the relevant lessors, we cannot make sure whether the actual uses of such properties leased to some of our PRC subsidiaries are inconsistent with the planned use indicated on the ownership certificates of such properties. If our lease agreements are claimed as null and void by third parties who are the real owners of such leased real properties, we could be required to vacate the properties, in the event of which we could only initiate the claim against the lessors under relevant lease agreements for indemnities for their breach of the relevant leasing agreements. In addition, we may not be able to renew our existing lease agreements before their expiration dates, in which case we may be required to vacate the properties. We cannot assure you that suitable alternative locations are readily available on commercially reasonable terms, or at all, and if we are unable to relocate our operations in a timely manner, our operations may be adversely affected.

***We have limited insurance coverage to cover our potential losses and claims.***

We maintained limited insurance policies, which we believe is adequate and in line with the industry practice. In line with general industry practice in China, we do not maintain business interruption insurance, product liability insurance, occupier's liability, key-men life insurance, any insurance for our IT infrastructure and systems or any insurance for our leased properties. In addition, we maintain insurance policies to safeguard against risks and unexpected events for outsourcing blue-collar talent, such as employers' liability insurances and group accidents insurance, which may not be sufficient. Any uninsured business disruption, accidents or injuries, litigation, legal proceedings, natural disasters, or other events beyond our insurance coverage, may result in substantial costs and the diversion of our resources, and we have no insurance to cover such losses. As a result, our business, financial condition and results of operations could be materially and adversely affected.

***Failure to fully comply with the relevant PRC laws and regulations in respect of contributions to various employee benefit plans may materially and adversely affect our financial condition and results of operations.***

Pursuant to PRC laws and regulations, we are required to participate in various employee benefit plans, including social insurance, unemployment insurance, medical insurance, maternity insurance, work-related injury insurance and the housing provident fund, and to contribute to these plans and fund at the levels specified by the relevant local government authorities from time to time at locations where we operate our business. In the past, (1) we failed to make social insurance contribution and failed to register housing provident fund account and make housing provident fund contribution for a small number of employees, and (2) we failed to make contributions to the social insurance and housing provident funds in full amount as required by the PRC government for our employees of our certain subsidiaries.

We may, from time to time, be subject to case-by-case requests to make up for our insufficient contributions to the employee benefit plans and/or, if any, the associated late fees or fines. We have made adequate provision in relation to the insufficient contribution of the employee benefit plans in our financial statements. We cannot assure that the relevant local government authorities will not require us to pay the outstanding amount within a specific time limit or impose late or additional fees or fines on us, which may materially and adversely affect our financial condition and results of operations.

***We recorded net losses, net current liabilities, net liabilities and net operating cash outflows in the past, which may expose us to certain liquidity risks and could constrain our operational flexibility as well as adversely affect our ability to expand our business.***

There can be no assurance that we will not have net current liabilities, net liabilities or net operating cash outflows in the future. The net current liabilities, net liabilities position and/or net operating cash outflows would expose us to liquidity risks, which could constrain our operational flexibility and adversely affect our ability to expand our business. If we do not generate sufficient cash flow from our operations to meet our present and future financial needs, we may need to rely on additional external fundings. We cannot assure you that we will always be able to raise necessary funding to finance our operations, current liabilities and other debt obligations and we may have net current liabilities, net liabilities or net operating cash outflows in the future. Our ability to arrange financing and the cost of such financing are dependent on the global and the PRC economic conditions, capital and debt market conditions, lending policies of the PRC government and banks, and other factors. In the event we are unable to obtain adequate financing to meet our working capital requirements, we may be forced to delay, adjust, reduce or abandon our planned strategies. Our business, financial condition and results of operations may be materially and adversely affected if our cash flow and capital resources are insufficient to finance our debt obligations.

***We recognized goodwill historically. If our goodwill was determined to be impaired, it could adversely affect our financial condition and results of operations.***

Goodwill represents the excess of the aggregate of consideration transferred over the net fair value of the acquiree's identifiable assets and liabilities measured as of the acquisition date. We conduct impairment reviews at least annually or more frequently if events or changes in circumstances indicate a potential impairment. Impairment is determined by assessing the recoverable amount of the cash-generating unit (the "CGU") to which the goodwill relates. Where the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognized; and it could not be reversed in a subsequent period.

There are inherent uncertainties relating to the factors in relation to the assessment of goodwill impairment that might adversely affect our business operation, or under circumstances where we might fail to sustain the growth as well as the gross profit margin we have estimated. Further, we cannot assure you that our assumptions will prove to be correct. If we were required to recognize material impairment charges due to significant adverse changes in aforesaid factors, our results of operations in the corresponding period might be substantially affected. In addition, impairments of goodwill might also adversely affect our financial ratios, limit our ability to obtain financing and adversely affect our financial condition.

***We may not be able to collect all of our trade receivables thus being exposed to credit risk.***

Our trade receivables primarily represent outstanding balances due from our customers. As of December 31, 2023, 2024 and 2025, our trade receivables amounted to RMB292.6 million, RMB310.4 million and RMB368.7 million (US$52.7 million), respectively. We recognize the allowance for expected credit losses for trade receivables, which is calculated based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that we expect to receive, discounted at an approximation of the original effective interest rate. At the end of each period in the past, we assess whether the credit risk of a financial instrument has increased significantly since its initial recognition. We cannot assure you that we will be able to collect our trade receivables from our customers in full, or at all, in the future, despite our efforts to conduct credit assessment on them. We recorded allowance for impairment loss on trade receivables of RMB20.8 million, RMB22.6 million and RMB25.9 million (US$3.7 million) as of December 31, 2023, 2024 and 2025, respectively.

We may not be able to receive payment on time. Historically, the trade receivables turnover days for 2023, 2024 and 2025 were 57.4 days, 62.7 days and 62.1 days, respectively. The trade receivables turnover days increased in the year of 2025 as we have developed more customers and put more emphasis on the debt collection work to guarantee the turnover days not exceed too much to 60 days. Although our management makes periodic collective assessments on the recoverability of trade receivables, we cannot assure you that our customers will pay us in full for their purchases in a timely manner or at all in the future. If our customers fail to pay us in full in a timely manner, our financial condition and results of operations may be materially and adversely affected.

***Issuance of incentive shares may cause shareholding dilution to our existing shareholders and have a material and adverse effect on our financial performance.***

On November 1, 2022, we adopted the restricted stock units plan (the "RSU Plan"), which was amended on December 9, 2022, to attract and retain personnel for positions of substantial responsibility and to provide additional incentives to our directors and the employees, and consultants of any member of our company. As of the date of this prospectus, we have not granted any shares under the RSU Plan. To further incentivize our employees or consultants to contribute to us, we may grant additional share-based awards or adopt new stock incentive plans in the future. Issuance of additional incentive shares may dilute the shareholding percentage of our existing shareholders. Expenses incurred with respect to such share issuance may also increase our operating expenses and therefore have a material and adverse effect on our financial performance.

***Discontinuation of any preferential tax treatments or government grants available to us in the PRC could adversely affect our results of operations and financial condition.***

We benefited from preferential tax treatments from the PRC government. One of our PRC subsidiaries is entitled to a favorable statutory tax rate of 15% for the three years from 2021 to 2024 because of its qualification as a "High and New Technology Enterprise." Such qualification lapsed in 2025, and the subsidiary is no longer entitled to the 15% preferential tax rate, Furthermore, in the past, certain subsidiaries of our company were recognized as small and micro enterprises subject to a preferential income tax rate of 5% to 10% in 2023, 2024 and 2025. The government agencies may decide to reduce, eliminate or cancel our tax preferences at any time. Therefore, we cannot assure you of the continued availability of such tax preference which we currently enjoy. The discontinuation, reduction or delay of the preferential tax treatment could adversely affect our financial condition and results of operations.

We also receive government grants primarily in the form of financial support and exemptions on value-added tax granted by the local government authorities. As these grants are provided typically on a one-off basis, there is no guarantee that we will continue receiving or benefitting from them in the future.

In addition, pursuant to applicable laws and regulations, we are subject to various taxes including enterprise income tax, and we are also required to withhold and remit individual income tax for our employees. Any failure to properly pay the relevant taxes or withhold and remit the requisite amount may subject us to fines or administrative penalties. Any change, suspension or discontinuation of the aforementioned preferential tax treatment and government grants to us or failure to fulfill the obligations under the relevant tax laws and regulations could adversely affect our financial condition, results of operations and cash flows.

**Risks Relating to Doing Business in China** 

***The PRC government's significant oversight and discretion over our business operations could result in a material adverse change in our operations and the value of our securities.***

We conduct our business primarily through our PRC subsidiaries. Our operations in China are governed by PRC laws and regulations. The PRC government has significant oversight and discretion over the conduct of our business, and it may influence our operations as part of its efforts to enforce PRC law, which could result in a material adverse change in our operations, and our securities may decline in value or become worthless. Also, Chinese regulatory authorities may implement changes to the existing laws and regulations in the future that may disallow this structure, which would likely result in a material change in our operations and/or a material change in the value of our securities, including that it could cause the value of such securities to significantly decline or be worthless.

Furthermore, the PRC government has indicated an intent to exert more oversight and control over offerings that are conducted overseas and foreign investment in China-based issuers.

On July 6, 2021, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council jointly issued the Opinions on Strictly Cracking Down Illegal Securities Activities in Accordance with the Law (the "Illegal Securities Opinions"). The Illegal Securities Opinions emphasized the need to strengthen the administration over illegal securities activities, and the need to strengthen the supervision over overseas listings by Chinese companies. Effective measures, such as promoting the construction of relevant regulatory systems, shall be taken to address with the risks and incidents of China-concept overseas listed companies, and cybersecurity and data privacy protection requirements and similar matters. Moreover, on January 4, 2022, 13 PRC regulatory agencies, namely, the CAC, the National Development and Reform Commission (the "NDRC"), the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of State Security, the Ministry of Finance, MOFCOM, SAMR, CSRC, the People's Bank of China, the National Radio and Television Administration, National Administration of State Secrets Protection and the National Cryptography Administration, jointly adopted and published the Measures for Cybersecurity Review (2021), which became effective on February 15, 2022. The Measures for Cybersecurity Review (2021) required that, among others, in addition to "operator of critical information infrastructure that intend to purchase network products and services and online platform operators that conduct data processing activities, in each case that affect or may affect national security", any "operator of online platform" holding personal information of more than one million users who seek to list in a foreign stock exchange should also be subject to cybersecurity review. And on February 17, 2023, the CSRC issued the Trial Measures, which reformed the regulatory regime for overseas offering and listing of securities by PRC domestic companies and both direct and indirect overseas offering and listing of securities by PRC domestic companies, imposes a filing-based regulatory regime. See also "— Risks Relating to Doing Business in China — Greater oversight by the CAC over data security, particularly for companies seeking to list on a foreign exchange, could significantly limit or completely hinder our ability in capital raising activities and materially and adversely affect our business and the value of your investment" and "— Risks Relating to Doing Business in China — The approval of and filing with the CSRC or other PRC government authorities is required in connection with this our listing under laws of the PRC." As these regulations were recently issued, official guidance and interpretation of the regulations remain unclear in several respects at this time. Therefore, we cannot assure you that we will remain fully compliant with all new regulatory requirements of these regulations or any future implementation rules on a timely basis, or at all. Any such risk could significantly limit or completely hinder our ability to offer or continue to offer securities to investors or cause the value of our securities to significantly decline or be worthless.

***The PRC government exerts substantial influence over the conduct of our business operations. It may influence or intervene in our operations at any time as part of its efforts to enforce PRC law, which could result in a material adverse change in our operations and the value of our securities.***

Our operations are primarily conducted in the PRC, and are governed by PRC laws, rules and regulations. The PRC government exerts substantial influence over the conduct of our business, and may intervene in or influence our operations at any time as part of its efforts to enforce PRC law. The PRC government has recently published new policies that substantially affected certain industries. We cannot rule out the possibility that it will in the future release regulations or policies that directly or indirectly affect our industry or require us to seek additional permission to continue our operations, which could result in a material adverse change in our operation and/or the value of our securities. Therefore, investors of our company and our business face potential uncertainty from actions taken by the PRC government affecting our business.

The Chinese government has exerted more oversight and control over offerings that are conducted overseas and foreign investment in China-based issuers. Such actions may significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of our securities to significantly decline or be worthless. For more details, see "—Risks Relating to Doing Business in China—The approval of and filing with the CSRC or other PRC government authorities is required in connection with this our listing under laws of the PRC."

***Uncertainties exist with respect to how the PRC Foreign Investment Law may impact the viability of our current corporate structure and operations.***

Laws regulating foreign investment in China include the PRC Foreign Investment Law (the "PRC FIL"), effective from January 1, 2020, and the Regulation on Implementing the PRC Foreign Investment Law, or the Implementation Regulations, effective from January 1, 2020. The PRC FIL specifies that foreign investments shall be conducted in line with the "negative list" to be issued or approved to be issued by the State Council. While we do not operate in an industry that is currently subject to foreign investment restrictions or prohibition in China, it is uncertain whether our industry will be named in an updated "negative list" to be issued in the future. If our industry is added to the "negative list" or if the PRC regulatory authorities otherwise decide to limit foreign ownership in our industry, there could be a risk that we would be unable to do business in China as we are currently structured. If any new laws and/or regulations on foreign investments in China are promulgated and implemented, such changes could have a significant impact on our current corporate structure, which in turn could have a material adverse impact on our business and operations, our ability to raise capital and the market price of our securities. In such event, despite our efforts to restructure to comply with the then applicable PRC laws and regulations in order to continue our operations in China, we may experience material changes in our business and results of operations, our attempts may prove to be futile due to factors beyond our control, and the value of our securities which you invest in may significantly decline or be worthless.

***Changes in China's economic, political or social conditions or government policies could have a material adverse effect on our business, financial condition, results of operations, and the value of our securities.***

Substantially all of our business operations are conducted in China. Accordingly, we are affected by the economic, political and legal environment in China. China's economy differs from the economies of most developed countries in many respects, including the level of government involvement, the stages of development, the growth rate, and the control of foreign exchange.

Although the Chinese government has implemented measures emphasizing the utilization of market forces for economic reform, the reduction of state ownership of productive assets, and the establishment of improved corporate governance in business enterprises, a substantial portion of productive assets in China is still owned by the government. In addition, the PRC government continues to play a significant role in regulating industrial development by imposing industrial policies. For the past three decades, the PRC government has implemented economic reform measures to emphasize the utilization of market forces in economic development.

While the Chinese economy has experienced significant growth over the past decades, growth has been uneven, both geographically and among various sectors of the economy, and the rate of growth has been slowing in recent years. Any adverse changes in economic conditions in China, in the policies of the PRC government or in the laws and regulations in China could have a material adverse effect on the overall economic growth of China. Such developments could adversely affect our business, results of operations and financial condition, lead to reduction in demand for our services and adversely affect our competitive position. The PRC government has implemented various measures to encourage economic growth and guide the allocation of resources. Some of these measures may benefit the overall Chinese economy, but may have a negative effect on us. For example, our financial condition and results of operations may be adversely affected by government control over capital investments or changes in tax regulations. In addition, in the past the PRC government has implemented certain measures, including interest rate adjustment, to control the pace of economic growth, and the growth rate of the Chinese economy has gradually slowed in recent years. Any prolonged slowdown in the Chinese economy may reduce the demand for our offerings of products and services and materially and adversely affect our business, financial condition and results of operations. Furthermore, the increased global focus on social, ethical and environmental issues may lead to China's adoption of more stringent standards in these areas, which may adversely impact the operations of China-based companies including us.

***We are subject to evolving laws and regulations of the PRC that could require us to modify our current business practices and incur increased costs.***

Our operations in the PRC are governed by the laws of the PRC. Our PRC subsidiaries are subject to laws and regulations applicable to foreign investment in the PRC. The legal system of the PRC is based on written statutes. Prior court decisions may be cited for reference, but have limited precedential value. Since late 1970s, the PRC government began to promulgate a comprehensive system of laws and regulations governing economic matters in general, such as foreign investment, corporate organization and governance, commerce, taxation and trade.

As interpretations and enforcements of these laws, regulations and rules are evolving, we may be required to modify our business practices and incur additional costs from time to time to maintain compliance with the relevant requirements. In addition, the PRC company may be subject to applicable processes or procedural requirements in order to obtain or maintain permits or licenses required to conduct business in the PRC. In the absence of required permits or licenses, government authorities could impose material sanctions or penalties on us. In addition, we may have to resort to administrative and court proceedings to enforce the legal protection that we enjoy either by law or contract. However, litigation typically takes time, which may result in substantial costs and diversion of our resources and management attention, and we cannot predict the outcome of administrative and court proceedings.

The PRC government has significant authority to influence and intervene in the China operations of an offshore holding company, such as our company, at any time. Accordingly, our business, prospects, financial condition, and results of operations may be influenced to a significant degree by political, economic, and social conditions in China generally. Recently, PRC government has promulgated certain regulations and rules to exert more oversight over offerings that are conducted overseas and/or foreign investment in mainland China-based issuers. Such action could significantly limit or completely hinder our ability to offer or continue to offer securities to investors, and cause the value of such securities to significantly decline or be worthless.

Certain recently enacted laws and regulations are relatively new, and because of the limited volume of published decisions and their non-binding nature, the interpretation and enforcement of these laws and regulations involve uncertainties. Rules and regulations in mainland China can change quickly with very short notice. Furthermore, the legal system of mainland China is based in part on government policies, some of which are not published at all or not published on a timely basis, and can change quickly with little advance notice. As a result, we may not be aware of our potential violation of such policies and rules.

We are required to obtain a wide range of government approvals, licenses, permits, and registrations in connection with our operations as well as to follow multiple mandatory standards or technical norms in our manufacturing and our vehicles. However, the interpretation of these regulations may change and new regulations may come into effect, which could disrupt or restrict our operations, reduce our competitiveness, or result in substantial compliance costs. In addition, the PRC regulatory authorities' interpretation of such laws, rules, and regulations may change, which could materially and adversely affect the validity of the approvals, qualifications, licenses, permits, and registrations we obtained or completed. Any failure to comply may result in fines, restrictions, and limits on our operations, as well as suspension or revocation of certain certificates, approvals, permits, licenses, or filings we have already obtained or made.

***Regulatory development in China may exert more oversight and control over listings and offerings that are conducted overseas. The approval of and the filing with the CSRC or other PRC government authorities may be required in connection with our future offerings under PRC law, and, if required, we cannot predict whether or for how long we will be able to obtain such approval or complete such filing.***

 ****

On August 8, 2006, six PRC regulatory agencies jointly adopted the Regulations on Mergers and Acquisitions of Domestic Companies by Foreign Investors (the "M&A Rules"), which came into effect on September 8, 2006 and were amended on June 22, 2009. The M&A Rules include, among other things, provisions that require that an offshore special purpose vehicle formed for the purpose of an overseas listing of equity interests in a PRC company obtain the approval of the CSRC prior to the listing and trading of such special purpose vehicle's equity securities on an overseas stock exchange. However, substantial uncertainty remains regarding the scope and applicability of the M&A Rules to offshore special purpose vehicles. The regulations also established additional procedures and requirements that are expected to make merger and acquisition activities in China by foreign investors more time-consuming and complex, including requirements in some instances that MOFCOM be notified in advance of any change-of-control transaction in which a foreign investor takes control of a PRC domestic enterprise, or that the approval from MOFCOM be obtained in circumstances where overseas companies established or controlled by PRC enterprises or residents acquire affiliated domestic companies.

On July 6, 2021, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council jointly issued the Opinions, which emphasized the need to strengthen administration over illegal securities activities and supervision of overseas listings by China-based companies. The Opinions proposed promoting regulatory systems to deal with risks facing China-based overseas-listed companies, and provided that the State Council will revise provisions regarding the overseas issuance and listing of shares by companies limited by shares and will clarify the duties of domestic regulatory authorities.

On February 17, 2023, the CSRC promulgated the Overseas Listing Trial Measures and the related guidelines, which became effective on March 31, 2023. The Overseas Listing Trial Measures regulate both direct and indirect overseas offering and listing of PRC domestic companies' securities by adopting a filing-based regulatory regime. We completed the filing procedures in connection with the Business Combination under the Overseas Listing Trial Measures on February 6, 2025, and the result of such CSRC approval was posted on the official website of the CSRC on the same date. We are not required to complete the CSRC filing procedures and obtain the CSRC approval under the Overseas Listing Trial Measures in connection with the resale of Registered Securities as described in this prospectus, because the resale of Registered Securities, including the ADSs issuable from the exercise of Warrants, does not trigger the obligation to apply for the CSRC filing procedures and obtain the CSRC approval.

Pursuant to the Overseas Listing Trial Measures, we may need to complete filing procedures for future offshore fund-raising activities, including conducting follow-on offering in the United States. Any failure or perceived failure by us to comply with such filing requirements under the Overseas Listing Trial Measures may result in forced rectification, warnings and fines against us and could materially hinder our ability to raise fund overseas. In addition, we cannot guarantee that new rules or regulations promulgated in the future will not impose any additional requirement or otherwise tightening the regulations on companies with contractual arrangements. If we violate or are deemed to have violated any current or future rules or regulations, regulatory agencies in China may impose fines and penalties on our operations in China, limit our operating privileges in China, delay or restrict the repatriation of the proceeds from offshore fund-raising activities into the PRC or take other actions that could materially adversely affect our business, financial condition and results of operations, as well as the trading price of the ADSs.

We cannot assure you that we can complete the filing procedures, obtain the approvals or complete other compliance procedures in a timely manner, or at all, or that any completion of filing or approval or other compliance procedures would not be rescinded. Any such failure would subject us to sanctions by the CSRC or other PRC regulatory authorities. These regulatory authorities may impose restrictions and penalties on the operations in China, significantly limit or completely hinder our ability to launch any new offering of our securities, limit our ability to pay dividends outside of China, delay or restrict the repatriation of the proceeds from future capital raising activities into China, or take other actions that could materially and adversely affect our business, results of operations, financial condition and prospects, as well as the trading price of our Class A ordinary shares. Furthermore, the PRC government authorities may further strengthen oversight and control over listings and offerings that are conducted overseas. Any such action may adversely affect our operations and significantly limit or completely hinder our ability to offer or continue to offer securities to you and cause the value of such securities to significantly decline or be worthless.

On September 6, 2024, NDRC and MOFCOM jointly issued the Special Administrative Measures for Entry of Foreign Investment (Negative List) (2024 Version) (the "Negative List"), which became effective and replaced the previous version on November 1, 2024. According to the Negative List, domestic enterprises engaging in businesses in which foreign investment is prohibited shall obtain approval from the relevant authorities before offering and listing their shares on an overseas stock exchange. In addition, certain foreign investors shall not be involved in the operation or management of the relevant enterprise, and shareholding percentage restrictions under relevant domestic securities investment management regulations shall apply to such foreign investors. Since none of our PRC subsidiaries engages in businesses in which foreign investment is prohibited, we believe that we are not required to obtain such approval under the Negative List. However, the abovementioned newly promulgated laws, regulations and policies were recently promulgated or issued, their interpretation, application and enforcement are subject to substantial uncertainties, and uncertainties remain regarding the interpretation and implementation of the new rules and regulations.

The regulations also established additional procedures and requirements that are expected to make merger and acquisition activities in China by foreign investors more time-consuming and complex, including requirements in some instances that MOFCOM be notified in advance of any change-of-control transaction in which a foreign investor takes control of a PRC domestic enterprise, or that the approval from MOFCOM be obtained in circumstances where overseas companies established or controlled by PRC enterprises or residents acquire affiliated domestic companies. We may develop our business in part by acquiring other companies operating in our industry. Complying with the requirements of the new regulations to complete such transactions could be time-consuming, and any required approval processes, including approval from MOFCOM, may delay or inhibit our ability to complete such transactions, which could affect our ability to develop our business or maintain our market share.

***The oversight by the CAC over data security, particularly for companies seeking to list on a foreign exchange, could significantly limit or completely hinder our ability in capital raising activities and materially and adversely affect our business and the value of your investment.***

 ****

On December 28, 2021, the CAC, jointly with 12 other governmental authorities, promulgated the revised Cybersecurity Review Measures (2021), which became effective on February 15, 2022. According to the Cybersecurity Review Measures (2021), critical information infrastructure operators that intend to purchase internet products and services which have or may have an adverse effect on national security must apply for cybersecurity review. Meanwhile, online platform operators holding personal information of over one million users that intend to list their securities on a foreign stock exchange must apply for cybersecurity review. In the meantime, the governmental authorities have the discretion to initiate a cybersecurity review on any data processing activity if they deem such a data processing activity affects or may affect national security.

On July 7, 2022, the CAC promulgated the Measures for the Security Assessment of Cross-Border Transfer of Data, which took effect on September 1, 2022. These measures aim to regulate cross-border transfers of data, requiring among other things, that data processors that provide data overseas apply to CAC for security assessments if: (1) data processors provide important data overseas; (2) critical information infrastructure operators or data processors process personal information of more than one million individuals provide personal information to overseas parties; (3) data processors that have cumulatively provided personal information of 100,000 people or sensitive personal information of 10,000 people to overseas since January 1 of the previous year, provide personal information to overseas parties; or (4) other scenarios required by the CAC to apply for security assessments occur. In addition, these measures require data processors to carry out self-assessments of risks of providing data overseas before applying to the CAC for security assessments. As of the date of this prospectus, the Measures for the Security Assessment of Cross-Border Transfer of Data has not materially affected our business or results of operations. Since the Measures for the Security Assessment of Cross-Border Transfer of Data was newly enacted, there remain substantial uncertainties about its interpretation and implementation, and it is unclear whether the relevant PRC regulatory authority would reach the same conclusion as us.

On February 24, 2023, the CSRC, the Ministry of Finance, the National Administration of State Secrets Protection and the National Archives Administration released the revised Provisions on Strengthening Confidentiality and Archives Administration of Overseas Securities Offering and Listing by Domestic Companies (the "Archives Rules"), which became effective on March 31, 2023. The Archives Rules regulate both overseas direct offerings and overseas indirect offerings, providing that, among other things:

● in relation to the overseas listing activities of PRC enterprises, the PRC enterprises are required to strictly comply with the relevant requirements on confidentiality and archives management, establish a sound confidentiality and archives system, and take necessary measures to implement their confidentiality and archives management responsibilities;

● during the course of an overseas offering and listing, if a PRC enterprise needs to publicly disclose or provide to securities companies, securities service providers or overseas regulators, any materials that contain relevant state secrets, government work secrets or information that has a sensitive impact (i.e., be detrimental to national security or the public interest if divulged), the PRC enterprise should complete the relevant approval/filing and other regulatory procedures; and

● working papers produced in the PRC by securities companies and securities service providers, which provide PRC enterprises with securities services during their overseas issuance and listing, should be stored in the PRC, and competent PRC authorities must approve the transmission of all such working papers to recipients outside the PRC.

On February 12, 2025, the CAC published the Administrative Measures for Personal Information Protection Compliance Audits, which came into effect on May 1, 2025. According to such measures, the term "compliance audit of personal information protection" refers to the supervisory activities that review and evaluate whether the personal information processing activities performed by personal information processors comply with laws and administrative regulations. Personal information processors that process personal information of more than 10 million individuals shall carry out a compliance audit of personal information protection at least once every two years. Given that the above-mentioned newly promulgated laws, regulations and policies were recently promulgated or issued, and some of them have not yet taken effect, their interpretation, application and enforcement are subject to substantial uncertainties. Complying with new laws and regulations could cause us to incur substantial costs or require us to change our business practices in a manner materially adverse to our business.

Changes in existing laws or regulations or adoption of new laws and regulations relating to cybersecurity and information security, particularly any new or modified laws or regulations that require enhanced protection of certain types of data or new obligations with regard to data retention, transfer or disclosure, could increase the cost to us of providing our service offerings, require significant changes to our operations or even prevent us from providing certain service offerings in jurisdictions in which we currently operate or in which we may operate in the future.

Given that the above mentioned laws, regulations and policies were recently promulgated or issued, or have not yet been formally promulgated or taken effect (as applicable), and are subject to changes and may continue to evolve, despite our efforts to comply with applicable laws, regulations and other obligations relating to privacy, data protection and information security, we cannot assure you that our practices or offerings meet all of the requirements imposed on us by such laws, regulations or obligations. Any failure on our part to comply with applicable laws or regulations or any other obligations relating to privacy, data protection or information security, could damage our reputation or result in investigations, fines or other penalties by government authorities and private claims or litigation, any of which could materially adversely affect our business, financial condition and results of operations.

***Our securities may be prohibited from trading in the United States under the Holding Foreign Companies Accountable Act, or the HFCAA, if the PCAOB is unable to inspect or investigate completely auditors located in China. The delisting of our securities, or the threat of their being delisted, may materially and adversely affect the value of your investment.***

Pursuant to the HFCAA, if the SEC determines that we have filed audit reports issued by a registered public accounting firm that has not been subject to inspections by the PCAOB for two consecutive years, the SEC will prohibit our securities from being traded on a national securities exchange or in the over-the-counter trading market in the United States.

On December 16, 2021, the PCAOB issued a report to notify the SEC of its determination that the PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong and our auditor was subject to that determination. On December 15, 2022, the PCAOB removed mainland China and Hong Kong from the list of jurisdictions where it is unable to inspect or investigate completely registered public accounting firms.

Each year, the PCAOB will determine whether it can inspect and investigate completely audit firms in mainland China and Hong Kong, among other jurisdictions. If the PCAOB determines in the future that it no longer has full access to inspect and investigate completely accounting firms in mainland China and Hong Kong and we use an accounting firm headquartered in one of these jurisdictions to issue an audit report on our financial statements filed with the SEC, we would be identified as a Commission-Identified Issuer following the filing of the annual report on Form 20-F for the relevant fiscal year. In accordance with the HFCAA, our securities would be prohibited from being traded on a national securities exchange or in the over-the-counter trading market in the United States if we are identified as a Commission-Identified Issuer for two consecutive years in the future. If our securities are prohibited from trading in the United States, there is no certainty that we will be able to list on a non-U.S. exchange or that a market for our shares will develop outside of the United States. A prohibition of being able to trade in the United States would substantially impair your ability to sell or purchase our securities when you wish to do so, and the risk and uncertainty associated with delisting would have a negative impact on the price of our securities. Also, such a prohibition would significantly affect our ability to raise capital on terms acceptable to us, or at all, which would have a material adverse impact on our business, financial condition, and prospects.

***Changes and developments in the PRC legal system and the interpretation and enforcement of PRC laws, rules and regulations may subject us to uncertainties.***

Substantially of our operations are conducted in China, and our PRC subsidiaries are governed by PRC laws, rules and regulations. The PRC legal system is a civil law system based on written statutes and prior court decisions in a civil law system have limited precedential value and can only be used as a reference. The PRC has made significant progress in the promulgation of laws and regulations dealing with business and commercial affairs of various participants of the economy, involving foreign investment, corporate organization and governance, commercial transactions, taxation and trade. However, China's legal system is still evolving, and recently enacted laws, rules and regulations may be subject to interpretation and implementation by PRC regulatory agencies and new laws, rules and regulations may be promulgated from time to time to sufficiently cover all aspects of economic activities in China, which may take time.

Furthermore, because some of the laws, rules and regulations in China are evolving, and because of the nonbinding nature of court decisions, we cannot predict how these laws, rules and regulations will be interpreted and enforced, which may affect our judgment on the relevance of legal requirements and our ability to enforce our contractual rights or tort claims. In addition, published laws and regulations may not be able to codify all policies and practices of various governmental agencies in China in a timely manner. As a result, we may also need to adjust our operations from time to time following guidance provided by competent governmental agencies to us, and we may be found in violation and be subject to penalties for any historical or ongoing non-compliances.

In addition, administrative and court proceedings in China may be time-consuming, resulting in additional costs and diversion of resources and management attention. As administrative and court authorities are bound to interpret and enforce statutory and contractual terms, they will need to exercise certain discretion and it is possible that the administrative and court authorities in China would not interpret and enforce the statutory and contractual terms in a manner favorable to us, and it may be difficult to predict the outcome of any administrative and court proceedings we may face in the future.

***China's M&A Rules and certain other regulations establish complex procedures for certain acquisitions of PRC companies by foreign investors, which could make it more difficult for us to pursue growth through acquisitions in China.***

A number of laws and regulations of the PRC have established procedures and requirements that could make merger and acquisition activities in China by foreign investors more time consuming and complex. In addition to the Anti-monopoly Law itself, these include the M&A Rules, the Rules of the Ministry of Commerce on Implementation of Security Review System of Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (the "Security Review Rules"), promulgated in 2011, and the Measures for the Security Review of Foreign Investment promulgated by the NDRC and MOFCOM in December 2020 which came into force on January 18, 2021. These laws and regulations impose requirements in some instances that MOFCOM be notified in advance of any change-of-control transaction in which a foreign investor takes control of a PRC domestic enterprise. In addition, pursuant to relevant anti-monopoly laws and regulations, the SAMR should be notified in advance of any concentration of undertaking if certain thresholds are triggered, and SAMR clearance is required to be obtained before completion of such transactions. We cannot assure you that the anti-monopoly law enforcement agency will not deem our future acquisitions or investments to have triggered filing requirement for anti-monopoly review. Moreover, the Security Review Rules specify that mergers and acquisitions by foreign investors that raise "national defense and security" concerns and mergers and acquisitions through which foreign investors may acquire de facto control over domestic enterprises that raise "national security" concerns are subject to strict review by NDRC and MOFCOM, and prohibit any attempt to bypass a security review, including by structuring the transaction through a proxy or contractual control arrangement.

In the future, we may grow our business by acquiring complementary businesses. Complying with the requirements of the relevant regulations to complete such transactions could be time consuming, and any required approval processes, including clearance from the SAMR and approval from MOFCOM or other PRC government authorities, may delay or inhibit our ability to complete such transactions, which could affect our ability to expand our business or maintain our market share.

***Regulation of loans to and direct investment in PRC entities by offshore holding companies and governmental control of currency conversion may delay or prevent us from making loans to or make additional capital contributions to our PRC subsidiaries, which could materially and adversely affect our liquidity and our ability to fund and expand our business.***

We are an offshore holding company conducting our operations in China primarily through our PRC subsidiaries. We may make additional capital contributions or loans to our PRC subsidiaries, which are treated as foreign invested enterprises under laws of the PRC. Any loans by us to our PRC subsidiaries are subject to regulations and foreign exchange loan registrations in the PRC. For example, with respect to the registration, loans by us to our PRC subsidiaries to finance their activities cannot exceed statutory limits and must be registered with the relevant local counterpart of the State Administration of Foreign Exchange of the PRC ("SAFE"), or filed with SAFE in its information system; with respect to the outstanding amounts of loans, (1) if the relevant PRC subsidiaries adopt the traditional foreign exchange administration mechanism, the outstanding amount of loans shall not exceed the difference between the total investment and the registered capital of the PRC subsidiaries; and (2) if the relevant PRC subsidiaries adopt the relatively new foreign debt mechanism, the risk-weighted outstanding amount of loans shall not exceed 200% of the net asset of the relevant PRC subsidiaries. We may also finance our PRC subsidiaries by means of capital contributions. These capital contributions must be registered with the SAMR or its local counterparts, and shall be concurrently reported to the MOFCOM through its information reporting and submission system.

Pursuant to the Circular on the Reforming of the Management Method of the Settlement of Foreign Currency Capital of Foreign-Invested Enterprises ("SAFE Circular 19"), which became effective on June 1, 2015 and was last amended on March 23, 2023 and the Circular of the State Administration of Foreign Exchange on Reforming and Regulating Policies on the Control over Foreign Exchange Settlement of Capital Accounts ("SAFE Circular 16"), which was promulgated in June 2016, foreign-invested enterprises may either continue to follow the current payment-based foreign currency settlement system or choose to follow the "conversion-at-will" system for foreign currency settlement. SAFE Circular 19 and SAFE Circular 16, therefore, have substantially lifted the restrictions on the use by a foreign-invested enterprise of its RMB registered capital, foreign debt and repatriated funds raised through overseas listing converted from foreign currencies. Nevertheless, SAFE Circular 19 and SAFE Circular 16 reiterate the principle that RMB converted from the foreign currency-denominated capital of a foreign invested company may not be directly or indirectly used for purposes beyond its business scope and prohibit foreign-invested companies from using such RMB fund to provide loans to persons other than affiliates unless otherwise permitted under their business scopes. To the extent cash or assets in our business that is in mainland China or Hong Kong or a mainland China or Hong Kong entity, such cash or assets may not be available to fund operations or for other use outside of mainland China or Hong Kong due to interventions in, or the impositions of restrictions and limitations on our ability to transfer cash or assets.

Under laws and regulations of the PRC, we are permitted to utilize the proceeds from this Business Combination or our listing to fund our PRC subsidiaries by making loans to or additional capital contributions to our PRC subsidiaries, subject to applicable government registration, statutory limitations on amount and approval requirements. These laws and regulations of the PRC may limit our ability to use RMB converted from the net proceeds of any financing outside China to fund the establishment of new entities in China by our PRC subsidiaries, to invest in or acquire any other PRC companies through our PRC subsidiaries.

***We may rely on dividends and other distributions on equity paid by our PRC subsidiaries to fund any cash and financing requirements we may have, and any limitation on the ability of our PRC subsidiaries to make payments to us could have a material and adverse effect on our ability to conduct our business.***

 ****

We are a holding company, and we may rely on dividends and other distributions on equity paid by our PRC subsidiaries for our cash and financing requirements, including the funds necessary to pay dividends and other cash distributions to our shareholders and service any debt we may incur. Current regulations of the PRC permit our PRC subsidiaries to pay dividends to us only out of their accumulated after-tax profits upon satisfaction of relevant statutory conditions and procedures, if any, determined in accordance with Chinese accounting standards and regulations. In addition, each of our PRC subsidiaries is required to set aside at least 10% of its after-tax profits each year, if any, to fund certain reserve funds until the total amount set aside reached 50% of its registered capital.

Additionally, if our PRC subsidiaries incur debt in the future, the instruments governing their debt may restrict their ability to pay dividends or make other distributions to us. In addition, the incurrence of indebtedness by our PRC subsidiaries could result in operating and financing covenants and undertakings to creditors that would restrict the ability of our PRC subsidiaries to pay dividends to us.

Any limitation on the ability of our PRC subsidiaries to pay dividends or make other distributions to us could materially and adversely limit our ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business.

***Increases in labor costs and enforcement of stricter labor laws and regulations in China may adversely affect our business and our profitability.***

China's overall economy and the average wage in China have increased in recent years and are expected to continue to grow. The average wage level for our employees has also increased in recent years. We expect that our labor costs, including wages and employee benefits, will increase. Unless we are able to pass on these increased labor costs to those who pay for our products and services, our profitability and results of operations may be materially and adversely affected.

In addition, we have been subject to stricter regulatory requirements in terms of entering into labor contracts with our employees, limitation with respect to utilization of labor dispatching, applying for foreigner work permits, labor protection and labor condition and paying various statutory employee benefits, including pensions, housing fund, medical insurance, work-related injury insurance, unemployment insurance and maternity insurance to designated government agencies for the benefit of our employees. Pursuant to the PRC Labor Contract Law and its implementation rules, employers are subject to strict requirements in terms of signing labor contracts, minimum wages, paying remuneration, determining the term of employee's probation and unilaterally terminating labor contracts. In the event that we decide to terminate some of our employees or otherwise change our employment or labor practices, the PRC Labor Contract Law and its implementation rules may limit our ability to effect those changes in a desirable or cost-effective manner, which could adversely affect our business and results of operations.

Companies registered and operating in China are required under the PRC Social Insurance Law (latest amended in 2018) and the Regulations on the Administration of Housing Funds (latest amended in 2019) to, apply for social insurance registration and housing fund deposit registration, and to pay for their employees different social insurances including pension insurance, medical insurance, work-related injury insurance, unemployment insurance, maternity insurance, and housing provident funds to the extent required by law.

As the interpretation and implementation of labor-related laws and regulations are still evolving, our employment practices may violate labor-related laws and regulations in China, which may subject us to labor disputes, government investigations, and imposition of sanctions. We cannot assure you that we have complied or will be able to comply with all labor-related law and regulations including those relating to obligations to make full social insurance payments and contribute to the housing provident funds. If we are found to have violated applicable labor laws and regulations, we could be required to provide additional compensation to our employees and our business, financial condition and results of operations could be adversely affected.

***You may experience difficulties in effecting service of legal process, enforcing foreign judgments or bringing actions in China against us or our management based on foreign laws.***

We are an exempted company incorporated under the laws of the Cayman Islands. We conduct a substantial portion of our operations in China, and a substantial portion of our assets are located in China. In addition, substantially all of our directors, officers or members of senior management are located in China. As a result, it may be difficult for our shareholders to effect service of process upon us or those persons inside China. In addition, the PRC does not have treaties providing for the reciprocal recognition and enforcement of judgments of courts with the Cayman Islands and many other countries and regions. Therefore, recognition and enforcement in the PRC of judgments of a court in any of these non-PRC jurisdictions in relation to any matter not subject to a binding arbitration provision may be difficult or impossible.

***Fluctuations in exchange rates could have a material and adverse effect on our results of operations.***

The conversion of RMB into foreign currencies, including U.S. dollars, is based on rates set by the People's Bank of China. The RMB has fluctuated against the U.S. dollar, at times significantly and unpredictably. The value of RMB against the U.S. dollar and other currencies is affected by changes in China's political and economic conditions and by China's foreign exchange policies, among other things. We cannot assure you that RMB will not appreciate or depreciate significantly in value against the U.S. dollar in the future. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between RMB and the U.S. dollar in the future.

There remains significant international pressure on the PRC government to adopt a more flexible currency policy. Any significant appreciation or depreciation of RMB may materially and adversely affect our revenues, earnings and financial position, and the value of, and any dividends payable on, our securities in U.S. dollars. For example, to the extent that we need to convert U.S. dollars we receive into RMB to pay our operating expenses, appreciation of RMB against the U.S. dollar would have an adverse effect on the RMB amount we would receive from the conversion. Conversely, a significant depreciation of RMB against the U.S. dollar may significantly reduce the U.S. dollar equivalent of our earnings, which in turn could adversely affect the price of our securities.

To date, we have not entered into any hedging transactions to reduce our exposure to foreign currency exchange risk. While we may decide to enter into hedging transactions in the future, the availability and effectiveness of these hedges may be limited and we may not be able to adequately hedge our exposure or at all. In addition, our currency exchange losses may be magnified by exchange control regulations in the PRC that restrict our ability to convert RMB into foreign currency. As a result, fluctuations in exchange rates may have a material adverse effect on your investment.

Moreover, certain monetary amounts described in this prospectus have been expressed in U.S. dollars for convenience only and, when expressed in U.S. dollars in the future, such amounts may be different from those set forth herein due to intervening exchange rate fluctuations.

***Governmental control of currency conversion may limit our ability to utilize our revenues effectively.***

The PRC government imposes controls on the convertibility of RMB into foreign currencies and, in certain cases, the remittance of currency out of China. Under existing foreign exchange regulations in the PRC, payments of current account items, such as profit distributions and trade and service-related foreign exchange transactions, can be made in foreign currencies without prior approval from the State Administration of Foreign Exchange, or SAFE, by complying with certain procedural requirements. However, approval from or registration with appropriate governmental authorities is required where RMB is to be converted into a foreign currency and remitted out of China to pay capital expenses, such as the repayment of loans denominated in foreign currencies.

Since 2016, the PRC government has tightened its foreign exchange policies again and stepped up scrutiny of major outbound capital movement. More restrictions and a substantial vetting process have been put in place by SAFE to regulate cross-border transactions falling under the capital account. We receive a portion of our revenues in RMB. If the foreign exchange control system prevents us from obtaining sufficient foreign currencies to satisfy our foreign currency demands, we may not be able to pay dividends in foreign currencies to our shareholder.

***Regulations of the PRC relating to offshore investment activities by PRC residents may limit our PRC subsidiaries' ability to increase their registered capital or distribute profits to us or otherwise expose us or our PRC resident beneficial owners to liability and penalties under laws of the PRC.***

 ****

SAFE requires PRC residents or entities to register with SAFE or its local branch in connection with their establishment or control of an offshore entity established for the purpose of overseas investment or financing. In addition, such PRC residents or entities must update their SAFE registrations when the offshore special purpose vehicle undergoes certain material events. To the extent cash or assets in the business of our company that is in mainland China or Hong Kong or a PRC or Hong Kong entity, such cash or assets may not be available to fund operations or for other use outside of the PRC or Hong Kong due to interventions in, or the impositions of restrictions and limitations on the ability of our company, or the subsidiaries by the PRC government to transfer cash or assets.

If our direct or indirect stakeholders who are PRC residents or entities do not complete their registration with the local SAFE branches, our PRC subsidiaries may be prohibited from distributing their profits and any proceeds from any reduction in capital, share transfer or liquidation to us, and we may be restricted in our ability to contribute additional capital to our PRC subsidiaries. Moreover, failure to comply with SAFE registration requirements could result in liability under laws of the PRC for evasion of applicable foreign exchange restrictions.

However, we may not be informed of the identities of all the PRC residents or entities holding direct or indirect interests in our company, nor can we compel our beneficial owners to comply with SAFE registration requirements. As a result, we cannot assure you that all of our shareholders or beneficial owners who are PRC residents or entities have complied with, and will in the future make, obtain, and update any applicable registrations or obtain any approvals required by, SAFE regulations. Failure by such shareholders or beneficial owners to comply with SAFE regulations, or failure by us to amend the foreign exchange registrations of our PRC subsidiaries, could subject us to fines or legal sanctions, restrict our overseas or cross-border investment activities, limit our PRC subsidiaries' ability to make distributions or pay dividends to us or affect our ownership structure, which could adversely affect our business and prospects.

***Any failure to comply with regulations of the PRC regarding the registration requirements for employee stock incentive plans may subject the PRC plan participants or us to fines and other legal or administrative sanctions.***

Under SAFE regulations, PRC residents who participate in a stock incentive plan in an overseas publicly listed company are required to register with SAFE or its local branches and complete certain other procedures. We and our PRC resident employees who participate in our share incentive plans are subject to these regulations since we became a public company listed in the United States. If we or any of these PRC resident employees fail to comply with these regulations, we or such employees may be subject to fines and other legal or administrative sanctions. We also face regulatory uncertainties that could restrict our ability to adopt additional incentive plans for our directors, executive officers, and employees under laws of the PRC.

***Discontinuation of any of the preferential tax treatments and government subsidies or imposition of any additional taxes and surcharges could adversely affect our financial condition and results of operations****.*

Our PRC subsidiaries have received various financial subsidies from PRC local government authorities. In 2023, 2024 and 2025, we recorded government grants of RMB11.5 million, RMB9.4 million and RMB9.8 million (US$1.4 million), respectively. The financial subsidies result from discretionary incentives and policies adopted by PRC local government authorities. Local governments may decide to change or discontinue such financial subsidies at any time, or require us to repay part or all of the financial subsidies we previously received. The discontinuation, reduction, or repayment of such financial subsidies or imposition of any additional taxes could adversely affect our financial condition and results of operations.

***If we are classified as a PRC resident enterprise for PRC income tax purposes, such classification could result in unfavorable tax consequences to us and our non-PRC shareholders.***

Under the PRC Enterprise Income Tax Law and its implementation rules, an enterprise established outside of China with a "de facto management body" within China is considered a PRC resident enterprise. The implementation rules define the term "de facto management body" as the body that exercises full and substantial control over and overall management of the business, productions, personnel, accounts and properties of an enterprise. The State Administration of Taxation, or the SAT, issued a circular in April 2009 and amended it in December 2017, known as Circular 82, which provides certain specific criteria for determining whether the "de facto management body" of a PRC-controlled enterprise that is incorporated offshore is located in China. Although Circular 82 only applies to offshore enterprises controlled by PRC enterprises or PRC enterprise groups, not those controlled by PRC individuals or foreigners like us, the criteria set forth in the circular may reflect the SAT's general position on how the "de facto management body" test should be applied in determining the tax resident status of all offshore enterprises. According to Circular 82, an offshore incorporated enterprise controlled by a PRC enterprise or a PRC enterprise group will be regarded as a PRC tax resident by virtue of having its "de facto management body" in China and will be subject to PRC enterprise income tax on its global income only if all of the following conditions are met: (1) the primary location of the day-to-day operational management is in China; (2) decisions relating to the enterprise's financial and human resource matters are made or are subject to approval by organizations or personnel in China; (3) the enterprise's primary assets, accounting books and records, company seals, and board and shareholder resolutions, are located or maintained in China; and (4) at least 50% of voting board members or senior executives habitually reside in China.

We believe that none of our entities outside of China is a PRC resident enterprise for PRC tax purposes. However, the tax resident status of an enterprise is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term "de facto management body." If the PRC tax authorities determine that we are a PRC resident enterprise for enterprise income tax purposes, we will be subject to the enterprise income tax on our global income at the rate of 25% and we will be required to comply with PRC enterprise income tax reporting obligations. In addition, we may be required to withhold a 10% withholding tax from interest or dividends we pay to our shareholders that are non-PRC resident enterprises. In addition, non-PRC resident enterprise shareholders may be subject to PRC tax at a rate of 10% on gains realized on the sale or other disposition of ordinary shares, if such income is treated as sourced from within the PRC. Furthermore, if PRC tax authorities determine that we are a PRC resident enterprise for enterprise income tax purposes, interest or dividends paid to our non-PRC individual shareholders and any gain realized on the transfer of Class A ordinary shares by such holders may be subject to PRC tax at a rate of 20% (which, in the case of interest or dividends, may be withheld at source by us), if such gains are deemed to be from PRC sources. These rates may be reduced by an applicable tax treaty, but it is unclear whether our non-PRC shareholders would be able to claim the benefits of any tax treaties between their country of tax residence and the PRC in the event that we are treated as a PRC resident enterprise.

***We may not be able to obtain certain benefits under relevant tax treaty on dividends paid by our PRC subsidiaries in mainland China to us through our Hong Kong subsidiaries.***

 ****

We are a holding company incorporated under the laws of the Cayman Islands and as such rely on dividends and other distributions on equity from our PRC subsidiaries in mainland China to satisfy part of our liquidity requirements. Pursuant to the PRC Enterprise Income Tax Law, a withholding tax rate of 10% currently applies to dividends paid by a PRC "resident enterprise" to a foreign enterprise investor, unless any such foreign investor's jurisdiction of incorporation has a tax treaty with China that provides for preferential tax treatment. Pursuant to the Arrangement between Mainland China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and Tax Evasion on Income, such withholding tax rate may be lowered to 5% if a Hong Kong resident enterprise owns no less than 25% of a PRC enterprise. Furthermore, the Administrative Measures for Non-Resident Enterprises to Enjoy Treatments under Treaties, which became effective in January 2020, require non-resident enterprises to determine whether they are qualified to enjoy the preferential tax treatment under the tax treaties and file relevant report and materials with the tax authorities. There are also other conditions for enjoying the reduced withholding tax rate according to other relevant tax rules and regulations.

In the future, we intend to re-invest all earnings, if any, generated from our PRC subsidiaries for the operation and expansion of our business in China. Should our tax policy change to allow for offshore distribution of our earnings, we would be subject to a significant withholding tax. Our determination regarding our qualification to enjoy the preferential tax treatment could be challenged by the relevant tax authority and we may not be able to complete the necessary filings with the relevant tax authority and enjoy the preferential withholding tax rate of 5% under the arrangement with respect to dividends to be paid by our PRC subsidiaries in mainland China to our Hong Kong subsidiaries.

***We face uncertainty with respect to indirect transfers of equity interests in PRC resident enterprises by their non-PRC holding companies.***

In February 2015, the State Administration of Taxation ("SAT") issued the Circular on Issues of Enterprise Income Tax on Indirect Transfers of Assets by Non-PRC Resident Enterprises ("SAT Circular 7"). SAT Circular 7 extends its tax jurisdiction to not only indirect transfers but also transactions involving transfer of other taxable assets, through the offshore transfer of a foreign intermediate holding company. In addition, SAT Circular 7 provides certain criteria on how to assess reasonable commercial purposes and has introduced safe harbors for internal group restructurings and the purchase and sale of equity through a public securities market. SAT Circular 7 also brings challenges to both the foreign transferor and transferee (or other person who is obligated to pay for the transfer) of the taxable assets. Where a non-resident enterprise conducts an "indirect transfer" by transferring the taxable assets indirectly by disposing of the equity interests of an overseas holding company, the non-resident enterprise being the transferor, or the transferee, or the PRC entity which directly owned the taxable assets may report to the relevant tax authority such indirect transfer. Using a "substance over form" principle, the PRC tax authority may disregard the existence of the overseas holding company if it lacks a reasonable commercial purpose and was established for the purpose of reducing, avoiding or deferring PRC tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise income tax, and the transferee or other person who is obligated to pay for the transfer is obligated to withhold the applicable taxes, currently at a rate of 10% for the transfer of equity interests in a PRC resident enterprise. On October 17, 2017, the SAT issued Circular on Issues of Tax Withholding regarding Non-PRC Resident Enterprise Income Tax, or Circular 37, which came into effect on December 1, 2017 and was amended on June 15, 2018. Circular 37 further clarifies the practice and procedure of the withholding of nonresident enterprise income tax.

We face uncertainties on the reporting and consequences of future private equity financing transactions, share exchanges or other transactions involving the transfer of shares in our company by investors that are non-PRC resident enterprises. The PRC tax authorities may pursue such non-PRC resident enterprises with respect to a filing or the transferees with respect to withholding obligations, and request our PRC subsidiaries to assist in the filing. As a result, we and non-PRC resident enterprises in such transactions may become at risk of being subject to filing obligations or being taxed under SAT Circular 7 and Circular 37, and may be required to expend valuable resources to comply with them or to establish that we and our non-PRC resident enterprises should not be taxed under these regulations, which may have a material adverse effect on our financial condition and results of operations.

***If the custodians or authorized users of controlling non-tangible assets of our company, including our corporate chops and seals, fail to fulfill their responsibilities, or misappropriate or misuse these assets, our business and operations could be materially and adversely affected.***

Under laws of the PRC, legal documents for corporate transactions are executed using the chops or seal of the signing entity or with the signature of a legal representative whose designation is registered and filed with the relevant branch of the SAMR.

Although we usually utilize chops to enter into contracts, the designated legal representatives of each of our PRC subsidiaries have the apparent authority to enter into contracts on behalf of such entities without chops and bind such entities. In order to maintain the physical security of our chops and chops of our PRC entities, we generally store these items in secured locations accessible only by the authorized personnel in the legal or finance department of each of our subsidiaries. Although we monitor such authorized personnel, there is no assurance such procedures will prevent all instances of abuse or negligence. Accordingly, if any of our authorized personnel misuse or misappropriate our corporate chops or seals, we could encounter difficulties in maintaining control over the relevant entities and experience significant disruption to our operations. If a designated legal representative acts in a manner contrary to the interests of any of our PRC subsidiaries, or obtains control of the chops in an effort to obtain control over any of our PRC subsidiaries, we or our PRC subsidiaries would need to pass a new shareholders or board resolution to designate a new legal representative and we would need to take legal action to seek the return of the chops, apply for new chops with the relevant authorities, or otherwise seek legal redress for the violation of the representative's fiduciary duties to us, which could involve significant time and resources and divert management attention away from our regular business. In addition, the affected entity may not be able to recover corporate assets that are sold or transferred out of our control in the event of such a misappropriation if a transferee relies on the apparent authority of the legal representative and acts in good faith.

***Our business may be negatively affected by the potential obligations if we fail to comply with social insurance and housing provident fund related laws and regulations.***

We are required by PRC labor laws and regulations to pay various statutory employee benefits, including pensions insurance, medical insurance, work-related injury insurance, unemployment insurance, maternity insurance and housing provident fund, to designated government agencies for the benefit of our employees and associates. In October 2010, the Standing Committee of the National People's Congress (the "SCNPC") promulgated the Social Insurance Law of PRC, effective on July 1, 2011 and amended on December 29, 2018. On April 3, 1999, the State Council promulgated the Regulations on the Administration of Housing Provident Fund, which was amended on March 24, 2002 and March 24, 2019. Companies registered and operating in China are required under the Social Insurance Law of PRC and the Regulations on the Administration of Housing Provident Fund to apply for social insurance registration and housing provident fund deposit registration within 30 days of their establishment and to pay for their employees different social insurance including pension insurance, medical insurance, work-related injury insurance, unemployment insurance and maternity insurance to the extent required by law. We could be subject to orders by competent labor authorities for rectification if we fail to comply with such social insurance and housing provident fund related laws and regulations, and failure to comply with the orders may further subject us to administrative fines. The relevant government agencies may examine whether an employer has made adequate payments of the requisite statutory employee benefits, and employers who fail to make adequate payments may be subject to late payment fees, fines and/or other penalties. If the relevant PRC authorities determine that we shall make supplemental social insurance and housing provident fund contributions or that we are subject to fines and legal sanctions in relation to our failure to make social insurance and housing provident fund contributions in full for our employees, our business, financial condition and results of operations may be adversely affected.

***Inflation in the PRC could negatively affect our profitability and growth.***

The economy of the PRC has been experiencing increases in inflation in recent years. As a result, average wages in the PRC are expected to continue to increase. Future increases in the PRC's inflation may materially and adversely affect our profitability and results of operations unless we are able to pass on these costs to our customers by increasing management fees and service fees.

**Risks Relating to Our Securities and this Offering**

***The price of our securities may be volatile, and the value of our securities may decline.***

We cannot predict the prices at which our securities will trade. The price of our securities may not bear any relationship to the market price or to any established criteria of the value of our business and prospects, and the market price of our securities may fluctuate substantially. In addition, the trading price of our securities could be subject to fluctuations in response to various factors, some of which are beyond our control. These fluctuations could cause you to lose all or part of your investment. Factors that could cause fluctuations in the trading price of our securities include the following:

● actual or anticipated fluctuations in our financial condition or results of operations;

● variance in our financial performance from expectations of securities analysts;

● changes in our projected operating and financial results;

● changes in laws or regulations applicable to our business;

● announcements by us or our competitors of significant business developments, acquisitions or new offerings;

● sales of our securities by our shareholders or warrant holders, as well as the anticipation of lockup releases;

● significant breaches of disruptions to or other incidents involving our information technology systems or those of our business partners;

● our involvement in material litigation;

● conditions or developments affecting the blue-collar lifetime service industry in China;

● changes in senior management or key personnel;

● the trading volume of our securities;

● general economic and market conditions; and

● other events or factors, including those resulting from war, incidents of terrorism, global pandemics or responses to these events.

***The Warrants to purchase Class A Ordinary Shares will increase the number of shares eligible for future resale in the public market and result in dilution to our shareholders.***

 ****

As of the date of this prospectus, there are 7,617,500 Warrants issued and outstanding, consisting of 6,900,000 Public Warrants, 545,000 Sponsor Warrants, and 172,500 Representative Warrants. The Warrants will expire five years after the Closing. A registration statement on Form F-1 (Registration No.333-289480) covering the issuance of the Class A Ordinary Shares underlying the Warrants has been filed with the SEC. Each Public Warrant, Sponsor Warrant and Representative Warrant entitles the holder thereof to purchase one Class A Ordinary Share at a price of $11.50, $11.50 and $12.00 per whole share, respectively, subject to adjustment. The Warrants may be exercised only for a whole number of Class A Ordinary Shares. To the extent the Warrants are exercised, additional Class A Ordinary Shares will be issued, which will result in dilution to the then-existing holders of Class A Ordinary Shares and increase the number of shares eligible for resale in the public market. Sales of a substantial number of such shares in the public market could adversely affect the market price of Class A Ordinary Shares. The exclusive forum provision in the amended and restated warrant agreement can result in increased costs to investors to bring a claim.

***The exclusive forum provision in the Amended and Restated Warrant Agreement could limit warrant holders' ability to obtain what they believe to be a favorable judicial forum for the relevant disputes.***

In connection with the Business Combination, we entered into the Amended and Restated Warrant Agreement on July 9, 2025, which relates to the Warrants. Under the Amended and Restated Warrant Agreement, we, in collaboration with the warrant agent, are required to deliver the Class A Ordinary Shares to warrant holders, provided that they duly exercise their Warrants and make payment in accordance with the terms of the Amended and Restated Warrant Agreement. Disputes with warrant holders may arise in connection with the performance of our contractual obligations under the Amended and Restated Warrant Agreement. The Amended and Restated Warrant Agreement provides that any action, proceeding or claim against us arising out of or relating in any way to such agreement will be brought and enforced in the courts of the State of New York or the United States District Court for the Southern District of New York, which will be the exclusive forum for any such action, proceeding or claim. This provision will apply to claims under the Securities Act but as discussed below, will not apply to claims under the Exchange Act.

The exclusive forum provision in the Amended and Restated Warrant Agreement may limit a warrant holder's ability to bring a claim in a judicial forum that it finds favorable for disputes related to the Amended and Restated Warrant Agreement, which may discourage such lawsuits against us and our directors or officers. Alternatively, if a court were to find this exclusive forum provision inapplicable to, or unenforceable in respect of, one or more of the specified types of actions or proceedings, we may incur additional costs associated with resolving such matters in other jurisdictions, which could adversely affect our business, financial condition and results of operations and result in a diversion of the time and resources of our management and board of directors.

***Our Warrants may never be in the money, and they may expire worthless.***

Each Public Warrant, Sponsor Warrant and Representative Warrant entitles the holder thereof to purchase one Class A Ordinary Share at a price of $11.50, $11.50 and $12.00 per whole share, respectively, subject to adjustment (subject to adjustment as described in the Amended and Restated Warrant Agreement), which exceeds the market price of the ADSs, which was $0.9983 based on the closing price of the ADSs on Nasdaq on April 27, 2026. The likelihood that warrant holders will exercise the Warrants and any cash proceeds that we would receive is dependent upon the market price of the ADSs. If the market price for the ADSs is less than the exercise price of the Warrants, we believe warrant holders will be unlikely to exercise their Warrants, and we are unlikely to receive proceeds from the exercise of Warrants.

***We may redeem your unexpired Warrants prior to their exercise at a time that is disadvantageous to you, thereby making your Warrants worthless.***

 ****

Subject to the terms of the Amended and Restated Warrant Agreement, we have the ability to redeem the outstanding Warrants at any time after they become exercisable and prior to their expiration, at a price of $0.01 per warrant, if, among other things, the Reference Value (as defined in the Amended and Restated Warrant Agreement) equals or exceeds $18.00 per share subject to adjustment. If and when the Warrants become redeemable, we may exercise such redemption right even if it is unable to register or qualify the underlying securities for sale under all applicable state securities laws. Redemption of the outstanding Assumed Public Warrants as described above could force you to (1) exercise your warrants and pay the exercise price therefor at a time when it may be disadvantageous for you to do so, (2) sell your warrants at the then-current market price when you might otherwise wish to hold your warrants or (3) accept the nominal redemption price which, at the time the outstanding warrants are called for redemption, is expected to be substantially less than the market value of the Warrants.

***We are a foreign private issuer within the meaning of the rules under the Exchange Act, and as such we are not subject to U.S. proxy rules and are exempt from certain provisions applicable to U.S. domestic public companies.***

 ****

We currently report under the Exchange Act as a non-U.S. company with foreign private issuer status. Because we qualify as a foreign private issuer under the Exchange Act, we are exempt from certain provisions of the Exchange Act that are applicable to U.S. domestic public companies, including, among others, (1) the sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations in respect of a security registered under the Exchange Act, (2) the sections of the Exchange Act providing for liability for insiders who profit from trades made in a short period of time, and (3) the rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form 10-Q containing unaudited financial and other specified information. In addition, foreign private issuers such as us are required to file their annual report on Form 20-F within four months of the end of each fiscal year, while U.S. domestic issuers that are accelerated filers are required to file their annual report on Form 10-K within 75 days after the end of each fiscal year, and U.S. domestic issuers that are large accelerated filers are required to file their annual report on Form 10-K within 60 days after the end of each fiscal year. While press releases relating to financial results and material events will also be furnished to the SEC on Form 6-K, the information we are required to file with or furnish to the SEC will be less extensive and less timely than that required to be filed with the SEC by U.S. domestic issuers. As a result of all of the above, you may not have the same protections afforded to shareholders of a company that is not a foreign private issuer.

***As a company incorporated in the Cayman Islands, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly from Nasdaq corporate governance listing standards; these practices may afford less protection to shareholders than they would enjoy if we complied fully with the Nasdaq corporate governance listing standards.***

The ADSs, representing our Class A Ordinary Shares, are listed on the Nasdaq Stock Market. The Nasdaq Stock Market corporate governance listing standards permit a foreign private issuer such as us to follow the corporate governance practices of our home country. Certain corporate governance practices in the Cayman Islands, which is our home country, may differ significantly from the Nasdaq Stock Market corporate governance listing standards.

For instance, we are not required to:

● have a majority of the board be independent;

● have a compensation committee or a nominations and corporate governance committee consisting entirely of independent directors; or

● have regularly scheduled executive sessions with only independent directors each year.

We may rely on certain exemptions available to foreign private issuers in the future, and to the extent that we choose to do so, our shareholders may be afforded less protection than they otherwise would have under the Nasdaq rules applicable to U.S. domestic issuers.

 

***You may face difficulties in protecting your interests, and your ability to protect your rights through U.S. courts may be limited, because we are incorporated under the law of the Cayman Islands, we conduct substantially all of our operations in China, and a majority of our directors and executive officers will reside outside of the United States.***

We are an exempted company limited by shares incorporated under the laws of the Cayman Islands, and we conduct substantially all of our operations through our subsidiaries in China. Substantially all of our assets are located outside of the United States. A majority of our officers and directors reside outside the United States and a substantial portion of the assets of those persons are located outside of the United States. As a result, it could be difficult or impossible for you to bring an action against us or against these individuals outside of the United States in the event that you believe that your rights have been infringed upon under the applicable securities laws or otherwise. Even if you are successful in bringing an action of this kind, the laws of the Cayman Islands and of the PRC could render you unable to enforce a judgment against the relevant assets or the assets of the relevant directors and officers.

In addition, our corporate affairs are governed by the Second Amended and Restated Memorandum and Articles of Association, the Cayman Companies Act and the common law of the Cayman Islands. The rights of investors to take action against the directors, actions by minority shareholders and the fiduciary duties of our directors to us under Cayman Islands law are to a large extent governed by the common law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial precedent in the Cayman Islands as well as from the common law of England, the decisions of whose courts are of persuasive authority, but are not binding, on a court in the Cayman Islands. The rights of our shareholders and the fiduciary duties of our directors under Cayman Islands law may not be as clearly established as they would be under statutes or judicial precedent in some jurisdictions in the United States. In particular, the Cayman Islands has a different body of securities laws than the United States. Some U.S. states, such as Delaware, may have more fully developed and judicially interpreted bodies of corporate law than the Cayman Islands. In addition, Cayman Islands companies may not have standing to initiate a shareholder derivative action in a federal court of the United States.

Shareholders of Cayman Islands exempted companies like us have no general rights under Cayman Islands law to inspect corporate records or to obtain copies of lists of shareholders of these companies (save for the memorandum and articles of association, the register of mortgages and charges, and special resolutions of our shareholders). Our directors have discretion under the Second Amended and Restated Memorandum and Articles of Association to determine whether or not, and under what conditions, our corporate records may be inspected by our shareholders, but we are not obliged to make them available to the shareholders. This may make it more difficult for you to obtain the information needed to establish any facts necessary for a shareholder's motion or to solicit proxies from other shareholders in connection with a proxy contest.

Certain corporate governance practices in the Cayman Islands, which is our home country, differ significantly from requirements for companies incorporated in other jurisdictions such as the United States. To the extent we choose to follow home country practice with respect to corporate governance matters, our shareholders may be afforded less protection than they otherwise would under rules and regulations applicable to U.S. domestic issuers. See "—As a company incorporated in the Cayman Islands, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly from the Nasdaq Stock Market corporate governance listing standards; these practices may afford less protection to shareholders than they would enjoy if we complied fully with the Nasdaq Stock Market corporate governance listing standards."

As a result of all of the above, our shareholders may have more difficulty in protecting their interests in the face of actions taken by management, members of the board of directors or controlling shareholders than they would as public shareholders of a company incorporated in the United States.

***The Second Amended and Restated Memorandum and Articles of Association contain certain provisions, including anti-takeover provisions that limit the ability of shareholders to take certain actions and could delay or discourage takeover attempts that shareholders may consider favorable.***

The Second Amended and Restated Memorandum and Articles of Association contain provisions that could have the effect of rendering more difficult, delaying, or preventing an acquisition that shareholders may consider favorable, including transactions in which shareholders might otherwise receive a premium for their shares. These provisions could also limit the price that investors might be willing to pay in the future for the Class A Ordinary Shares as represented by ADS, and therefore depress the trading price of the Class A Ordinary Shares as represented by ADS. These provisions could also make it difficult for shareholders to take certain actions, including electing directors who are not nominated by us or taking other corporate actions, including effecting changes in our management. These provisions, alone or together, could delay or prevent hostile takeovers and changes in control or changes in our board of directors or management.

***A market for our securities may not develop or be sustained, which would adversely affect the liquidity and price of our securities.***

The price of the ADSs, representing our Class A Ordinary Shares, has fluctuated, and may continue to fluctuate significantly due to the market's reaction to our financial performance, results of operations, and general market and economic conditions. An active trading market for the ADSs may not be sustained. In addition, the price of the ADSs may vary due to general economic conditions and forecasts, our general business condition and the release of our financial reports. Additionally, if the ADSs are delisted from the Nasdaq Stock Market and are quoted on over-the-counter market, the liquidity and price of the ADSs may be more limited than if the ADSs were quoted or listed on the Nasdaq Stock Market or another national securities exchange. The Warrants are currently not listed or quoted on any national stock exchange or over-the-counter market and, as such, there is no public trading market for the Warrants and you will need to exercise the Warrants for Class A Ordinary Shares and deposit them with our depositary in exchange for the ADSs in order to liquidate your investment in the Warrants, if at all. You may be unable to sell your securities unless a market can be established or sustained.

***If securities or industry analysts do not publish or cease publishing research or reports about us, our business, our market or competitors, or if they change their recommendations regarding our securities adversely, the price and trading volume of our securities could decline.***

 ****

The trading market for our securities will be influenced by the research reports that industry or securities analysts may publish about us, our business, our market or competitors. If any of the analysts who may cover us change their recommendation regarding our securities adversely, or provide more favorable relative recommendations about our competitors, the price of our securities would likely decline. If any analyst who may cover us were to cease their coverage or fail to regularly publish reports on us, we could lose visibility in the financial markets, which could cause the price or trading volume of the ADSs to decline.

***Additional disclosure requirements to be adopted by and regulatory scrutiny from the SEC in response to risks related to companies with substantial operations in China could increase our compliance costs, subject it to additional disclosure requirements, and/or suspend or terminate our future securities offerings, resulting in difficulties in our capital-raising efforts.***

 ****

On July 30, 2021, in response to the regulatory developments in China and actions adopted by the PRC government, the Chairman of the SEC issued a statement asking the SEC staff to seek additional disclosures from offshore issuers associated with China-based operating companies before their registration statements will be declared effective. As such, we may be subject to additional disclosure requirements and review that the SEC or other regulatory authorities in the United States may adopt for companies with China-based operations, which could increase our compliance costs, subject us to additional disclosure requirements, and/or suspend or terminate our future securities offerings, resulting in difficulties in our capital-raising efforts.

***If we fail to implement and maintain effective internal controls to remediate the material weaknesses over financial reporting, we may be unable to accurately report our results of operations, meet our reporting obligations or prevent fraud, and investor confidence and the market price of the Class A Ordinary Shares may be materially adversely affected.***

 ****

In connection with the audit of our consolidated financial statements as of and for the year ended December 31, 2025, we identified one material weakness in our internal control over financial reporting as of December 31, 2025. As defined in the standards established by the PCAOB, a "material weakness" is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis.

We are subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act and the rules and regulations of the Nasdaq Stock Market. The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures and internal controls over financial reporting. Commencing our fiscal year ending December 31, 2026, we must perform system and process evaluation and testing of our internal controls over financial reporting to allow management to report on the effectiveness of our internal controls over financial reporting in our Form 20-F filing for that year, as required by Section 404 of the Sarbanes-Oxley Act.

Once we cease to be an "emerging growth company" as the term is defined in the JOBS Act, our independent registered public accounting firm must attest to and report on the effectiveness of our internal control over financial reporting. Our management and independent registered public accounting firm may conclude that our internal control over financial reporting is not effective. As a result, we may incur significant expenses and devote substantial effort to expand our accounting and finance functions. We were was previously not required to test our internal controls within a specified period, and as a result, we may experience difficulty in meeting these reporting requirements in a timely manner.

Our internal control over financial reporting will not prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. Because of the inherent limitations in control systems, misstatements due to error or fraud could occur in the future, and a control system could fail to detect control issues and fraud.

If we fail to comply with the requirements of Section 404 of the Sarbanes-Oxley Act in a timely manner, or to maintain proper and effective internal controls, we may not produce accurate financial statements in a timely manner. As a result, the market price of the Class A Ordinary Shares may decline and we could be subject to sanctions or investigations by the Nasdaq Stock Market, SEC or other regulatory authorities.

***Our principal shareholders, including our founder Mr. Yunlei Wang, have the ability to exert significant influence over important corporate matters that require approval of shareholders, which may deprive you of an opportunity to receive a premium for the Class A ordinary shares and materially reduce the value of your investment.***

Our outstanding share capital consists of Class A Ordinary Shares and Class B Ordinary Shares. Each Class A Ordinary Share is entitled to one vote and each Class B Ordinary Share is entitled to twenty votes at general meetings of our shareholders. As of the date of this prospectus, Mr. Yunlei Wang beneficially owns all of Class B Ordinary Shares, representing approximately 13.8% of our issued and outstanding share capital, and approximately 76.2% of voting power. This concentration of ownership and the protective provisions in the Second Amended and Restated Memorandum and Articles of Association may discourage, delay or prevent a change in control, which could have the dual effect of depriving our shareholders of an opportunity to receive a premium for their shares as part of a sale and reducing the price of the Class A Ordinary Shares as represented by ADS. As a result of the foregoing, the value of your investment could be materially reduced.

***The issuance of additional share capital in connection with financings, acquisitions, investments, or otherwise will dilute all other shareholders.***

We expect to issue additional share capital in the future that will result in dilution to all other shareholders. We may raise capital through equity financing in the future. As part of our business strategy, we may acquire or make investments in companies, solutions or technologies and issue equity securities to pay for any such acquisition or investment. For example, in May 2026, we issued 4,967,810 Class A Ordinary Shares in our acquisition of YouheHR Group Inc., which operates four regional human resources service companies. Any such issuances of the additional share capital may cause shareholders to experience significant dilution of their ownership interests and the per share value of the Class A Ordinary Shares to decline.

***We do not intend to pay dividends before we become profitable, and as a result, your ability to achieve a return on your investment in the foreseeable future will depend on appreciation in the price of the ADSs.***

We do not intend to pay any cash dividends before we become profitable, which may not occur in the foreseeable future. Any determination to pay dividends in the future will be at the discretion of our board of directors. Accordingly, you may need to rely on sales of the ADSs after price appreciation, which may never occur, as the only way to realize any future gains on your investment.

***We are an "emerging growth company," and the reduced reporting and disclosure requirements applicable to emerging growth companies may make our securities less attractive to investors.***

We are an "emerging growth company," as defined in the JOBS Act, and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies," including the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. We do not intend to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, we, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of our financial statements with certain other public companies difficult or impossible because of the potential differences in accounting standards used.

We will remain an emerging growth company until the earlier of: (1) the last day of the fiscal year (i) following the fifth anniversary of the consummation of the Business Combination, (ii) in which we have total annual gross revenue of at least $1.235 billion, or (iii) in which we are deemed to be a large accelerated filer, which means the market value of the ADSs that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter; and (2) the date on which we have issued more than $1.00 billion in non-convertible debt securities during the prior three-year period.

Investors may find our securities less attractive and there may be a less active trading market for our securities, and the price of such securities may be more volatile.

***We will incur increased costs as a result of operating as a public company, and our management will be required to devote substantial time to comply with a public company's responsibilities and corporate governance practices.***

As a public company, we will incur significant legal, accounting and other expenses, which we expect to further increase after we are no longer an "emerging growth company." The Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, the continued listing requirements of Nasdaq, and other applicable securities rules and regulations impose various requirements on public companies. Our management and other personnel are not experienced in managing a public company and will be required to devote a substantial amount of time to compliance with these requirements. Moreover, these rules and regulations will increase our legal and financial compliance costs and will make some activities more time-consuming and costly.

In the past, shareholders of some public companies brought securities class action suits against these companies following periods of instability in the market price of these companies' securities. Our involvement in a class action suit could divert a significant amount of our management's attention and other resources from our business, which could harm our results of operations and require us to incur significant expenses to defend the suit.

Any such class action suit, whether or not successful, could harm our reputation and restrict our ability to raise capital in the future. In addition, if a claim is successfully made against us, we may be required to pay significant damages, which could materially adversely affect our financial condition and results of operations.

***We will incur increased costs as a result of operating as a public company, and our management will be required to devote substantial time to comply with a public company's responsibilities and corporate governance practices.***

 ****

As a public company, we will incur significant legal, accounting and other expenses, which we expect to further increase after we are no longer an "emerging growth company." The Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, the continued listing requirements of Nasdaq, and other applicable securities rules and regulations impose various requirements on public companies. Our management and other personnel are not experienced in managing a public company and will be required to devote a substantial amount of time to compliance with these requirements. Moreover, these rules and regulations will increase our legal and financial compliance costs and will make some activities more time-consuming and costly.

In the past, shareholders of some public companies brought securities class action suits against these companies following periods of instability in the market price of these companies' securities. Our involvement in a class action suit could divert a significant amount of our management's attention and other resources from our business, which could harm our results of operations and require us to incur significant expenses to defend the suit.

Any such class action suit, whether or not successful, could harm our reputation and restrict our ability to raise capital in the future. In addition, if a claim is successfully made against us, we may be required to pay significant damages, which could materially adversely affect our financial condition and results of operations.

***Holders of the ADSs may not have the same voting rights as our registered shareholders.***

Holders of the ADSs will not have any direct right to attend general meetings of our shareholders or to cast any votes at such meetings and will only be able to exercise the voting rights that are carried by the underlying Class A Ordinary Shares represented by the ADSs indirectly by giving voting instructions to the depositary in accordance with the provisions of the deposit agreement. Under the deposit agreement, holders of ADSs must vote by giving voting instructions to the depositary, including instructions to give a discretionary proxy to a person designated by us. Upon receipt of such holder's voting instructions, the depositary will vote the underlying Class A Ordinary Shares in accordance with these instructions. Holders of ADSs will not be able to directly exercise their right to vote with respect to the underlying Class A Ordinary Shares unless they withdraw the underlying Class A Ordinary Shares and become the registered holder of such Class A Ordinary Shares prior to the record date for the general meeting. Holders of ADSs may not receive voting materials in time to instruct the depositary to vote, and it is possible that holders of ADSs, or persons who hold their ADSs through brokers, dealers or other third parties, will not have the opportunity to exercise their right to vote.

***The voting rights of holders of the ADSs are limited by the terms of the deposit agreement, and holders of the ADSs may not be able to exercise rights to direct how the Class A Ordinary Shares represented by the ADSs are voted.***

 ****

A holder of the ADSs may only exercise the voting rights with respect to the underlying Class A Ordinary Shares in accordance with the provisions of the deposit agreement. Upon receipt of voting instructions of a holder of ADSs in the manner set forth in the deposit agreement, the depositary will endeavor to vote the underlying Class A Ordinary Shares in accordance with these instructions. When a general meeting is convened, holders of ADSs may not receive sufficient notice of a shareholders' meeting to permit them to withdraw the Class A Ordinary Shares underlying the ADSs to allow them to cast their votes with respect to any specific matter. In addition, the depositary and its agents may not be able to send voting instructions to holders of ADSs or carry out their voting instructions in a timely manner. We will make all reasonable efforts to cause the depositary to extend voting rights to holders of ADSs in a timely manner, but we cannot assure such holders that they will receive the voting materials in time to ensure that they can instruct the depositary to vote their shares. The depositary and its agents will not be responsible for any failure to carry out any instructions to vote, for the manner in which any vote is cast, or for the effect of any such vote. As a result, holders of ADSs may not be able to exercise their right to vote and may lack recourse if their equity shares are not voted as requested.

***We and the depository are entitled to amend the deposit agreement and to change the rights of the ADS holders under the terms of such agreement, and we may terminate the deposit agreement, without the prior consent of the ADS holders.***

 ****

We and the depository bank are entitled to amend the deposit agreement and to change the rights of the ADS holders under the terms of such agreement, without the prior consent of the ADS holders. We and the depositary may agree to amend the deposit agreement in any way we decide is necessary or advantageous to us. Amendments may reflect, among other things, operational changes in the ADS program, legal developments affecting ADS or changes in the terms of our business relationship with the depositary. In the event that the terms of an amendment impose or increase fees or charges (other than charges in connection with foreign exchange control regulations, and taxes and/or other governmental charges, delivery and other such expenses) or that would otherwise prejudice any substantial existing right of the ADS holders, such amendment will not become effective as to outstanding ADSs until the expiration of 30 days after notice of that amendment has been disseminated to ADS holders, and no prior consent of the ADS holders is required under the deposit agreement. Furthermore, we may decide to terminate the ADS facility at any time for any reason. For example, terminations may occur when we decide to list our ordinary shares on a non-U.S. securities exchange and determine not to continue to sponsor an ADS facility or when we become the subject of a takeover or a going-private transaction. If the ADS facility terminates, ADS holders will receive at least 30 days' prior notice, but no prior consent is required from them. Under the circumstances that we decide to make an amendment to the deposit agreement that is disadvantageous to ADS holders or terminate the deposit agreement, the ADS holders may choose to sell their ADSs or surrender their ADSs and become direct holders of the underlying Class A Ordinary Shares, but will have no right to any compensation whatsoever.

***You may be subject to limitations on transfer of your ADSs.***

Your ADSs are transferable on the books of the depositary. However, the depositary may close its transfer books at any time or from time to time when it deems expedient in connection with the performance of its duties. In addition, the depositary may refuse to deliver, transfer or register transfers of ADSs generally when our books or the books of the depositary are closed, or at any time if we or the depositary deems it advisable to do so because of any requirement of law or of any government or governmental body, or under any provision of the deposit agreement, or for any other reason.

***Holders of ADSs might not receive distributions on our equity shares, or any value for them at all, if it is unlawful or impracticable for us to make them available to such holders.***

The depositary of the ADSs has agreed to pay holders of ADSs the cash dividends or other distributions it or the custodian for the ADSs receives on Class A Ordinary Shares or other deposited securities after deducting its fees and expenses in accordance with the deposit agreement. Holders of ADSs will receive these distributions in proportion to the number of the underlying Class A Ordinary Shares that their ADSs represent. However, the depositary is not responsible if it is unlawful or impracticable to make a distribution available to any holders of ADSs. For example, it would be unlawful to make a distribution to a holder of ADSs if it consists of securities that require registration under the Securities Act but such securities are not properly registered or distributed pursuant to an applicable exemption from registration. The depositary bank is not responsible for making a distribution available to any holders of ADSs if any government approval or registration is required for such distribution, and it has no obligation to take any other action to permit the distribution of the ADSs, equity shares, rights or anything else to holders of the ADSs. This means that holders of ADSs might not receive the distributions that we make on our Class A Ordinary Shares or any value for them at all if it is unlawful or impracticable for us to make them available to you.

 **

***Your rights to pursue claims against the depositary as a holder of ADSs are limited by the terms of the deposit agreement.***

 **

Under the deposit agreement, any action or proceeding against or involving the depositary, arising out of or based upon the deposit agreement or the transactions contemplated thereby or by virtue of owning the ADSs may only be instituted in the United States District Court for the Southern District of New York (or, if the United States District Court for the Southern District of New York lacks subject matter jurisdiction over a particular dispute, the state courts in New York County, New York), and you, as a holder of ADSs, will have irrevocably waived any objection which you may have to the laying of venue of any such proceeding, and irrevocably submitted to the exclusive jurisdiction of such courts in any such action or proceeding. Accepting or consenting to this forum selection provision does not represent you are waiving compliance with the U.S. federal securities laws and the rules and regulations promulgated thereunder. Furthermore, investors cannot waive compliance with the U.S. federal securities laws and rules and regulations promulgated thereunder.

***ADSs holders may not be entitled to a jury trial with respect to claims arising under the deposit agreement, which could result in less favorable outcomes to the plaintiff(s) in any such action.***

 ****

The deposit agreement governing the ADSs representing our ordinary shares provides that the United States District Court for the Southern District of New York (or, if the United States District Court for the Southern District of New York lacks subject matter jurisdiction over a particular dispute, the state courts in New York County, New York) have exclusive jurisdiction to hear and determine claims arising under the deposit agreement and in that regard, to the fullest extent permitted by law, ADS holders waive the right to a jury trial of any claim they may have against us or the Depositary Bank arising out of or relating to our ordinary shares, the ADSs or the deposit agreement, including any claim under the U.S. federal securities laws.

If we or the depositary opposed a jury trial demand based on the waiver, the court would determine whether the waiver was enforceable based on the facts and circumstances of that case in accordance with the applicable state and federal law. To our knowledge, the enforceability of a contractual pre-dispute jury trial waiver in connection with claims arising under the federal securities laws has not been finally adjudicated by the U.S. Supreme Court. However, we believe that a pre-dispute contractual waiver of jury trial is generally enforceable, including under the laws of the State of New York, which govern the deposit agreement. In determining whether to enforce a pre-dispute contractual waiver of jury trial, courts will generally consider whether a party knowingly, intelligently and voluntarily waived the right to a jury trial. We believe that this is the case with respect to the deposit agreement and the ADSs. It is advisable that you consult legal counsel regarding the jury waiver provision before investing in the ADSs.

If you or any other holders or beneficial owners of ADSs bring a claim against us or the depositary in connection with matters arising under the deposit agreement or the ADSs, including claims under federal securities laws, you or such other holder or beneficial owner may not be entitled to a jury trial with respect to such claims, which may have the effect of limiting and discouraging lawsuits against us and the depositary. If a lawsuit is brought against either or both of us and the depositary under the deposit agreement, it may be heard only by a judge or justice of the applicable trial court, which would be conducted according to different civil procedures and may result in different outcomes than a trial by jury would have, including results that could be less favorable to the plaintiff(s) in any such action.

Nevertheless, if this jury trial waiver provision is not enforced, to the extent a court action proceeds, it would proceed under the terms of the deposit agreement with a jury trial. No condition, stipulation or provision of the deposit agreement or ADSs shall relieve us or the depositary from our respective obligations to comply with the Securities Act and the Exchange Act.

***If we are characterized as a passive foreign investment company ("PFIC") for U.S. federal income tax purposes, U.S. Holders may experience adverse U.S. federal income tax consequences.***

 

Based on the composition of our income and assets and the estimated value of our assets, including goodwill, we do not believe we were a PFIC for the most recent taxable year ended December 31, 2025.

A non-U.S. corporation generally will be treated as a PFIC for U.S. federal income tax purposes, in any taxable year if either (1) at least 75% of its gross income for such year is passive income or (2) at least 50% of the value of its assets (generally based on an average of the quarterly values of the assets) during such year is attributable to assets that produce or are held for the production of passive income. For purposes of making these determinations, a company is generally treated as directly earning a pro rata share of the income (and directly owning a pro rata share of the assets) of any entity in which it is considered to own at least 25% of the shares by value.

Whether we or any of our subsidiaries are a PFIC for any taxable year is a factual determination that depends on, among other things, the composition of our income and assets, and the market value of our securities. Changes in our composition, the composition of our income or the composition of our assets may cause us to be or become a PFIC for the current or subsequent taxable years. Whether we are treated as a PFIC for U.S. federal income tax purposes is a factual determination that must be made annually at the close of each taxable year and, accordingly, there can be no assurances that we will not be treated as a PFIC in the current taxable year or any future taxable year. Moreover, the application of the PFIC rules is subject to uncertainty in several respects, and there can be no assurance that the Internal Revenue Service (the "IRS") will not take a contrary position or that a court will not sustain such a challenge by the IRS..

If we are a PFIC for any taxable year, a U.S. Holder of our securities may be subject to adverse tax consequences and may incur certain information reporting obligations. For a further discussion, see "Taxation—United States Federal Income Taxation—Passive foreign investment company rules." U.S. Holders of our securities are strongly encouraged to consult their tax advisors regarding the potential application of these rules to us and the ownership of our securities.

**CAPITALIZATION**

As we will not receive any proceeds from the sale of the Registered Securities sold by the Selling Securityholders, no further change is disclosed on a pro forma basis to reflect sales of shares pursuant to this prospectus. The likelihood that warrant holders will exercise the Warrants and any cash proceeds that we would receive is dependent upon the market price of the ADSs. Based on the closing price of the ADSs at US$0.3367 on June 8, 2026, which is less than the exercise price of US$11.50 per share for Public Warrants and Sponsor Warrants and US$12.00 for Representative Warrants, pursuant to the terms of the Warrants, we believe holders of the Warrants will be unlikely to exercise their Warrants, and we are unlikely to receive proceeds from the exercise of Warrants. Therefore, proceeds receivable from the exercise of the Warrants are also excluded from the adjustments.

The information in the following table should be read in conjunction with the financial statements and notes thereto and other financial information included in this prospectus, any prospectus supplement or incorporated by reference in this prospectus. Our historical results do not necessarily indicate our expected results for any future periods.

The following table sets forth our total capitalization, on an actual basis, as of December 31, 2025.

---

| | |
|:---|:---|
| **As of December 31, 2025** | **Pro Forma**<br> **Combined**<br>**(RMB in thousand)** |
| Class A ordinary shares | 55 |
| Treasury shares | (31) |
| Additional paid-in capital | 1303581 |
| Statutory surplus reserve | 10531 |
| Accumulated losses | (579876) |
| **Total Equity** | 734260 |

---

**SELECTED HISTORICAL FINANCIAL DATA**

The following tables present the selected consolidated financial and other data of us.

The financial data set forth below should be read in conjunction with, and is qualified by reference to, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the consolidated financial statements and notes thereto included elsewhere in this prospectus. Our consolidated financial statements are prepared and presented in accordance with U.S. GAAP. The historical results included below and elsewhere in this prospectus are not indicative of our future performance. You should read the following information in conjunction with those financial statements and accompanying notes included elsewhere in this prospectus and "Management's Discussion and Analysis of Financial Condition and Results of Operations."

The selected consolidated statements of operations data for the fiscal years ended December 31, 2023, 2024 and 2025 and consolidated statements of financial position data as of December 31, 2024 and 2025 have been derived from the audited consolidated balance sheet of us as of December 31, 2024 and 2025, and the related consolidated statements of operations for each of the fiscal years in the three-year period ended December 31, 2025 included elsewhere in this prospectus.

**Selected statements of operations**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD** |
| **Revenue** | 1365865 | 1585640 | 1854302 | 265162 |
| &nbsp;&nbsp;&nbsp;Cost of revenue | (1165446) | (1356511) | (1662236) | (237697) |
| **Gross profit** | **200419** | **229129** | **192066** | **27465** |
| &nbsp;&nbsp;&nbsp;**Operating expenses** |  |  |  |  |
| Selling and distribution expenses | (91688) | (51867) | (79749) | (11404) |
| Administrative expenses | (115367) | (126705) | (88683) | (12682) |
| Research and development expenses | (12285) | (10017) | (16869) | (2412) |
| **Total operating expenses** | **(219340)** | **(188589)** | **(185301)** | **(26498)** |
| **(Loss)/income from operations** | **(18921)** | **40540** | **6765** | **967** |
| **Other income/(expense)** |  |  |  |  |
| Fair value gains/(losses) | 36500 | (21248) | 3524 | 504 |
| Other incomes | 2815 | 11611 | 50270 | 7188 |
| Other expenses | (2220) | (422) | (4913) | (703) |
| Gain/(loss) on dissolution of subsidiaries and branches | 29312 | (8820) | 4844 | 693 |
| Loss from disposal of equity investment |  | (59018) |  |  |
| Financial income/(expenses), net | 1530 | (3941) | (10033) | (1435) |
| **Total other income/(expense), net** | **67937** | **(81838)** | **43692** | **6247** |
| **(LOSS)/PROFIT BEFORE TAX** | **49016** | **(41298)** | **50457** | **7214** |
| Income tax (expenses)/benefits | 30256 | (11090) | (7747) | (1108) |
| **Net profit/(loss) for the year from continuing operations** | **79272** | **(52388)** | **42710** | **6106** |
| Net profit/(loss) from discontinued operations | 17774 |  |  |  |
| Net profit/(loss) attribute to non-controlling interests | (2217) | (12) | (372) | (53) |
| **Net profit/(loss) attribute to ordinary shareholders** | **99263** | **(52376)** | **43082** | **6159** |
| **Non-GAAP Financial Data<sup>(1)</sup>** |  |  |  |  |
| Adjusted net (loss)/profit | 60546 | 27878 | (6171) | (883) |
| Adjusted EBITDA | 59342 | 68804 | 30569 | 4371 |

---

(1) See " — Non-GAAP Financial Measures."

**Selected Consolidated Balance Sheet Data**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
| **ASSETS** |  |  |  |
| Current assets |  |  |  |
| Cash and cash equivalents | 126531 | 144219 | 20623 |
| Accounts receivables, net | 287860 | 342783 | 49017 |
| Prepayments and other receivables, net | 248494 | 448083 | 64075 |
| Inventories, net | 3704 | 2086 | 298 |
| **Total current assets** | **666589** | **937171** | **134013** |
| Property and equipment | 147303 | 61864 | 8846 |
| Right-of-use assets | 43156 | 37048 | 5298 |
| Intangible assets | 9986 | 8361 | 1196 |
| Long-term investment |  | 96738 | 13833 |
| Deferred tax assets | 28147 | 23369 | 3342 |
| Other non-current assets | 13182 | 78305 | 11198 |
| **Total non-current assets** | **241774** | **305685** | **43713** |
| **Total assets** | **908363** | **1242856** | **177726** |
| **LIABILITIES AND SHAREHOLDERS' DEFICIT** |  |  |  |
| Current liabilities |  |  |  |
| Contract liabilities | 19991 | 34640 | 4953 |
| Trade payables | 70690 | 74485 | 10651 |
| Other payables and accruals | 141888 | 212849 | 30437 |
| Short-term borrowings | 45893 | 126054 | 18025 |
| Lease liabilities | 9401 | 6793 | 971 |
| Tax payable | 2182 | 9300 | 1330 |
| **Total current liabilities** | **290045** | **464121** | **66367** |
| Lease liabilities-non current | 27902 | 25491 | 3645 |
| Long-term borrowings | 1474 | - | - |
| **Total non-current liabilities** | **29376** | **25491** | **3645** |
| **Total liabilities** | **319421** | **489612** | **70012** |

---

**Summary statements of cash flows**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD** |
| Net cash provided by operating activities | 11501 | 6263 | 11994 | 1714 |
| Net cash used in investing activities | (22605) | (10876) | (93241) | (13333) |
| Net cash provided by (used in) financing activities | (231838) | (54305) | 98884 | 14140 |
| Effect of foreign exchange rate changes, net | 2931 | 24 | 51 | 8 |
| Net increase/(decrease) in cash and cash equivalents | (240011) | (58894) | 17688 | 2529 |
| **Cash and cash equivalents, beginning of the year** | **428961** | **185425** | **126531** | **18094** |
| **Cash and cash equivalents, ended of the year** | **188950** | **126531** | **144219** | **20623** |
| Less: cash and cash equivalents at end of the year from discontinued operations | 3525 |  |  |  |
| **Cash and cash equivalents at end of the year from continuing operations** | **185425** | **126531** | **144219** | **20623** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD** |
| **CASH FLOWS USED IN INVESTING ACTIVITIES** |  |  |  |  |
| Purchases of items of property and equipment | (94652) | (1126) | (27) | (4) |
| Purchases of items of intangible assets | (8675) | (116) |  |  |
| Long-term investments |  |  | (93214) | (13329) |
| Net cash paid for business acquisitions |  | (9634) |  |  |
| Short-term investment | 84230 | - | - | - |
| **Net cash flows used in investing activities from continuing operations** | **(19097)** | **(10876)** | **(93241)** | **(13333)** |
| Net cash flows used in investing activities from discontinued operations | (3508) | - | - | - |
| **Total Net cash flows used in investing activities** | **(22605)** | **(10876)** | **(93241)** | **(13333)** |
| **CASH FLOWS USED IN FINANCING ACTIVITIES** |  |  |  |  |
| Proceeds from issuance of common stocks-cash |  |  | 192312 | 27500 |
| Payment for listing expenses | (46442) | (14069) | (56267) | (8046) |
| Dividends paid to non-controlling interests |  | (1269) |  |  |
| New bank and other borrowings | 35274 | 45061 | 172640 | 24687 |
| Repayment of bank and other borrowings | (9000) | (25474) | (93953) | (13435) |
| Repayment of advances from third parties | (96500) | (58554) | (115848) | (16566) |
| **Net cash flows used in financing activities from continuing operations** | **(116668)** | **(54305)** | **98884** | **14140** |
| Net cash flows generated used in financing activities from discontinued operations | (115170) | - | - | - |
| **Total Net cash flows generated used in financing activities** | **(231838)** | **(54305)** | **98884** | **14140** |
| Net (decrease)/increase in cash and cash equivalents from continuing operations | (125487) | (58918) | 17637 | 2521 |
| Net decrease in cash and cash equivalents from discontinued operations | (117455) |  |  |  |
| Effect of foreign exchange rate changes, net | 2931 | 24 | 51 | 8 |
| Cash and cash equivalents at beginning of year from continuing operations | 307981 | 185425 | 126531 | 18094 |
| Cash and cash equivalents at beginning of the year from discontinued operations | 120980 | 3525 |  |  |
| Less: cash and cash equivalents at beginning of the year from discontinued operations | - | 3525 | - | - |
| **Cash and cash equivalents at end of year** | **188950** | **126531** | **144219** | **20623** |
| Less: cash and cash equivalents at end of the year from discontinued operations | 3525 | - | - | - |
| **Cash and cash equivalents at end of the year from continuing operations** | **185425** | **126531** | **144219** | **20623** |

---

**USE OF PROCEEDS**

We will receive proceeds of up to an aggregate of US$87,601,250 from the exercise of the Warrants if all of the Warrants are exercised for cash. We expect to use the net proceeds from the exercise of Warrants for general corporate purposes. There is no assurance that the holders of the Warrants will elect to exercise any or all of such Warrants or that they will exercise any or all of them for cash. The amount of cash we would receive from the exercise of the Warrants will decrease to the extent that Warrants are exercised on a cashless basis.

We will not receive any proceeds from any sale of the securities registered hereby by the Selling Securityholders. With respect to the registration of the securities being offered by the Selling Securityholders, the Selling Securityholders will pay any underwriting discounts and commissions incurred by them in disposing of such securities, and fees and expenses of legal counsel representing the Selling Securityholders. We have borne all other costs, fees and expenses incurred in effecting the registration of the Registered Securities, such as registration and filing fees and fees of our counsel and our independent registered public accountants.

**DIVIDEND POLICY**

We have never declared or paid any cash dividend on the ADSs. We currently intend to retain any future earnings and do not expect to pay any dividends in the foreseeable future. Any further determination to pay dividends on the ADSs would be at the discretion of our board of directors, subject to applicable laws, and would depend on our financial condition, results of operations, capital requirements, general business conditions, and other factors that our board of directors may deem relevant.

In light of our holding company structure, our ability to pay dividends to the shareholders, and to service any debt we may incur, may depend upon dividends paid by our PRC subsidiaries, despite that we may obtain financing at the holding company level through other methods. However, our PRC subsidiaries are subject to certain statutory reserve and solvency conditions before they can distribute dividends or make payment to us, which, if failed, may restrict their ability to pay dividends or make payment to us. Under PRC laws and regulations, our PRC subsidiaries are permitted to pay dividends only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Furthermore, our PRC subsidiaries are required to make appropriations to certain statutory reserve funds or may make appropriations to certain discretionary funds, which are not distributable as cash dividends except in the event of a solvent liquidation of the companies.

**CORPORATE HISTORY AND STRUCTURE**

On February 26, 2019, Youlife International was incorporated as an exempted company with limited liability in the Cayman Islands.

On March 27, 2019, Youlife Technology Limited ("Youlife Technology") was incorporated in Hong Kong with a total issued share capital of HK$10,000. On the same day, an aggregate of 10,000 shares were allotted and issued to Youlife International and Youlife Technology became a directly wholly-owned subsidiary of Youlife International.

Pursuant to an investment agreement dated August 31, 2020, as a portion of the onshore part of the Series C Investment, You Service Industrial Company Limited ("You Service") subscribed for 2.0% shareholding interest in Shanghai Youerlan Information Technology Co., Ltd. ("Shanghai Youerlan") at a consideration of US$5 million, which was based on the pre-money valuation of RMB1.5 billion of our Group in the Series C Investment and fully settled on November 19, 2020. Upon the completion of such investment, Shanghai Youerlan became a sino-foreign joint venture.

Pursuant to the respective equity transfer agreements dated October 30, 2020, Youlife Technology acquired an aggregate of approximately 98.0% shareholding interest in Shanghai Youerlan from its then shareholders (except for You Service) at a total consideration of the US dollars equivalent to RMB406.56 million, upon the filing of the shareholding changes Shanghai Youerlan was held by Youlife Technology and You Service as to approximately 98.0% and 2.0%, respectively.

From October to November 2020, Youlife conducted a share restructuring primarily for the purpose of reflecting the onshore shareholding structure of Shanghai Youerlan at the offshore level and facilitating the aforesaid offshore part of the Series C Investment. Such share restructuring comprised:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) reclassification and re-designation of the authorized share capital from class A and class B ordinary shares to Shares and Preferred Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) re-designation of 55,140,881 issued class A ordinary shares held by TKING INTERNATIONAL CO., LTD. ("Tking International") to the same number of issued Shares, and repurchase of all the rest of the issued class A ordinary shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) allotment and issuance of an aggregate of 155,426,863 new Shares (including both Shares and Preferred Shares) to the affiliates of the then shareholders of Shanghai Youerlan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) allotment and issuance of 2,666,667 Series C Preferred Shares to VSTAR JIUYING INVESTMENT CO., LTD. ("Vstar Jiuying"), which undertook the shareholding interest in our Group previously held by Shanghai Jiuyou Equity Investment Fund Management Co., Ltd. ("Shanghai Jiuyou"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) allotment and issuance of 888,888 Shares to CHUANMINTCH INVESTMENT CO., LTD. ("ChuanMinTch"), whose shareholders previously invested in our Group through Ningbo Meishan Free Trade Port Yunyou Investment Management Partnership (Limited Partnership) ("Ningbo Yunyou").

Pursuant to a share swap agreement dated November 5, 2020, VisionGain Ventures Limited ("VisionGain Ventures"), an offshore affiliate of the then shareholders of You Service, subscribed for 4,666,667 Series C Preferred Shares, in consideration of which, the then shareholders of You Service transferred their entire shareholding interest in You Service to our company. Upon the completion of such share swap on November 13, 2020, both You Service and Shanghai Youerlan became indirectly wholly-owned subsidiaries of Youlife International.

As of the date of this prospectus, our operations in mainland China are conducted by our PRC subsidiaries and we do not have any VIE structure.

***Business Combination with Distoken***

On July 9, 2025, the Company consummated the Business Combination with Distoken, pursuant to the Business Combination Agreement by and among Distoken, the Company, the Sponsor, the First Merger Sub, the Second Merger Sub, and Youlife International. Following the Business Combination, the ADSs have been listed on Nasdaq under the Symbol "YOUL."

Under the Business Combination Agreement, the Business Combination were effected in two steps. On July 8, 2025, First Merger Sub merged with and into Youlife International, with Youlife International surviving the First Merger as a wholly-owned subsidiary of the Company and the outstanding shares of Youlife International being converted into the right to receive shares of the Company. On July 9, 2025, Second Merger Sub merged with and into Distoken, with Distoken surviving the Second Merger as a wholly-owned subsidiary of the Company and the outstanding securities of Distoken being converted into the right to receive substantially equivalent securities of the Company (in the form of the ADSs, except for certain restricted securities).

Under the Business Combination Agreement, the aggregate merger consideration amount paid to the shareholders of Youlife International is $700,000,000 and was paid entirely in newly issued Class A Ordinary Shares (including the Class A Ordinary Shares in the form of the ADSs) and the Class B Ordinary Shares, in each case as defined below, at the Closing, with each share valued at $10.00.

Prior to the First Merger Effective Time, the Company has caused a sponsored American depositary share facility for the Class A Ordinary Shares to be established with the Depositary Bank reasonably acceptable to Distoken for the purpose of issuing and distributing the ADSs, each representing one Company Class A Ordinary Share.

As a result of the Mergers, (a) (i) each security of Youlife International that was not subject to any lock-up restrictions, other than the Youlife International Founder Shares, that was issued and outstanding immediately prior to the time the First Merger Effective Time was cancelled and converted into the right to receive such number of Class A Ordinary Shares equal to the Exchange Ratio in the form of the ADSs, and (ii) each security of Youlife International that was subject to lock-up restrictions, other than the Youlife International Founder Shares, that was issued and outstanding immediately prior to the time the First Merger Effective Time was cancelled and converted into the right to receive such number of the Class A Ordinary Shares equal to the Exchange Ratio, in each case in accordance with the Business Combination Agreement, (b) each Youlife International Founder Share that was issued and outstanding immediately prior to the First Merger Effective Time was cancelled and converted into the right to receive such number of Class B Ordinary Shares equal to the Exchange Ratio and in accordance with the Business Combination Agreement, with each such Company Class B Ordinary Share entitling each holder thereof to 20 votes for each Company Class B Ordinary Share held by such holder, (c) each outstanding ordinary share of Distoken that was issued and outstanding immediately prior to the time the Second Merger was effective was cancelled and converted into the right to receive an equivalent number of the Class A Ordinary Shares in the form of the ADSs (excluding certain restricted securities held by the Sponsor which was exchanged for the Class A Ordinary Shares), (d) each outstanding public warrant and Private Warrant (as defined below) of Distoken was converted into one Company public warrant and one Company private warrant, respectively (which has the right to acquire the ADSs), and (e) each issued and outstanding purchaser right of Distoken (excluding certain restricted securities held by the Sponsor which was exchanged for the Class A Ordinary Shares) was automatically converted into one-tenth of one Company Class A Ordinary Share in the form of the ADSs.

 ****

***Additional Agreements in connection with the Business Combination***

This section describes the material provisions of certain additional agreements entered into pursuant to or in connection with the Business Combination Agreement.

***Lock-up Agreements***

The Company, Youlife International and Distoken entered into the Founder Lock-up Agreement with the Sponsor prior to the Closing, amending and restating the lock-up agreement that was executed by the Sponsor on May 17, 2024, and superseding the provisions of the Insider Letter Agreement with respect to transfer restrictions on the Founder Shares. The Founder Lock-up Agreement provides for a lock-up period with respect to the Founder Shares commencing on the Closing Date and ending on the one-year anniversary of the Closing Date (with respect to 50% of such shares subject to early release if the last trading price of the ADSs equals or exceeds $12.50 for any 20 trading days within any 30 trading day period commencing at least 150 days after the Closing).

The Company, Youlife International and Distoken entered into the Company Founder Lock-up Agreement with Youtch Investment Co., Ltd., a holding company wholly owned by Mr. Yunlei Wang, prior to the Closing, amending and restating the lock-up agreement that was executed by Youtch Investment Co., Ltd., on May 17, 2024. The Company Founder Lock-up Agreement provides for a lock-up period commencing on the Closing Date and ending on the one-year anniversary of the Closing Date (with respect to 50% of such shares subject to early release if the last trading price of the ADSs equals or exceeds $12.50 for any 20 trading days within any 30 trading day period commencing at least 150 days after the Closing).

The Company, Youlife International and Distoken also entered into the Company Lock-up Agreements with certain shareholders of Youlife International (other than Mr. Yunlei Wang) prior to the Closing, certain of which Company Lock-Up Agreements amended and restated the lock-up agreements that were executed by certain shareholders of Youlife International on May 17, 2024. The Company Lock-up Agreements provide for a lock-up period commencing on the Closing Date and ending on the date that is 180 calendar days after the Closing Date (with respect to 50% of such shares subject to early release if the last trading price of the ADSs equals or exceeds $12.50 for any 20 trading days within any 30 trading day period commencing at least 90 days after the Closing). The restrictions set forth in the Company Lock-Up Agreements are waivable in writing by the Company the Company, Youlife International and Distoken at any time prior to the Closing, and they may do so to the extent required for the Company to have sufficient public float to meet Nasdaq initial listing requirements.

Prior to the Closing of the Business Combination, Distoken and Youlife International released Ordinary Shares issuable to certain Youlife International shareholders from the transfer restrictions under the lock-up agreements in order to satisfy the initial listing requirements of the Nasdaq Stock Market.

*Shareholder Support Agreements*

Simultaneously with the execution of the Business Combination Agreement, Distoken, Youlife International, and shareholders of Youlife International collectively holding approximately 69.1% of outstanding Youlife International Ordinary Shares (calculated on an as-converted basis) have entered into a Shareholder Support Agreement (the "Shareholder Support Agreement"), pursuant to which, among other things, the shareholders of Youlife International have agreed (a) to vote all of Youlife International Ordinary Shares held by the respective Youlife International shareholders in favor of the adoption of the Business Combination Agreement, the Ancillary Documents and the Transactions (including the First Merger), subject to certain customary conditions, and (b) not to transfer any of their subject shares (or enter into any arrangement with respect thereto), subject to certain customary conditions.

*Non-Competition and Non-Solicitation Agreements*

Simultaneously with the execution of the Business Combination Agreement, certain Youlife International Shareholders entered into non-competition and non-solicitation agreements (the "Non-Competition and Non-Solicitation Agreements") in favor of the Company, Distoken and Youlife International. Under the Non-Competition and Non-Solicitation Agreements, certain Youlife International Shareholders agreed not to compete with the Company during the three-year period following the Closing and, during such three-year restricted period, not to solicit employees or customers of the Company. The Non-Competition and Non-Solicitation Agreement also contains customary confidentiality and non-disparagement provisions.

*Registration Rights Agreement*

Pursuant to a registration rights agreement entered into on February 15, 2023, the holders of the Founder Shares, Representative Shares, Private Units and any units that may be issued on conversion of the Working Capital Loans (and any securities underlying the Private Units or units issued upon conversion of Working Capital Loans) will be entitled to registration rights pursuant to a registration rights agreement. The holders of these securities will be entitled to make up to three demands, excluding short form registration demands, that the Company register such securities. In addition, the holders have certain "piggy-back" registration rights with respect to registration statements filed subsequent to the completion of a Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. However, the registration rights agreement provides that the Company will not permit any registration statement filed under the Securities Act to become effective until termination of the applicable lock-up period. The Company will bear the expenses incurred in connection with the filing of any such registration statements.

 

*PIPE Subscription Agreements with PIPE Investors*

On April 16, 2025 and April 28, 2025, the Company entered into certain PIPE Subscription Agreements, as subsequently amended, with Distoken and PIPE Investors, pursuant to which, among other things, the PIPE Investors agreed to subscribe for and purchase, and the Company agreed to issue and sell to the PIPE Investors, an aggregate of 2,704,949 Class A Ordinary Shares, at a purchase price equal to $10.00 per share in connection with a financing effort related to the transactions contemplated by the Business Combination Agreement. The PIPE Private Placement was consummated simultaneously with the closing of the Business Combination.

**ENFORCEABILITY OF CIVIL LIABILITIES AND AGENT FOR SERVICE OF PROCESS IN THE UNITED STATES**

We are incorporated under the laws of the Cayman Islands to take advantage of certain benefits associated with being a Cayman Islands exempted company:

● political and economic stability;

● an effective judicial system;

● a favorable tax system;

● the absence of exchange control or currency restrictions; and

● the availability of professional and support services.

However, certain disadvantages accompany incorporation in the Cayman Islands. These disadvantages include, but are not limited to, the following:

● the Cayman Islands has a less exhaustive body of securities laws than the United States and these securities laws provide significantly less protection to investors; and

● Cayman Islands companies may not have standing to sue before the federal courts of the United States.

Our constitutional documents do not contain provisions requiring that disputes, including those arising under the securities laws of the United States, between us, our officers, directors and shareholders, be arbitrated.

We conduct substantially all of our operations outside the United States, and substantially all of our assets are located outside the United States. Substantially all of our officers are nationals or residents of jurisdictions other than the United States and a substantial portion of their assets are located outside the United States. As a result, it may be difficult or impossible for a shareholder to effect service of process within the United States upon us or these persons, or to enforce against us or them judgments obtained in United States courts, including judgments predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States.

We have appointed Cogency Global Inc. as our agent upon whom process may be served in any action brought against us under the securities laws of the United States.

**Cayman Islands**

The Company is an exempted company incorporated in the Cayman Islands with limited liability. The Company is incorporated in the Cayman Islands because of certain benefits associated with being a Cayman Islands corporation, such as political and economic stability, an effective judicial system, a favorable tax system, the absence of foreign exchange control or currency restrictions and the availability of professional and support services. However, the Cayman Islands has a less developed body of securities laws that provides significantly less protection to investors as compared to the securities laws of the United States. In addition, Cayman Islands companies may not have standing to sue before the federal courts of the United States.

Substantially all of our assets are located outside the United States. In addition, a majority of our directors and officers are nationals or residents of jurisdictions other than the United States and all or a substantial portion of their assets are located outside the United States. As a result, it may be difficult for investors to effect service of process within the United States upon us or these persons, or to enforce against us or these persons judgments obtained in United States courts, including judgments predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States.

Campbells, our legal counsel as to Cayman Islands law, has advised us that the courts of the Cayman Islands are unlikely (1) recognize or enforce judgments of U.S. courts obtained against us or our directors or officers, predicated upon the civil liability provisions of the federal securities laws of the United States or any state in the United States, and (2) in original actions brought in the Cayman Islands, to impose liabilities against us or our directors or officers, predicated upon the civil liability provisions of the federal securities laws of the United States or any state in the United States, so far as the liabilities imposed by those provisions are penal in nature. In those circumstances, although there is no statutory enforcement in the Cayman Islands of judgments obtained in the United States, the courts of the Cayman Islands will recognize and enforce a foreign money judgment of a foreign court of competent jurisdiction without retrial on the merits based on the principle that a judgment of a competent foreign court imposes upon the judgment debtor an obligation to pay the sum for which judgment has been given provided certain conditions are met. For a foreign judgment to be enforced in the Cayman Islands, such judgment must be final and conclusive and for a liquidated sum, and must not be in respect of taxes or a fine or penalty, inconsistent with a Cayman Islands judgment in respect of the same matter, impeachable on the grounds of fraud or obtained in a manner, and or be of a kind the enforcement of which is, contrary to natural justice or the public policy of the Cayman Islands (awards of punitive or multiple damages may well be held to be contrary to public policy). A Cayman Islands Court may stay enforcement proceedings if concurrent proceedings are being brought elsewhere.

**PRC**

Haiwen & Partners, our legal counsel as to PRC law, has advised us that there is uncertainty as to whether the courts of PRC would:

● recognize or enforce judgments of United States courts obtained against us or our directors or officers predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States; or

● entertain original actions brought in each respective jurisdiction against us or our directors or officers predicated upon the securities laws of the United States or any state in the United States.

Haiwen & Partners has further advised that the recognition and enforcement of foreign judgments are provided for under the PRC Civil Procedures Law. PRC courts may recognize and enforce foreign judgments in accordance with the requirements of the PRC Civil Procedures Law based either on treaties between PRC and the jurisdiction where the judgment is made or on principles of reciprocity between jurisdictions. PRC does not have any treaties or other form of reciprocity with the United States or the Cayman Islands that provide for the reciprocal recognition and enforcement of foreign judgments. In addition, according to the PRC Civil Procedures Law, courts in the PRC will not enforce a foreign judgment against us or our directors and officers if they decide that the judgment violates the basic principles of PRC law or national sovereignty, security or public interest. As a result, it is uncertain whether and on what basis a PRC court would enforce a judgment rendered by a court in the United States or in the Cayman Islands. Under the PRC Civil Procedures Law, foreign shareholders may originate actions based on PRC law against us in the PRC for disputes relating to contracts or other property interests if they can establish sufficient connection to the PRC for a PRC court to have jurisdiction and meet other procedural requirements. The PRC court will determine whether to accept the complaint in accordance with the PRC Civil Procedures Law. In addition, it will be difficult for U.S. shareholders to originate actions against us in China in accordance with PRC laws because we are incorporated under the laws of the Cayman Islands and it will be difficult for U.S. shareholders, by virtue only of holding the Ordinary Shares, to establish a connection to the PRC for a PRC court to have jurisdiction as required under the PRC Civil Procedures Law.

**BUSINESS**

*Unless the context otherwise requires, all references in this section to "we," "us," or "our" refer collectively to Youlife International and the PRC subsidiaries prior to the completion of the Business Combination and Youlife Group Inc. and the PRC subsidiaries following the consummation of the Business Combination.*

**MISSION**

To become the lifetime service provider of blue-collar talent's first-choice.

**Overview**

We provide blue-collar talent with comprehensive and lifetime services, including vocational education services, HR recruitment services, employee management services and market services, to improve their vocational knowledge, practical skills, and life quality for their enhanced employment opportunities as well as better life. The following diagram illustrates our comprehensive and all-around services.

![A diagram of a company's company AI-generated content may be incorrect.](ea029053901_img2.jpg)

● *Largest vocational education management service provider*. According to CIC, we are the largest vocational education management service provider in China, in terms of the number of vocational schools under school management model in the school year of 2025 to 2026. As a pioneer in the vocational education industry, through the comprehensive and employment-oriented vocational education system we established, we provide diversified vocational education options covering degree and non-degree education for current and future blue-collar talent. As of December 31, 2025, we primarily entered into cooperation agreements with customers to manage a total of 25 vocational schools by providing comprehensive management services under school management model, including among others, talent cultivation planning, curriculum design and development, faculty training and performance review, student management and career orientation. We also entered into agreements with customers to provide services of curriculum development projects and smart campus projects, covering a total of 37 cities or counties under 16 provinces of China. We operated 25 curriculum development projects and completed smart campus projects for 10 vocational schools, which were separate and took place outside of the vocational schools that we manage;

● *Leading blue-collar HR recruitment service provider*. Supported by our tech-oriented HR recruitment service system and our nationwide offline service & delivery sites, we provide comprehensive recruitment services to blue-collar talent through multi-channels, effectively integrate blue-collar talent acquired through offline service & delivery sites and provide corporate customers with recruitment solutions;

● *Leading blue-collar employee management service provider*. We offer flexible and all-around HR solutions to our corporate customers such as blue-collar labor outsourcing services. According to CIC, we are the largest blue-collar employee management service provider in China in terms of the revenue generated from blue-collar employee management services; and

● *Pioneer in providing blue-collar market services*. We are one of the blue-collar lifetime service providers first stepping into blue-collar market service market, according to CIC and have established our first-mover advantage in the blue-collar market service market.

Leveraging our extensive experience in the blue-collar lifetime service industry and to capture the significant growth opportunities in the industry, we have expanded our business along the life cycle of blue-collar talent, to be a lifetime service provider for them. Each of our business segments complements and benefits each other. See "—Our Business Model—Synergy among Business Sectors" below.

As testament to our industry leading position, service excellence and renowned brands, we have received numerous awards and accreditation over the years, such as the awards of Top 100 Human Resource Service Provider for four consecutive years from 2021 to 2024, the award of New Flag Annual Solution in 2023, Digital HR Technology Service Provider of the Year (for institution) in 2022, Top 20 Innovation Brands of HRTech Product for the year of 2022, HRFLAG AWARDS: Brand Awards in HR Services Industry for the two consecutive years from 2022 to 2023, *Compass* System obtained the award of Innovation Brands of HRTech Product in 2022, and Innovation Award of Chinese Vocational Education Shengzhen Huanyu Award in 2017.

 ****

Leveraging our strong capability to capture the unmet demand for blue-collar lifetime services in China as well as the growth opportunities in the market, we have historically achieved steady growth in revenue, despite the negative impact brought by the outbreak of COVID-19. Our revenue was RMB1,365.9 million, RMB1,585.6 million and RMB1,854.3 million (US$265.2 million) in 2023, 2024 and 2025, respectively.

**OUR STRENGTHS**

We believe that the following competitive strengths contribute to our success.

***Largest one-stop blue-collar lifetime service platform in China***

 ****

We are the largest blue-collar lifetime service provider in China in terms of revenue generated from blue-collar lifetime services in 2025, according to CIC. We provide comprehensive and all-around services along the life cycle of blue-collar talent, from vocational education, practical skill and employment, to continuous skill improvement, to improve their vocational knowledge, practical skills, and quality of life, for their enhanced employment opportunities as well as better life.

Built on our established leading market position and strong reputation in the industry, we captured the vast market opportunity and had achieved continuous growth. Our revenue was RMB1,365.9 million, RMB1,585.6 million and RMB1,854.3 million (US$265.2 million) in 2023, 2024 and 2025, respectively.

***Diversified service offerings along the life cycle of blue-collar talent***

 ****

Different from the single service providers including the traditional vocational education institutions that only provide vocational education services or traditional human resource management companies that only provide human resource recruitment and employee management services, we provide a full spectrum of synergized services along the life cycle of blue-collar talent, covering vocational education services, HR recruitment services, employee management services and market services. We have hence successfully established an innovative blue-collar talent-centric ecosystem covering the life cycle of blue-collar talent, from talent cultivation, practical training, employment, to market services that complement each other.

We cultivate quality blue-collar talent possessing both academic knowledge and practical skill through the employment-oriented vocational education system we established and students would turn into quality blue-collar talent upon the completion of their study for a period of time. In addition, blue-collar talent can enjoy the efficient recruitment services through our onboarding services provided by our nationwide offline service & delivery sites. On the one hand, our vocational education business functions as the additional source of blue-collar talent to address the labor demand of the corporate customers of our HR recruitment and employee management businesses. On the other hand, the keen industry insight and deep understanding of corporate customers' needs we accumulate from HR recruitment and employee management businesses enable us to better develop and adjust the curricula and programs we provide under vocational education business to cultivate blue-collar talent needed by the market. Also, our collaborative relationships with our corporate customers provide graduates with more employment opportunities. As a supplement, our market services create a comfortable and convenient life circle, promoting the satisfaction and stickiness of our blue-collar lifetime service provider. We believe the comprehensive services available in our ecosystem for blue-collar talent contribute to the potential increase of their stickiness to our ecosystem, providing us vast opportunity to capitalize their lifetime value.

***Comprehensive and employment-oriented vocational education system***

***Strong talent delivery capability to provide flexible and diversified HR solutions***

 **

Built on years of experience, we have established our leadership position in blue-collar HR recruitment service market and employee management service market. Corporates chose us as their HR solution service provider to attract more quality blue-collar talent, leading into an upward spiral, and in turn resulting in more talent placed under our outsourcing services, as evidenced by the monthly average number of blue-collar talent under our outsourcing services reaching 31,911 as of December 31, 2025. In addition, we also established a nationwide offline service network and deliver sites located in different levels of cities or counties, enabling us to attract blue-collar talent from a large geographic area. As of December 31, 2025, we operated 91 offline service & delivery sites, with our services outreach to corporate customers in over 250 cities or counties across China.

Through the synergy between our HR recruitment services and employee management service system and nationwide offline service & delivery sites, as well as our continuous integration efforts, we believe we are uniquely positioned to capture the fast-evolving demand for HR recruitment services and employee management services. We have attracted and cooperated with numerous large-scale corporates of different industries, in particular, those in new infrastructure industry and livelihood industry, such as intelligent manufacturing, high-end equipment, new energy, new material, digital economy, health industry and elderly care. As of December 31, 2025, our services reached over 7,000 corporate customers and public entities. As of December 31, 2025, we had established cooperative relationships with over 120 corporates out of the China Fortune 500 Companies. Our strategic cooperation with those leading companies underpins our market leadership and also represents significant entry barriers for competitors. In recognition of our distinguished business performance, we have been awarded as Top 100 Human Resource Service Provider in China for four consecutive years.

***Strong domestic cooperation history to guarantee customer availability in developing overseas business***

 ****

We have cooperated with over 120 clients from Fortune 500 companies, leading companies and unicorn companies domestically, among them the maximum cooperation period surpasses eight years. When some of these corporate customers engage in their global expansion, we fully leverage the advantages of our overseas service network to provide them with local human resource service suggestions, from the perspective of the familiarity with service processes, communication suggestions, etc. Therefore we are always among the top choices of the HR service providers for more opportunities.

 

***Advanced IT and digitalization capability to improve operating efficiency***

 ****

***Visionary and experienced management team***

Led by our founder, Mr. Yunlei Wang, we have a visionary management team with strong operational experience, execution capability and industrial expertise. Mr. Wang has more than 20 years of experience in vocational education and HR industries and used to hold management position in a Fortune 500 company. Mr. Wang is well recognized in the vocational education and HR industries and serves as the director of China Vocational Education Association and vice president of Shanghai Human Resources Consulting Association. As recognition of Mr. Wang's extensive experience and industry leadership, he was recognized as Top 100 of 2021 China Human Resources Service by TopHR and HRTechChina TOP 100 Influencers of 2022 by HR Tech China. Moreover, members of our senior management team have extensive experiences in different industries, with an average of over 15 years of experience in a wide array of industries including education, human resource, internet and finance. We believe that the industry knowledge and the operating experience of our management team has been and will continue to be instrumental in helping us develop and execute our growth strategy amidst a challenging and competitive landscape.

 

**Our Strategies**

We intend to pursue the following strategies:

***Further invest in digitalization and intelligence***

 ****

Our advanced IT systems are critical to our operations. We plan to further invest in the construction of business front- and middle-office. As to business front-office, we plan to develop our Deep Blue intelligent AI technical engine through integrating intelligent technologies such as AI technology, machine learning and machine cognition. In the future, we expect our Deep Blue intelligent AI technical engine to focus on the development of functions such as intelligent recommendation, precise customer profiling, group profiling and smart match, thereby further optimizing our ability to match blue-collar talent with corporate customers. We will also fully utilize technologies such as big data technology to match profiles of blue-collar talent candidates with job vacancies, to help our corporate customers improve their recruitment efficiency. In addition, we analyze the labor demand from corporate customers, including their requirements on education and qualification, working experience and age, number of staff required, interview and onboarding time, and compensation and benefit. Leveraging our analysis, we plan to further update our database and algorithms, to build more precise virtual models for blue-collar talent needed for the vacancy so we can achieve intelligent match with our blue-collar talent reserve precisely and efficiently.

As to one-stop middle-office, we plan to continue to devote resources to the research and development of comprehensive middle-office, integrating middle-office of different functions such as finance and data, thereby further enhancing our digitalization. We plan to connect our business segments through our comprehensive middle-office to integrate business data, financial data, data of blue-collar talent and corporate customer from each business segment, for centralized data management, visualized data presentation, multi-dimensional data digging and intelligent data analysis, aiming to further refine our business and improve our operating capabilities and our data-driven operational management.

In addition, we plan to develop a cloud management platform for our vocational education business, focusing on the teaching and daily operation management, to further enhance the quality and efficiency of our teaching, management. Also, we intend to develop the education management system and back-office software-as-a-service system to enhance the operating efficiency of vocational schools.

***Further expand vocational education business and explore more opportunities to diversify talent cultivation***

We intend to expand our vocational education business scale, reinforce our leading position in vocational education market and capture the vast market potential, and to further expand our school management services and education integrated with industry.

Firstly, we plan to explore cooperative opportunities with more secondary vocational schools and vocational colleges and replicate our standardized cooperatively-run scheme under school management model to more vocational schools, aiming to constantly provide quality blue-collar talent tailored to the market needs. Secondly, as to education integrated with industry, we intend to launch more curriculum development projects. Supported by the revised Vocational Education Law and in response to the upgraded demands from vocational schools, we plan to focus on the development of industrial colleges, in particular, covering emerging industries such as modern mobile communication, computer network technology, 5G communication, AI technology, electro-mechanical integration, high-speed railway crew, aircraft crew service and new energy vehicles. We expect to collaborate with leading corporates to establish industry connections to ensure the vocational education services we provide are relevant, practical, and lead to immediate employment opportunities, further enhancing our brand.

Moreover, in line with the industrial transformation and upgrading in China, we aim to shift the emphasis of our corporate customers from corporates in traditional industries such as electronic manufacturing, retail and consumption, and tourism, to mid- to large-scale state-owned companies and listed companies in emerging industries, such as intelligent manufacturing, high-end equipment, new energy, new material, digital economy and elderly care. In view of this, we will continue to develop and adjust our curriculum setting in response to industrial transformation and upgrading, aiming to attract more students and serve more corporate customers.

***Further expand and diversify corporate customer base through providing differentiated HR solutions***

 ****

We plan to continue to expand our corporate customer base through business innovation. Leveraging our nationwide offline service network, we intend to establish cooperative relationships with more corporates, to provide them with comprehensive and differentiated blue-collar recruitment services and employment management services.

As to our corporate customers, we plan to provide them with comprehensive human capital management, or HCM products for attendance management, labor analysis, tax filing, compliance management, welfare management and working safety management, to reduce their recruitment costs and enhance their capability of remote recruitment.

Further, we intend to develop more HR solutions tailored for customers in subdivided industries and emerging industries such as 5G communication, intelligent manufacturing, computer, AI and new energy, aiming to further diversify our customer and optimize our customer portfolio under the industrial transformation and upgrading. We will also explore cooperative opportunities with more innovative corporates in emerging industries, taking into account the industrial upgrading, supportive policies and their great growth potential.

***Further develop market services and diversify service and solution offerings***

We will continue to expand the categories and scope of services targeting different users. In accordance with the customer profile of our targeted users, we plan to provide high-quality and competitive products and services for various usage scenarios to satisfy their demands, such as welfare, shopping, travel, tourism, and continuous education, in response to their differentiated needs.

We plan to strengthen our supply chain capabilities and collaborate with more market service suppliers, aiming to provide comprehensive and diversified market services to blue-collar talent and corporate customers. Leveraging our previous experience in providing on-campus services, we also intend to integrate technologies such as new energy application, Internet and Internet of Things into our service systems, to provide more market services, aiming to provide a more comfortable and convenient life circle.

We intend to offer differentiated market services and utilize AI technology, recommendation system and algorithms, to precisely match our products and services and the demands of blue-collar talent and corporate customers, to further improve the operating efficiency of our platform and promote the synergy within our ecosystem.

***Expand global footprint to promote overseas market size***

Our market leadership, substantial scale and successful track record have well positioned us to benefit from the unmet market demand. We, as a pioneer in the blue-collar lifetime service industry, started our overseas development in 2020 and became one of the few HR service providers with overseas business presence. As of December 31, 2025, we provided services to customers with projects located in six countries. In the future, we intend to take the development of overseas operation as one of the core strategies and increase the investment in the regard of overseas operation, further expand our footprint along the economic corridors, to meet the labor demand from Chinese corporate customers in their overseas market. Moreover, we intend to integrate advanced algorithms used by overseas HR companies into our system to develop the HR-tech platform for our overseas operations.

***Pursue selected acquisitions and strategic alliances***

We plan to strengthen our customer base, IT capabilities and overseas business presence by considering strategic acquisition and alliance opportunities as an ancillary component of our expansion plan. We intend to evaluate acquisition opportunities as well as investment opportunities and strategic alliances that we believe will complement our current business to diversify our customer base, enhance technology abilities or expand into new geographic areas.

We will continue to explore opportunities to strategically cooperate with large-scale corporates in the industries with high growth potential and strong demand for skilled blue-collar talent in the future, the development of which is in line with national industrial transformation and upgrading.

Should suitable opportunities arise, we may acquire advanced Internet technology tools which have synergies with our existing business, to further enhance our IT capabilities for the establishment of tech-driven blue-collar lifetime service platform. When selecting acquisition targets, we prefer to identify companies synergized with our business, with strong competitiveness in their respective area, proven business model and ambitious core management team. We may also consider to expand our overseas market share through strategic investment or acquisition, such as expanding our footprint of vocational education services to overseas, to replicate our standardized operational experience to local vocational schools for their localized operations.

**OUR BUSINESS MODEL**

**Overview**

**Vocational Education Services**

Vocational education services have been the focus of our business since our inception as vocational education is vital to the blue-collar talent lifetime service industry. Leveraging our keen insight of labor demands from our numerous corporate customers and in-depth understanding of the employment market, we have established a comprehensive blue-collar vocational education network, to provide blue-collar talent and/or students with vocational education services, through vocational education school management services and curriculum development projects.

***School Management Services***

As one of our main business segments, we primarily enter into cooperation agreements with our customers to manage secondary vocational schools. Such cooperation agreement is usually an entrust agreement under which we own the comprehensive and independent operation right in managing the schools to obtain certain targets on brand, scale, teaching, occupation, etc. We normally agree on a cooperation period with clients for 10 to 20 years. We usually establish a school management council with the client school to coordinate and manage the teaching, personnel, and finance issues of the client school. Leveraging our extensive experiences in both school management and curriculum setting, we provide comprehensive management services under school management model, including among others, talent cultivation planning, curriculum design and development, faculty training and performance review, student management and career orientation. As a return, we receive management fees from the managed schools. We charge a fixed rate per student, and the client's payment schedule aligns with the school semesters. In accordance with most of the cooperation agreements, a one-month notice was required if any party intend to terminate the agreement.

***Curriculum Development Projects***

As one of our main business segments, we primarily enter into enterprise-school cooperation agreements with our customers under which we provide curriculum teaching, training guidance, etc, with a cooperation period of three to five years. Leveraging our strong capabilities in talent cultivation, major/curriculum development and school management, we cooperate with vocational schools to jointly develop and manage one or more vocational education curricula under curriculum development projects, and in certain cases, a subordinate school with us. Compared with vocational education services under school management model, we focus more on teaching and practical trainings, primarily including curricula design and teacher cultivation, while we assume less management role under curriculum development projects. As a return, we receive service fees from the schools we collaborated with. We charge a fixed rate per major based on the agreement, and the client's payment schedule aligns with the school semesters. In accordance with most of the cooperation agreements, a one-month notice was required if any party intend to terminate the agreement.

***Smart Campus Services***

We primarily enter into supply agreements with our customers under which we provide and set up the products used for smart campus. Utilizing our strong IT capabilities and profound understanding of the increasing requirements for practical training in Chinese vocational schools, we cooperate with well-known technology companies in smart campus projects and provide customized IT systems or training equipment sets for vocational schools, aiming to further expand our vocational education services and diversify our sources of income. In return, we charge service fees to the technology companies we cooperate with.

**HR Recruitment Services**

As one of our main business segments, we provide multi-channel blue-collar HR recruitment services. We primarily enter into HR recruitment service agreements with our customers under which we proceed the recruitment works according to our customer's requirements, generally with a service period of one year. In response to corporate customers' demand for blue-collar talent in a cost-effective and efficient manner, we launched our HR recruitment services in 2014. Leveraging our internal management and quality assurance system of recruitment service, we effectively integrate blue-collar talent acquired through multiple offline service and delivery sites and provide corporate customers with recruitment solutions. We charge our corporate customers service fees based on the number and title of blue-collar talent recruited and we do not charge blue-collar talent for our recruitment services, clients make payments to us based on the recruitment status of blue-collar talents. In accordance with most of the service agreements, a one-month notice was required if any party intend to terminate the agreement.

**Employee Management Services**

***Outsourcing Services***

As one of our main business segments, we primarily enter into outsource service agreements, generally with a cooperation period of one to three years, with our customers to provide corporate customers with stable, sustainable and quality outsourcing services covering various industries such as manufacturing industry and modern service industry since 2014. For outsourcing services, we charge our corporate customers service fees based on a number of factors, including, among others, costs and expenses of the services, the industries and the competitive landscape. We charged the client based on the different positions outsourced and the agreed fees for the services while clients usually make payments to us monthly. In accordance with most of the service agreements, a one-month notice was required if any party intend to terminate the agreement.

***Other HR Solutions***

To a lesser extent, we also provide other HR solutions, such as labor dispatch services to our corporate customers by entering into a labor dispatch agreement, aiming to meet the diversified staffing demands of our corporate customers thereby facilitating them to be more focused on their core business.

**Market Services**

By signing agreements, such as purchase agreement and supply and delivery agreement, we also provide value-added services to students of vocational schools, such as shopping, catering and dormitory management services.

**Synergy Among Business Sectors**

Leveraging our extensive experience in the blue-collar lifetime service industry and to capture the significant growth opportunities in the industry, we have expanded our business vertically along the life cycle of blue-collar talent, creating a lifetime service platform for them. Each of our business segments complements and benefits each other. We cultivate quality blue-collar talent possessing both academic knowledge and practical skill through the comprehensive and employment-oriented vocational education system we established and students would turn into quality blue-collar talent upon the completion of their study for a period of time. In addition, blue-collar talent can enjoy the efficient recruitment services provided by us through our HR recruitment service system and the onboarding services provided by our nationwide offline service & delivery sites. On the one hand, our vocational education business functions as the additional source of blue-collar talent to address the labor demand of the corporate customers of our HR recruitment and employee management businesses, thereby enhancing their stickiness. On the other hand, the keen industry insight and deep understanding of corporate customers' need we accumulate from HR recruitment and employee management businesses enable us to better develop and adjust the curricula and programs we provide under vocational education business to cultivate blue-collar talent needed by the market. Also, our collaborative relationships with our corporate customers provide graduates with more employment opportunities. As a supplement, our market services create a comfortable and convenient life circle for students and efficiency for corporate customers, promoting the satisfaction and stickiness of our blue-collar lifetime service platform.

**Vocational Education Services**

**Overview**

In order to revitalize the vitality of the labor force in central and western China and provide blue-collar talent for the national industrial transformation and upgrading, we stepped into vocational education business in 2009, aiming to provide high quality school management resources and industry experience to areas with large population base to improve the education quality of the schools and enhance the brands. According to CIC, we are the pioneer in vocational education industry that innovatively established school management model to manage secondary vocational schools. Under the school management model, the vocational schools can be operated in a professional and cost-effective manner while we can commence vocational education business under an asset-light model. Since then, we have gradually expanded and diversified our vocational education service offerings and established a comprehensive vocational education system, covering vocational education school management services and curriculum development projects. Over the years, we have established our leading position in vocational education industry. According to CIC, we are the largest vocational education service provider in China in terms of numbers of vocational schools under school management model in the school year of 2025 to 2026 and the largest secondary vocational education service provider in China in terms of the number of students enrolled in secondary vocational schools under management or curriculum development projects in the school year of 2025 to 2026.

We have established a broad vocational education network across China, with focus on central and western China. As of December 31, 2025, our nationwide vocational education network comprised a total of 37 vocational schools under school management model and operated 146 curriculum development projects, covering a total of 37 cities or counties under 16 provinces of China.

The following map illustrates the geographical presence of our vocational education network as of December 31, 2025.

![A map of china with different colored areas AI-generated content may be incorrect.](ea029053901_img3.jpg)

For the years ended December 31, 2023, 2024 and 2025, our revenue generated from our vocational education services amounted to RMB179.0 million, RMB50.0 million and RMB45.1 million (US$6.4 million), respectively, accounting for 12.6%, 3.2% and 2.4% of our total revenue during the same years, respectively.

**School Management Services**

Our history of providing vocational education services under school management model can be traced back to 2009 when we commenced the management of Gulin Vocational High School, the first vocational school we manage under the school management model. Over years of development, we have extended our managed school portfolio under school management model to a total of 37 vocational schools as of December 31, 2025, among which, 37 were public vocational schools. We enter into cooperation agreements with our customers under school management model to manage such vocational schools.

In 2023 , 2024 and 2025, revenue generated from vocational education management services amounted to RMB11.8 million, RMB5.0 million and RMB9.4 million (US$1.3 million), respectively.

***Business Process***

When we consider the sites of vocational schools to manage, we generally select counties with large population base in central or western China where the education resources are relatively inadequate. Leveraging our industrial resources and operating experience, we can effectively revitalize the local education resources, improve the employment of students and promote the local education quality to achieve a win-win situation. We aim to strategically expand our vocational education management service to a widen coverage of central and western China.

We provide schools with majors/curricula designs, cultivation of the teachers and brand-building that are most responsive to market demands. Once we select the vocational schools to manage and the collaborative agreement has been executed, we may arrange our experts to carry out on-site research on the vocational schools we cooperated with, discuss the curriculum setting with the local vocational schools and provide our advice on the major or curriculum setting. When we design the majors/curricula for the vocational schools, we primarily consider (i) the strength of local industries, such as providing elderly caring and management and intelligent manufacturing curriculum in Vocational High School of Yilong County, Sichuan Province leveraging the local industrial structure of modern services and modern manufacturing, and (ii) the latest local market demand for qualified blue-collar talent, such as providing automobile application and maintenance (new energy automobiles manufacturing) in Pingli County Vocational Education Center.

We will assign our experienced staff to assume the key management roles for the school, including the principal, executive principal and mid-level responsible staff. Upon our entry, we will then adjust the management team of the school, to integrate our assigned staff and the existing management team under our standardized management system. We will participate in the curriculum setting and train "academic-practical" teachers and cultivate students with both moral integrity and practical skills.

In general, it takes us three years from our engagement with the daily operation of managed vocational schools to achieve a satisfactory level on both the quantity and quality of students enrolled, as evidenced by the number of students enrolled and the relatively high initial employment rate compared to industry peers.

***Cooperative Arrangement under School Management Model***

We enter into school management agreements with our customers in accordance with which we provide comprehensive operation management services to operate such vocational schools, including among others, talent cultivation planning, curriculum design and development, faculty training and performance review, student management and career orientation, leveraging our in-depth insight to the blue-collar talent market, extensive experience in vocational education and long-term collaborative relationships with corporates.

***Vocational Schools under School Management Model***

As of December 31, 2025, we managed 37 vocational schools located in 13 provinces or autonomous regions under school management model, among which 37 were public vocational schools.

To promote students' employment and improve their remuneration levels, we endeavor to develop majors and curricula tailored to the latest industry trend as well as corporate customers' needs, and adjust our major and curriculum offerings from time to time, supported by our in-depth market research on potential employment opportunities. As of December 31, 2025, we offered over 146 majors in the vocational schools we manage. Our featured majors under school management model include UAV application and technology, industrial robotics application and technology, new energy vehicle application and maintenance, and art design and production.

We endeavor to provide employment-oriented education and practical-oriented training programs for students of our school customers, see "*– Career Development Initiatives*" below. In addition, we also encourage students to continue their study at higher education institutions after graduation to diversify their career approaches in the long run.

***Curriculum Development Projects***

Leveraging our strong capabilities in talent cultivation, major/curriculum development and school management, we cooperate with vocational schools to jointly develop and manage one or more vocational education curricula under curriculum development projects, and in certain cases, a subordinate school with us. In some cases, we provide the entire subordinate school with more settings of curriculum, development of courses and practical learning sessions. Under curriculum development projects, we primarily assist the school in establishing curriculum/major in response to the industry trend and provide them with relevant teacher resources. As a return, we receive service fees from the schools we collaborated with, which mainly are a pre-agreed amount and the number of students enrolled, generally ranging from RMB1,600 to RMB5,000 for each student per semester.

As of December 31, 2025, we operated 146 curriculum development projects located in ten provinces or autonomous regions. The number of students enrolled in our co-developed curricula was 11,167 in the school year of 2023 to 2024, 12,566 in the school year of 2024 to 2025 and 9,226 in the school year of 2025 to 2026. For the years ended December 31, 2023, 2024 and 2025, revenue generated from curriculum development projects amounted to RMB29.7 million, RMB27.8 million and RMB26.5 million (US$3.8 million), respectively.

***Featured Cooperative Mode***

*Subordinate schools we developed*

In addition to providing one or more curricula/majors development services with vocational schools, we also co-operate the subordinate schools of vocational schools in certain cases. As of December 31, 2025, we served a total of 21 subordinate schools, such as Fuzhou Software Vocational College and Chongqing Telecom Vocational College.

***Featured Curricula***

To accommodate the customers' blooming demands aligned with the evolving industrial upgrading, we have tilted our resources in the cultivation and development of the curricula and major focusing on technology industries and livelihood industries in recent years, such as the curricula related to elderly caring and management. In addition, as of December 31, 2025, we have successfully created seven distinctive course systems based on market demand and our brand strengths, covering new energy, telecommunications, intelligent technology, modern services and other high-demand sectors.

*Intelligent Manufacturing Technology Curriculum System*

Focusing on the needs of manufacturing transformation and upgrading, we assist partner vocational colleges in establishing a highly practical curriculum system aligned with industrial standards. This system cultivates interdisciplinary technical professionals with skills in intelligent manufacturing equipment operation, programming, operation and maintenance, and production management, supporting enterprises in achieving intelligent production.

The main courses offered include Introduction to Intelligent Manufacturing, Industrial Robot Programming and Maintenance, PLC Programming and Applications, Intelligent Production Line Management, and others.

*Transportation Passenger Service Curriculum System*

Based on the development needs of the transportation and passenger transport industry, we assist partner colleges in cultivating high-quality service professionals equipped with theoretical knowledge, practical skills and service awareness for transportation passenger services, covering international cruise lines, high-speed rail, civil aviation and other passenger transport fields. The main courses offered include Transportation Passenger Service Etiquette, Passenger Transport Organization and Management, Traffic Safety Laws and Regulations, On-site Emergency Response, Passenger Transport Ticket Management, and others.

*International Cultural and Tourism Talent Development Curriculum System*

In response to the international development trend of the cultural and tourism industry, we have joined hands with partner colleges to develop specialized courses. We cultivate interdisciplinary cultural and tourism professionals with an international vision, professional tourism expertise, cross-cultural communication skills, and service management capabilities, supporting the high-quality and international development of the cultural and tourism industry. The main courses offered include Introduction to International Tourism, Cross-Cultural Communication, Cultural and Tourism Product Planning and Marketing, Practice of Foreign-Related Tour Guiding, Cultural and Tourism Service Etiquette, and others.

***Smart Campus Services***

Utilizing our strong IT capabilities and profound understanding of the increasing requirements for practical training in Chinese vocational schools, we launched smart campus services at the end of 2022, providing customized IT systems or training equipment sets for vocational schools, aiming to further expand our vocational education services and diversify our sources of income. As a service provider newly entering the smart campus service market, we collaborate with reputable technology companies in providing smart campus services to vocational schools. Generally, as project subcontractors, we are responsible for developing IT systems or selecting customized training equipment packages. According to the different needs of vocational schools, we mainly provide customized IT systems for vocational schools, digitize their teaching and practical training processes, and improve the learning experience of students. Our customized IT system enables vocational schools to implement online course and exam management, automatic exam scoring, and simulated training.

In addition, we also provide customized training equipment sets for vocational schools, including training equipment and accompanying toolkits and accessories, to meet their diverse vocational training goals. In return, the technology company we cooperate with pays us a service fee ranging from RMB4.0 million to RMB8.0 million for each project. We determine service fees based on multiple factors such as the nature of project, value of required software or equipment, technical complexity, and level of project customization.

As of December 31, 2025, we had completed smart campus projects for ten vocational schools located in Guangdong, Beijing, Anhui, Hubei and Shanxi. We will continue to promote smart campus services, aiming to provide this service to more vocational schools.

**Students**

***Student Admission***

We are not responsible for the admission of students to the school. We mainly assist the school in brand promotion and enrollment planning. The admission of students is handled by the school we serve.

*Promotion activities*. The vocational schools we manage under school management model or cooperative vocational schools co-develop curriculum with us are responsible for their student admission. To promote our brands among vocational schools and attract more students, we also assist the schools in carrying out a variety of marketing activities, including but not limited to: (1) conducting online marketing activities, such as launching advertisement on WeChat and other social media platforms such as Douyin, (2) conducting onsite promotion activities at secondary schools at county-level, and (3) developing student base through word-of-mouth referrals.

*Student enrollment plan*. Student enrollment is generally carried out in first half of each year for our vocational schools we manage under school management model or cooperative vocational schools co-develop curriculum with us. We typically set up the enrollment plan of the coming year based on the completion status of the enrollment plan in the previous year and the actual numbers of local graduates. The executive principals we designated for schools usually proactively participate in the establishment of detailed enrollment plans and the supervision of the implementation of the enrollment plan.

*Requirements on the candidates*. For students of our vocational schools we manage under school management model or cooperative vocational schools co-develop curriculum with us, they are required to meet certain requirements, including basic education background or physical condition.

***Practical Training Program***

We strive to improve the employment rate of graduates through providing a wide array of practical training. To this end, we have devoted great efforts, such as assisting the establishment of the on-campus training rooms and collaborating with third-party enterprises to provide practical training programs. We have made great efforts to help all students of the vocational schools to participate in the practical training programs before graduation.

There are on-campus career centers in charge of the employment-related matters in the schools we cooperate, the functions of which include (i) liaising with third-party enterprises to promote employment and provide career guidance consultation, (ii) obtaining employment-related information from various enterprises, (iii) organizing on-campus recruitment events, and (iv) providing training to staff who are responsible for graduate career orientation.

***Career Development Initiatives***

As we highly emphasize the career development of students, we have established a comprehensive career development system, providing employment guidance, mock interview and career orientation lectures and internship consultation to students. We offer career planning lectures to provide students with employment-related information. We generally design comprehensive career planning guidance for students at the beginning of their school years in order to develop career awareness and set relevant goals at an early stage. In addition, we also leverage the abundant industrial resources and employment-related information provided by our corporate customers in HR recruitment and employee management services to foster the career development of students. Meanwhile, vocational schools we manage or cooperate with can select quality enterprises from the abundant industrial resources we accumulate in the HR recruitment and employee management services, and invite these corporate customers to host on-campus job fairs. In addition, we have actively enhanced the interaction with our corporate customers of employee management services with the intention to provide potential job opportunities for students.

***Fees***

We do not charge students any tuition fees under school management model or under curriculum development projects. Instead, the vocational schools we development curricula with us are responsible for charging the students tuition fees, which are strictly regulated by the local authorities.

**Our Teachers**

Our teachers are essential to our educational quality. We are committed to maintaining a qualified teachers team, primarily through (i) the highly selective recruitment of the full-time teachers at our vocational schools we co-operate, (ii) the continued training we provide to the teachers to improve their teaching performance, and (iii) the promising career development platform for the teachers, supported by a performance-based evaluation system and career advancement opportunities.

***Teacher Recruitment***

We believe that a steady and sufficient supply of teachers with theoretical knowledge and practical skills are essential to our business operations, as a result of which, we devoted great efforts to the recruitment and retainment of quality teacher team.

We recruit full-time teachers at our vocational schools where operating curriculum development projects, including professional teachers and tutors, and adopt a set of stringent and comprehensive recruitment process to ensure the quality of teachers. We take into account his or her teaching experience, industry experience, educational background, and other relevant factors such as qualifications and licenses he or she holds.

As of December 31, 2025, there were over 6,000 teachers in the vocational schools that we managed, over 30% of whom possessed both the teacher qualifications and certain professional skill certificates. We established employment relationships with 25 of these teachers through executed employment contracts. We do not directly manage the remaining teachers who are employed by the schools we manage. Instead, we primarily provide teaching or training advice to such teachers based on the details of the clauses of the relevant cooperation agreements with the respective vocational schools.

***Performance Evaluation***

In order to enhance our teaching quality, we maintain a stringent quality control system and a set of performance evaluation scheme, such as the monthly teacher satisfaction survey. The retentions, salaries and promotions of our teachers are largely based on the results of their performance evaluations. We evaluate our teachers' internal professional levels twice a year, and the teachers with higher professional levels have priority in the internal promotion. Teachers of the vocational schools we manage under school management model who constantly fail our review will be reallocated to other schools by the local education authorities.

**HR RECRUITMENT SERVICES**

In response to corporate customers' demand for blue-collar talent in a cost-effective and efficient manner, we launched our HR recruitment services in 2014. We provide multi-channel blue-collar HR recruitment services leveraging our HR recruitment service system, effectively integrate blue-collar talent acquired through multiple offline service and delivery sites and provide corporate customers with efficient recruitment solutions.

For the years ended December 31, 2023, 2024 and 2025, our revenue generated from HR recruitment services amounted to RMB75.5 million, RMB24.2 million and RMB17.7 million (US$2.5 million), representing 5.3%, 1.5% and 1.0% of our total revenue during the same years, respectively.

**Recruitment Service Process**

The following diagram illustrates the major steps of our HR recruitment services.

![A diagram of a job application AI-generated content may be incorrect.](ea029053901_img4.jpg)

We enter into cooperative agreements with our corporate customers, we initiate our services process to understand their detailed demands for blue-collar talent, including the work description, skillset needed and the duration of such services. We then conduct candidate search by sending talent requests to our supplier network through the *Compass* system and conduct personnel searches on our offline service and delivery sites network based on the needs. The talent information that meets the talent request is registered in the *Compass* system, and the talent will participate in the interview at the places designated by the enterprise. To promote our successful recruitment rate and customers satisfaction rate, we will conduct preliminary screening through our offline service and delivery sites network in advance, with the intention to explore more suitable match, the result of which will be submitted to our corporate customers for review. From time to time, our offline service and delivery sites assist in interviewing the candidates upon corporate customers' requests. After the interviews, suitable blue-collar talent will be employed and our corporate customers will enter into labor contracts with such blue-collar talent, and our offline service & delivery sites will assist blue-collar talent with their onboarding process. In addition, our customer service team provides follow-up value-added services throughout the entire recruitment process, to ensure the professionalism of our services. We receive the service fees based on the number and fee level of blue-collar talent recruited as agreed with our corporate customers.

**Our Offline Service and Delivery Sites**

We have established extensive offline service & delivery sites, aiming to better serve blue-collar talent nationwide. As of December 31, 2025, we operated 91 offline service & delivery sites, with our services outreaching to corporate customers in over 250 cities or counties across China. Such offline network in different levels of cities or counties enables us to extend the outreach of our offline services and facilitate the onsite talent onboarding services to our corporate customers. We have also diversified our offline outreach to cover job fairs and campuses.

Built on the efficient *Compass* system and our nationwide offline service & delivery sites, supported by our advanced IT capacities to ensure data safety and privacy protection at the same time, we have developed and employed the HR recruitment and employee management service system, through which we can provide services covering talent recruitment, onboarding and dismission record and daily attendance management, while providing blue-collar talent with the convenience provided by our nationwide offline service & delivery sites.

We charge our corporate customers service fees based on the number of blue-collar talents recruited and we do not charge blue-collar talent for our recruitment services. As of December 31, 2025, our services reached to 7,000 corporates and public entities.

In order to better serve our corporate customers and create more employment opportunities for blue-collar talent, we, from time to time, engage third-party HR corporates to serve as agencies to introduce more corporate customers to us, aiming to flexibly and effectively expand our geographic outreach. As of December 31, 2025, we cooperated with 63 third-party HR corporates.

Instead of solely competing on price as most of HR recruitment service providers, we compete on the high-quality and large-scale talent reserves and satisfactory services we deliver. In addition, we distinguish us from our industry peers for our fast delivery time. Leveraging our accumulated blue-collar resources, it takes us one day at the shortest to match corporate customers' demands with quality talent, which is above the industry average responding time as confirmed by CIC. As a result of our quality services, we maintain strong customer stickiness, as evidenced by our relatively high repeat recruitment rate, which is higher than the industry average, as confirmed by CIC.

**EMPLOYEE MANAGEMENT SERVICES**

In recent years, in response to the highly competitive business environment, an increasing number of corporates are inclined to outsource certain works when they deem necessary, for the sake of cutting costs and improving their managerial efficiency. As a leading blue-collar HR service brand in China, we have in-depth understanding of the vast demand for blue-collar outsourcing services from large-scale corporates and are accepted by the market for our strong delivery capacity, tech-oriented platforms, full industry coverage and the national width of services distribution. We have provided corporate customers with stable, sustainable and quality outsourcing services covering various industries such as manufacturing industry and modern service industry since 2014.

We provide flexible and diversified HR solutions to our corporate customers in accordance with their diverse labor demands, supported by the quality services provided by our employee workers. The employee management services we provide can easily adapt to the varying staffing needs of our corporate customers throughout different seasons. During the corporate customers' busy season each year, we accumulate blue-collar talent resources with different skillset, aiming to provide sufficient talent and fulfill the immediate demand from our corporate customers. During the comparatively slow time of the year, our corporate customers can adjust their labor demand to avoid incurring unnecessary labor costs. For more information about the seasonality of our business, see "—Seasonality." Leveraging the blue-collar talents of the *Compass* system, we can maintain a steady labor supply of our employee management services. According to CIC, we ranked first amongst blue-collar employee management service providers in China, in terms of the revenue generated from blue-collar employee management services in 2025 and ranked first in terms of the number of placements of blue-collar talent under labor outsourcing in 2025.

Our employee management services primarily comprise outsourcing services and other HR solutions. Our customers in employee management services are usually corporate customers, primarily comprising (i) who have an increasing demand for blue-collar talent due to continued business expansion, (ii) who focus on their core businesses and seek better control over operating costs associated with hiring, welfare, retirement, taxes and long-term compensation, or (iii) who have temporary or contingent labor needs from time to time. We work closely with our corporate customers to understand their diversified demands for tailored HR service solutions so as to support their workforce strategies. We serve corporate customers in a broad spectrum of industries, such as manufacturing, logistics and modern service.

**Labor Outsourcing Services**

We have provided corporate customers with stable, sustainable and quality labor outsourcing services since our inception. As our services concern the business and prospects of our corporate customers and the careers of our employee customers, trust and integrity are of particular importance. Our brand image, and consequently the trust placed by customers in us, play an important role in our business origination and development. For the years ended December 31, 2023, 2024 and 2025 the monthly average number of blue-collar talent under our labor outsourcing services reached 13,826, 20,165 and 31,911 respectively.

Different from providing standardized services competed by offering lower prices, we aim to provide corporate customers with differentiated and tailored outsourcing solutions in response to their business needs, to enhance their loyalty with us. To this end, we have developed different types of outsourcing solutions, such as human resource outsourcing, business process outsourcing and IT outsourcing, to address our corporate customers' demand.

Along with the ever-growing trend of outsourcing services, more and more new economy corporate customers are inclined to outsource their backstage operation management to third-party outsourcing service providers, through which corporate customers could focus on our major business operation while effectively reducing their management costs on backstage operation. As of December 31, 2025, we had provided outsourcing backstage operation management services to an aggregate of 118 new economy corporate customers.

Under outsourcing arrangement, we enter into regular, fixed-term, bilateral employment relationships with the relevant workers, in accordance with the PRC Labor Law, PRC Labor Contract Law and other applicable PRC regulations.

We provide diversified positions under our outsourcing services. As of December 31, 2025, the top five positions we successfully placed under outsourcing services in terms of numbers of talent placed, were property service workers, technical operator, telephone customer service staff, warehouse workers and quality inspectors.

Benefitted from the extensive blue-collar talent resources we accumulated, we have provided corporate customers with stable, sustainable and quality labor outsourcing services covering various industries such as manufacturing industry and modern service industry. With our deepening development, we are positioned to attract corporate customers with higher value and more growth potential, especially those in emerging industries.

Below please see an illustrative diagram of our labor outsourcing services.

![A diagram of a person's process AI-generated content may be incorrect.](ea029053901_img5.jpg)

**Other HR Solutions**

To a much lesser extent, we also provide other HR solutions to meet the diversified demands of our corporate customers, such as labor dispatch services, in order to supplement our corporate customers with flexible HR solutions.

Labor dispatch is a type of labor arrangement in the PRC, whereby the labor dispatch service provider, the dispatched worker and the employing company jointly enter into a tripartite labor dispatch relationship, and the dispatched worker is working for and supervised by the employing company. For labor dispatch services we provide, we are paid for service fees from our corporate customers, based on the number of employees recruited and type of services provided.

**MARKET SERVICES**

We also provide blue-collar talents, students of school customers and corporate customers and other end customers with market services primarily comprising value-added services, such as shopping services, catering services, student and blue-collar talents dormitory services and welfare services. For the years ended December 31, 2023, 2024 and 2025, we generated revenue of RMB129.7 million, RMB128.8 million and RMB71.8 million (US$10.2 million), respectively, from market services we provide.

We operate the following market services:

● *Shopping*: leveraging our industrial resources accumulated and massive blue-collar consumer base, we sell a wide array of products in vocational schools we manage under school management model, such as daily necessities, stationery and school uniform to satisfy the daily needs of students; and

● *Catering*: we provide catering services at the vocational schools we manage under school management model.

● *Welfare services:* we started providing welfare services to corporate customers in September 2022. Once we receive a customer's order, we purchase welfare products from the suppliers, and we do not maintain the inventory of these welfare products. With our close relationships with multiple companies in different industries, such as food and daily necessity manufacturers, we can provide diversified welfare products to businesses at competitive prices.

Having served as the bridges among the corporate customers, blue-collar talent, students and third-party suppliers, we expect to provide diversified market services to corporate customers, blue-collar talent and students, in order to improve their satisfaction and stickiness to our brands. For more diversified development strategy of our market services, see "— Our Strategies."

**OUR OVERSEAS BUSINESS DEVELOPMENT**

Witnessing the overseas growing demands for qualified blue-collar talent, which arises from the continuous impelling of the "One Belt and One Road" Initiative and the accelerated growth of Chinese enterprises' strategic expansion, we, as one of the first movers of the industry, have timely seized the opportunities to provide employee management services to our corporate customers overseas. Since our establishment of Singaporean subsidiary in 2020, we have established and will continue to further expand our business existence to countries in Southeast Asia. As of December 31, 2025, we had established our overseas subsidiaries in three countries and provided services to customers with projects located in six countries. For more information about our overseas expansion plan, please refer to *"—* Our Strategies".

**TECHNOLOGY**

As of December 31, 2025, our IT team consisted of 34 IT professionals, with an average of three years of working experience.

We have devoted great efforts on the research and development of our IT infrastructure and technology. Leveraging our IT-enable capacities and experienced IT team, we have established a multiple-layer and comprehensive digital system, including IT infrastructure, business support system, data analytics system and featured data product under development, which helps us in the achievement of full digitalization and tech-enabled business intelligence.

**IT Infrastructure**

Our IT infrastructure comprises IT hardware infrastructure and IT software infrastructure. Among the IT software facilities, we operate integrated management platform for internal control and risk management for our daily office, HR management system and financial management system, which are used to digitalize our business process and improve our operating efficiency.

**Business Support System**

Our business support system primarily comprises (i) *Kuixing* education cloud solutions to track the operational data of our vocational education services, such as student enrolment and curriculum setting; (ii) *Compass* system, which is our business middle-office launched in the second half of 2021 and further iterated in the first half of 2022, through the utilization of which we can effectively digitalize and optimize our business operations thereby significantly improving our operating efficiency and reducing staff costs of the employee management; and (iii) *Polestar* business intelligence system which helps us to collect, store, analyze and report the operating data in our daily activities, to serve as an effective analytics tool and improve our managerial efficiency.

**CUSTOMERS**

The customers of our vocational education business primarily comprise local governments, corporates, vocational schools as well as individual students. Customers for our HR recruitment and employee management services primarily comprise companies from a wide array of industries, including manufacturing, retail consumption, service industry, trade, Internet, finance, real estate and logistics, as well as public institutions. Customers of market services primarily comprise students of the vocational schools we manage under school management model and corporate customers. In 2023, 2024 and 2025, revenue generated from our five largest customers accounted for approximately 25.5%, 30.8% and 27.8% of our total revenue, respectively.

**SALES AND MARKETING**

**Branding**

We have a centralized marketing team at our headquarters focusing on the formulation of our branding strategies and scheduling of marketing activities. We have adopted a series of measures for the promotion of our brands:

● to firmly enhance our brand reputation, we hold welfare activities, such as offering free travels opportunities, hosting talent contests and filming microfilm, targeting at blue-collar talent and students;

● to largely expand our brand influence, we participate in industrial exhibitions and seminars, targeting at enterprises, vocational institutions, and other potential customers;

● to effectively improve our brand professionalism, we from time to time publish industrial reports, index reports; and

● to further improve our brand stickiness, we launch forums, conferences, summits, seminars, and other activities from time to time.

We utilize a variety of marketing tools to attract high-quality students for the schools we cooperate with, including on-site promotion and word-of-mouth referrals. We also participate in on-site promotion activities, such as job fairs, industry exhibitions and industry forums to attract new customers for our HR recruitment and employee management services. We primarily promote our market services through word-of-mouth referrals.

**SUPPLIERS**

Suppliers for our vocational education business primarily comprise suppliers of construction projects and infrastructure services. Suppliers for our HR recruitment and employee management services primarily comprise third-party HR resources suppliers. Suppliers for our market services primarily comprise the suppliers of food, daily necessities, software and hardware. In 2023, 2024 and 2025, purchases from our five largest suppliers accounted for approximately 38.8%, 21.3% and 36.7% of our total purchases, respectively.

**SEASONALITY**

Our HR recruitment services and employee management services are subject to seasonality. We generally record lower revenue in the first quarter of a year which has a number of major holidays, such as the Chinese New Year, when blue-collar workers tend to return to their hometown to celebrate with their families. Our vocational education services and market services are not subject to seasonality.

**INTELLECTUAL PROPERTY**

As of December 31, 2025, we had (1) 121 trademarks registered in the PRC, 10 trademarks registered in Hong Kong, (2) 387 copyrights registered in the PRC, (3) five registered domain names, and (4) 27 registered patents and five pending patent application in the PRC.

We recognize the importance of our intellectual property rights and will protect and enforce our intellectual property rights by relying on intellectual property laws, as well as confidentiality agreements. We enter into with our employees and customers when we become aware of any potential infringement. As of December 31, 2025, we were not engaged in or threatened with any claim for any material infringement of any intellectual property rights, whether as a claimant or as a defendant. See "Risk Factors—Risks Relating to Our Business and Industry—We may be subject to intellectual property infringement claims, which may be expensive to defend and may disrupt our business and operations"

**PROPERTIES**

Our principal executive offices are located at Room C431, Changjiang Software Park, No.180 South Changjiang Road, Baoshan District, Shanghai 201900, China. As of December 31, 2025, we leased 156 properties with an aggregate GFA of approximately 19,946.2 square meters, which are primarily used as offices purpose.

The table below sets forth the location, approximate gross floor area, terms of lease and uses of our leased properties as of December 31, 2025. For risks in relation to our leased facilities, see *"*Risk Factors—Risks Relating to Our Business and Industry—Our leased property interest or entitlement to other facilities or assets may be defective or subject to lien and our right to lease, own or use the properties affected by such defects or lien challenged, which could cause significant disruption to our business."

---

| | | | |
|:---|:---|:---|:---|
| **Location** | **Approximate gross floor area** | **Term** | **Use** |
|  | *(in square meters)* | *(in years)* |  |
| Shanghai | 2848.0 | 2-3 | Daily business operation |
| Anji | 2796.8 | 1 | Daily business operation |
| Beijing | 234.6 | 2 | Daily business operation |
| Guangzhou | 231.8 | 2 | Daily business operation |
| Shenzhen | 3345.0 | 1 | Daily business operation |
| Other | 13500.6 | 0.5-10 | Daily business operation |

---

**INSURANCE**

We maintain commercial insurance policies to safeguard against risks and unexpected events for some of our employees that we consider necessary. The insurance coverage for our operations was adequate and in line with industry practice as of December 31, 2025. However, the risks related to our business and operations may not be fully covered by insurance. See "Risk Factors—Risks Relating to Our Business and Industry—We have limited insurance coverage to cover our potential losses and claims."

**ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE**

We give high regard for environmental protection and are committed to promoting corporate social responsibility and sustainable development. Therefore, we seek to and have integrated these core values into our business operation by adopting and implementing various policies in relation to environmental, social, and corporate governance responsibilities (the "ESG policy") throughout our operations. Our ESG policy sets forth our corporate social responsibility objectives and provides guidance on practicing corporate social responsibility in our daily operations in accordance with all applicable law and regulations, including the Listing Rules.

We have adopted various ESG policies to identify, assess, manage and mitigate ESG – related risks, including but not limited to: we strictly comply with the ESG-related rules and regulations, and adhere to the "sustainable development strategy" during our business development; we from time to time, review and assess the ESG reports issued by our industry peers to ensure that all relevant ESG-related risks are identified; our management from time to time discuss our ESG-related issues to ensure all the material ESG-related procedures are recognized and reported; our Directors' enhanced supervision regarding ESG-related risks, ensuring that our relevant policies are duly implemented and have continuous updates for full compliance with the latest laws, regulations and standards; we endeavor to improve our employees' awareness of environmental protection and resource conservation, through the publicity activities we organize; and we assign staff to supervise the implementation of our environmental protection policies, identify any misbehaviors during the implementation and adopt remedial measures as appropriate.

**EMPLOYEES**

As of December 31, 2025, we had 424 full-time employees, permanent and contractors included. The following table shows a breakdown of the employees working for us by function as of the same date.

---

| | | |
|:---|:---|:---|
| **Function** | **Number of employees** | **% of total employees** |
| Management | 78 | 18.4% |
| Operations and IT | 143 | 33.7% |
| Sales and marketing staff | 138 | 32.6% |
| Finance and legal staff | 48 | 11.3% |
| Human resources and administrative staff | 17 | 4.0% |
| **Total** | **424** | **100.00%** |

---

In addition, we had 31,911 blue-collar talent working for our corporate customers under our outsourcing services as of December 31, 2025. For details of our labor outsourcing business, see "—Employee Management Services." We also had 19 part-time employees as of the same date.

As of December 31, 2025, substantially all of our employees were located in the PRC.

We believe we have maintained good relationships with our employees. Our employees are represented by a labor union. As of December 31, 2025, we did not experience any strikes or any labor disputes with our employees which have had or are likely to have a material effect on our business operation or financial performance. Our employee recruiting channels mainly include referrals, HR recruitment, school recruitment and social recruitment. Our employees typically enter into standard employment contracts incorporating a confidentiality clause with us.

**LEGAL PROCEEDINGS**

We may from time to time be subject to legal proceedings, disputes and claims that arise in the ordinary course of business, which primarily included cooperation disputes and disputes regarding the outsourcing employees with our corporate customers. We are currently not a party to any ongoing material litigation, arbitration, or administrative proceedings, and we are not aware of any claims or proceedings contemplated by government authorities or third parties which would materially and adversely affect our business. Our Directors are currently not involved in any actual or threatened material claims or litigation.

**GOVERNMENT REGULATIONS**

Set forth below is a summary of the most significant rules and regulations that affect our business activities in China, or the rights of our shareholders to receive dividends and other distributions from us.

**Regulations on HR Services**

HR services providers in China are mainly regulated by the Ministry of Human Resources and Social Security (the "MOHRSS"). The principal regulations applicable to HR services providers include (1) the Provisions on Employment Services and Employment Management promulgated on November 5, 2007 and latest amended on January 7, 2022 by the MOHRSS, (2) the Provisions on Talent Market Administration jointly promulgated by the PRC Ministry of Personnel, the PRC State Administration for Industry and Commerce on September 11, 2001 and latest amended on December 31, 2019 by the MOHRSS, and (3) the Interim Regulation on Human Resources Market promulgated by the PRC State Council on June 29, 2018.

Under the Provisions on Employment Services and Employment Management, the Provisions on Talent Market Administration and the Interim Regulation on Human Resources Market, any entity engaging in occupational intermediary activities in China must obtain a HR Services License from the administrative department of human resources and social security. Besides, the profit-making HR service organization shall file with the administrative department of human resources and social security 15 days from the date of carrying out services such as the collection and release of HR supply and demand information, employment and entrepreneurship guidance, human resource management consulting, human resource assessment, HR training, and HR service outsourcing. Where a profit-making HR service organization establishes a branch, it shall, within 15 days from the date of completion of the industrial and commercial registration, report in writing to the administrative department of human resources and social security where the branch office is located.

In addition, according to the Provisions on Talent Market Administration, as a talent recruitment service provider, we are prohibited from providing fake information, making false promises and publishing fake recruitment advertisements. According to the Contract Law of PRC, which was implemented on October 1, 1999 and was replaced by the Civil Code on January 1, 2021, an intermediation contract is defined as a contract whereby an intermediary presents to its client an opportunity for entering into a contract or provides the client with other intermediary services in connection with the conclusion of a contract, and the client pays the intermediary service fees. Pursuant to the Contract Law and the Civil Code, an intermediary must provide authentic information relating to the proposed contract. If an intermediary intentionally conceals any material fact or provides false information in connection with the performance of the proposed contract, which results in harm to the client's interests, the intermediary may not claim service fees and is liable for the damages caused.

**Regulations on Labor Dispatching Services**

Labor dispatching services providers in China are mainly regulated by the MOHRSS. The principal regulation applicable to labor dispatching services providers are the Measures for the Implementation of Administrative License for Labor Dispatch promulgated by the MOHRSS on June 20, 2013 and the Interim Provisions on Labor Dispatch promulgated by the MOHRSS on January 24, 2014.

Under the Measures for the Implementation of Administrative License for Labor Dispatch, the labor dispatching service provider shall apply to the human resources and social security administrative department at its domicile (hereinafter referred to as the licensing authority) for an administrative license according to law. Where a labor dispatching service provider establishes a subsidiary to operate the labor dispatching services, the subsidiary shall apply to the local licensing authority for an administrative license; if the labor dispatching service provider establishes a branch to operate the labor dispatching services, it shall report the licensing authority in writing, and the branch shall file with the local administrative department of human resources and social security.

Under the Interim Provisions on Labor Dispatch, the labor dispatching service provider shall: (1) truthfully inform the dispatched laborer of the provisions of Article 8 of the Labor Contract Law (as defined below), the rules and regulations to be observed, and the contents of the labor dispatch agreement; (2) establish a training system to conduct onboarding knowledge and safety education training for dispatched workers; (3) pay the labor remuneration and conduct the related treatment of the dispatched laborers in accordance with the state regulations and the labor dispatch agreement; (4) in accordance with the provisions of the State and the labor dispatch agreement, pay social insurance premiums for the dispatched workers in accordance with the law, and handle the relevant procedures for social insurance; (5) urge the institutions that accept employment in the form of labor dispatch to provide labor protection and labor safety and sanitation conditions for the dispatched workers according to law; (6) issue the relevant proof regarding dissolving or terminating the labor contract according to law; (7) assist in handling disputes between dispatched laborers and the institutions that accept employment in the form of labor dispatch; and (8) conduct other matters as stipulated by laws, regulations and rules.

In addition, according to the Labor Contract Law of the PRC, which was implemented on January 1, 2008 and amended on July 1, 2013, the labor dispatching service provider shall conclude a fixed-term labor contract with the dispatched laborer for more than two years, and pay the labor remuneration on a monthly basis; when the dispatched laborer has no work, the labor dispatching service provider shall pay to the dispatched laborers according to the minimum wage standard prescribed by the local people's government monthly. The dispatched laborers of the labor dispatching service provider shall enter into labor dispatch agreements with the institutions that accept employment in the form of labor dispatch. The labor dispatch agreement shall stipulate the number of dispatched posts and personnel, the duration of dispatch, the amount of labor remuneration and social insurance premiums, the method of payment, and the liability for breach of agreement. In the event of a violation of any legal provisions of the Labor Contract Law, administrative penalties may be imposed on the dispatch service provider by the competent PRC government authority in charge of labor administration, including warning, rectification orders, fines, orders for payment of wages and compensation to labors, revocation of business licenses and other penalties. Any institution accepting dispatched laborers may be held jointly and severally liable together with the dispatch service provider in case harm is done to labors as a result of such institution's violation of the Labor Contract Law.

**Provisions on Talent Market Administration**

Provisions on Talent Market Administration promulgated by the MOHRSS on September 11, 2001 and last amended on December 31, 2019, provides that "job agencies", which means the organizations specializing in the provision of intermediary services or other related services for the employers and job seekers, either as their core business or as a sideline, shall obtain the approval and the Job Agency Service License from the personnel administration department of the local government before it engages in the business of providing intermediary job services; the Internet information service providers engaged in Internet-based intermediary job services, either as their core business or as a sideline, must apply for the License. Whoever violates Provisions on Talent Market Administration and establishes a job agency or engages in job intermediary services without approval from the labor administrative department of the relevant government shall be ordered to stop the business by the labor administrative department of the relevant government at or above the county level, and be currently given a fine of up to RMB10,000; where there are illegal gains, the perpetrator may be imposed a fine of up to three times the value of the illegal gains, subject to a maximum of RMB30,000.

**Regulations on Private Education**

***Education Law of the PRC***

On March 18, 1995, the PRC National People's Congress promulgated the Education Law of the PRC, or the Education Law, which was further amended on August 27, 2009, on December 29, 2018 and on April 29, 2021, stipulates that the government formulates plans for the development of education, establishes and operates schools and other types of educational institutions, and in principle, enterprises, institutions, social organizations and individuals are encouraged to operate schools and other types of educational organizations. Comparing to the version of Education Laws that was amended and came into effect on 2009, which provided that no organization or individual may establish or operate a school or any other educational institution for commercial purposes, the current Education Law narrowed the provision prohibiting the establishment or operation of schools or other educational institutions for commercial purposes to only restricting a school or other educational institution founded with governmental funds or donated assets in the amended Education Law.

On April 20, 2022, Standing Committee of the National People's Congress, or the SCNPC, adopted the amended Vocational Education Law of the PRC, or the Amended Vocational Education Law, which became effective on May 1, 2022 and replaced the previous Vocational Education Law of the PRC adopted in 1996. The Amended Vocational Education Law specifies that the vocational education is as important as regular education and that the state encourages the development of various levels and forms of vocational education, the extensive and equal participation of social forces in vocational education and the international communication and the cooperation in vocational education, and strives to improve vocational education recognition. The Amended Vocational Education Law also provides the establishment and improvement of the vocational education system, deepening cooperation between enterprises and schools, and the improvement of the vocational education guarantee system and measures.

***The Law for Promoting Private Education and its Implementing Rules***

The Law for Promoting Private Education of the PRC became effective on September 1, 2003 and was last amended on December 29, 2018; and the Implementation Rules for the Law for Promoting Private Education became effective on April 1, 2004, and was last amended on April 7, 2021. Sponsors of private schools may choose to establish non-profit or for-profit private schools at their own discretion. Nonetheless, school sponsors are not allowed to establish for-profit private schools that are engaged in compulsory education. In other words, the schools engaged in compulsory education should retain their non-profit status after the Amendment comes into force. The Amendment further establishes a new classification system for private schools to be classified by whether they are established and operated for profit-making purposes.

On April 7, 2021, the State Council published the amendment to the Regulations on the Implementation of the Law for Promoting Private Education of the PRC, or Amended Implementing Rules, which became effective on September 1, 2021. The Amended Implementing Rules stipulates that online education activities using internet technology are encouraged by the regulatory authorities and shall comply with laws and regulations related to internet management. A private school using internet technology to conduct education activities shall obtain an appropriate private school operating permit and shall establish and implement internet security management systems and take technical security measures. Upon discovery of any information whose release or transmission is prohibited by applicable laws or regulations, the private school shall immediately cease the transmission of that information and take further remedial actions, such as deleting that information, to prevent it from spreading. Records pertaining to the situation shall be kept and reported to the appropriate authorities. The Amended Implementing Rules further stipulates that any entities or individuals shall not control any schools providing compulsory education or any non-profit schools providing pre-school education through merger, acquisition or contractual arrangements. A private school providing compulsory education shall not conduct any transaction with any related party. Any other private school conducting any transaction with any related party shall follow the principles of openness, fairness and impartiality, fix the price reasonably and regulate the decision-making, and shall not damage the state interests, the interests of the school or the rights and interests of the teachers and students. A private school shall establish an information disclosure system for related party transactions and relevant government authorities shall enhance the supervision on the agreements entered into between non-profit private schools and its related party and shall review such transactions on an annual basis.

On December 29, 2016, the State Council issued the Several Opinions of the State Council on Encouraging the Operation of Education by Social Forces and Promoting the Healthy Development of Private Education, or the State Council Opinions, which requires to ease the access to the operation of private schools and encourages social forces to enter the education industry. The State Council Opinions also provides that each level of the people's governments shall increase their support to the private schools in terms of financial investment, financial support, autonomy policies, preferential tax treatments, land policies, fee policies, autonomy operation, protecting the rights of teachers and students etc. Further, the State Council Opinions require each level of the people's governments to improve its local policies on government support to for-profit and non-profit private schools by ways of preferential tax treatments etc.

On December 30, 2016, the Ministry of Education, Ministry of Civil Affairs, State Administration for Industry and Commerce (the predecessor of the SAMR), the MOHRSS and the State Commission Office of Public Sectors Reform jointly issued the Implementation Rules on the Classification Registration of Private Schools to reflect the new classification system for private schools as set out in the Amendment. Generally, if a private school established before promulgation of the Amendment chooses to register as a non-profit school, it shall amend its articles of association, continue its operation and complete the new registration process. If such private school chooses to register as a for-profit school, it shall conduct financial liquidation process, have the property rights of its assets such as lands, school buildings and net balance being authenticated by relevant government authorities, pay up relevant taxes, apply for a new private school operating permit, re-register as for-profit school and continue its operation. Specific provisions regarding the above registrations are yet to be introduced by people's governments at the provincial level. On December 30, 2016, the Ministry of Education, State Administration for Industry and Commerce and the MOHRSS jointly issued the Implementation Rules on the Supervision and Administration of For-profit Private Schools, pursuant to which the establishment, division, merger and other material changes of a for-profit private school shall first be approved by the education authorities or the authorities in charge of labor and social welfare, and then be registered with the competent branch of State Administration for Industry and Commerce. In addition, it also provides that for-profit private training institutes shall be analogically governed by these Implementation Rules on the Supervision and Administration of For-profit Private Schools.

**Regulations on Food Operation License**

On June 15, 2023, the SAMR promulgated the Administrative Measures for Food Operation Licensing and Record-filing, and came into effect on December 1, 2023. According to the Administrative Measures for Food Operation Licensing and Record-filing, a food operation license must be obtained in accordance with the law to engage in food selling and catering services within the territory of the PRC, except for: (1) food producers with food operation licensing sell the food producing at their production and processing places or via the Internet; and (2) other circumstances under which the food operation licensing is not required according to laws and regulations. The sales of prepackaged food only shall be filed with the local branches of SAMR. Where food operators conduct food operation activities in different operation places, they shall respectively obtain food operation licensing or make record-filing in accordance with the law.

**Regulations on Protection of Personal Information of Citizen**

On November 28, 2019, the CAC, the Ministry of Industry and Information Technology (the "MIIT"), the Ministry of Public Security and the SAMR jointly promulgated Notice on Promulgation of the Method for Identifying the Illegal Collection and Use of Personal Information by Apps, in order to provide reference for the identification of illegal collection and use of personal information by Apps and in the implementation of the PRC Cybersecurity Law and other relevant laws and regulations. This Notice provide the detailed methods to identifying of illegal behaviors in collecting and using personal information by Apps, such as the behavior of "non-disclosure of collection and use rules," "failing to expressly state the purpose, method and scope of collecting and using personal information," "collecting or using personal information without the consent of users," "collecting personal information unrelated to the services they provide in violation of the principle of necessity," "providing others with personal information without the consent," "failure to provide the function of deleting or correcting personal information in accordance with the law" and "failure to disclose the information on complaints and whistleblowing reports."

On August 22, 2019, CAC promulgated the Provisions on the Cyber Protection of Children's Personal Information, which became effective on October 1, 2019. According to such Provisions, among other things, (1) "children" in these Provisions refers to minors under the age of 14; any network operator collecting, storing, using, transferring or disclosing children's personal information shall follow the principles of properness and necessity, informed consent, explicit purpose, security assurance and lawful use; (2) network operators shall establish special rules and user agreements for the protection of children's personal information, and designate persons to take charge of the protection of children's personal information; (3) to collect, use, transfer or disclose a child's personal information, any network operator shall inform the child's guardians in a noticeable and clear manner, and shall obtain the consent of the child's guardians; network operators shall, upon seeking consent, provide the option of rejecting option for the child's guardians; (4) network operators shall not collect children's personal information unrelated to the services they provide, nor shall they collect children's personal information in violation of the provisions of laws and administrative regulations and the agreements reached by both parties, and if it is really necessary to use such information beyond the agreed purposes and scope due to business needs, consent shall be obtained from the child's guardians again; (5) where a network operator entrusts a third party with the processing of children's personal information, it shall conduct security assessment of the entrusted party and the acts of entrustment, sign an entrustment agreement, specifying responsibilities of both parties, matters to be handled, handling period, nature and purpose of the handling; the entrustment shall not exceed the scope of authorization, and where network operators intend to transfer children's personal information to a third party, they shall carry out security assessment by themselves or entrust a third-party institution to do so.

Pursuant to the Notice on Promulgation of the Rules on the Scope of Necessary Personal Information for Common Types of Mobile Internet Applications, which was promulgated by the CAC, the MIIT and certain other government authorities on March 12, 2021 to be effective on May 1, 2021, "necessary personal information" refers to the personal information necessary for ensuring the normal operation of an App's basic functional services, without which the App cannot achieve its basic functional services.

On August 20, 2021, the SCNPC promulgated the PRC Personal Information Protection Law, which became effective on November 1, 2021. The PRC Personal Information Protection Law aims at protecting the personal information rights and interests, regulating the processing of personal information, ensuring the orderly and free flow of personal information in accordance with the law, and promoting the reasonable use of personal information. "Personal information" refers to any recorded information related to identified or identifiable natural persons, though it excludes anonymized information. The PRC Personal Information Protection Law also specified the rules for handling sensitive personal information, which includes biometrics, religious beliefs, specific identities, medical health, financial accounts, trails and locations, and personal information of teenagers under fourteen years old and other personal information, which, upon leakage or illegal usage, may easily infringe the personal dignity or harm of safety of livelihood and property. The PRC Personal Information Protection Law requires, among other things, that (1) the processing of personal information should have a clear and reasonable purpose and should be directly related to its purpose, in a method that has the least impact on personal rights and interests, and (2) the collection of personal information should be limited to the minimum scope necessary to achieve the processing purpose to avoid the excessive collection of personal information. Entities processing personal information handlers shall bear responsibility for their personal information handling activities, and adopt necessary measures to safeguard the security of the personal information they handle. Otherwise, the personal information handlers will be ordered for rectification or suspension or termination of provision of services, confiscation of illegal income, subject to fines or other penalties according to the PRC Personal Information Protection Law.

On January 4, 2022, the CAC published the Administrative Provisions on Internet Information Service Algorithm Recommendation on its website, or the Algorithm Recommendation Provisions, which became effective on March 1, 2022 and raise certain new compliance requirements on internet information service providers using algorithm recommendation technology. Specifically, the Algorithm Recommendation Provisions require that such service providers shall provide users with options that are not specific to their personal characteristics, or provide users with convenient options to cancel algorithmic recommendation services.

On October 16, 2023, the State Council promulgated the Regulation on the Cyber Protection of Minors, which took effect as of January 1, 2024. This regulation further improves the regulatory requirements relating to minor's cyber protection on the basis of the Personal Information Protection Law.

**Regulations on Cybersecurity and Data Security**

According to the PRC Cybersecurity Law promulgated in November 7, 2016 and effective on June 1, 2017, and last amended on October 28, 2025 and became effective on January 1, 2026, in construction or operation of networks or supply of services through networks, technical measures and other necessary measures must be implemented in accordance with laws and regulations as well as the compulsory requirements of the national and industrial standards to safeguard the safe and stable operation of the networks, effectively respond to cybersecurity incidents, prevent illegal and criminal activities, and maintain the integrity, confidentiality and availability of network data.

On June 10, 2021, the SCNPC promulgated the PRC Data Security Law, which came into effect on September 1, 2021. The PRC Data Security Law provides for data security and privacy obligations on entities and individuals carrying out data activities. The PRC Data Security Law also introduces a data classification and hierarchical protection system based on the importance of data in economic and social development, as well as the degree of harm it will cause to national security, public interests, or legitimate rights and interests of individuals or organizations when such data is tampered with, destroyed, leaked, or illegally acquired or used. The appropriate level of protection measures is required to be taken for each respective category of data. For example, a processor of important data shall designate the personnel and the management body responsible for data security, carry out risk assessments for its data processing activities and file the risk assessment reports with the competent authorities. In addition, the PRC Data Security Law provides a national security review procedure for those data activities which may affect national security and imposes export restrictions on certain data and information. No entity or individual within the territory of the PRC may provide foreign judicial or law enforcement authorities with the data stored within the territory of the PRC without the approval of the competent PRC authorities.

On December 28, 2021, the CAC, together with other relevant departments, published the Revised Cybersecurity Review Measures, which became effective on February 15, 2022 and repeal the Cybersecurity Review Measures promulgated on April 13, 2020. The Revised Cybersecurity Review Measures provide that a Critical Information Infrastructure Operator (CIIO) purchasing network products and services and network platform operators engaging in data processing activities that affect or may affect national security shall apply for cybersecurity review and that network platform operators that hold personal information of over one million users shall apply with the Cybersecurity Review Office for a cybersecurity review before listing abroad.

On July 30, 2021, the State Council promulgated the Regulations on Critical Information Infrastructure Security Protection, which went into effect on September 1, 2021. The regulations provide that, among others, critical information infrastructure means key network facilities or information systems of critical industries or sectors, such as public communications and information services, energy, transportation, water conservation, finance, public services, e-government affairs and national defense science, the damage, malfunction or data leakage of which may endanger national security, national economy and public interests. CIIOs shall, based on a leveled system for cybersecurity protection, adopt technical protection and other necessary measures to respond to cybersecurity incidents, defend against cyber-attacks and other criminal activities, ensure the safe and stable operation of critical information infrastructure, and maintain data integrity, confidentiality and availability pursuant to relevant laws, regulations and the mandatory requirements under national standards. Relevant government authorities for each critical industry and sector shall be responsible for formulating eligibility criteria and determining the scope of CIIOs in the respective industry or sector, and such operators will be informed of the final determinations as to whether they are categorized as CIIOs.

On July 7, 2022, the CAC promulgated the Outbound Data Transfer Measures, which became effective on September 1, 2022. The Outbound Data Transfer Measures provide that a data processor providing data abroad in the following situations shall report security assessment for its outbound data transfer to the CAC: (1) a data processor provides important data abroad; (2) a critical information infrastructure operator or a data processor processing the personal information of more than one million individuals provides personal information abroad; (3) a data processor, who has cumulatively provided personal information of 100,000 individuals or sensitive personal information of 10,000 individuals abroad since January 1 of the previous year, provides personal information abroad; and (4) other circumstances prescribed by the CAC for which report for security assessment for outbound data transfers are required. According to the Guidelines on Security Assessment Report for Outbound Data Transfer promulgated by the CAC, outbound data transfer means (1) a data processor transfers or stores the data collected or generated during its operation within the PRC abroad, (2) data collected and generated by a data processor is stored within the PRC while offshore institutions or individuals are able to inquire, retrieve, download and obtain such data; and (3) other outbound data transfer activities prescribed by the CAC.

On March 22, 2024, the CAC published the Provisions on Promoting and Regulating Cross-bound Data Flows, which streamline and provide clarity to the governance framework for outbound data transfer. According to this Provisions, the data processors shall identify and declare important data in accordance with relevant provisions. If the data have not been informed or publicly announced as important data by relevant authorities or region, data processors are not required to report security assessment for its outbound data transfer as important data. This Provisions also establish specific exemptions for the outbound data transfer. For instance, data collected and generated in international trade, transnational transportation, academic cooperation, global manufacturing and marketing, which does not contain personal information or important data, is now exempted from compliance requirement of outbound data transfer, such as, security assessment for outbound data transfer, the execution of standard contracts for outbound personal information transfer, or the authentication process for personal information protection. In addition, Pilot Free Trade Zones are granted to formulate data negative lists at their own discretion, where data processors may provide overseas parties with any data not included in the negative list without security assessment.

**Regulations on Intellectual Property Rights**

**Copyright Law of the PRC**

Pursuant to the Copyright Law of the PRC (the "Copyright Law"), which was promulgated on September 7, 1990 and last amended on November 11, 2020 and became effective on June 1, 2021, copyrights include personal rights such as the right of publication and that of authorship as well as property rights such as the right of production and that of distribution. Works which can be protected under Copyright Law include written works; oral works; musical, dramatic, choreographic and acrobatic art works; works of fine art and architecture; photographic works; audiovisual works; drawings of engineering designs and product designs, maps, sketches and other graphic works as well as model works; computer software, etc.

**Trademark Law of the PRC and its Implementing Rules**

Trademarks are protected by the Trademark Law of the PRC which was promulgated on August 23, 1982 and last amended on April 23, 2019, effective and took effect on November 1, 2019 as well as the Implementation Regulation of the PRC Trademark Law adopted by the State Council on August 3, 2002 and revised on April 29, 2014. In the PRC, registered trademarks include commodity trademarks, service trademarks, collective marks and certification marks. The Trademark Office of National Intellectual Property Administration handles trademark registrations and grants a term of ten (10) years to registered trademarks, renewable every ten (10) years where a registered trademark needs to be used after the expiration of its validity term.

**Patent Law of the PRC and its Implementing Rules**

According to the Patent Law of the PRC, promulgated by the SCNPC on March 12, 1984 and further amended on September 4, 1992, August 25, 2000, December 27, 2008 and October 17, 2020, of which latest version came into effect on June 1, 2021 and the Implementing Rules of the Patent Law of the PRC, promulgated by the State Council on June 15, 2001, and last amended on December 11, 2023 and came into effect on January 20, 2024, the term "invention-creations" refers to inventions, utility models and designs. The duration of a patent right for inventions shall be twenty (20) years, the duration of a patent right for utility models shall be ten (10) years and the duration of a patent right for designs shall be fifteen (15) years, counted from the filing date. In the event that a dispute arises due to a patent being exploited without the prior authorization of the patentee, that is to say an infringement upon the patent right of the patentee.

**Domain Names**

Pursuant to the Administrative Measures for Internet Domain Names promulgated by the Ministry of Industry and Information Technology on August 24, 2017 and came into effect on November 1, 2017, the establishment of any domain name root server and institution for operating domain name root servers, domain name registry and domain name registrar within the territory of China shall be subject to the approval of the Ministry of Industry and Information Technology or provincial, autonomous regional and municipal communications administration authorities. The registration of domain name shall follow the principle of "first to file and first to register", except as otherwise provided for by the corresponding detailed rules for the implementation of domain name registration.

**Regulations on Foreign Investment in the PRC**

**Company Law of the People's Republic of China**

The Company Law of the People's Republic of China (the "Company Law"), which was promulgated on December 29, 1993 and became effective on July 1, 1994, last amended and effective on December 29, 2023 and came into effect on July 1, 2024, provides that companies established in China may take the form of limited liability company or joint stock company with limited liability. Each company has the status of a legal person and owns the assets itself. The Company Law applies to foreign-invested companies unless relevant laws provide otherwise.

**Special Administrative Measures for the Access of Foreign Investment (Negative List) (2024 Version)**

Pursuant to the Special Administrative Measures for the Access of Foreign Investment (Negative List) (2024 Version) (the "Negative List 2024") promulgated on September 6, 2024 and effective on November 1, 2024, limitations were stipulated for foreign investments in different industries in the PRC. Foreign investments shall be classified into two categories, namely the Catalog of Encouraged Industries for Foreign Investment and the Special Management Measures (Negative List) for the Access of Foreign Investment. The Negative List 2024 provides restrictions on shareholding ratio and requirements on senior management personnel in restricted industries and prohibitions on foreign investment in certain industries. Industries that do not fall within the Negative List 2024 are industries permitted for foreign investment, and foreign investments in such permitted industries shall be subject to the same requirements on domestic investments.

**Foreign Investment Law of the People's Republic of China**

On March 15, 2019, the 2nd meeting of the 13th NPC approved the Foreign Investment Law of the People's Republic of China (the "FIL"), which became effective on January 1, 2020. According to the FIL, the "foreign investment" refers to investment activities carried out directly or indirectly by foreign natural persons, enterprises or other organizations (the "Foreign Investors") in the PRC, including the following: (1) Foreign Investors establishing foreign-invested enterprises in China alone or collectively with other investors; (2) Foreign Investors acquiring shares, equities, properties or other similar rights of Chinese domestic enterprises; (3) Foreign Investors investing in new projects in China alone or collectively with other investors; and (4) Foreign Investors investing through other ways prescribed by laws and regulations or the State Council. The State adopts the management system of pre-establishment national treatment and negative list for foreign investment. The pre-establishment national treatment refers to granting to foreign investors and their investments, in the stage of investment access, the treatment no less favorable than that granted to domestic investors and their investments; and the negative list refers to special administrative measures for access of foreign investment in specific fields as stipulated by the State. The State will give national treatment to foreign investments outside the negative list. The negative list will be released by or upon approval by the State Council. After the FIL came into effect, the FIL replaced the Law of the People's Republic of China on Sino-Foreign Equity Joint Ventures, the Law of the People's Republic of China on Sino-Foreign Cooperative Joint Ventures and the Wholly Foreign-Owned Enterprise Law of the People's Republic of China, and became the legal foundation for foreign Investment in the PRC.

On December 26, 2019, the State Council promulgated the Implementing Rules of the Foreign Investment Law of the People's Republic of China (the "Implementing Rules"), which became effective on January 1, 2020 and replaced the Implementing Rules of the Laws on Sino-Foreign Equity Joint Ventures, the Interim Provisions on the Term of Sino-Foreign Equity Joint Ventures, the Implementing Rules of the Laws on Sino-Foreign Cooperative Joint Ventures and the Implementing Rules of the Wholly Foreign-Owned Enterprise Law. The Implementation Rules of Foreign Investment Law restates certain principles of the Foreign Investment Law and further provides, among others, that (1) an foreign-invested enterprise's investment within the territory of China is also subject to the Foreign Investment Law and the Implementation Rules of Foreign Investment Law; (2) an foreign-invested enterprise may, within five years following January 1, 2020, choose to amend its legal form or corporate governance and complete amendment registration, or to keep its original legal form or corporate governance; and (3) provisions regarding the transfer of equity interests or distribution of profits and remaining assets as stipulated in the contracts among the joint venture parties of an existing foreign-invested enterprise may survive the FIL after such foreign-invested enterprise amends its legal form or corporate governance in accordance with applicable laws.

**Measures on Reporting of Foreign Investment Information**

On December 30, 2019, the MOFCOM and the SAMR jointly promulgated the Measures on Reporting of Foreign Investment Information, which took effective on January 1, 2020 and replaced the Interim Measures for the Administration of Record-filing on the Incorporation and Changes of Foreign-invested Enterprises. Foreign Investors carrying out investment activities in the PRC or foreign-invested enterprises shall submit investment information to the commerce administrative authorities through the Enterprise Registration System and the National Enterprise Credit Information Publicity System pursuant to the Measures on Reporting of Foreign Investment Information.

**Regulations on Value-added Telecommunications Services**

The Telecommunications Regulations of the PRC, which were promulgated by the State Council on September 25, 2000 and amended on July 29, 2014 and February 6, 2016, provide the regulatory framework for telecommunications services providers in the PRC. The Telecommunications Regulations categorize telecommunications services in the PRC into basic telecommunications services and value-added telecommunications services, and value-added telecommunications services are defined as telecommunications and information services provided through public network infrastructures. Under the Telecommunications Regulations, telecommunications services providers shall obtain operating licenses from the MIIT or its provincial counterparts prior to the commencement of operations.

The Administrative Measures for Telecommunications Business Operating License with latest amendments becoming effective from September 1, 2017 set forth more specific provisions regarding the types of licenses required for value-added telecommunications services and the qualifications and procedures for obtaining such licenses. The value-added telecommunications services operators providing value-added services across multiple provinces are required to obtain inter-regional licenses from the MIIT, whereas value-added telecommunications services operators providing such services within a single province are required to obtain local licenses from the provincial level counterparts.

The Administrative Measures on Internet Information Services promulgated by the State Council on September 25, 2000 and last amended on December 6, 2024 classify internet information services into either commercial internet information services or non-commercial internet information services. Commercial internet information services refer to paid services such as provisions of information or website production to online users via the internet. Companies engaged in commercial internet information services shall obtain the licenses for internet information services from the competent telecommunications authorities.

The Catalog of Classification of Telecommunications Services, attached to the Telecommunications Regulations and last amended on June 6, 2019 by the MIIT, divides information services business into information publication platform and delivery services, information search and inquiry services, information communities platform services, instant message services, and information security and management services.

**Restrictions on Foreign Investment in Value-added Telecommunications Services**

According to the Negative List 2024, the provision of value-added telecommunications services falls in the restricted industries and the percentage of foreign ownership cannot exceed 50% (except for e-commerce, domestic multi-party communication, store-and-forward and call center).

On June 19, 2015, the MIIT issued the Circular on Loosening the Restrictions on Shareholding by Foreign Investors in Online Data Processing and Transaction Processing Business, or the Circular No. 196. Circular No. 196 allows a foreign investor to hold 100% of the equity interest in a PRC entity that provides online data processing and transaction processing services, or the operational e-commerce. In respect of the application for a permit for any foreign-invested enterprise engaging in operational e-commerce, the requirements for the proportion of foreign equity are governed by the Circular No.196 while other requirements and approval procedures are subject to the Administrative Provisions on Foreign-Invested Telecommunications Enterprises (the "FITE Regulations").

**Regulations on Employment and Social Security**

**Labor Law of PRC**

The Labor Law of PRC, which was promulgated by the SCNPC on July 5, 1994, became effective on January 1, 1995, and was amended on August 27, 2009 and December 29, 2018, provides that laborers have the right to be employed on an equal basis, choose occupations, obtain remunerations for labor, take rests, have holidays and leaves, receive labor safety and sanitation protection, get training in professional skills, enjoy social insurance and welfare treatment, and submit applications for settlement of labor disputes, and other labor rights stipulated by law. An employer shall develop and improve its rules and regulations to safeguard the rights of its workers. Labor safety and health facilities must comply with relevant national standards. Workers engaged in special operations shall have received specialized training and obtained the pertinent qualifications.

**Labor Contract Law of PRC and its Implementation Regulations**

The Labor Contract Law of PRC, which was promulgated by the SCNPC on June 29, 2007, became effective on January 1, 2008, and was amended on December 28, 2012, and became effective on July 1, 2013, and the Implementation Regulations on Labor Contract Law which was promulgated and came into effect on September 18, 2008 by the State Council, regulate the relations of employer and the employee that an employer shall enter into a written labor contract with its employees, and contain specific provisions involving the terms of the labor contract.

**Regulations on Supervision over the Social Security and Housing Funds**

The Law on Social Insurance, which was promulgated on October 28, 2010, became effective on July 1, 2011, and was amended on December 29, 2018, regulates that all employees are required to participate in basic pension insurance, unemployment insurance, maternity insurance, work injury insurance and medical insurance, which must be contributed by both the employers and the employees or by employers only (with respect to maternity insurance and work injury insurance). Where an employer fails to make social insurance contributions in full and on time, the social insurance contribution collection agencies shall order it to make all or outstanding contributions within a specified period and impose a late payment fee at the rate of 0.05% per day from the date on which the contribution becomes due. If such employer fails to make the overdue contributions within such time limit, the relevant administrative department may impose a fine equivalent to one to three times of the overdue amount.

According to the Provisional Regulations on the Collection and Payment of Social Insurance Premium, effective January 22, 1999 and amended on March 24, 2019, the Regulations on Work Injury Insurance implemented on January 1, 2004 and amended on December 20, 2010, the Regulations on Unemployment Insurance promulgated on January 22, 1999 and the Trial Measures on Employee Maternity Insurance of Enterprises implemented on January 1, 1995, enterprises in China must provide benefit plans for their employees, which include basic pension insurance, unemployment insurance, maternity insurance, work injury insurance and medical insurance. An enterprise must provide social insurance by processing social insurance registration with local social insurance agencies and must pay or withhold relevant social insurance premiums for or on behalf of employees.

The Regulations on the Administration of Housing Provident Fund, which was promulgated and effective on April 3, 1999 and came into effect on the same date, and was amended on March 24, 2002 and March 24, 2019, stipulates that housing provident fund contributions paid by both an individual employee and housing provident fund contributions paid by his or her employer shall all belong to the individual employee. Companies who fail to process such registrations or open housing provident fund accounts for their employees, shall be ordered by the housing provident fund administration center to complete such procedures within a designated period. Otherwise, those who violate such procedures within the designated period shall be subject to a fine ranging from RMB10,000 to RMB50,000. When companies breach the regulations and fail to pay up housing provident fund contributions in full amount as due, the housing provident fund administration center shall order such companies to pay up within a designated period, and may further apply to the People's Court for mandatory enforcement against those who still fail to comply after the expiry of such period.

**Regulations on Employee Share Incentive Awards Granted by Listed Companies**

According to a series of notices concerning individual income tax on earnings from employee share incentive awards, issued by the MOF and the STA, companies that implement employee stock ownership programs shall file the employee stock ownership plans and other relevant documents with the local tax authorities having jurisdiction over such companies before implementing such plans, and shall file share option exercise notices and other relevant documents with local tax authorities before exercise by their employees of any share options, and clarify whether the shares issuable under the employee share options referenced in the notice are shares of publicly listed companies.

According to SAFE Circular 7 issued on February 15 2012, if "domestic individuals" (meaning both PRC residents and non-PRC residents who reside in China for a continuous period of not less than one year, excluding foreign diplomatic personnel and representatives of international organizations) participate in any stock incentive plan of an overseas listed company, a qualified PRC domestic agent, which could be the PRC subsidiaries of such overseas listed company, shall, among other things, file, on behalf of such individuals, an application with SAFE to register such stock incentive plan, and obtain the approval for an annual allowance with respect to the purchases of foreign exchanges in connection with stock purchases or stock option exercises. Such PRC individuals' foreign exchange income received from the sales of stocks and dividends distributed by the overseas listed company and any other income shall be fully remitted into a collective foreign currency account in China opened and managed by the PRC domestic agent before distribution to such individuals. In addition, such domestic individuals must retain an overseas entrusted institution to handle matters in connection with their stock option exercises and stock purchases and sales. The PRC domestic agent also needs to update the registration with SAFE within three months after the overseas-listed company materially changes its existing stock incentive plans or makes any new stock incentive plans.

**Regulations on Taxation**

**Enterprise Income Tax**

According to the Enterprise Income Tax Law of the PRC (the "EIT Law"), which was promulgated on March 16, 2007, became effective on January 1, 2008, and was amended by the SCNPC on February 24, 2017 and December 29, 2018, and the Implementation Regulations on the EIT Law (the "EIT Regulations"), which was promulgated by the State Council on December 6, 2007, became effective on January 1, 2008, and amended by the State Council on December 6, 2024 and came into effect on January 20, 2025. These enterprises are classified as either resident enterprises or non-resident enterprises. Resident enterprises refer to enterprises that are established in accordance with PRC laws, or that are established in accordance with the laws of foreign countries but whose actual or de facto control is administered from within the PRC. Non-resident enterprises refer to enterprises that are set up in accordance with the laws of foreign countries and whose actual administration is conducted outside the PRC, but which (whether or not through the establishment of institutions in the PRC) derive income from the PRC. Under the EIT Law and EIT Regulations, a uniform corporate income tax rate of 25% is applicable. However, if non-resident enterprises have not established institutions or places in the PRC, or if they have established institutions or places in the PRC but there is no actual relationship between the relevant income derived in the PRC and the institutions or places set up by them, enterprise income tax is set at the rate of 10%.

Certain subsidiaries of the Company have been qualified as "Small Profit Enterprises". From January 1, 2022 to December 31, 2022, 12.5% of the first RMB 1.0 million, approximately US$141,225, of the assessable profit before tax is subject to preferential tax rate of 20% and the 25% of the assessable profit before tax exceeding RMB1.0 million but not exceeding RMB3.0 million is subject to preferential tax rate of 20%. From January 1, 2023 to December 31, 2027, 25% of the first RMB 3.0 million, approximately US$423,675, of the assessable profit before tax is subject to the tax rate of 20%.

According to the EIT Law and the EIT Regulations, an enterprise certified as a high and new technology enterprise is subject to a preferential EIT of 15%. In accordance with the Measures for Administration of Recognition of High and New Technology Enterprise implemented on January 1, 2016, an enterprise certified as a high and new technology enterprise is subject to review by the relevant PRC authorities and shall submit the information about the relevant intellectual property, scientific and technical personnel, research and development expense, operating revenue of previous year and other annual status on the required official web site.

***Value-Added Tax***

Pursuant to the Value-added Tax Law of the PRC, promulgated on December 25, 2024 and effective on January 1, 2026, all enterprises and individuals engaged in the sale of goods, the provision of processing, repair and replacement services, the sales of services, intangible assets and real property, and the importation of goods within the territory of the PRC shall be liable to pay value-added taxes, or VAT. The VAT tax rates are generally 13%, 9%, 6% and 0%. The Regulations for the Implementation of the Value-Added Tax Law of the PRC, promulgated on December 25, 2025 and effective on January 1, 2026, provides further details on the scope of the tax, applicable tax rate in specific situations, and calculation methods for the amount payable

**Dividend Appropriations**

According to the Arrangement on the Avoidance of Double Taxation and Tax Evasion between Mainland and Hong Kong Special Administrative Region entered into between Mainland China and the Hong Kong Special Administrative Region on August 21, 2006, if the non-PRC parent company of a PRC enterprise is a Hong Kong resident which beneficially owns 25% or more interest in the PRC enterprise and is determined by the competent PRC tax authority to have satisfied the relevant conditions and requirements under applicable PRC laws, the 10% withholding tax rate applicable under the EIT Law may be lowered to 5% for dividends and 7% for interest payments once approvals have been obtained from the relevant tax authorities.

According to the Notice on the Several Issues relating to Implementation of Dividend Clauses in Tax Treaties promulgated by the STA on February 20, 2009 and came into effect on the same date, if a Chinese resident company pays dividends to a fiscal resident of the other contracting party to a tax agreement and the fiscal resident of the other contracting party (or dividend recipient) is the beneficial owner of the dividends, the dividends obtained by the fiscal resident of the other contracting party may enjoy the treatment under the tax agreement. The non-resident taxpayer or the withholding agent is required to obtain and keep sufficient documentary evidence proving that the recipient of the dividends meets the relevant requirements for enjoying a lower withholding tax rate under a tax treaty. If the main purpose of an offshore transaction or arrangement is to obtain a preferential tax treatment, the competent tax authority shall have the right to make adjustments if any taxpayer has illicitly enjoyed the treatment under a tax agreement by virtue of such a transaction or arrangement.

According to the Administrative Measures on Non-resident Taxpayers to Enjoy the Treatment under Tax promulgated by the STA on October 14, 2019 and effective as of January 1, 2020, where a non-resident taxpayer self-assesses and concludes that it satisfies the criteria for claiming treaty benefits, it may enjoy treaty benefits at the time of tax declaration or at the time of withholding through the withholding agent. The non-resident taxpayer must, simultaneously gather and retain the relevant materials for future inspection, and accept follow-up administration by the tax authorities.

**Regulations on Foreign Exchange Control**

The Regulations on the Control of Foreign Exchange of the PRC, which were promulgated by the State Council on January 29, 1996, became effective on April 1, 1996, and were amended on January 14, 1997 and August 5, 2008, set out that foreign exchange receipts of domestic institutions or individuals may be transferred to China or deposited overseas and that the SAFE shall specify the conditions for transfer to China or deposit overseas and other requirements in accordance with the international receipts, payments status and requirements of foreign exchange control. Foreign exchange receipts for current account transactions may be retained or sold to financial institutions engaged in the settlement or sale of foreign exchange. Domestic institutions or individuals that make direct investments abroad or are engaged in the offering or trade of valuable securities or derivative products overseas should register according to SAFE regulations. Such institutions or individuals subject to prior approval or record-filing with relevant authorities shall complete the required approval or record-filing prior to foreign exchange registration. The exchange rate for RMB follows a managed floating exchange rate system based on market demand and supply.

The Circular 37, the Circular on Issues relating to Foreign Exchange Administration for Financing and Round-trip Investments by Domestic Residents through Overseas Special-purpose Companies ([2014] No. 37) promulgated by SAFE on July 4, 2014 with immediate effect, states that (i) a PRC resident, including a PRC resident natural person or a PRC legal person, shall register with the local branch of the SAFE before it contributes its domestic or oversea assets or equity interest into a special purpose vehicle which shall refer to foreign enterprise established directly or controlled indirectly by such PRC resident for the purpose of investment and financing and (ii) when the special purpose vehicle undergoes change of basic information, such as change in PRC resident natural person shareholder, name or operating period, or occurrence of a material event, such as change in share capital of a PRC resident natural person, performance of equity transfer, merger or separation, the PRC resident shall register such change with the local branch of the SAFE in a timely manner.

According to Circular of SAFE on Further Simplifying and Improving the Direct Investment-related Foreign Exchange Administration Policies (the "Circular 13"), which became effective on June 1, 2015 and last amended on December 30, 2019, banks are required to review and carry out foreign exchange registration under offshore direct investment directly. The SAFE and its branches shall implement indirect supervision over foreign exchange registration of direct investment via the banks.

The Circular on Reforming the Management Approach regarding the Settlement of Foreign Capital of Foreign-invested Enterprise (the "Circular 19"), promulgated on March 30, 2015 and amended on December 30, 2019 and March 23, 2023, allows foreign-invested enterprises to make equity investments by using RMB funds converted from foreign exchange capital. Under the Circular 19, the foreign exchange capital in the capital account of foreign-invested enterprises upon the confirmation of rights and interests of monetary contribution by the local foreign exchange bureau (or the book-entry registration of monetary contribution by the banks) can be settled at the banks based on the actual operation needs of the enterprises. The proportion of discretionary settlement of foreign exchange capital of foreign-invested enterprises is currently 100%. SAFE can adjust such proportion in due time based on the circumstances of the international balance of payments. However, Circular 19 and the Circular on Reforming and Regulating Policies on the Control over Foreign Exchange Settlement of Capital Accounts (the "Circular 16"), which became effective on June 9, 2016 and amended on December 4, 2023, continues to prohibit foreign-invested enterprises from, among other things, using RMB funds converted from its foreign exchange capitals for expenditure beyond its business scope, investment and financing (except for security investment or guarantee products issued by banks), providing loans to non-affiliated enterprises or constructing or purchasing real estate not for self-use.

On October 23, 2019, the SAFE released the Circular on Further Promoting the Facilitation of Cross- border Trade and Investment (the "Circular 28") which was implemented on the same date and amended on December 4, 2023. Under Circular 28, besides foreign-invested enterprises engaged in investment business, non-investment foreign invested enterprises are also permitted to make domestic equity investments with their capital funds under the condition that current special administrative measures for foreign investments (negative list) are not violated, and the relevant domestic investment projects are true and compliant.

According to the Circular on Optimizing Administration of Foreign Exchange to Support the Development of Foreign-related Business issued by the SAFE on April 10, 2020, eligible enterprises are allowed to make domestic payments by using their income under capital accounts such as capital funds, foreign loans and overseas listing, without the need to provide the evidential materials concerning authenticity of such capital for banks in advance for each payment, provided that they shall utilize such funds in an authentic and compliant way, and conform to the prevailing administrative regulations on the use of income under capital accounts. The concerned bank shall conduct spot checks in accordance with the relevant requirements.

**Laws and Regulations Relating to M&A and Overseas Listing**

The Regulations on Merger and Acquisition of Domestic Enterprises by Foreign Investors (the "M&A Rules") were first jointly promulgated by six PRC governmental authorities, namely the MOFCOM, the STA, the SAFE, the SAMR, the State-owned Assets Supervision and Administration Commission of the State Council and the CSRC on August 8, 2006, came into effect on September 8, 2006 and was subsequently amended and re-promulgated by the MOFCOM on June 22, 2009. Foreign investors must comply with the M&A Rules when they purchase equity interests of a domestic non-foreign invested enterprise or subscribe the increased capital of a domestic non-foreign invested enterprise, and thus changing of the nature of the domestic non-foreign invested enterprise into a foreign-invested enterprise; or when the foreign investors establish a foreign-invested enterprise in China, purchase the assets of a domestic non-foreign invested enterprise and operate the asset via such foreign-invested enterprise; or when the foreign investors purchase the assets of a domestic non-foreign invested enterprise by agreement, establish a foreign invested enterprise by contributing such assets in such foreign invested enterprise to operate the assets. The M&A Rules requires, among other things, offshore special purpose vehicles formed for overseas listing purposes through acquisitions of PRC domestic companies and controlled by the PRC companies or individuals to obtain the approval of the CSRC prior to publicly listing their securities on an overseas stock exchange.

On February 17, 2023, the CSRC released the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies (the "Administrative Measures") which shall take effect on March 31, 2023 to regulate overseas securities offering and listing activities by domestic companies either in direct or indirect form.

The Administrative Measures apply to overseas offerings and/or listings directly or indirectly by domestic companies of equity shares, depository receipts, convertible corporate bonds, or other equity-like securities, including (i) direct overseas securities offerings and/or listings conducted by companies incorporated in the PRC, or PRC domestic companies, directly and (ii) indirect overseas securities offerings and/or listings conducted by companies incorporated overseas with operations primarily in the PRC and valued on the basis of equity, assets, profits or other interests in PRC domestic companies. An equity or equity-linked securities offering by an overseas company will be deemed an indirect offering if (i) more than 50% of such overseas company's consolidated revenues, profit, total assets or net assets that are derived from its audited consolidated financial statements for the most recently completed fiscal year are attributable to PRC domestic companies, and, (ii) any of the following three circumstances applies: key components of its operations are carried out in the PRC; its principal places of business are located in the PRC; or the majority of the senior management members in charge of operation and management are PRC citizens or residents. The determination will be made on the basis of "substance over form" approach. The Administrative Measures require (1) the filing of the overseas offering and listing plan by the PRC domestic companies with the CSRC under certain conditions, and (2) the filing of their overseas underwriters with the CSRC under certain conditions and the submission of an annual report to the CSRC within the required timeline.

Also on February 17, 2023, the CSRC also held a press conference for the release of the Administrative Measures and issued the Notice on Administration for the Filing of Overseas Offering and Listing by Domestic Companies ("Notice on Overseas Filing"), which, among others, clarified that: (i) on or prior to the effective date of the Administrative Measures, the PRC domestic companies that had already submitted valid applications for overseas offering and listing but not obtained approval from overseas regulatory authorities or stock exchanges may reasonably arrange the timing for submitting their filing applications with the CSRC, and should complete the filing before the completion of their overseas offering and listing; and (ii) a six-month transition period was granted to PRC domestic companies which, prior to the effective date of the Administrative Measures, had already obtained the approval from overseas regulatory authorities or stock exchanges (such as the completion of registration in the market of the United States), but have not completed the indirect overseas listing; and follow-on offerings of such companies will need to comply with the Administrative Measures.

Meanwhile, the Administrative Measures also stipulated that in the following circumstances, domestic enterprises shall not be listed overseas: (i) it is clearly prohibited from listing for financing by the laws and regulations and relevant requirements of the State; (ii) overseas offering or listing will threaten or jeopardize national security as reviewed and determined by the relevant competent authorities of the State Council in accordance with the laws; (iii) the domestic enterprises or their controlling shareholders, actual controllers have committed corruption, bribery, misappropriation or expropriation of property, criminal offences that disrupted the socialist market economic order within the last three years; (iv) the domestic enterprises are being investigated because of suspected crime, or being investigated for material violations or incompliance with laws and regulations, and no conclusions have been made; or (v) there are major disputes over the ownership of equity hold by the controlling shareholders or other shareholders controlled by the controlling shareholders or the actual controllers of the domestic enterprises. If a domestic company falls into the circumstances where overseas offering and listing is prohibited, the domestic company shall suspend or terminate overseas offering and/or listing and report to the CSRC and other relevant department of the State Council.

If domestic companies fail to fulfill the above-mentioned filing procedures, provide false records, misleading statements or make material omissions in relevant filing materials, or carry out overseas offering and/or listing against the prohibited circumstances, they shall be warned and ordered to make correction by the CSRC and be fined between RMB1 million and RMB10 million. The controlling shareholders and actual controller of the domestic companies shall be fined between RMB1 million and RMB10 million if they arrange or command the domestic companies to carry out activities in violation of the foregoing. The person in charge with direct responsibility and other persons directly responsible for the foregoing violation by the domestic companies and their controlling shareholders and/or actual controllers shall be fined between RMB0.5 million and RMB5 million.

If the securities companies and securities service institutions fail to supervise the domestic companies to comply with relevant requirements on filing procedures or prohibitions on oversea offering and listing under the Administrative Measures, they shall be warned by the CSRC and fined between RMB0.5 million and RMB5 million. If the securities companies and securities service institutions fail to fulfill their duties diligently and there are false records, misleading statements, material omissions in (i) the documents produced or issued by such securities companies and securities service institutions in accordance with the PRC laws, administrative regulations, and relevant requirements of the State, or (ii) the documents produced or issued by such securities companies and securities service institutions or documents in accordance with the rules of the overseas listing place that results in disruption of the order of the domestic market and damages to the legitimate rights and interests of domestic investors, the relevant securities company or securities service institutions shall be warned by the CSRC and fined between such amount equal to their services fees and up to ten (10) times the amount of such securities company or securities service institution's service fees or RMB5 million if there are no service fees. The person in charge with direct responsibility and other person directly responsible for the foregoing violation by the securities companies and securities service institutions shall be fined between RMB0.5 million and RMB5 million.

**Regulations on Anti-Monopoly**

The Anti-Monopoly Law promulgated by the SCNPC, the latest amendment of which became effective on August 1, 2022, and the Provisions on the Review of Concentrations of Undertakings promulgated by the SAMR, the latest amendment of which became effective on April 15, 2023, require that transactions which are deemed concentrations and involve parties with specified turnover thresholds must be cleared by the SAMR before they can be completed. Where the concentrations do not meet the thresholds but there is evidence that the concentrations have or may have the effect of excluding or restricting competition, the SAMR is entitled to require an examination of concentration of undertakings. Where the participation in concentrations by way of foreign-funded merger and acquisition of domestic enterprises or any other method which involves national security, the examination of concentration shall be carried out pursuant to the provisions of The Anti-Monopoly Law and examination of national security shall be carried out pursuant to the relevant laws and regulations. Failure to comply with above regulations may result in an order to stop concentration, dispose the shares/assets or transfer the operation within a stipulated period, or adopt other necessary measures to reinstate the pre-concentration status, or fines.

On February 7, 2021, the Anti-Monopoly Commission of the State Council issued the Anti-Monopoly Guidelines for the Internet Platform Economy Sector that aims at specifying some of the circumstances under which an activity of internet platforms may be identified as monopolistic act as well as classifying that concentrations involving variable interest entities shall also be subject to anti-monopoly review. On March 10, 2023, the SAMR promulgated the Provisions on Prohibition of Monopoly Agreements (last amended on December 9, 2025) and the Provisions on Prohibition of Abuse of Market Dominance, effective on April 15, 2023 which improve the anti-monopoly rules regarding internet platform economy. According to these Provisions, undertakings with market dominance shall not abuse market dominant positions, or enter into monopoly agreements with other competing undertakings through intention liaison, exchange of sensitive information, concerted acts by using data, algorithms, technologies and platform rules, etc. Failure to comply with above regulations may result in an order to stop illegal act, confiscate illegal income and fines.

**Regulations on Anti Long-Arm Jurisdiction**

The MOFCOM issued the Provisions on the List of Unreliable Entities on September 19, 2020. Pursuant to the order, an interagency task force composed of central government agencies, or the Working Mechanism, shall, according to the investigation results and by taking the following factors into comprehensive consideration, decide whether or not to include a foreign entity concerned in the list of unreliable entities, and make an announcement on such inclusion: (i) the extent of damage caused to China's sovereignty, security and development interests; (ii) the extent of the damage to the legitimate rights and interests of Chinese enterprises, other organizations or individuals; (iii) whether or not the international economic and trade rules are followed; and (iv) other factors that shall be taken into consideration. If a foreign entity is included in the list of unreliable entities, the Working Mechanism may decide to take one or more of the following measures: (1) restricting or prohibiting the foreign entity from engaging in import or export activities related to China; (2) restricting or prohibiting the foreign entity's investment within the territory of China; (3) restricting or prohibiting the entry of the foreign entity's relevant personnel or transport vehicles into the territory of China; (4) restricting or cancelling the work permit, stay or residence qualification of the foreign entity's relevant personnel in China; (5) imposing a fine corresponding to the seriousness of the case against the foreign entity; or (6) Other necessary measures.

On January 9, 2021, the MOFCOM promulgated the Rules on Counteracting Unjustified Extra-Territorial Application of Foreign Legislation and Other Measures, or the MOFCOM Order No. 1 of 2021. Pursuant to the MOFCOM Order No. 1 of 2021, where a citizen, legal person or other organization of China is prohibited or restricted by foreign legislation and other measures from engaging in normal economic, trade and related activities with a third State (or region) or its citizens, legal persons or other organizations, he/she/it shall truthfully report such matters to the competent department of commerce of the State Council within 30 days. The Working Mechanism will take following factors into overall account when assessing whether there exists unjustified extra-territorial application of foreign legislation and other measures: (1) whether international law or the basic principles of international relations are violated; (2) potential impact on China's national sovereignty, security and development interests; (3) potential impact on the legitimate rights and interests of the citizens, legal persons or other organizations of China; and (4) other factors that shall be taken into account. If the Working Mechanism determine that there exists unjustified extra-territorial application of foreign legislation and other measures, the MOFCOM may issue an injunction that the relevant foreign legislation and other measures shall not be accepted, executed, or observed. A citizen, legal person or other organization in China may apply for exemption from compliance with an injunction.

**MANAGEMENT'S DISCUSSION AND FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*Unless the context otherwise requires, all references in this section to "Youlife," "we," "us" or "our" refers to Youlife Group Inc. and its subsidiaries, and, in the context of describing its operations and consolidated and combined financial information, also include the former subsidiaries.*

 

*You should read the following discussion and analysis of our results of operations and financial condition in conjunction with the section entitled "Selected Historical Financial Data" and our consolidated financial statements and the related notes included elsewhere in this prospectus. This discussion contains forward-looking statements that involve risks and uncertainties about our business and operations. The actual results and the timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those we describe under "Risk Factors" and elsewhere in this prospectus. See "Forward-looking Statements."*

**Overview**

We provide blue-collar talent with comprehensive and lifetime services, including vocational education services, HR recruitment services, employee management services and market services, to improve their vocational knowledge, practical skills, and life quality for their enhanced employment opportunities as well as better life.

Leveraging our strong capability to capture the unmet demand for blue-collar lifetime services in China as well as the growth opportunities in the market, we have historically achieved steady growth in revenue, despite the negative impact brought by the outbreak of COVID-19. Our revenue was RMB1,365.9 million, RMB1,585.6 million and RMB1,854.3 million (US$265.2 million) in 2023, 2024 and 2025, respectively.

**Key Factors Affecting Our Results of Operations**

Our results of operations and financial condition are affected by the general factors affecting China's blue-collar lifetime service market, including, among others, China's overall economic growth, the competitive environment in China and greater challenges in hiring. In addition, our results of operations and financial condition are also affected by factors driving the blue-collar lifetime service market in China, such as growth of the blue-collar sector. Unfavorable changes in any of these general factors could materially and adversely affect our results of operations.

While our business is influenced by general factors affecting our industry, our results of operations are more directly affected by the following specific factors.

***Our business mix***

We have broad and diversified blue-collar lifetime service offerings, each of which complement and benefit each other and ensure our ability to withstand market while maintaining a strong financial growth trajectory. A shift in our revenue mix would affect our gross profit margin, as the gross profit margin of each business segment varies. Any change in the revenue mix or change in the profitability of any service offered may have a corresponding impact on our overall profitability. We may in the future further adjust our business structure and strategies to improve our profitability. Any further changes on our business mix may affect our profitability.

***Our brand positioning and pricing ability***

We rely on our well-established brand awareness and recognition, such as our brands "Youlan" and "Tiankun Education," and our reputation in providing quality services. Our ability to maintain our relationship with existing customers and attract new customers depends, to a large extent, on our ability to continue to enhance brand recognition. We believe trusted brands enable us to expand our customer base, collaborate with more third parties, make our services more acceptable and lead to more business opportunities.

Our results of operations are also affected by the level of fees which we are able to charge. As we operate in a highly competitive and fragmented industry, our ability to price our services at the level we desire, while at the same time maintaining competitive, is dependent on a number of factors, including the pricing guideline and/or restriction issued or imposed by the relevant government authorities, the demand for our services, the supply of similar services in the market, prices set by our competitors and the competitive landscape of blue-collar lifetime service industry in China. To maintain our prices, we endeavor to diversify our services by offering more solution based, customized curricula and services. We aim to achieve a balance between pricing our services competitively while maintaining our position as a quality blue-collar lifetime service provider and ensuring an attractive profit margin. Failure to balance various factors in determining our pricing could materially and adversely affect our financial condition and results of operations.

***Our ability to control operating costs and expenses***

Our profitability is also affected by our ability to control our operating costs and expenses. We have been continuously improving our cost efficiency. In 2023, 2024 and 2025, our cost of sales represented 85.3%, 85.5% and 89.6% of our total revenue, respectively. Our cost of sales primarily consists of personnel costs, constituting approximately 79.8%, 70.0% and 88.6% of our cost of sales in 2023, 2024 and 2025, respectively, and most of the personnel costs were the staff costs of blue-collar talent associated with our employee management services.

We expect the cost of sales to continue to be our most significant operating costs and expenses going forward, in light of our continuous expansion. If we are unable to control our operating costs and expenses, our profitability may be materially and adversely affected.

***Our ability to timely and continuously source adequate blue-collar talent who meets the requirements of our customers***

We generated a significant portion of our revenue from our employee management services in 2023, 2024 and 2025. Our business depends on our ability to timely and continuously source large number of suitable blue-collar talent to support our corporate customers' staffing needs. Our ability to continue to drive the organic growth of our blue-collar talent potential is primarily driven by factors including our ability to match them with career opportunities, the quality of our services, the range and effectiveness of our recruitment service and delivery sites, and our brand reputation.

Competition for blue-collar talent with certain skills and experience may be intense, and qualified blue-collar talent may not be available to us in a sufficient number and on terms of employment acceptable to us. Going forward, our ability to recruit enough blue-collar talent who possesses the skills and experience necessary to meet the requirements of our corporate customers in a timely manner will be largely affected by various factors including our customers' willingness to pay, the competition in the market and the customer stickiness with us.

***Our ability to maintain major customers and expand our customer base***

Our success is largely dependent on our ability to attract and maintain major customers and expand our customer base, which in turn is affected by our ability to deliver quality services amid a changing landscape of the blue-collar lifetime service industry in China. In 2023, 2024 and 2025, approximately 25.5%, 28.5% and 28.1% of our total revenue were generated from our top five customers, respectively. There is no guarantee that we will continue to obtain new contracts with these major customers or maintain our relationships with them in the future. In addition, we have a proven record of serving leading domestic and international corporate customers with a deep understanding of their needs and delivery, which we believe would be important to enhance our branding. Our continuous growth will be driven by our ability to expand our customer base to attract larger and medium-sized customers of different industries in more cities and regions. In addition, our success will also be affected by our ability to explore relationships with customers focused on emerging industries with great growth potential.

***Our ability to keep up with rapid changes in the blue-collar lifetime service industry***

Our ability to grow our business and increase profitability largely depends on our ability to keep up with the rapid changes in both market conditions and relevant laws and regulations of the blue-collar lifetime service industry. Government policies have strengthened supervision requirements in the blue-collar lifetime service industry. Although we have taken measures to comply with the laws and regulations that are applicable to our business operations and avoid conducting any non-compliant activities under the applicable laws and regulations, the PRC government authorities may promulgate new laws and regulations regulating the blue-collar lifetime service industry from time to time. Any of these changes in the blue-collar lifetime service industry may result in the prohibition or restriction of certain types of services we offer, or the imposition of new or additional licensing or other requirements could also reduce our revenue and earnings.

***Seasonality***

Our financial condition and results of operations are subject to seasonal fluctuations due to various factors. The seasonality for each of our business segments varies. For example, we may generate lower revenue from our employee management services and HR recruitment services in the first quarter of a year, when blue-collar talent tend to return to their hometown to celebrate the Chinese New Year holidays with their families. As a result, any comparison of our sales and operating results between different periods within a single financial year, or between different periods in different financial years is not necessarily meaningful and may not indicate our future performance.

**Non-GAAP Financial Measures**

To supplement our consolidated financial statements which are presented in accordance with U.S. GAAP, we use adjusted net profit/loss and adjusted EBITDA, which are non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes. Adjusted net profit/loss represents net profit before share-based compensation expenses, fair value gains from financial assets at fair value through profit or loss and deemed dividend to Series C and Series C+ preferred shareholders at modification of Series C and Series C+ Preferred Shares. Adjusted EBITDA represents adjusted net profit/loss before income tax expense, depreciation, amortization and interest expense. We believe that adjusted net profit/loss and adjusted EBITDA help identify underlying trends in our business that could otherwise be distorted by the effect of non-GAAP adjustments. We believe that such non-GAAP financial measures also provide useful information about our operating results, enhance the overall understanding of our past performance and prospects and allow for greater visibility with respect to key metrics used by our management in their financial and operational decision making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. It should not be considered in isolation or construed as alternatives to net loss or any other measure of performance or as an indicator of our operating performance. Investors are encouraged to review the historical non-GAAP financial measures considering the most directly comparable GAAP measures, as shown below. The non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD** |
| **GAAP net profit/(loss)** | **97046** | **(52388)** | **42710** | **6106** |
| Reconciliation item: |  |  |  |  |
| Add: |  |  |  |  |
| Share-based compensation, net of tax impact of nil |  |  |  |  |
| Fair value gains from financial assets at fair value through profit or loss, net of tax impact of nil | (36500) | 21248 | (3524) | (504) |
| Deemed dividend to Series C and Series C+ preferred shareholders at modification of Series C and Series C+ Preferred Shares, net of tax impact of nil |  |  |  |  |
| Other incomes |  |  | (50270) | (7188) |
| Other expenses |  |  | 4913 | 703 |
| Loss from disposal of equity investment | - | 59018 | - | - |
| **Non-GAAP adjusted net profit** | **60546** | **27878** | **(6171)** | **(883)** |
| Add: |  |  |  |  |
| Income tax (benefit)/expense | (30256) | 11090 | 7747 | 1108 |
| Depreciation | 8317 | 10070 | 11456 | 1638 |
| Amortization | 18559 | 16595 | 14935 | 2136 |
| Interest expense | 2176 | 3171 | 2602 | 372 |
| **Non-GAAP adjusted EBITDA** | **59342** | **68804** | **30569** | **4371** |

---

**Key Components of Results of Operations**

***Revenues***

We generated revenues from our vocational education services, HR recruitment services, employee management services and market services and solutions. The following table sets forth a breakdown of our revenues by business line, both by absolute amount and as a percentage of our total revenues for the periods indicated.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** | **2025** | **2025** | **2025** |
|  | **RMB** | **%** | **RMB** | **%** | **RMB** | **US$** | **%** |
|  | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* |
| Vocational education services | 179031 | 12.7 | 50029 | 3.2 | 45108 | 6451 | 2.4 |
| Employee management services | 1033837 | 72.9 | 1382580 | 87.2 | 1719620 | 245902 | 92.7 |
| HR recruitment services | 75479 | 5.3 | 24237 | 1.5 | 17694 | 2530 | 1 |
| Market services and solutions | 129700 | 9.1 | 128794 | 8.1 | 71880 | 10279 | 3.9 |
| **Total** | **1418047** | **100.0** | **1585640** | **100.0** | **1854302** | **265162** | **100.0** |
| **Less: revenues from the discontinued operations** | **52182** | **3.7** | **-** |  |  |  |  |
| **Revenues from the continuing operations** | **1365865** | **96.3** | **1585640** | **100.0** | **1854302** | **265162** | **100.0** |

---

We have provided vocational education services since our inception, and we usually charge the relevant service fee. The service fees are decided based on the size and fee level of the schools we provide service with.

We provide our corporate customers with comprehensive HR recruitment services and charge them service fees, which are mainly determined by the number of blue-collar talents we recruited and the fee level.

Our employee management services primarily include outsourcing services and other HR solutions. We charge our corporate customers service fees for outsourcing services, which are determined by several factors, including, among others, costs and expenses of the services, the industries and the competitive landscape.

We also provide blue-collar talents, students of school customers and corporate customers and other end customers with market services comprising sale of retail goods via online platform and value-added services, such as shopping services, catering services, student and blue-collar talents dormitory services and welfare services.

***Cost of revenues***

Our cost of sales primarily consists of (i) personnel costs; (ii) procurement costs, mainly including our costs of procuring third party recruitment services, the commodities and raw materials. The following table sets forth a breakdown of our cost of revenues by nature, both by absolute amount and as a percentage of our total revenues for the periods indicated.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** | **2025** | **2025** | **2025** |
|  | **RMB** | **%** | **RMB** | **%** | **RMB** | **US$** | **%** |
|  | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* |
| Personnel costs | 929097 | 65.5 | 949906 | 59.9 | 1049427 | 150066 | 56.6 |
| Procurement costs | 217504 | 15.3 | 336837 | 21.2 | 586131 | 83816 | 31.6 |
| Others | 45209 | 3.2 | 69768 | 4.4 | 26678 | 3815 | 1.4 |
| **Total** | **1191810** | **84.0** | **1356511** | **85.5** | **1662236** | **237697** | **89.6** |
| **Less: cost of revenues from the discontinued operations** | **26364** | **50.5** | **-** | **-** | **-** |  | **-** |
| **Cost of revenues from the continuing operations** | **1165446** | **85.3** | **1356511** | **85.5** | **1662236** | **237697** | **89.6** |

---

***Operating expenses***

Our operating expenses primarily consist of sales and distribution expenses, administrative expenses and research and development expenses. The following table sets forth the components of our operating expenses, both by absolute amount and as a percentage of our total revenues for the periods indicated.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** | **2025** | **2025** | **2025** |
|  | **RMB** | **%** | **RMB** | **%** | **RMB** | **US$** | **%** |
|  | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* |
| **Operating expenses** |  |  |  |  |  |  |  |
| Selling and marketing expenses | 98056 | 6.9 | 51867 | 3.3 | 79749 | 11404 | 4.3 |
| Administrative expenses | 129689 | 9.1 | 126705 | 8.0 | 88683 | 12682 | 4.8 |
| Research and development expenses | 12285 | 0.9 | 10017 | 0.6 | 16869 | 2412 | 0.9 |
| **Total** | **240030** | **16.9** | **188589** | **11.9** | **185301** | **26498** | **10.0** |
| **Less: operating expenses from the discontinued operations** | **20690** | **39.6** | **-** | **-** |  |  |  |
| **Operating expenses from the continuing operations** | **219340** | **16.1** | **188589** | **11.9** | **185301** | **26498** | **10.0** |

---

*Selling and marketing expenses.* Our selling and marketing expenses primarily consist of (1) personnel costs of our sales team; (2) marketing and promotion expenses paid to online channels for advertising; (3) office and rental fees; (4) travel expenses; and (5) depreciation and amortization.

*Administrative expenses.* Our administrative expenses primarily include (1) personnel costs of our administrative staff; (2) professional service fees relating to our financing and listing activities; (3) depreciation and amortization; (4) credit impairment losses and (5) office and other miscellaneous expenses.

*Research and development expenses.* Our research and development expenses mainly consist of (1) payroll expenses, (2) technologies service expenses related to platform development and data analysis to support our business operations, and (3) other expenses related to research and development functions.

**Taxation**

The following discussion of material Cayman Islands, Hong Kong and PRC tax consequences of an investment in our securities is based upon laws and relevant interpretations thereof in effect as of the date of this prospectus, all of which are subject to change. This discussion does not deal with all possible tax consequences relating to an investment in our securities, such as the tax consequences under United States state and local tax laws or under the tax laws of jurisdictions other than the Cayman Islands, PRC, and the United States.

***Cayman Islands***

The Cayman Islands currently levies no taxes on individuals or corporations based upon profits, income, capital gains or appreciation and there is no taxation in inheritance tax or estate duty. There are no other taxes likely to be material to us levied by the government of the Cayman Islands except for stamp duties which may be applicable on instruments executed in or brought within the jurisdiction of the Cayman Islands. In addition, the Cayman Islands does not impose withholding tax on payments of dividends.

***Hong Kong***

Under the current Hong Kong Inland Revenue Ordinance, our subsidiaries incorporated in Hong Kong are subject to 16.5% Hong Kong profit tax on their taxable income generated from operations in Hong Kong. Additionally, payments of dividends by our subsidiaries incorporated in Hong Kong are not subject to any Hong Kong withholding tax.

***PRC***

Generally, our subsidiaries incorporated in China are subject to enterprise income tax on their worldwide taxable income as determined under PRC tax laws and accounting standards at a rate of 25%. One of our PRC subsidiaries is entitled to a favorable statutory tax rate of 15% for the three years from 2021 to 2024 because of its qualification as a "High and New Technology Enterprise." Such qualification lapsed in 2025, and the subsidiary is no longer entitled to the 15% preferential tax rate.

Dividends paid by our wholly foreign-owned subsidiary in China to our intermediary holding company in Hong Kong will be subject to a withholding tax rate of 10%, unless the relevant Hong Kong entity satisfies all the requirements under the Arrangement between the Mainland of China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and receives approval from the relevant tax authority. If our Hong Kong subsidiary satisfies all the requirements under the tax arrangement and receives approval from the relevant tax authority, then the dividends paid to the Hong Kong subsidiary would be subject to withholding tax at the standard rate of 5%.

**Results of Operations**

The following table sets forth a summary of our results of operations for the periods presented.

In January 2024, we completed our reorganization and discontinued operations of some of our business operations. In accordance with ASC 205-20-45, the results of all discontinued operations, less applicable income taxes, are reported as components of net income (loss) separate from the net loss of continuing operations for 2023, 2024 and 2025, as comparative statements of operations.

This information should be read together with our consolidated financial statements and related notes included elsewhere in this prospectus. Our results of operations in any period are not necessarily indicative of our future trends.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD** |
| **Revenue** | 1365865 | 1585640 | 1854302 | 265162 |
| &nbsp;&nbsp;&nbsp;Cost of revenue | (1165446) | (1356511) | (1662236) | (237697) |
| **Gross profit** | **200419** | **229129** | **192066** | **27465** |
| &nbsp;&nbsp;&nbsp;**Operating expenses** |  |  |  |  |
| Selling and distribution expenses | (91688) | (51867) | (79749) | (11404) |
| Administrative expenses | (115367) | (126705) | (88683) | (12682) |
| Research and development expenses | (12285) | (10017) | (16869) | (2412) |
| **Total operating expenses** | **(219340)** | **(188589)** | **(185301)** | **(26498)** |
| **(Loss)/income from operations** | **(18921)** | **40540** | **6765** | **967** |
| **Other income/(expense)** |  |  |  |  |
| Fair value gains/(losses) | 36500 | (21248) | 3524 | 504 |
| Other incomes | 2815 | 11611 | 50270 | 7188 |
| Other expenses | (2220) | (422) | (4913) | (703) |
| Gain/(loss) on dissolution of subsidiaries and branches | 29312 | (8820) | 4844 | 693 |
| Loss from disposal of equity investment |  | (59018) |  |  |
| Financial income/(expenses), net | 1530 | (3941) | (10033) | (1435) |
| **Total other income/(expense), net** | **67937** | **(81838)** | **43692** | **6247** |
| **(LOSS)/PROFIT BEFORE TAX** | **49016** | **(41298)** | **50457** | **7214** |
| Income tax (expenses)/benefits | 30256 | (11090) | (7747) | (1108) |
| **Net profit/(loss) for the year from continuing operations** | **79272** | **(52388)** | **42710** | **6106** |
| Net profit/(loss) from discontinued operations | 17774 |  |  |  |
| Net profit/(loss) attribute to non-controlling interests | (2217) | (12) | (372) | (53) |
| **Net profit/(loss) attribute to ordinary shareholders** | **99263** | **(52376)** | 43082 | 6159 |
| **Non-GAAP Financial Data<sup>(1)</sup>** |  |  |  |  |
| Adjusted net (loss)/profit | 60546 | 27878 | (6171) | (883) |
| Adjusted EBITDA | 59342 | 68804 | 30569 | 4371 |

---

(1) See "—Non-GAAP
 Financial Measures."

***Year ended December 31, 2025, compared to year ended December 31, 2024***

*Revenues*

Our revenues increased by 16.9% from RMB1,585.6 million in 2024 to RMB1,854.3 million (US$265.2 million) in 2025, with increases in revenues generated from employee management services as the mainly driven to the increase. The following table sets forth a breakdown of our revenues, each expressed in the absolute amount and as a percentage of our total revenues, for the periods indicated.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **Variance** | **Variance** |
|  | **2024** | **2024** | **2025** | **2025** | **2025** | | |
|  | **RMB** | **%** | **RMB** | **US$** | **%** | **Amount**<br>**RMB** |<br>**%** |
|  | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* |  |  |
| Vocational education services | 50029 | 3.2 | 45108 | 6451 | 2.4 | (4921) | (9.8) |
| Employee management services | 1382580 | 87.2 | 1719620 | 245902 | 92.7 | 337040 | 24.4 |
| HR recruitment services | 24237 | 1.5 | 17694 | 2530 | 1 | (6543) | (27.0) |
| Market Services | 128794 | 8.1 | 71880 | 10279 | 3.9 | (56914 | (44.2) |
| **Total** | **1585640** | **100.0** | **1854302** | **265162** | **100.0** | **268662** | **16.9** |
| **Less: revenues from the discontinued operations** | **-** | **-** | - | - | - | - | - |
| **Revenues from the continuing operations** | **1585640** | **100.0** | **1854302** | **265162** | **100.0** | **268662** | **16.9** |

---

*Vocational education services*. Revenues generated from vocational education services decreased by 9.8% from RMB50.0 million in 2024 to RMB45.1 million (US$6.4 million) in 2025, primarily due to the discontinuation of a minor service in 2025, which had the long-term payback period.

*Employee management services*. Revenues generated from employee management services increased by 24.4% from RMB1,382.6 million in 2024 to RMB1719.6 million (US$245.9 million) in 2025, primarily due to (1) the increase of our corporate customers and their growing demands of blue-collar labors, which was attributable to comprehensive adjustments and optimizations we have achieved on business control and development under fully utilizing our mix business model of blue-collar lifecycle value chain service; and (2) greater likelihood that our target customers are focusing on new economy industries with high customer value and large scale of outsourcing services demands.

*HR recruitment services*. Revenues generated from HR recruitment services decreased by 27.0% from RMB24.2 million in 2024 to RMB17.7 million (US$2.5 million) in 2025, primarily due to (1) the decrease in our average service fee as our large-scale corporate customers would choose multi-settlement of high fluidity jobs; and (2) the disposal of part of our HR recruitment services with the discontinued operations.

*Marketing services*. Revenues generated from marketing services decreased by 44.2% from RMB128.8 million in 2024 to RMB71.9 million (US$10.3 million) in 2025, primarily due to the discontinuation of a minor service in 2025.

*Cost of revenues*

Our cost of revenues increased by 23.4% from RMB1,356.5 million in 2024 to RMB1662.2 million (US$237.7 million) in 2025, in line with the growth of our business scale. The following table sets forth a breakdown of our cost of revenues, each expressed in the absolute amount and as a percentage of our total revenues, for the periods indicated.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **Variance** | **Variance** |
|  | **2024** | **2024** | **2025** | **2025** | **2025** | | |
|  | **RMB** | **%** | **RMB** | **US$** | **%** | **Amount**<br>**RMB** |<br>**%** |
|  | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* |  |  |
| Personnel costs | 949906 | 59.9 | 1049427 | 150066 | 56.6 | 99521 | 10.5 |
| Procurement costs | 336837 | 21.2 | 586131 | 83816 | 31.6 | 249294 | 74.0 |
| Others | 69768 | 4.4 | 26678 | 3815 | 1.4 | (43090) | (61.8) |
| **Total** | **1356511** | **85.5** | **1662236** | **237697** | **89.6** | **305725** | **22.5** |
| **Less: cost of revenues from the discontinued operations** | **-** | **-** | - | - | - | - | - |
| **Cost of revenues from the continuing operations** | **1356511** | **85.5** | **1662236** | **237697** | **89.6** | **305725** | **22.5** |

---

Costs related to personnel procurement costs increased by 10.5% from RMB949.9 million in 2024 to RMB1,049.4 million (US$150.1 million) in 2025. Costs related to Procurement costs increased by 74.0% from RMB336.8 million in 2024 to RMB586.1 million (US$83.8 million) in 2025. Both the variance of personnel costs and procurement costs are primarily because we acquired more clients, which was in line with the revenue increase.

*Gross profits and margin*

Our gross margin decreased from 14.5% in 2024 to 10.4% in 2025, primarily because we discontinued part of Vocational education services, while expanding cooperation with key strategic clients in employee management service.

*Operating expenses*

Our operating expenses decreased from RMB188.6 million in 2024, to RMB185.3 million (US$26.5 million) in 2025, representing a decrease of 1.7%. The following table sets forth a breakdown of our cost of revenues, each expressed in the absolute amount and as a percentage of our total revenues, for the periods indicated.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **Variance** | **Variance** |
|  | **2024** | **2024** | **2025** | **2025** | **2025** | | |
|  | **RMB** | **%** | **RMB** | **US$** | **%** | **Amount**<br>**RMB** |<br>**%** |
|  | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* |  |  |
| Selling and distribution expenses | 51867 | 3.3 | 79749 | 11404 | 4.3 | 27882 | 53.8 |
| Administrative expenses | 126705 | 8.0 | 88683 | 12682 | 4.8 | (38022) | (30.0) |
| Research and development expenses | 10017 | 0.6 | 16869 | 2412 | 0.9 | 6852 | 68.3 |
| **Total operating expenses** | **188589** | **11.9** | **185301** | **26498** | **10.0** | **(3288)** | **(1.7)** |
| **Less: operating expenses from the discontinued operations** | **-** | **-** | - | - | - | - | - |
| **Operating expenses from the continuing operations** | **188589** | **11.9** | **185301** | **26498** | **10.0** | **(3288)** | **(1.7)** |

---

*Selling and marketing expenses*. Our selling and marketing expenses increased by 53.8% from RMB51.9 million in 2024 to RMB79.7 million (US$11.4 million) in 2025, primarily because we developed a number of strategic clients.

 

*Administrative expenses*. Our administrative expenses decreased by 30.0% from RMB126.7 million in 2024 to RMB88.7 million (US$12.7 million) in 2025, primarily due to cost-saving measures, including the streamlining of certain management departments and a reduction in rental expenses.

*Research and development expenses*. Our research and development expenses increased by 68.4% from RMB10.0 million in 2024 to RMB16.9 million (US$2.4 million) in 2025, primarily due to increased R&D investment in innovative fields, such as industrial robotics.

*(Loss)/income from operations*

As a result of the foregoing, we recorded profits from operations of RMB6.8 million (US$0.9 million) in 2025, compared with profits from operation of RMB40.5million in 2024, primarily due to our business development efforts and increased efficiency.

*Other income/(expense), net*

We incurred other expense, net of RMB81.8 million and other income, net of RMB43.7 million (US$6.2 million) in 2024 and 2025, respectively, primarily due to the restructuring of low-profit business and subsidiaries and other gain or loss.

*Income taxes*

Our income tax expenses decreased from RMB11.1 million in 2024 to RMB7.7 million (US$1.1 million) in 2025, primarily due to the increase of net profit and deferred tax assets.

*Net profit/(loss)*

As a result of the foregoing, we recorded net profit of RMB42.7 million (US$6.1 million) in 2025, compared to net loss of RMB52.4 million in 2024.

***Year ended December 31, 2024, compared to year ended December 31, 2023***

*Revenues*

Our revenues increased by 16.9% from RMB1,585.6 million in 2024 to RMB1,854.3 million (US$265.2 million) in 2025, with increases in revenues generated from employee management services as the mainly driven to the increase. The following table sets forth a breakdown of our revenues, each expressed in the absolute amount and as a percentage of our total revenues, for the periods indicated:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **Variance** | **Variance** |
|  | **2024** | **2024** | **2025** | **2025** | **2025** | **Amount** | |
|  | **RMB** | **%** | **RMB** | **US$** | **%** | **RMB** |<br>**%** |
|  | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* |  |  |
| Vocational education services | 50029 | 3.2 | 45108 | 6451 | 2.4 | (4921) | (9.8) |
| Employee management services | 1382580 | 87.2 | 1719620 | 245902 | 92.7 | 337040 | 24.4 |
| HR recruitment services | 24237 | 1.5 | 17694 | 2530 | 1 | (6543) | (27.0) |
| Market Services | 128794 | 8.1 | 71880 | 10279 | 3.9 | (56914 | (44.2) |
| **Total** | **1585640** | **100.0** | **1854302** | **265162** | **100.0** | **268662** | **16.9** |
| **Less: revenues from the discontinued operations** | **-** | **-** | - | - | - | - | - |
| **Revenues from the continuing operations** | **1585640** | **100.0** | **1854302** | **265162** | **100.0** | **268662** | **16.9** |

---

*Vocational education services*. Revenues generated from vocational education services decreased by 9.8% from RMB50.0 million in 2024 to RMB45.1 million (US$6.4 million) in 2025, primarily due to the discontinuation of a minor service in 2025, which had the long-term payback period.

*Employee management services*. Revenues generated from employee management services increased by 24.4% from RMB1,382.6 million in 2024 to RMB1,719.6 million (US$245.9 million) in 2025, primarily due to (1) the increase of our corporate customers and their growing demands of blue-collar labors, which was attributable to comprehensive adjustments and optimizations we have achieved on business control and development under fully utilizing our mix business model of blue-collar lifecycle value chain service; and (2) greater likelihood that our target customers are focusing on new economy industries with high customer value and large scale of outsourcing services demands.

 

*HR recruitment services*. Revenues generated from HR recruitment services decreased by 27.0% from RMB24.2 million in 2024 to RMB17.7 million (US$2.5 million) in 2025, primarily due to (1) the decrease in our average service fee as our large-scale corporate customers would choose multi-settlement of high fluidity jobs; and (2) the disposal of part of our HR recruitment services with the discontinued operations.

 

*Marketing services*. Revenues generated from marketing services decreased by 44.2% from RMB128.8 million in 2024 to RMB71.9 million (US$10.3 million) in 2025, primarily due to the discontinuation of a minor service in 2025.

*Cost of revenues*

Our cost of revenues increased by 23.4% from RMB1,356.5 million in 2024 to RMB1,662.2 million (US$237.7 million) fin 2025, in line with the growth of our business scale. The following table sets forth a breakdown of our cost of revenues, each expressed in the absolute amount and as a percentage of our total revenues, for the periods indicated:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **Variance** | **Variance** |
|  | **2024** | **2024** | **2025** | **2025** | **2025** | **Amount** | |
|  | **RMB** | **%** | **RMB** | **US$** | **%** | **RMB** |<br>**%** |
|  | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* |  |  |
| Personnel costs | 949906 | 59.9 | 1049427 | 150066 | 56.6 | 99521 | 10.5 |
| Procurement costs | 336837 | 21.2 | 586131 | 83816 | 31.6 | 249294 | 74.0 |
| Others | 69768 | 4.4 | 26678 | 3815 | 1.4 | (43090) | (61.8) |
| **Total** | **1356511** | **85.5** | **1662236** | **237697** | **89.6** | **305725** | **22.5** |
| **Less: cost of revenues from the discontinued operations** | **-** | **-** | - | - | - | - | - |
| **Cost of revenues from the continuing operations** | **1356511** | **85.5** | **1662236** | **237697** | **89.6** | **305725** | **22.5** |

---

Costs related to personnel procurement costs increased by 10.5% from RMB949.9 million in 2024 to RMB1,049.4 million (US$150.1 million) in 2025. Costs related to Procurement costs increased by 74.0% from RMB336.8 million in 2024 to RMB586.1 million (US$83.8 million) in 2025. Both the variance of personnel costs and procurement costs are primarily because we acquired more clients, which was in line with the revenue increase.

*Gross profits and margin*

Our gross margin decreased from 14.5% in 2024 to 10.4% in 2025, primarily because we discontinued part of Vocational education services, while expanding cooperation with key strategic clients in employee management service.

*Operating expenses*

Our operating expenses decreased from RMB188.6 million in 2024, to RMB185.3 million (US$26.5 million) in 2025, representing a decrease of 1.7%. The following table sets forth a breakdown of our cost of revenues, each expressed in the absolute amount and as a percentage of our total revenues, for the periods indicated:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **Variance** | **Variance** |
|  | **2024** | **2024** | **2025** | **2025** | **2025** | **Amount** | |
|  | **RMB** | **%** | **RMB** | **US$** | **%** | **RMB** |<br>**%** |
|  | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* | *(in thousands, except for percentages)* |  |  |
| Selling and distribution expenses | 51867 | 3.3 | 79749 | 11404 | 4.3 | 27882 | 53.8 |
| Administrative expenses | 126705 | 8.0 | 88683 | 12682 | 4.8 | (38022) | (30.0) |
| Research and development expenses | 10017 | 0.6 | 16869 | 2412 | 0.9 | 6852 | 68.3 |
| **Total operating expenses** | **188589** | **11.9** | **185301** | **26498** | **10.0** | **(3288)** | **(1.7)** |
| **Less: operating expenses from the discontinued operations** | **-** | **-** | - | - | - | - | - |
| **Operating expenses from the continuing operations** | **188589** | **11.9** | **185301** | **26498** | **10.0** | **(3288)** | **(1.7)** |

---

*Selling and marketing expenses*. Our selling and marketing expenses increased by 53.8% from RMB51.9 million in 2024 to RMB79.7 million (US$11.4 million) in 2025, primarily because we developed a number of strategic clients.

*Administrative expenses*. Our administrative expenses decreased by 30.0% from RMB126.7 million in 2024 to RMB88.7 million (US$12.7 million) in 2025, primarily due to cost-saving measures, including the streamlining of certain management departments and a reduction in rental expenses.

*Research and development expenses*. Our research and development expenses increased by 68.4% from RMB10.0 million in 2024 to RMB16.9 million (US$2.4 million) in 2025, primarily due to increased R&D investment in innovative fields, such as industrial robotics.

*(Loss)/income from operations*

As a result of the foregoing, we recorded profits from operations of RMB6.8 million (US$0.9 million) in 2025, compared with profits from operation of RMB40.5million in 2024, primarily due to our business development efforts and increased efficiency.

*Other income/(expense), net*

We incurred other incomes, net of RMB81.8 million and other income, net of RMB43.7 million (US$6.2 million) in 2024 and 2025, respectively, primarily due to the restructuring of low-profit business and subsidiaries and other gain or loss.

*Income taxes*

Our income tax expenses decreased from RMB11.1 million in 2024 to RMB7.7 million (US$1.1 million) in 2025, primarily due to the increase of net profit and deferred tax assets.

*Net profit/(loss)*

As a result of the foregoing, we recorded net profit of RMB42.7 million (US$6.1 million) in 2025, compared to net loss of RMB52.4 million in 2024.

**Liquidity and Capital Resources**

Our cash and cash equivalents consist of cash on hand, demand deposit.

The following table sets forth a summary of our cash flow for the year presented:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD** |
| Net cash provided by operating activities | 11501 | 6263 | 11994 | 1714 |
| Net cash used in investing activities | (22605) | (10876) | (98539) | (14091) |
| Net cash provided by (used in) financing activities | (231838) | (54305) | 104182 | 14898 |
| Effect of foreign exchange rate changes, net | 2931 | 24 | 51 | 7 |
| Net increase/(decrease) in cash and cash equivalents | (240011) | (58894) | 17688 | 2528 |
| **Cash and cash equivalents, beginning of the year** | **428961** | **185425** | **126531** | **18094** |
| **Cash and cash equivalents, ended of the year** | **188950** | **126531** | **144219** | **20622** |
| Less: cash and cash equivalents at end of the year from discontinued operations | 3525 |  |  |  |
| **Cash and cash equivalents at end of the year from continuing operations** | **185425** | **126531** | **144219** | **20622** |

---

We believe that our current cash and cash equivalents and our anticipated cash flows from operations will be sufficient to meet our anticipated working capital requirements and capital expenditures for at least the next 12 months. After this offering, we may decide to enhance our liquidity position or increase our cash reserve for future investments through additional capital and finance funding. The issuance and sale of additional equity would result in further dilution to our shareholders. The incurrence of indebtedness would result in increased fixed obligations and could result in operating covenants that would restrict our operations. We cannot assure you that financing will be available in amounts or on terms acceptable to us, if at all.

***Operating activities***

Our net cash provided by operating activities in 2025 was RMB11.9 million (US$1.7 million), primarily due to our net profit of RMB42.7 million (US$6.1 million), as adjusted to reflect certain non-cash or non-operating activities related items, which primarily included (1) reversal of credit loss of other receivables and (2) gain from disposal of equity investment.

Our net cash provided by operating activities in 2024 was RMB6.3 million, primarily due to our net loss of RMB52.4 million, as adjusted to reflect certain non-cash or non-operating activities related items, which primarily included fair value losses from financial assets at fair value through profit or loss of RMB21.2 million and loss from disposal of equity investment of RMB59.1 million. Changes in the working capital mainly included (1) a decrease in accounts payables of RMB32.0 million; (2) an increase in other payables and accruals of RMB29.4 million; and (3) a decrease in contract liabilities of RMB19.3 million.

Our net cash provided by operating activities in 2023 was RMB11.5 million, primarily due to our net profit of RMB79.3 million, as adjusted to reflect certain non-cash or non-operating activities related items, which primarily included fair value gains from financial assets at fair value through profit or loss of RMB36.5 million. Changes in the working capital mainly included (1) an increase of RMB140.8 million in trade receivables; (2) an increase in contract liability of RMB36.6 million; (3) an increase in other payables and accruals of RMB82.4 million; and (4) principle of lease payments of RMB8.1 million and the net cash provided by operating activities from discontinued operations of RMB1.2 million.

***Investing activities***

Our net cash used in investing activities in 2025 was RMB98.5 million (US$14.1 million), primarily due to long-term investment.

Our net cash used in investing activities in 2024 was RMB10.9 million, primarily due to (1) net cash paid for business acquisitions of RMB9.6 million, and (2) cash used in purchase of items of property and equipment of RMB1.1 million.

Our net cash used in investing activities in 2023 was RMB22.6 million, primarily due to (1) cash used in purchase of items of property and equipment of RMB94.7 million; (2) cash used in purchase of intangible assets of RMB8.7 million; and (3) cash received of short-term investment of RMB84.2 million and the net cash used in investing activities from discontinued operations of RMB3.5 million.

***Financing activities***

Our net cash provided by financing activities in 2025 was RMB104.2 million (US$14.9 million), primarily due to (1) proceed from PIPE investors and (2) payment for listing expenses.

Our net cash used in financing activities in 2024 was RMB54.3 million, primarily due to repayment of advances from third parties of RMB58.6 million.

Our net cash used in financing activities in 2023 was RMB231.8 million, primarily due to (1) repayment of advances from third parties of RMB96.5 million; and (2) repayment of bank and other borrowings of RMB9.0 million and the net cash used in financing activities from discontinued operations of RMB115.2 million.

**Material Cash Requirements**

Our material cash requirements as of December 31, 2025, and any subsequent period primarily included our capital expenditures and contractual obligations.

***Capital Expenditures***

We did not incur capital expenditure in 2024 and 2025. Capital expenditure primarily represents capital payment to the new vocational facility. We will continue to make capital expenditures to meet the expected growth of our business. We intend to fund our future capital expenditure with our existing cash balance and proceed with this offering.

***Contractual Obligations***

The following table sets forth our contractual obligations as of December 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
| **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** |
|  | **Total** | **Within<br> One Year** | **More Than<br> One Year** |
|  | *(RMB in thousands)* | *(RMB in thousands)* | *(RMB in thousands)* |
| Operating lease obligation | 32284 | 8173 | 24111 |

---

Other than as shown above, we did not have any other significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2025.

**Internal Control over Financial Reporting**

In the course of auditing our consolidated financial statements as of and for the year ended December 31, 2025, we identified one material weakness in our internal control over financial reporting as of December 31, 2025. As defined in the standards established by the PCAOB, a "material weakness" is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our company's annual or interim consolidated financial statements will not be prevented or detected on a timely basis.

The material weakness identified is related to our lack of sufficient financial reporting and accounting personnel with appropriate knowledge of U.S. GAAP and SEC reporting requirements to properly address complex U.S. GAAP accounting issues and related disclosures. Neither we nor our independent registered public accounting firm undertook a comprehensive assessment of our internal control for purpose of identifying and reporting material weaknesses and other deficiencies in our internal control over financial reporting. Had we performed a formal assessment of our internal control over financial reporting or had our independent registered public accounting firm performed an audit of our internal control over financial reporting, additional deficiencies may have been identified.

We have taken, and are taking, certain actions to remediate the material weakness related to our lack of U.S. GAAP and SEC reporting experience. We engaged a consultant with U.S. GAAP knowledge and experience to supplement our current internal accounting personnel and assist us in the preparation of our financial statements to ensure that our financial statements are prepared in accordance with U.S. GAAP. We also engaged an internal control consulting firm in 2024 to review, test and improve our internal accounting controls and internal control over financial reporting. We have adopted and are implementing policies, procedures and practices recommended in the report of the consultant and have arranged training of internal control for our employees and management on disclosure controls and procedures. We continue to make efforts to implementing our existing and newly adopted procedures to improve our disclosure controls and internal controls over financing reporting.

However, we cannot assure you that we will remediate our material weakness in a timely manner. The process of designing and implementing an effective financial reporting system is a continuous effort that requires us to anticipate and react to changes in our business and the economic and regulatory environments and to expend significant resources to maintain a financial reporting system that is adequate to satisfy our reporting obligation. See "Risk Factors —Risks Relating to Our Operations—If we fail to implement and maintain effective internal controls to remediate the material weaknesses over financial reporting, we may be unable to accurately report our results of operations, meet our reporting obligations or prevent fraud, and investor confidence and the market price of the Class A Ordinary Shares may be materially adversely affected."

As a company with less than US$1.235 billion in revenue for the last year, we qualify as an "emerging growth company" pursuant to the JOBS Act. An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. These provisions include exemption from the auditor attestation requirement under Section 404 of the Sarbanes-Oxley Act of 2002 in the assessment of the emerging growth company's internal control over financial reporting.

**Off-Balance Sheet Commitments and Arrangements**

We have not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties. In addition, we have not entered into any derivative contracts that are indexed to our shares and classified as shareholders' equity or that are not reflected in our consolidated and combined financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity, or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk, or credit support to us or engages in leasing, hedging, or product development services with us.

**Holding Company Structure**

Youlife Group Inc. is a holding company with no material operations of our own. We conduct our operations primarily through our PRC subsidiaries in China. As a result, although other means are available for us to obtain financing at the holding company level, our ability to pay dividends to the shareholders and to service any debt we may incur may depend upon dividends paid by our PRC subsidiaries.

If our existing PRC subsidiaries or any newly formed ones incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends to us. In addition, our wholly foreign-owned subsidiaries in China are permitted to pay dividends to us only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Under PRC law, each of our PRC subsidiaries in China is required to set aside at least 10% of its after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of their registered capital. In addition, our wholly foreign-owned subsidiaries in China may allocate a portion of their after-tax profits based on PRC accounting standards to enterprise expansion funds and staff bonus and welfare funds at their discretion. Statutory reserve funds and discretionary funds are not distributable as cash dividends. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated by SAFE. Our PRC subsidiaries have not paid dividends and will not be able to pay dividends until they generate accumulated profits and meet the requirements for statutory reserve funds.

**Quantitative and Qualitative Disclosures about Market Risk**

***Currency risk***

Currency risk arises from the possibility that fluctuations in foreign exchange rates will impact the financial instruments. We are not exposed to significant transactional foreign currency risk since we usually recognize revenues and purchases in RMB. At the same time, we are not exposed to translational foreign currency risk since most operating subsidiaries are in the PRC, which has RMB as the functional currency.

***Credit Risk***

The carrying amounts of cash and bank balances, trade receivables, financial assets included in prepayments, other receivables and other assets, and financial assets included in other non-current assets included in the consolidated statements of financial position represent our maximum exposure to credit risk in relation to its financial assets as of December 31, 2023, 2024 and 2025. We classify financial instruments based on shared credit risk characteristics, such as instrument types and credit risk ratings for the purpose of determining significant increases in credit risk and calculation of impairment.

 ****

*Cash and cash balances* 

As of December 31, 2023, 2024 and 2025, all cash and bank balances were deposited in high-credit-quality financial institutions without significant credit risk. These financial assets were not yet past due, and their credit exposure is classified as stage 1.

*Account receivable* 

To manage the risk arising from trade receivables, we have policies in place to ensure that credit terms are made only to counterparties with an appropriate credit history and management performs ongoing credit evaluations of our counterparties. The credit period granted to the customers is generally within 30 days to 90 days and the credit quality of these customers is assessed, considering their financial position, experience and other factors. We also have other monitoring procedures to ensure that follow-up action is taken to recover overdue receivables. In addition, we review regularly the recoverable amount of trade receivables to ensure that adequate impairment losses are made. We have no significant concentrations of credit risk, with exposure spread over many counterparties and customers.

*Other receivables*

Management makes periodic collective assessments for other receivables as well as individual assessment on the recoverability of other receivables based on historical settlement records and experience. We recognized allowance for these financial assets based on lifetime ECLs and adjusted for forward-looking macroeconomic data.

 **

***Liquidity Risk***

 **

Liquidity risk is the risk that we will encounter difficulty in meeting financial obligations due to shortage of funds. Our exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. Our objective is to maintain a balance for continuity of funding to finance its working capital needs as well as capital expenditure.

*Long-term investment*

We have elected to apply the NAV practical expedient under ASC 820-10-15-4 to measure the fair value of this investment. The investment represents an equity interest in a segregated portfolio of an SPC fund and meets the eligibility criteria. Accordingly, the investment is excluded from the Level 1/2/3 fair value hierarchy, no additional independent valuation support is required, and disclosures will be provided in accordance with ASC 820-10-50-6A through 50-6B. The investment is subject to a mandatory 10-year lock-up period, which represents a restriction on redemption. The investment was made in May 2025.

**Critical Accounting Policies and Estimates**

We prepare our financial statements in conformity with U.S. GAAP, which requires us to make judgments, estimates and assumptions. We continually evaluate these estimates and assumptions based on the most recently available information, our own historical experiences and various other assumptions that we believe to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from our expectations because of changes in our estimates. Some of our accounting policies require a higher degree of judgment than others in their application and require us to make significant accounting estimates.

The following descriptions of critical accounting policies, judgments and estimates should be read in conjunction with our consolidated financial statements and accompanying notes and other disclosures included in this prospectus. When reviewing our financial statements, you should consider (1) our selection of critical accounting policies, (2) the judgments and other uncertainties affecting the application of such policies and (3) the sensitivity of reported results to changes in conditions and assumptions.

***Valuation allowance of deferred tax assets***

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all the deferred tax assets will not be realized. We consider all available evidence, both positive and negative, when determining whether a valuation allowance is needed. Factors considered include the nature, timing and amount of current and cumulative losses, nature, timing and amount of future taxable income, statutory carry-forward periods, experience with tax attributes expiring unused, and current economic information.

As of December 31, 2023, 2024 and 2025, the valuation allowance for deferred tax assets were RMB60.7 million, RMB40.5 million and RMB42.4 million (US$6.1 million), respectively, because they did not meet the "more likely than not" criteria as defined by the recognition and measurement provisions of FASB ASC Topic 740, Income Taxes. As of December 31, 2023, 2024 and 2025, we had net deferred tax assets, after valuation allowance RMB35.5 million, RMB38.9 million and RMB32.6 million (US$4.7 million), respectively. The ultimate realization of deferred tax assets is dependent upon the Company's ability to generate sufficient future taxable income within the carry-forward periods provided for in the tax law and during the periods in which the temporary differences become deductible. Changes in our assumptions and estimates would affect these balances, our effective income tax rate and cash flows.

***Allowance for expected credit losses***

The allowance for expected credit losses ("ECL") is a valuation account that is deducted from the amortized cost basis of financial assets to present the net amount expected to be collected on the financial assets. We adopt ASC Topic 326, "Financial Instruments — Credit Losses", for credit loss assessment using the modified retrospective approach for all in-scope assets. The Group's in-scope assets are primarily account receivables and other receivables.

For ECL of accounts receivables, we identify the relevant risk characteristics of customers and related receivables, which include size, types of services we provide, or a combination of these characteristics. Account receivables with similar risk characteristics are grouped into pools. For each pool, we consider the historical credit loss experience, the age of the accounts receivable balances, credit quality of the customers, current economic conditions and supportable forecasts of future economic conditions in assessing the ability to collect from customers.

For ECL of other receivables, the balance mainly consists of several large receivables which do not share similar risk characteristics with each other. We evaluate ECL on an individual basis. We consider factors including counterparties' credit rating and repayment ability. The repayment ability depends on their performance and business sustainability which are affected by future economic conditions.

The factors considered for ECL evaluation may differ from management's initial estimates so that the amount of ECL changes accordingly and impact on our operating results and financial position. As of December 31, 2023, 2024 and 2025, the allowance for credit loss of accounts receivables were RMB20.7 million, RMB22.6 million and RMB25.9 million(US$3.7 million), respectively. And the allowance for credit loss of other receivables were RMB42.6 million, RMB28.6 million and RMB2.9 million(US$0.4 million), respectively.

**Recently Issued Accounting Pronouncements**

A list of recently issued accounting pronouncements that are relevant to us is included in our consolidated financial statements included elsewhere in this prospectus.

**MANAGEMENT**

**Directors and Senior Management**

In November 2025, Mr. Lidong Zhu resigned as a director of the board of directors of our company (the "Board") and the chief financial officer of our company, and Ms. Liqun Yao agreed to be and was appointed as a new director of the Board and the acting chief financial officer of our company.

In November 2025, Mr. Clement Ka Hai Hung resigned as an independent director of the Board and from all his positions with the committees of the Board, and Mr. Jianming Yan agreed to be and was appointed as a new independent director of the Board, a member and the chairman of the audit committee of the Board, a member of the compensation committee of the Board, and a member of the nominating and corporate governance committee of the Board.

In April 2026, Mr. Tianshi Yang was appointed as the Chief Strategy Officer of our company by the Board. In the same month, Ms. Liqun Yao was promoted to be the Chief Financial Officer of our company by the Board.

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Yunlei Wang | 50 | Chairman of the Board, Executive Director and Chief Executive Officer |
| Liqun Yao | 44 | Director, Chief Financial Officer |
| Xiaolin Gou | 51 | Director and Senior Vice President |
| Tianshi Yang | 36 | Chief Strategy Officer |
| Yunqiu Dai | 36 | Director |
| Jianming Yan | 46 | Independent Director |
| Yeeli Hua Zheng | 55 | Independent Director |
| Huifang Cheng | 73 | Independent Director |

---

***Our Executive Officers and Directors***

*Mr. Yunlei Wang* has served as a director, Chairman of the Board, and Chief Executive Officer of Youlife International since July 2014 and of our company since its incorporation. Prior to the foundation of Youlife International in July 2014, he founded the predecessor of our Group, Wenzhou Yunlei, in January 2008. He served as a senior manager of the human resources department of Tsingshan Holding Group Company Limited from March 2004 to January 2008, primarily responsible for human resources management of the group. From September 1996 to February 2004, he successively worked at Anyue Heyi Township Junior Middle School Anyue Lijia Senior Middle School and Anyue Vocational and echnical Education Center as a Chinese teacher. Mr. Wang obtained a bachelor's degree in Chinese language and literature from Central Radio and Television University in July 2004 and an executive master of business administration degree from Cheung Kong Graduate School of Business in September 2016. Mr. Wang also completed the executive master of business administration program of Tsinghua University in May 2009.

*Ms. Liqun Yao* has served as a director of the Board, the Acting Chief Financial Officer of the Company since November 2025, and the Chief Financial Officer of the Company since April 2026. She has been the general manager of the finance department of a PRC subsidiary of the Company since August 2021. Prior to joining the Company, Ms. Yao served as the finance director at Shanghai Yuyuan Tourist Mart Co., Ltd. from August 2015 to July 2021, where she was comprehensively responsible for budgeting, internal controls, and team development. Ms. Yao worked as a senior auditor at PricewaterhouseCoopers Zhong Tian Certified Public Accountants LLP from February 2011 to August 2015. She has extensive experience in investment and M&A, having led financial due diligence, risk analysis, and post-investment integration for multiple major acquisition projects. Ms. Yao received her master's degree in accounting from Dongbei University of Finance and Economics in 2007 and is a Certified Public Accountant in the PRC.

*Mr. Xiaolin Gou* has served as a director and Senior Vice President of Youlife International since May 2017 and of our company since its incorporation. Prior to that, he served as the chief executive officer of Beijing Zhongfa Zhixun Technology Development (Group) Co., Ltd. from March 2016 to April 2017, a company mainly engaged in cultural tourism real estate and intelligent manufacturing, where he was in charge of formulating corporate strategies, business management and organizational development. From April 2014 to February 2016, he served as the vice president of Mango Net Co., Ltd., a company mainly engaging in tourism, where he was responsible for management of Internet products, technology development and operation. Mr. Gou obtained a bachelor's degree in automation from Yanshan University in July 1998 and a master's degree in business administration from University of Wales in December 2012.

*Mr. Tianshi Yang* has more than 12 years of experience in finance and investment in the United States, mainland China and Hong Kong, as well as management experience in four Nasdaq-listed companies and directorship in an HKEx-listed company. Mr. Yang has been serving as an independent director of ICZOOM Group Inc. (Nasdaq: IZM) since August 2021, and has also been serving as an independent director of SAIHEAT Global Corporation Inc. (Nasdaq: SAI) since June 2024. Prior to joining the Company, Mr. Yang served as the chief strategy officer of Suncar Technology Group (Nasdaq: SDA) from January 2024, a company engaged as China's largest car insurance platform, with comprehensive responsibility for its capital market management, reporting, strategic investment, international financing and investor relations. From June 2021 to September 2023, Mr. Yang served as the chief financial officer of TD Holdings, Inc. (Nasdaq: GLG), a company engaged in commodity trading and supply chain service businesses in China. From March 2020 to May 2021, Mr. Yang served as the Head of Investor Relations at Aesthetic Medical International Holdings Group Limited (Nasdaq: AIH), a company engaged in providing aesthetic medical services. From January 2019 to February 2020, Mr. Yang served as the Financial Director of Meten International Education Group Ltd. (Nasdaq: METX), a company engaged in providing English language training services. From May 2016 to October 2018, Mr. Yang served as the Investment Director of China First Capital Group (HKEx: 01269), a company engaged in educational investment. From September 2011 to September 2013, Mr. Yang served as an auditor at Ernst & Young. Mr. Yang received his bachelor's degree in economics from Tianjin University of Finance and Economics in China in June 2011 and his master's degree in finance from Brandeis University in Boston, the U.S. in February 2016.

*Ms. Yunqiu Dai* has served as a director of our company since May 2024. She currently serves as the chairwoman of the Board and the founder partner of the Fengshi Capital since June 2022. Prior to that she worked in Zhejiang Saize Investment Group Co., Ltd with the title of investment manager, managing director and partner since January 2015 to January 2022. Ms. Dai received a bachelor's degree in applied psychology from Huangshan College in July 2012 and a master's degree in business administration from Hong Kong Finance and Economics College in September 2017. We believe she is well qualified to serve on our board of directors due to her experience in capital investment in multiple industries.

*Mr. Jianming Yan* has served as an independent director of our company since November 2025. Prior to joining us, Mr. Yan served as a department head of an investment department at Guojin Dingxing Investment Co., Ltd. from June 2018 to December 2023 and from June 2014 to March 2016. Mr. Yan served as an executive director at New Times Securities Co., Ltd. from March 2016 to April 2018. Mr. Yan served as a senior director at Hualin Securities Co., Ltd. from March 2012 to May 2014. Mr. Yan served as an director at Donghai Securities Co., Ltd. from January 2011 to March 2012. Mr. Yan served as a senior auditor at Ernst & Young Hua Ming LLP from December 2006 to January 2011. Mr. Yan received his master's degree in business administration from East China Normal University in 2016 and his bachelor's degree in accounting from Beijing Wuzi University in 2003. Mr. Yan is qualified as a sponsor representative, Certified Public Accountant in the PRC, and holds a fund practice license.

*Ms. Yeeli Hua Zheng* has served as an independent director of our company since July 2025. She currently serves as an independent non-executive director of Bitfufu Inc. (Nasdaq: FUFU). She had been the head of Nasdaq Group's China practice from 2009 to 2019, where she was in charge of Chinese firms' listing on Nasdaq. Prior to Nasdaq, Ms. Zheng was an executive director for NYSE Euronext for five years. Ms. Zheng was a junior partner at Pivotal Assets before joining NYSE in 2005. Before her career in Wall Street, Ms. Zheng was a senior advisor on China Economy and Business at the Executive Office of Kofi Anan, then Secretary General of the United Nations. Ms. Zheng focused on international economy study and graduated from Harvard University Kennedy School of Government with a MPA in 2001. We believe she is well qualified to serve on our board of directors due to her extensive experience in securities transactions and the U.S. capital markets.

*Ms. Huifang Cheng* has served as an independent director of our company since July 2025. Ms. Cheng currently serves as an independent non-executive director of Zhejiang China Light & Textile Industrial City Group Co., Ltd. (Stock Code: 600790.SH), Ningbo Fujia Industrial Co., Ltd. (Stock Code: 603219.SH) and China Kings Resources Group Co., Ltd. (Stock Code: 603505.SH). Ms. Cheng currently serves as a professor and doctoral supervisor of Zhejiang University of Technology. Prior to that, she served as the president of School of Economics and Management at Zhejiang University of Technology from 2001 to 2009 and the executive vice president of School of Economics and Management of Zhejiang University of Technology from 1994 to 2000. Ms. Cheng obtained a doctoral degree in finance from Fudan University in January 1999. We believe she is well qualified to serve on our board of directors due to her academic expertise in financial management.

**Employment Agreements and Indemnification Agreements**

We have entered into employment agreements with each of our executive officers. Under these agreements, each of our executive officers is employed for a specified time period. We may terminate employment for cause, at any time, without advance notice or remuneration, for certain acts of the executive officer, such as conviction or plea of guilty to a felony or any crime involving moral turpitude, negligent or dishonest acts to our detriment, or misconduct or a failure to perform agreed duties. We may also terminate an executive officer's employment without cause upon advance written notice. In such case of termination, we will provide severance payments to the executive officer as expressly required by applicable law of the jurisdiction where the executive officer is based. The executive officer may resign at any time with an advance written notice.

Each executive officer has agreed to hold, both during and after the termination or expiry of his or her employment agreement, in strict confidence and not to use, except as required in the performance of his or her duties in connection with the employment or pursuant to applicable law, any of our confidential information or trade secrets, any confidential information or trade secrets of our clients or prospective clients, or the confidential or proprietary information of any third party received by us and for which we have confidential obligations. The executive officers have also agreed to disclose in confidence to us all inventions, designs and trade secrets which they conceive, develop or reduce to practice during the executive officer's employment with us and to assign all right, title and interest in them to us, and assist us in obtaining and enforcing patents, copyrights and other legal rights for these inventions, designs and trade secrets.

Each executive officer has agreed to be bound by non-competition and non-solicitation restrictions during the term of his or her employment. Specifically, each executive officer has agreed not to (i) approach our suppliers, clients, customers or contacts or other persons or entities introduced to the executive officer in his or her capacity as a representative of us for the purpose of doing business with such persons or entities that will harm our business relationships with these persons or entities; (ii) assume employment with or provide services to any of our competitors, or engage, whether as principal, partner, licensor or otherwise, any of our competitors, without our express consent; or (iii) seek directly or indirectly, to solicit the services of any of our employees who is employed by us on or after the date of the executive officer's termination, or in the year preceding such termination, without our express consent.

**Limitation on Liability and Indemnification of Directors and Officers** 

Cayman Islands law does not limit the extent to which a company's memorandum and articles of association may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against willful default, fraud or the consequences of committing a crime. Our Second Amended and Restated Memorandum and Articles of Association provide for indemnification of our officers and directors, including for any liability incurred in their capacities as such, except through their own actual fraud, willful default or willful neglect. In addition, we have entered into indemnification agreements with each of our executive officers and directors. The indemnification agreements provide the indemnitees with contractual rights to indemnification, and expense advancement and reimbursement, to the fullest extent permitted under Cayman Islands law, subject to certain exceptions contained in those agreements. We have also purchased a policy of directors' and officers' liability insurance that will insure our officers and directors against the cost of defense, settlement or payment of a judgment in some circumstances and will insure us against our obligations to indemnify our officers and directors.

These indemnification obligations may discourage shareholders from bringing a lawsuit against our officers or directors for breach of their fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against our officers and directors, even though such an action, if successful, might otherwise benefit us and our shareholders.

**Board of Directors**

The Board consists of seven directors, including three executive directors, one non-executive director and three independent directors. A director is not required to hold any of our shares by way of qualification. A director who is in any way, whether directly or indirectly, interested in a contract or proposed contract with us is required to declare the nature of his interest at a meeting of our directors.

A general notice given to the Board that a director is to be regarded as having an interest of the nature and extent specified in the notice in any transaction or arrangement in which a specified person or class of persons is interested shall be deemed to be a disclosure that the director has an interest in any such transaction of the nature and extent so specified. A director must disclose any material interest, and such director may not vote at any meeting of directors or of a committee of directors on any resolution concerning a matter in which he has, directly or indirectly, an interest or duty. The director shall be counted in the quorum present at a meeting when any such resolution is under consideration and such resolution may be passed by a majority of the disinterested directors present at the meeting even if such disinterested directors together constitute less than a quorum.

The directors may exercise all the powers of our company to borrow money, mortgage its undertaking, property and assets and uncalled capital, and subject to the Companies Act, and issue debentures or other securities whenever money is borrowed or as security for any obligation of our company or of any third party. None of our directors has a service contract with us that provides for benefits upon termination of service.

**Committees of the Board**

We have established an audit committee, a compensation committee and a nominating and corporate governance committee under the board of directors, and to adopt a charter for each of the three committees following the completion of the Business Combination. Each committee's members and functions are described below.

***Audit Committee.*** Our audit committee consists of Mr. Jianming Yan, Ms. Yeeli Hua Zheng and Ms. Huifang Cheng, and is chaired by Mr. Jianming Yan. Mr. Jianming Yan, Ms. Yeeli Hua Zheng and Ms. Huifang Cheng satisfy the "independence" requirements of Rule 5605(c)(2) of the Listing Rules of the Nasdaq and meet the independence standards under Rule 10A-3 under the Securities Exchange Act of 1934, as amended. We have determined that Mr. Jianming Yan qualifies as an "audit committee financial expert." The audit committee oversees the accounting and financial reporting processes and the audits of our financial statements. The audit committee is responsible for, among other things:

● selecting the independent registered public accounting firm and pre-approving all auditing and non-auditing services permitted to be performed by the independent registered public accounting firm;

● reviewing with the independent registered public accounting firm any audit problems or difficulties and management's response;

● reviewing and approving all proposed related party transactions, as defined in Item 404 of Regulation S-K under the Securities Act;

● discussing the annual audited financial statements with management and the independent registered public accounting firm;

● reviewing major issues as to the adequacy of its internal controls and any special audit steps adopted in light of material control deficiencies;

● annually reviewing and reassessing the adequacy of its audit committee charter;

● meeting separately and periodically with management and the independent registered public accounting firm; and

● reporting regularly to the board of directors.

***Compensation Committee.*** Our compensation committee consists of Ms. Yeeli Hua Zheng, Ms. Huifang Cheng and Mr. Jianming Yan, and is chaired by Ms. Yeeli Hua Zheng. Ms. Yeeli Hua Zheng, Ms. Huifang Cheng and Mr. Jianming Yan satisfy the "independence" requirements of Rule 5605(a)(2) of the Listing Rules of the Nasdaq. The compensation committee assists the board of directors in reviewing and approving the compensation structure, including all forms of compensation, relating to its directors and executive officers. The executive officers may not be present at any committee meeting during which their compensation is deliberated upon. The compensation committee is responsible for, among other things:

● reviewing the total compensation package for its executive officers and making recommendations to the board of directors with respect to it;

● approving and overseeing the total compensation package for its executives other than the three most senior executives;

● reviewing the compensation of its directors and making recommendations to the board of directors with respect to it; and

● periodically reviewing and approving any long-term incentive compensation or equity plans, programs or similar arrangements, annual bonuses, and employee pension and welfare benefit plans.

***Nominating and Corporate Governance Committee.*** Our nominating and corporate governance committee consists of Ms. Huifang Cheng, Mr. Jianming Yan and Ms. Yeeli Hua Zheng, and is chaired by Ms. Huifang Cheng. Ms. Huifang Cheng, Mr. Jianming Yan and Ms. Yeeli Hua Zheng satisfy the "independence" requirements of Rule 5605(a)(2) of the Listing Rules of the Nasdaq. The nominating and corporate governance committee assists the board of directors in selecting individuals qualified to become its directors and in determining the composition of the board of directors and its committees. The nominating and corporate governance committee is responsible for, among other things:

● recommending nominees to the board of directors for election or re-election to the board of directors, or for appointment to fill any vacancy on the board of directors;

● reviewing annually with the board of directors the current composition of the board of directors with regards to characteristics such as independence, age, skills, experience and availability of service to us;

● selecting and recommending to the board of directors the names of directors to serve as members of the audit committee and the compensation committee, as well as of the nominating and corporate governance committee itself; and

● monitoring compliance with its code of business conduct and ethics, including reviewing the adequacy and effectiveness of its procedures to ensure proper compliance.

**Compensation Committee Interlocks and Insider Participation**

None of the members of our compensation committee has ever been an executive officer or employee of our company. None of our company's anticipated executive officers currently serve, or have served during the last completed fiscal year, on the compensation committee or board of directors of any other entity that has one or more executive officers that serves as a member of the board or compensation committee of our company.

**Duties of Directors**

Under Cayman Islands law, our directors have a fiduciary duty to act honestly, in good faith and with a view to our best interests. Our directors also have a duty to exercise their skills and such care and diligence that a reasonably prudent person would exercise in comparable circumstances. In fulfilling their duty of care to us, our directors must ensure compliance with our memorandum and articles of association as may be amended from time to time. We have a right to seek damages against any director who breaches a duty owed to us.

**Code of Business Conduct and Ethics and Corporate Governance**

We have adopted a code of business conduct and ethics, which are applicable to all of our directors, executive officers and employees. We have made our code of business conduct and ethics publicly available on our website. Information contained on or accessible through this website is not a part of this prospectus, and the inclusion of this website address in this prospectus is an inactive textual reference only. The nominating and corporate governance committee of our Board will be responsible for overseeing the Code of Conduct and must approve any waivers of the Code of Conduct for employees, executive officers and directors. We expect that any amendments to the Code of Conduct, or any waivers of our requirements, will be disclosed on our website.

In addition, we have adopted a set of corporate governance guidelines covering a variety of matters, including approval of related party transactions, following the completion of the Business Combination.

**Terms of Directors and Officers**

Pursuant to the Second Amended and Restated Memorandum and Articles of Association, our directors may be appointed and removed by an ordinary resolution of shareholders. The directors shall have power at any time to appoint any person who is willing to act as a director, to fill any vacancies on the board of directors arising other than upon the removal of a director by ordinary resolution. Any such appointment shall be as an interim director to fill such vacancy until the next general meeting of the Company (and such appointment shall terminate at the commencement of such general meeting of the Company). Our directors are not automatically subject to a term of office and shall hold office until such time as they are removed from office by an ordinary resolution. In addition, a director will cease to be a director if he (1) becomes prohibited by law from being a director; (2) becomes bankrupt or makes any arrangement or composition with his creditors generally; (3) dies or is, in the opinion of all his co-directors, incapable by reason of mental disorder of discharging his duties as director; (4) resigns his office by notice to the Company; and (5) has for more than six months been absent without permission of the directors from meetings of directors held during that period and the directors resolve that his office be vacated. Our officers are appointed by and serve at the discretion of the board of directors, and may be removed by the board of directors.

**Compensation of Directors and Executive Officers**

In 2023, 2024 and 2025, we paid an aggregate of approximately RMB3.0 million, RMB4.3 million and RMB3.7 million (US$0.5 million), respectively, in cash to our executive officers and directors. We made contributions to such officers and executive directors' pensions, medical insurance, unemployment insurance, housing fund and other statutory benefits as required by PRC law, which amounted to approximately RMB0.5 million (US$700 thousands) in 2025.

As of the date of prospectus, we have not set aside or accrued any amount to provide pension, retirement or other similar benefits for our directors and executive officers. Our PRC subsidiaries are required by law to make contributions equal to certain percentages of each employee's salary for his or her pension insurance, medical insurance, unemployment insurance and other statutory benefits and a housing provident fund.

**RSU Plan**

Our restricted share unit plan (the "RSU Plan") was adopted in connection with the Business Combination Agreement and becomes effective upon the Closing. Under the RSU Plan, the maximum aggregate number of Class A Ordinary Shares which may be issued pursuant to all awards under such plan, or the award pool, shall be 10,018,119 Class A Ordinary Shares. We adopted the RSU Plan to provide equity awards as part of our compensation program, an important tool for motivating, attracting and retaining talented employees and for creating shareholder value.

The following paragraphs summarize the principal terms of the RSU Plan.

*Plan Administration*

A committee or person authorized by the Board may administer the RSU Plan. Such committee or authorized person determines, among other things, the participants to receive awards, and the terms and conditions of each award grant.

*Grant Letters*

Awards granted under the RSU Plan are evidenced by a grant letter that sets forth terms, conditions and limitations for each award, which may include plan participant's name, grant date, number of shares underlying the granted RSUs, RSU exercise price, and other relevant terms.

*Eligibility*

We may grant awards to its eligible employees, directors and consultants.

*Vesting Schedule*

In general, the plan administrator determines the vesting schedule, which is specified in the grant letter.

*Exercise of Awards*

Plan participants holding restricted share units and vested according to the vesting notification can exercise part or all of the underlying shares by submitting an exercise notice to the plan administrator after the listing of our shares.

*Transferability*

 

The restricted share units granted under this plan shall be personal to each plan participant. Plan participants are prohibited from selling, transferring, assigning, pledging any restricted share units to any other individuals, or allowing any person to have any interest in the restricted share units.

*Termination and Amendment*

Unless terminated earlier, the RSU Plan has a term of ten years. The Board may terminate, amend or modify the plan, subject to the limitations of applicable laws. However, no such action may adversely affect in any material way any award previously granted without prior written consent of the plan participants.

*New Plan Benefits*

No awards have been previously granted under the RSU Plan and no awards have been granted that are contingent on shareholder approval of the RSU Plan. The awards that are to be granted to any participant or group of participants are indeterminable as of the date of this prospectus because participation and the types of awards that may be granted under the RSU Plan are subject to the discretion of the RSU Plan administrator. Consequently, no new plan benefits table is included in this prospectus.

**BENEFICIAL OWNERSHIP OF SECURITIES**

The following table sets forth information relating to the beneficial ownership of our Ordinary Shares as of the date of this prospectus by:

● each person, or group of affiliated persons, known by us to beneficially own 5% or more of outstanding Ordinary Shares;

● each of our directors;

● each of our named executive officers; and

● all of our directors and executive officers as a group.

Beneficial ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to, or the power to receive the economic benefit of ownership of, the securities. In computing the number of shares beneficially owned by a person and the percentage ownership of that person, shares that the person has the right to acquire within 60 days are included, including through the exercise of any option or other right or the conversion of any other security. However, these shares are not included in the computation of the percentage ownership of any other person.

The calculations in the table below are based on 69,855,502 Class A Ordinary Shares and 11,160,808 Class B Ordinary Shares issued and outstanding as of the date of this prospectus, not including 7,617,500 Class A Ordinary Shares issuable upon the exercise of outstanding warrants. Unless otherwise indicated, we believe that all persons named in the table below have sole voting and investment power with respect to all ADSs beneficially owned by them.

---

| | | | |
|:---|:---|:---|:---|
| **Name and Address of Beneficial Owner** | **Number of<br> Ordinary<br> Shares** | **% of<br> Ordinary<br> Shares** | **% of<br> Voting<br> Power** |
| *Directors and Executive Officers:* |  |  |  |
| Yunlei Wang<sup>(1)</sup> | 11160808 | 13.8% | 76.2% |
| Liqun Yao |  |  |  |
| Lidong Zhu<sup>(2)</sup> |  |  |  |
| Xiaolin Gou | 390001 | 0.5% | 0.1% |
| Yunqiu Dai | 168396 | 0.2% | 0.1% |
| Tianshi Yang |  |  |  |
| Jianming Yan |  |  |  |
| Clement Ka Hai Hung<sup>(3)</sup> |  |  |  |
| Yeeli Hua Zheng |  |  |  |
| Huifang Cheng |  |  |  |
| All directors and executive officers as a group | 11719205 | 14.5% | 76.4% |
| *Other 5% Shareholders:* |  |  |  |
| Youtch Investment Co., Ltd<sup>(1)</sup> | 11160808 | 13.8% | 76.2% |
| LanXin Blue Limited <sup>(4)</sup> | 10018148 | 12.4% | 3.4% |

---

\* Less than one percent

† Unless otherwise noted, the business address
 of each of the following entities or individuals is c/o Youlife International Group Inc.,
 Floor 4, Willow House, Cricket Square, Grand Cayman, KY1-9010, Cayman Islands.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Represents 11,160,808 Company Class B Ordinary Shares to be received by Youtch
 Investment Co., Ltd., a British Virgin Island company wholly owned by Mr. Yunlei Wang. The registered address of Youtch Investment
 Co., Ltd is at Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, VG1110, British Virgin Islands.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Mr.
 Lidong Zhu ceased to be our director and chief financial officer in November 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Mr. Clement Ka Hai Hung ceased to be our director in November 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Represents 10, 018,148 Class A Ordinary Shares in the form of the Company ADSs
 to be received by Lanxin Blue Limited, a British Virgin Islands company established as the nominee company to hold shares under Youlife
 International's previous share incentive scheme. The sole shareholder and director of Lanxin Blue Limited is TCT(BVI) Limited,
 the trustee appointed by Youlife International to administrate such share incentive scheme. Youlife International, as the settlor
 of the trust, has delegated its board of directors with exclusive and unconditional authority and power to exercise right attached
 to shares underlying unvested awards under the share incentive scheme. As such, the board of directors of Youlife International,
 currently consisting of Mr. Yunlei Wang, Ms. Liqun Yao, Mr. Xiaolin Gou, and Mr. Bo Tang, may be deemed as having voting and/or investment
 control over the Class A Ordinary Shares in the form of the Company ADSs to be received by Lanxin Blue Limited. The registered address
 of Lanxin Blue Limited is at Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, VG1110, British Virgin Islands.

**Holders**

As of the date of this prospectus, we had 43 shareholders of record of the ordinary shares, and two holders of record of the Warrants. As of the date of this prospectus, approximately 8.2% of our total issued ordinary shares were held by U.S. record holders.

**SELLING SECURITYHOLDERS**

This prospectus relates to, among other things, the registration and resale by the Selling Securityholders of up to (A) 5,964,450 Class A ordinary shares represented by ADSs, including (1) 2,324,500 Sponsor Shares; (2) 545,000 Class A ordinary shares issuable upon the exercise of the Sponsor Warrants; (3) 390,001 Class A ordinary shares currently held by Xiaolingo; (4) 1,184,949 Class A ordinary shares currently held by Anji; (5) 1,350,000 Class A ordinary shares currently held by Mouette; (6) 100,000 Class A ordinary shares currently held by Empire Light; (7) 20,000 Class A ordinary shares currently held by Hopeful; and (8) 50,000 Class A ordinary shares currently held by SKS; and (B) 545,000 Sponsor Warrants. When we refer to the "Selling Securityholders" in this prospectus, we mean the persons listed in the table below, and the pledgees, donees, transferees, assignees or other successors in interest (that receive any of the securities as a gift, distribution, or other non-sale related transfer) of the persons named in the table below.

The table below sets forth, as of the date of this prospectus, the name of the Selling Securityholders for which we are registering securities for resale to the public and the aggregate principal amount that the Selling Securityholders may offer pursuant to this prospectus. The individuals and entities listed below have beneficial ownership over their respective securities. The SEC has defined "beneficial ownership" of a security to mean the possession, directly or indirectly, of voting power and/or investment power over such security. A shareholder is also deemed to be, as of any date, the beneficial owner of all securities that such shareholder has the right to acquire within 60 days after that date through (1) the exercise of any option, warrant or right, (2) the conversion of a security, (3) the power to revoke a trust, discretionary account or similar arrangement, or (4) the automatic termination of a trust, discretionary account or similar arrangement. In computing the number of shares beneficially owned by a person and the percentage ownership of that person, ordinary shares subject to options or other rights (as set forth above) held by that person that are currently exercisable, or will become exercisable within 60 days thereafter, are deemed outstanding, while such shares are not deemed outstanding for purposes of computing percentage ownership of any other person.

The securities held by certain of the Selling Securityholders are subject to transfer restrictions, as described in the section entitled "Corporate History and Structure — Additional Agreements in connection with the Business Combination — Sponsor Support Agreement."

We cannot advise you as to whether the Selling Securityholders will in fact sell any or all of such securities. In addition, the Selling Securityholders may sell, transfer or otherwise dispose of, at any time and from time to time, the ordinary shares in transactions exempt from the registration requirements of the Securities Act after the date of this prospectus, subject to applicable law.

Selling Securityholder information for each additional Selling Securityholder, if any, will be set forth by prospectus supplement to the extent required prior to the time of any offer or sale of such Selling Securityholder's securities pursuant to this prospectus. Any prospectus supplement may add, update, substitute, or change the information contained in this prospectus, including the identity of each Selling Securityholder and the number of Ordinary Shares registered on its behalf. A Selling Securityholder may sell all, some or none of such securities in this offering. See the section titled "Plan of Distribution."

The securities owned by the persons named below do not have voting rights different from the securities owned by other holders.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Securities beneficially owned<br> prior to this offering** | **Securities beneficially owned<br> prior to this offering** | **Securities beneficially owned<br> prior to this offering** | **Securities to be sold<br> in this offering** | **Securities to be sold<br> in this offering** | **Securities beneficially owned<br> after this offering** | **Securities beneficially owned<br> after this offering** | **Securities beneficially owned<br> after this offering** |
| <br>**Name of Selling Securityholder** | **Class A<br> ordinary<br> shares** | **%<sup>(1)</sup>** | **Warrant** | **Class A<br> ordinary<br> shares** | **Warrant** | **Class A<br> ordinary<br> shares<sup>(1) (2)</sup>** | **%<sup>(1) (2)</sup>** | **Warrant** |
| Xiaosen Sponsor LLC<sup>(3)</sup> | 2869500 | 3.5 | 545000 | 2869500 | 545000 | - | - | - |
| XIAOLINGO INVESTMENT CO., LTD<sup>(4)</sup> | 390001 | 0.5 |  | 390001 |  |  |  |  |
| Anji Fenghan Investment Limited<sup>(5)</sup> | 1184949 | 1.5 |  | 1184949 |  |  |  |  |
| Mouette Capital Company Ltd.<sup>(6)</sup> | 1350000 | 1.7 |  | 1350000 |  |  |  |  |
| Empire Light International Media Limited<sup>(7)</sup> | 100000 | 0.1 |  | 100000 |  |  |  |  |
| Hopeful Pte. Ltd. <sup>(8)</sup> | 20000 | \* |  | 20000 |  |  |  |  |
| SKS Global Ltd. <sup>(9)</sup> | 50000 | 0.1 | - | 50000 | - |  |  |  |
| **Total** | **5964450** | **7.4** | **545000** | **5964450** | **545000** |  |  |  |

---

\* representing shareholding less than 0.1%

(1) The percentage of beneficial
ownership is calculated based on 76,048,500 Ordinary Shares issued and outstanding the date of this prospectus, consisting of (1) 69,855,502
Class A ordinary shares and 11,160,808 Class B ordinary shares issued and outstanding as of the date of this prospectus, does not include
7,617,500 Class A ordinary shares issuable upon the exercise of outstanding warrants.

(2) Assumes the sale of all
 Registered Securities offered in this prospectus.

(3) Represents the sum of (i) 2,324,500 Sponsor Shares, (ii) 545,000 Class
A ordinary shares issuable pursuant to the exercise of 545,000 Sponsor Warrants, and (iii) 545,000 Sponsor Warrants. The securities reported
herein are held in the name of the Sponsor and beneficially owned by Mr. Jian Zhang, who, as the manager of the Sponsor, has voting and
dispositive power over the shares held by the Sponsor. Xiaosen Sponsor LLC is a Cayman Islands limited liability company. The address
of Xiaosen Sponsor LLC is Unit 1006, Block C, Jinshangjun Park, No.2 Xiaoba Road, Panlong District, Kunming, Yunnan, China.

(4) XIAOLINGO INVESTMENT
CO., LTD is a BVI limited liability company. The sole shareholder of XIAOLINGO INVESTMENT CO., LTD is Xiaolin Gou, our director
and senior vice president. The address of XIAOLINGO INVESTMENT CO., LTD is ICS Corporate Services (BVI) Limited, Sea Meadow
House, P.O. Box 116, Road Town, Tortola, British Virgin Islands.

(5) Anji Fenghan Investment
 Limited is a BVI limited liability company. The address of Anji Fenghan Investment Limited is Sea Meadow House, P.O. Box 116, Road
 Town, Tortola, British Virgin Islands.

(6) Mouette Capital Company
 Ltd. is a BVI limited liability company. The address of Mouette Capital Company Ltd. is Sea Meadow House, P.O. Box 116, Road Town,
 Tortola, British Virgin Islands.

(7) Empire Light International
 Media Limited is a limited liability company incorporated in Hong Kong. The address of Empire Light International Media Limited is
 RM 1903, 19/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong.

(8) Hopeful Pte. Ltd. is a
 limited liability company incorporated in Singapore. The address of Hopeful Pte. Ltd. is 12 Woodlands Square, #13-62 Woods Square,
 737715, Singapore.

(9) SKS Global Ltd. is a Cayman
 Islands limited liability company. The address of SKS Global Ltd. is Suite #4-210, Governors Square, 23 Lime Tree Bay Avenue, PO
 Box 32311, Grand Cayman KY1-1209, Cayman Islands.

**CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS**

**Agreement with Our Former Shareholders**

See "Corporate History and Structure—Business Combination with Distoken" and "—Additional Agreements in connection with the Business Combination."

**Employment Agreements and Indemnification Agreements**

See "Management—Employment Agreements and Indemnification Agreements."

**Share Incentive Plans**

See "Management—2026 Share Incentive Plan" and "—RSU Plan."

**Other Related Party Transactions**

Saved as disclosed above, as of the date of this prospectus, we did not enter into any other related parties transactions.

**Related Person Transactions Policy**

We have adopted a related party transaction policy. We expect that this related party transaction policy will require certain related party transactions to be approved by our board of directors or a designated committee thereof, which may include the audit committee, once implemented.

**DESCRIPTION OF OUR SECURITIES**

*A summary of the material provisions governing our securities is described below. This summary is not complete and should be read together with the Second Amended and Restated Memorandum and Articles of Association.*

We are a Cayman Islands exempted company and our affairs will be governed by the Second Amended and Restated Memorandum and Articles of Association, the Companies Act and other legislation and common law of the Cayman Islands. Pursuant to the Second Amended and Restated Memorandum and Articles of Association, which was adopted prior to the consummation of the Business Combination, we are authorized to issue 400,000,000 Class A Ordinary Shares, $0.0001 par value each (the "Class A Ordinary Shares") and 100,000,000 Class B Ordinary Shares, $0.0001 par value each (the "Class B Ordinary Shares"). The following description summarizes certain terms of our shares as set out more particularly in the Second Amended and Restated Memorandum and Articles of Association. Because this section is only a summary, it may not contain all the information that is important to you.

**Class A Ordinary Shares**

Holders of our Class A Ordinary Shares are entitled to one (1) vote for each Class A Ordinary Share held on all matters to be voted on by shareholders.

**Class B Ordinary Shares** 

Holders of our Class B Ordinary Shares are entitled to twenty (20) votes for each Class B Ordinary Share held on all matters to be voted on by shareholders.

Each Class B Ordinary Share is convertible into one (1) Class A Ordinary Share at any time by the holder thereof by written notice to the Company. In no event shall Class A Ordinary Shares be convertible into Class B Ordinary Shares.

Class B Ordinary Shares have the same rights, including dividend rights, in all circumstances as Class A Ordinary Shares, except for the conversion right and the voting right at general meetings described above.

Except with respect to any matter requiring a separate class vote under the Cayman Companies Act or the Second Amended and Restated Memorandum and Articles of Association, holders of Class A Ordinary Shares and holders of Class B Ordinary Shares shall at all times vote as one class on all matters submitted to a vote by Members at general meetings of the Company.

**General Meetings**

At any general meeting a resolution put to the vote of the meeting shall be decided on a poll. A poll shall be taken in such manner as the chairperson of the meeting directs, and the result of the poll shall be deemed to be the resolution of the meeting at which the poll was demanded. In the case of an equality of votes, the chairperson of the meeting shall be entitled to exercise a casting vote in addition to any other vote he may have.

Unless specified in the Second Amended and Restated Memorandum and Articles of Association, or as required by applicable provisions of the Companies Act of the Cayman Islands or applicable stock exchange rules, the affirmative vote by ordinary resolution, being a resolution passed at a general meeting by a simple majority of the votes cast by, or on behalf of, the shareholders entitled to vote at such general meeting, is required to approve any such matter voted on by our shareholders. Approval of certain actions will require a special resolution under Cayman Islands law and pursuant to the Second Amended and Restated Memorandum and Articles of Association, being a resolution passed at a general meeting by a majority of at least two-thirds (2/3) of such shareholders as, being entitled to do so, vote in person or by proxy at such general meeting. Such actions include amending the Second Amended and Restated Memorandum and Articles of Association and approving a statutory merger or consolidation with another company.

**Appointment of Directors**

Our directors may be appointed and removed by an ordinary resolution of shareholders. The directors shall have power at any time to appoint any person who is willing to act as a director, to fill any vacancies on the board of directors arising other than upon the removal of a director by ordinary resolution. Any such appointment shall be as an interim director to fill such vacancy until the next general meeting of the Company (and such appointment shall terminate at the commencement of such general meeting of the Company). Our directors are not automatically subject to a term of office and shall hold office until such time as they are removed from office by an ordinary resolution. In addition, a director will cease to be a director if he (i) becomes prohibited by law from being a director; (ii) becomes bankrupt or makes any arrangement or composition with his creditors generally; (iii) dies or is, in the opinion of all his co-directors, incapable by reason of mental disorder of discharging his duties as director; (iv) resigns his office by notice to us; (v) has for more than six months been absent without permission of the directors from meetings of directors held during that period and the directors resolve that his office be vacated. Our officers are appointed by and serve at the discretion of the board of directors, and may be removed by the board of directors.

**Treasury Shares**

Our directors may, prior to the purchase, redemption or surrender of any share, determine that such share shall be held as a treasury share. As of the date of this prospectus, we have no shares in treasury.

**Issuance of Shares**

Subject to the Second Amended and Restated Memorandum and Articles of Association and, where applicable, the rules and regulations of the applicable stock exchange, the SEC and/or any other competent regulatory authority or otherwise under applicable law, our directors may, in their absolute discretion and without approval of the existing shareholders, issue, grant options over or otherwise deal with any unissued shares of ours to such persons, at such times and on such terms and conditions as they may decide. No share shall be issued at a discount to par, except in accordance with the provisions of the Companies Act. In accordance with our Second Amended and Restated Memorandum and Articles of Association and the Companies Act, we shall not issue bearer shares.

**Register of Members**

Under the Companies Act, we must keep a register of members and there should be entered therein:

● the names and addresses of the members of the company, a statement of the shares held by each member, which:

---

| | |
|:---|:---|
| ◌ | distinguishes each share by its number (so long as the share has a number); |
| ◌ | confirms the amount paid, or agreed to be considered as paid, on the shares of each member; |
| ◌ | confirms the number and category of shares held by each member; and |
| ◌ | confirms whether each relevant category of shares held by a member carries voting rights under the Second Amended and Restated Memorandum and Articles of Association, and if so, whether such voting rights are conditional; |

---

● the date on which the name of any person was entered on the register as a member; and

● the date on which any person ceased to be a member.

For these purposes, "voting rights" means rights conferred on shareholders, including the right to appoint or remove directors, in respect of their shares to vote at general meetings of the company on all or substantially all matters. A voting right is conditional where the voting right arises only in certain circumstances.

Under Cayman Islands law, the register of members of an exempted company is prima facie evidence of the matters set out therein (i.e. the register of members will raise a presumption of fact on the matters referred to above unless rebutted) and a member registered in the register of members will be deemed as a matter of Cayman Islands law to have legal title to the shares as set against its name in the register of members. However, there are certain limited circumstances where an application may be made to a Cayman Islands court for a determination on whether the register of members reflects the correct legal position. Further, the Cayman Islands court has the power to order that the register of members maintained by an exempted company should be rectified where it considers that the register of members does not reflect the correct legal position. If an application for an order for rectification of the register of members were made in respect of our shares, then the validity of such shares may be subject to re-examination by a Cayman Islands court.

**Dividends**

Our company may pay by Ordinary Resolution from time to time declare dividends (including interim dividends) in accordance with the respective rights of the shareholders Members, but no dividend shall exceed the amount recommended by the Directors. At any and every time the Company declare dividends.

Our Board may also pay from time to time declare dividends (including interim dividends) in accordance with the respective rights of the shareholders if it appears to them that they are justified by our financial position and that such dividends may lawfully be paid. We have not paid any cash dividends on our shares to date. The payment of cash dividends in the future will be dependent upon our revenues and earnings, if any, our capital requirements and general financial condition. The payment of any cash dividends will be within the discretion of our Board at such time, and we will only pay such dividend out of our profits or share premium (subject to solvency requirements) as permitted under Cayman Islands law.

Class A Ordinary Shares and Class B Ordinary Shares shall have identical rights in the dividends so declared.

Under the laws of the Cayman Islands, a Cayman Islands company may pay a dividend on our shares out of either profit or the share premium account, provided that in no circumstances may a dividend be paid if following such payment the company would be unable to pay our debts as they fall due in the ordinary course of business. No dividend shall be paid otherwise than out of profits or, subject to the requirements of the Companies Act and listing rules of the applicable stock exchange, the share premium account.

Any joint holder or other person jointly entitled to a share as aforesaid may give receipts for any dividend or other moneys payable in respect of the share.

**Transfer of Shares**

Subject to applicable laws, including applicable securities laws, and the restrictions contained in the Second Amended and Restated Memorandum and Articles of Association, any shareholder may transfer all or any of their shares by an instrument of transfer in the usual or common form or any other form prescribed by applicable stock exchange or approved by our Board from time to time. We shall be entitled to retain any instrument of transfer which is registered. However, an instrument of transfer which the directors refuse to register shall be returned to the person lodging it when notice of the refusal is given by the directors.

Our Board may, in its absolute discretion, decline to register any transfer of any ordinary share which is not fully paid up to a person of whom it does not approve, or any share issued under any share incentive scheme for employees upon which a restriction on transfer imposed thereby still subsists, and we may also, without prejudice to the foregoing generality, refuse to register a transfer of any share to more than four joint holders or a transfer of any share that is not a fully paid up share on which we have a lien. Our Board may also decline to recognize any instrument of transfer unless:

● the instrument of transfer is lodged at the registered office or such other place (i.e., our transfer agent) at which the register of shareholders is kept, accompanied by any relevant share certificate(s) and/or such other evidence as the board of directors may reasonably require to show the right of the transferor to make the transfer;

● the instrument of transfer is in respect of only one class of ordinary shares;

● the ordinary shares transferred are fully paid and free of any lien;

● the instrument of transfer is properly stamped, if required;

● a fee of such maximum sum as the Nasdaq may determine to be payable or such lesser sum as our directors may from time to time require is paid to us in respect thereof.

If our directors refuse to register a transfer they shall, within one month after the date on which the instrument of transfer was lodged, send to each of the transferor and the transferee notice of such refusal.

The transferor shall be deemed to remain the holder of any transferred shares until the name of the transferee is entered into our register of members.

**Calls on Ordinary Shares and Forfeiture of Ordinary Shares**

Subject to the terms of allotment, our Board may from time to time make calls upon our shareholders for any amounts unpaid on their shares (whether in respect of nominal value or premium)in a notice served to such shareholders at least 14 clear days prior to the specified time and place of payment. The shares that have been called upon and remain unpaid are, after a notice period, subject to forfeiture.

**Variations of Rights of Shares**

Whenever our capital is divided into different classes the rights attached to any such class may, subject to any rights or restrictions for the time being attached to any class, only be varied with the consent in writing of the holders of two-thirds of all of the issued shares of that class or with the sanction of a resolution passed by a majority of two-thirds of the votes cast at a separate meeting of the holders of the shares of that class. The rights conferred upon the holders of the shares of any class issued with preferred or other rights shall not, unless otherwise expressly provided by the terms of issue of the shares of that class, be deemed to be varied by the creation, allotment or issue of further shares ranking pari passu with such existing class of shares.

***Redemption, Purchase and Surrender of Own Shares***

Subject to the provisions of the Companies Act and the Second Amended and Restated Memorandum and Articles of Association, we may issue shares on terms that such shares are subject to redemption, our option or at the option of the holders of these shares, on such terms and in such manner as may be determined, before the issue of such shares, by our Board. We may also repurchase any of our shares on such terms and in such manner as have been approved by our board of directors and agreed with the relevant member. Under the Companies Act, the redemption or repurchase of any share may be paid out of our profits or out of the proceeds of a new issue of shares made for the purpose of such redemption or repurchase, or out of capital (including share premium account and capital redemption reserve) if we can, immediately following such payment, pay our debts as they fall due in the ordinary course of business. In addition, under the Companies Act no such share may be redeemed or repurchased (a) unless it is fully paid up, (b) if such redemption or repurchase would result in there being no shares outstanding or (c) if the company has commenced liquidation. In addition, our company may accept the surrender of any fully paid share for no consideration.

***General Meetings of Shareholders***

As a Cayman Islands exempted company, we are not obliged by the Companies Act to call annual general meetings; however, the Second Amended and Restated Memorandum and Articles of Association provides that we may (but is not obliged to) in each year hold a general meeting as our annual general meeting in which case we shall specify the meeting as such in the notices calling it, and the annual general meeting shall be held at such time and place as may be determined by our directors.

Shareholders' general meetings may be convened by our directors (acting by a resolution of the board). Advance notice of at least ten (10) clear days is required for the convening of any general meeting of our shareholders. A quorum required for any general meeting of shareholders consists of, at the time when the meeting proceeds to business, one or more of our shareholders holding shares which carry in aggregate (or representing by proxy) not less than one-third in nominal value of the total issued and outstanding shares in our company entitled to vote upon the business to be transacted at such general meeting.

The Companies Act provides shareholders with only limited rights to requisition a general meeting, and does not provide shareholders with any right to put any proposal before a general meeting. However, these rights may be provided in a company's articles of association. The Second Amended and Restated Memorandum and Articles of Association provides that upon the requisition of members holding at the date of deposit of the requisition not less than one-fourth, in par value of the issued shares which as at that date carry the right to vote at general meetings of the Company, our Board will convene an extraordinary general meeting and put the resolutions so requisitioned to a vote at such meeting. However, the Second Amended and Restated Memorandum and Articles of Association does not provide our shareholders with any right to put any proposals before annual general meetings or extraordinary general meetings not called by such shareholders.

***Record Dates***

For the purpose of determining shareholders entitled to notice of, or to vote at any meeting of shareholders or any adjournment thereof, or shareholders entitled to receive payment of any dividend or other distribution, or in order to make a determination of shareholders for any other purpose, our directors may provide that the register of members shall be closed for transfers for a stated period which shall not in any case exceed forty (40) clear days. If the register of members shall be so closed for the purpose of determining those shareholders that are entitled to receive notice of, attend or vote at a meeting of shareholders, the register of members shall be so closed for at least ten (10) clear days immediately preceding such meeting and the record date for such determination shall be the date of the closure of the register of members.

In lieu of, or apart from, closing the register of members, our directors may fix in advance or arrears a date as the record date for any such determination of shareholders entitled to notice of, or to vote at any meeting of the shareholders or any adjournment thereof, or for the purpose of determining the shareholders entitled to receive payment of any dividend or other distribution, or in order to make a determination of shareholders for any other purpose.

**Directors**

***Appointment, Disqualification and Removal of Directors***

Our management is vested in a board of directors. The Second Amended and Restated Memorandum and Articles of Association provides that the Board shall consist of such number of Directors as a majority of the Directors then in office may determine from time to time.

Our directors may be appointed and removed by an ordinary resolution of our shareholders. Without prejudice to our power to appoint a person to be a director by ordinary resolution and subject to the Second Amended and Restated Memorandum and Articles of Association, the directors shall have power at any time to appoint any person who is willing to act as a director, to fill any vacancies on the board of directors arising other than upon the removal of a director by ordinary resolution. Any such appointment shall be as an interim director to fill such vacancy until the next general meeting of the Company (and such appointment shall terminate at the commencement of such general meeting of the Company). In addition, a director will cease to be a director if he (i) becomes prohibited by law from being a director; (ii) becomes bankrupt or makes any arrangement or composition with his creditors generally; (iii) dies or is, in the opinion of all his co-directors, incapable by reason of mental disorder of discharging his duties as director; (iv) resigns his office by notice to us; (v) has for more than six months been absent without permission of the directors from meetings of directors held during that period and the directors resolve that his office be vacated. Our officers are appointed by and serve at the discretion of the board of directors, and may be removed by the board of directors.

In the case of an equality of votes on any matter arising at any meeting of the directors, the chairperson of the board of directors shall exercise a second or casting vote.

***Indemnity of Directors and Officers***

The Companies Act does not limit the extent to which a company's memorandum and articles of association may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against willful default, willful neglect or the consequences of committing a crime. The Second Amended and Restated Memorandum and Articles of Association provides that we shall indemnify our directors and officers, and their personal representatives, against all actions, proceedings, costs, charges, expenses, losses, damages or liabilities incurred or sustained by such persons, other than by reason of such person's dishonesty, in or about the conduct of our business or affairs (including as a result of any mistake of judgment) or in the execution or discharge of his duties, powers, authorities or discretions, including without prejudice to the generality of the foregoing, any costs, expenses, losses or liabilities incurred by such director or officer in defending or investigating (whether successfully or otherwise) any civil, criminal, investigative and administrative proceedings concerning or in any way related to our company or our affairs in any court whether in the Cayman Islands or elsewhere.

**Inspection of Books and Records**

Our Board will determine whether, to what extent, at what times and places and under what conditions or regulations our accounts and books will be open to the inspection by shareholders not being directors, and no shareholder (not being a director) will otherwise have any right of inspecting any account or book or document except as required by the Companies Act (and every other law and regulation of the Cayman Islands for the time being in force concerning companies and affecting us) or Nasdaq listing rules or authorized by our Board.

**Changes in Capital**

We may from time to time by ordinary resolution do any of the following and amend our memorandum of association for such purpose:

● increase the share capital by such sum, to be divided into shares of such classes and amount, as the resolution will prescribe;

● consolidate and divide all or any of our share capital into shares of a larger amount than our existing shares;

● convert all or any of our paid up shares into stock, and reconvert that stock into paid up shares of any denomination;

● sub-divide its existing shares, or any of them, into shares of smaller amounts than is fixed by our memorandum of association; and

● cancel any shares that at the date of the passing of the resolution have not been taken or agreed to be taken by any person and diminish the amount of our share capital by the amount of the shares so cancelled.

Subject to the provisions of the Companies Act (and any other law and regulation of the Cayman Islands applicable to us) and any rights for the time being conferred on shareholders holding a particular class of shares, we may by special resolution reduce our share capital.

**Winding Up**

On the winding up of the Company, if the assets available for distribution amongst our shareholders shall be more than sufficient to repay the whole of the paid up capital at the commencement of the winding up, the surplus shall be distributed *pari passu* amongst our shareholders in proportion to the capital paid up at the commencement of the winding up on the shares held by them respectively. If our assets available for distribution are insufficient to repay all of the paid-up capital, such the assets will be distributed so that, as nearly as may be, the losses are borne by our shareholders in proportion to the capital paid up, or which ought to have been paid up, at the commencement of the winding up, on the shares held by them respectively. The above is to be without prejudice to the rights of the holders of shares issued upon special terms and conditions.

**Certain Differences in Corporate Law**

Cayman Islands exempted companies are governed by the Companies Act. The Companies Act is modeled on English law but does not follow recent English law statutory enactments, and differs from laws applicable to United States corporations and their shareholders. Set forth below is a summary of the material differences between the provisions of the Companies Act applicable to us and the laws applicable to companies incorporated in the United States and their shareholders.

***Mergers and Similar Arrangements.*** The Companies Act permits mergers and consolidations between Cayman Islands companies and between Cayman Islands companies and non-Cayman Islands companies. For these purposes, (a) "merger" means the merging of two or more constituent companies and the vesting of their undertaking, property and liabilities in one of such companies as the surviving company, and (b) a "consolidation" means the combination of two or more constituent companies into a consolidated company and the vesting of the undertaking, property and liabilities of such companies to the consolidated company. In order to effect such a merger or consolidation, the directors of each constituent company must approve a written plan of merger or consolidation, which must then be authorized by (a) a special resolution of the shareholders of each constituent company, and (b) such other authorization, if any, as may be specified in such constituent company's articles of association. The plan must be filed with the Registrar of Companies of the Cayman Islands together with a declaration as to the solvency of the consolidated or surviving company, a list of the assets and liabilities of each constituent company and an undertaking that a copy of the certificate of merger or consolidation will be given to the members and creditors of each constituent company and that notification of the merger or consolidation will be published in the Cayman Islands Gazette. Court approval is not required for a merger or consolidation which is effected in compliance with these statutory procedures.

A merger between a Cayman parent company and its Cayman subsidiary or subsidiaries does not require authorization by a resolution of shareholders of that Cayman subsidiary if a copy of the plan of merger is given to every member of that Cayman subsidiary to be merged unless that member agrees otherwise. For this purpose a company is a "parent" of a subsidiary if it holds issued shares that together represent at least ninety percent (90%) of the votes at a general meeting of the subsidiary.

The consent of each holder of a fixed or floating security interest over a constituent company is required unless this requirement is waived by a court in the Cayman Islands.

Save in certain limited circumstances, a shareholder of a Cayman constituent company who dissents from the merger or consolidation is entitled to payment of the fair value of his shares (which, if not agreed between the parties, will be determined by the Cayman Islands court) upon dissenting to the merger or consolidation, provided the dissenting shareholder complies strictly with the procedures set out in the Companies Act. The exercise of dissenter rights will preclude the exercise by the dissenting shareholder of any other rights to which he or she might otherwise be entitled by virtue of holding shares, save for the right to seek relief on the grounds that the merger or consolidation is void or unlawful.

Separate from the statutory provisions relating to mergers and consolidations, the Companies Act also contains statutory provisions that facilitate the reconstruction and amalgamation of companies by way of schemes of arrangement, provided that the arrangement is approved by a majority in number of each class of shareholders and creditors with whom the arrangement is to be made, and who must in addition represent three-fourths in value of each such class of shareholders or creditors, as the case may be, that are present and voting either in person or by proxy at a meeting, or meetings, convened for that purpose. The convening of the meetings and subsequently the arrangement must be sanctioned by the Grand Court of the Cayman Islands. While a dissenting shareholder has the right to express to the court the view that the transaction ought not to be approved, the court can be expected to approve the arrangement if it determines that:

● the statutory provisions as to the required majority vote have been met;

● the shareholders have been fairly represented at the meeting in question and the statutory majority are acting bona fide without coercion of the minority to promote interests adverse to those of the class;

● the arrangement is such that may be reasonably approved by an intelligent and honest man of that class acting in respect of his interest; and

● the arrangement is not one that would more properly be sanctioned under some other provision of the Companies Act.

The Companies Act also contains a statutory power of compulsory acquisition which may facilitate the "squeeze out" of a dissentient minority shareholder upon a tender offer. When a tender offer is made and accepted by holders of 90% of the shares affected within four months, the offeror may, within a two-month period commencing on the expiration of such four-month period, require the holders of the remaining shares to transfer such shares to the offeror on the terms of the offer. An objection can be made to the Grand Court of the Cayman Islands but this is unlikely to succeed in the case of an offer which has been so approved unless there is evidence of fraud, bad faith or collusion.

If an arrangement and reconstruction by way of scheme of arrangement is thus approved and sanctioned, or if a tender offer is made and accepted, in accordance with the foregoing statutory procedures, a dissenting shareholder would have no rights comparable to appraisal rights, save that objectors to a takeover offer may apply to the Grand Court of the Cayman Islands for various orders that the Grand Court of the Cayman Islands has a broad discretion to make, which would otherwise ordinarily be available to dissenting shareholders of United States corporations, providing rights to receive payment in cash for the judicially determined value of the shares.

***Shareholders' Suits.*** Campbells, our Cayman Islands legal counsel, is not aware of any reported class action having been brought in a Cayman Islands court. Derivative actions have been brought in the Cayman Islands courts, and the Cayman Islands courts have confirmed the availability for such actions. In most cases, we will be the proper plaintiff in any claim based on a breach of duty owed to us, and a claim against (for example) our officers or directors usually may not be brought by a shareholder. However, based both on Cayman Islands authorities and on English authorities, which would in all likelihood be of persuasive authority and be applied by a court in the Cayman Islands, exceptions to the foregoing principle apply in circumstances in which:

● a company is acting, or proposing to act, illegally or ultra vires (beyond the scope of our authority);

● the act complained of, although not beyond the scope of the authority, could be effected if duly authorized by more than the number of votes which have actually been obtained; or

● those who control the company are perpetrating a "fraud on the minority."

A shareholder may have a direct right of action against us where the individual rights of that shareholder have been infringed or are about to be infringed.

***Enforcement of Civil Liabilities.*** The Cayman Islands has a different body of securities laws as compared to the United States and provides less protection to investors. Additionally, Cayman Islands companies may not have standing to sue before the Federal courts of the United States.

We have been advised by Campbells, as our Cayman Islands legal counsel, that the courts of the Cayman Islands are unlikely (i) to recognize or enforce against us judgments of courts of the United States predicated upon the civil liability provisions of the federal securities laws of the United States or any state; and (ii) in original actions brought in the Cayman Islands, to impose liabilities against us predicated upon the civil liability provisions of the federal securities laws of the United States or any state, so far as the liabilities imposed by those provisions are penal in nature. In those circumstances, although there is no statutory enforcement in the Cayman Islands of judgments obtained in the United States, the courts of the Cayman Islands will recognize and enforce a foreign money judgment of a foreign court of competent jurisdiction without retrial on the merits based on the principle that a judgment of a competent foreign court imposes upon the judgment debtor an obligation to pay the sum for which judgment has been given provided certain conditions are met. For a foreign judgment to be enforced in the Cayman Islands, such judgment must be final and conclusive and for a liquidated sum, and must not be in respect of taxes or a fine or penalty, inconsistent with a Cayman Islands judgment in respect of the same matter, impeachable on the grounds of fraud or obtained in a manner, and or be of a kind the enforcement of which is, contrary to natural justice or the public policy of the Cayman Islands (awards of punitive or multiple damages may well be held to be contrary to public policy). A Cayman Islands Court may stay enforcement proceedings if concurrent proceedings are being brought elsewhere.

***Special Considerations for Exempted Companies.*** We are an exempted company with limited liability under the Companies Act. The Companies Act distinguishes between ordinary resident companies and exempted companies. Any company that is registered in the Cayman Islands but conducts business mainly outside of the Cayman Islands may apply to be registered as an exempted company. The requirements for an exempted company are essentially the same as for an ordinary company except for the exemptions and privileges listed below:

● annual reporting requirements are minimal and consist mainly of a statement that we have conducted our operations mainly outside of the Cayman Islands and has complied with the provisions of the Companies Act;

● an exempted company's register of members is not open to inspection;

● an exempted company does not have to hold an annual general meeting;

● an exempted company may issue shares with no par value;

● an exempted company may obtain an undertaking against the imposition of any future taxation (such undertakings are usually given for 20 years in the first instance);

● an exempted company may register by way of continuation in another jurisdiction and be deregistered in the Cayman Islands; and

● an exempted company may register as a limited duration company; and

● an exempted company may register as a segregated portfolio company.

"Limited liability" means that the liability of each shareholder is limited to the amount unpaid by the shareholder on that shareholder's shares of the company (except in exceptional circumstances, such as involving fraud, the establishment of an agency relationship or an illegal or improper purpose or other circumstances in which a court may be prepared to pierce or lift the corporate veil).

**Anti-Money Laundering—Cayman Islands**

In order to comply with legislation or regulations aimed at the prevention of money laundering and terrorist financing, we are required to adopt and maintain anti-money laundering procedures, and will require current or prospective shareholders to provide evidence to verify their identity, address and source of funds. Where permitted, and subject to certain conditions, we may also delegate the maintenance of our anti-money laundering procedures (including the acquisition of due diligence information) to a suitable person.

We reserve the right to request such information and evidence as is necessary to verify the identity, address and source of funds of a current or prospective shareholder.

In the event of delay or failure on the part of the prospective shareholder in producing any information or evidence required for verification purposes, we may refuse to accept the application, in which case any funds received will be returned without interest to the account from which they were originally debited. We will not be liable for any loss suffered by a prospective shareholder arising as a result of a refusal of, or delay in processing, an application from a prospective shareholder if such information and documentation requested has not been provided by the prospective shareholder in a timely manner.

We also reserve the right to refuse to make any dividend, repurchase or redemption payment to a shareholder if our directors or officers suspect or are advised that the payment of dividend, repurchase or redemption proceeds to such shareholder might result in a breach of applicable anti-money laundering or other laws or regulations by any person in any relevant jurisdiction, or if such refusal is considered necessary or appropriate to ensure our compliance with any such laws or regulations in any applicable jurisdiction.

If any person resident in the Cayman Islands knows or suspects, or has reasonable grounds for knowing or suspecting, that another person is engaged in criminal conduct or is involved with terrorism or terrorist property and the information for that knowledge or suspicion came to their attention in the course of business in the regulated sector or other trade, profession, business or employment, the person will be required to report such knowledge or suspicion to (i) a nominated officer (appointed in accordance with the Proceeds of Crime Act (Revised) of the Cayman Islands) or the Financial Reporting Authority of the Cayman Islands, pursuant to the Proceeds of Crime Act (Revised), if the disclosure relates to criminal conduct or money laundering or (ii) to a police constable or a nominated officer (pursuant to the Terrorism Act (Revised) of the Cayman Islands) or the Financial Reporting Authority, pursuant to the Terrorism Act (Revised), if the disclosure relates to involvement with terrorism or terrorist financing and terrorist property. Such a report will not be treated as a breach of confidence or of any restriction upon the disclosure of information imposed by any enactment or otherwise.

**Data Protection in the Cayman Islands—Privacy Notice**

This privacy notice explains the manner in which we collect, process, and maintain personal data about our investors pursuant to the Data Protection Act (As Revised) of the Cayman Islands, as amended from time to time and any regulations, codes of practice, or orders promulgated pursuant thereto (the "DPA").

We are committed to processing personal data in accordance with the DPA. In our use of personal data, we will be characterized under the DPA as a "data controller," whilst certain of our service providers, affiliates, and delegates may act as "data processors" under the DPA. These service providers may process personal data for their own lawful purposes in connection with services provided to us. For the purposes of this Privacy Notice, "you" or "your" shall mean the shareholder (including prospective shareholders) and shall also include any individual connected to the shareholder.

By virtue of your investment in the Company, we and certain of our service providers may collect, record, store, transfer, and otherwise process personal data by which individuals may be directly or indirectly identified. We may combine personal data that you provide to use with personal data that we collect from, or about you. This may include personal data collected in an online or offline context including from credit reference agencies and other available public databases or data sources, such as news outlines, websites and other media sources and international sanctions lists.

Your personal data will be processed fairly and for lawful purposes, including (a) where the processing is necessary for us to perform a contract to which you are a party or for taking pre-contractual steps at your request, (b) where the processing is necessary for compliance with any legal, tax, or regulatory obligation to which we are subject, (c) where the processing is for the purposes of legitimate interests pursued by us or by a service provider to whom the data are disclosed, or (d) where you otherwise consent to the processing of personal data for any other specific purpose. As a data controller, we will only use your personal data for the purposes for which we collected it. If we need to use your personal data for an unrelated purpose, we will contact you.

We anticipate that we will share your personal data with our service providers for the purposes set out in this privacy notice. We may also share relevant personal data where it is lawful to do so and necessary to comply with our contractual obligations or your instructions or where it is necessary or desirable to do so in connection with any regulatory reporting obligations. In exceptional circumstances, we will share your personal data with regulatory, prosecuting, and other governmental agencies or departments, and parties to litigation (whether pending or threatened), in any country or territory including to any other person where we have a public or legal duty to do so (e.g. to assist with detecting and preventing fraud, tax evasion, and financial crime or compliance with a court order).

Your personal data shall not be held by us for longer than necessary with regard to the purposes of the data processing.

We will not sell your personal data. Any transfer of personal data outside of the Cayman Islands shall be in accordance with the requirements of the DPA. Where necessary, we will ensure that separate and appropriate legal agreements are put in place with the recipient of that data.

We will only transfer personal data in accordance with the requirements of the DPA, and will apply appropriate technical and organizational information security measures designed to protect against unauthorized or unlawful processing of the personal data and against the accidental loss, destruction, or damage to the personal data.

If you are a natural person, this will affect you directly. If you are a corporate investor (including, for these purposes, legal arrangements such as trusts or exempted limited partnerships) that provides us with personal data on individuals connected to you for any reason in relation to your investment into the Company, this will be relevant for those individuals and you should transmit this document to those individuals for their awareness and consideration.

You have certain rights under the DPA, including (a) the right to be informed as to how we collect and use your personal data (and this privacy notice fulfils our obligation in this respect), (b) the right to obtain a copy of your personal data, (c) the right to require us to stop direct marketing, (d) the right to have inaccurate or incomplete personal data corrected, (e) the right to withdraw your consent and require us to stop processing or restrict the processing, or not begin the processing of your personal data, (f) the right to be notified of a data breach (unless the breach is unlikely to be prejudicial), (g) the right to obtain information as to any countries or territories outside the Cayman Islands to which we, whether directly or indirectly, transfer, intend to transfer, or wish to transfer your personal data, general measures we take to ensure the security of personal data, and any information available to us as to the source of your personal data, (h) the right to complain to the Office of the Ombudsman of the Cayman Islands, and (i) the right to require us to delete your personal data in some limited circumstances.

If you do not wish to provide us with requested personal data or subsequently withdraw your consent, you may not be able to invest in the Company or remain invested in as it will affect our ability to manage your investment.

If you consider that your personal data has not been handled correctly, or you are not satisfied with our responses to any requests you have made regarding the use of your personal data, you have the right to complain to the Cayman Islands' Ombudsman. The Ombudsman can be contacted by email at <u>info@ombudsman.ky</u> or by accessing their website here: <u>ombudsman.ky</u>.

**Certain Anti-Takeover Provisions of the Second Amended and Restated Memorandum and Articles of Association**

Our authorized but unissued Class A Ordinary Shares are available for future issuances without shareholder approval and could be utilized for a variety of corporate purposes, including future offerings to raise additional capital, acquisitions and employee benefit plans. The existence of authorized but unissued Class A Ordinary Shares could render more difficult or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger or otherwise. However, under Cayman Islands law, our Board may only exercise the rights and powers granted to them under the Second Amended and Restated Memorandum and Articles of Association for a proper purpose and for what they believe in good faith to be in the best interests of the Company.

**Listing of Securities**

The ADSs are listed on Nasdaq under the symbol "YOUL."

**Differences in Corporate Law**

The Companies Act is derived, to a large extent, from the older Companies Acts of England but does not follow recent English statutory enactments and, accordingly, there are significant differences between the Companies Act and the current Companies Act of England. In addition, the Companies Act differs from laws applicable to U.S. corporations and their shareholders. Set forth below is a summary of certain significant differences between the provisions of the Companies Act applicable to us and the laws applicable to companies incorporated in the United States and their shareholders.

---

| | | |
|:---|:---|:---|
|  | **Cayman Islands** | **Delaware** |
| ***Mergers and Similar Arrangements*** | The Companies Act permits mergers and consolidations between Cayman Islands companies and between Cayman Islands companies and non-Cayman Islands companies. For these purposes, (1) "merger" means the merging of two or more constituent companies and the vesting of their undertaking, property and liabilities in one of such companies as the surviving company, and (2) a "consolidation" means the combination of two or more constituent companies into a consolidated company and the vesting of the undertaking, property and liabilities of such companies to the consolidated company. In order to effect such a merger or consolidation, the directors of each constituent company must approve a written plan of merger or consolidation, which must then be authorized by (a) a special resolution of the shareholders of each constituent company, and (b) such other authorization, if any, as may be specified in such constituent company's articles of association. The written plan of merger or consolidation must be filed with the Registrar of Companies of the Cayman Islands together with a declaration as to the solvency of the surviving or consolidated company, a declaration as to the assets and liabilities of each constituent company, and an undertaking that a copy of the certificate of merger or consolidation will be given to the members and creditors of each constituent company and that notification of the merger or consolidation will be published in the Cayman Islands Gazette. Court approval is not required for a merger or consolidation which is effected in compliance with these statutory procedures.<br>| Under Delaware law, with certain exceptions, a merger, a consolidation, or a sale, lease or exchange of all or substantially all the assets of a corporation must be approved by the board of directors and a majority of the outstanding shares entitled to vote thereon. However, unless required by its certificate of incorporation, approval is not required by the holders of the outstanding stock of a constituent corporation surviving a merger if:<br>● the merger agreement does not amend in any respect its certificate of incorporation;<br>● each share of its stock outstanding prior to the merger will be an identical share of stock following the merger; and<br>● either no shares of the surviving corporation's common stock and no shares, securities or obligations convertible into such stock will be issued or delivered pursuant to the merger, or the authorized unissued shares or treasury shares of the surviving corporation's common stock to be issued or delivered pursuant to the merger plus those initially issuable upon conversion of any other shares, securities or obligations to be issued or delivered pursuant to the merger do not exceed 20% of the shares of the surviving corporation's common stock outstanding immediately prior to the effective date of the merger.<br>|
|  | A merger between a Cayman parent company and its Cayman subsidiary or subsidiaries does not require authorization by a resolution of shareholders of that Cayman subsidiary if a copy of the plan of merger is given to every member of that Cayman subsidiary to be merged unless that member agrees otherwise. For this purpose, a company is a "parent" of a subsidiary if it holds issued shares that together represent at least 90% of the votes at a general meeting of the subsidiary.<br>The consent of each holder of a fixed or floating security interest over a constituent company is required unless this requirement is waived by a court in the Cayman Islands. | Mergers in which one corporation owns 90% or more of a second corporation may be completed without the vote of the second corporation's board of directors or stockholders. |
|  | Save in certain limited circumstances, a shareholder of a Cayman constituent company who dissents from the merger or consolidation is entitled to payment of the fair value of his shares (which, if not agreed between the parties, will be determined by the Cayman Islands court) upon dissenting to the merger or consolidation; provided that the dissenting shareholder complies strictly with the procedures set out in the Companies Act. The exercise of dissenter rights will preclude the exercise by the dissenting shareholder of any other rights to which he or she might otherwise be entitled by virtue of holding shares, save for the right to seek relief on the grounds that the merger or consolidation is void or unlawful. | Generally, a stockholder of a publicly traded corporation does not have appraisal rights in connection with a merger. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Separate from the statutory provisions relating to mergers and consolidations, the Companies Act also contains statutory provisions that facilitate the reconstruction and amalgamation of companies by way of schemes of arrangement; provided that the arrangement is approved by (a) 75% in value of shareholders or class of shareholders, as the case may be, or (b) a majority in number representing 75% in value of the creditors or class of creditors, as the case may be, with whom the arrangement is to be made, that are, in each case, present and voting either in person or by proxy at a meeting, or meetings, convened for that purpose. The convening of the meetings and subsequently the arrangement must be sanctioned by the Grand Court of the Cayman Islands. While a dissenting shareholder has the right to express to the court the view that the transaction ought not to be approved, the court can be expected to approve the arrangement if it determines that:<br>● the statutory provisions as to the required majority vote have been met;<br>● the shareholders have been fairly represented at the meeting in question and the statutory majority are acting bona fide without coercion of the minority to promote interests adverse to those of the class;<br>● the arrangement is such that may be reasonably approved by an intelligent and honest man of that class acting in respect of his interest; and<br>● the arrangement is not one that would more properly be sanctioned under some other provision of the Companies Act.<br>The Companies Act also contains a statutory power of compulsory acquisition which may facilitate the "squeeze out" of dissentient minority shareholders upon a tender offer. When a tender offer is made and accepted by holders of 90.0% of the shares affected within four months, the offeror may, within a two-month period commencing on the expiration of such four-month period, require the holders of the remaining shares to transfer such shares to the offeror on the terms of the offer. An objection can be made to the Grand Court of the Cayman Islands but this is unlikely to succeed in the case of an offer which has been so approved unless there is evidence of fraud, bad faith or collusion.<br>If an arrangement and reconstruction by way of scheme of arrangement is thus approved and sanctioned, or if a tender offer is made and accepted in accordance with the foregoing statutory procedures, a dissenting shareholder would have no rights comparable to appraisal rights, which would otherwise ordinarily be available to dissenting shareholders of Delaware corporations, providing rights to receive payment in cash for the judicially determined value of the shares.<br>

---

| | | |
|:---|:---|:---|
| ***Shareholders' Suits*** | In principle, we will normally be the proper plaintiff to sue for a wrong done to us as a company, and as a general rule a derivative action may not be brought by a minority shareholder. However, based on English authorities, which would in all likelihood be of persuasive authority in the Cayman Islands, the Cayman Islands court can be expected to follow and apply the common law principles (namely the rule in Foss v. Harbottle and the exceptions thereto) so that a non-controlling shareholder may be permitted to commence a class action against or derivative actions in the name of the company to challenge actions where:<br>● a company acts or proposes to act illegally or ultra vires;<br>● the act complained of, although not ultra vires, could only be effected duly if authorized by more than a simple majority vote that has not been obtained; and<br>● those who control the company are perpetrating a "fraud on the minority."<br>| Class actions and derivative actions generally are available to stockholders under Delaware law for, among other things, breach of fiduciary duty, corporate waste and actions not taken in accordance with applicable law. In such actions, the court generally has discretion to permit a winning plaintiff to recover attorneys' fees incurred in connection with such action. |
| ***Indemnification of Directors and Executive Officers and Limitation of Liability*** | Cayman Islands law does not limit the extent to which a company's memorandum and articles of association may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime, or against the indemnified person's own fraud or dishonesty. <br>| A corporation has the power to indemnify any director, officer, employee, or agent of the corporation who was, is or is threatened to be made a party to an action, suit or proceeding who acted in good faith and in a manner they believed to be in the best interests of the corporation, and if with respect to a criminal proceeding, had no reasonable cause to believe his or her conduct would be unlawful, against amounts actually and reasonably incurred. Additionally, under the Delaware General Corporation Law, a Delaware corporation must indemnify its present or former directors and officers against expenses (including attorneys' fees) actually and reasonably incurred to the extent that the officer or director has been successful on the merits or otherwise in defense of any action, suit or proceeding brought against him or her by reason of the fact that he or she is or was a director or officer of the corporation. |

---

---

| | | |
|:---|:---|:---|
| ***Directors' Fiduciary Duties*** | As a matter of Cayman Islands law, directors of Cayman Islands companies owe fiduciary duties to their respective companies to, amongst other things, act in good faith in their dealings with or on behalf of the company and exercise their powers and fulfill the duties of their office honestly. Core duties are: a duty to act in good faith in the best interests of the company, a duty not to make a personal profit based on his position as director (unless the company permits him to do so), a duty not to put himself in a position where the interests of the company conflict with his personal interest or his duty to a third party and a duty to exercise powers for the purpose for which such powers were intended. A director of a Cayman Islands company owes to the company a duty to act with skill and care. It was previously considered that a director need not exhibit in the performance of his duties a greater degree of skill than may reasonably be expected from a person of his knowledge and experience. However, English and Commonwealth courts have moved toward an objective standard with regard to the required skill and care and these authorities are likely to be followed in the Cayman Islands. | Under Delaware corporate law, a director of a Delaware corporation has a fiduciary duty to the corporation and its shareholders. This duty has two components: the duty of care and the duty of loyalty. The duty of care requires that a director act in good faith, with the care that an ordinarily prudent person would exercise under similar circumstances. Under this duty, a director must inform himself of, and disclose to shareholders, all material information reasonably available regarding a significant transaction.<br>The duty of loyalty requires that a director acts in a manner he reasonably believes to be in the best interests of the corporation. He must not use his corporate position for personal gain or advantage. This duty prohibits self-dealing by a director and mandates that the best interest of the corporation and its shareholders take precedence over any interest possessed by a director, officer or controlling shareholder and not shared by the shareholders generally.<br>In general, actions of a director are presumed to have been made on an informed basis, in good faith and in the honest belief that the action taken was in the best interests of the corporation. However, this presumption may be rebutted by evidence of a breach of one of the fiduciary duties. Should such evidence be presented concerning a transaction by a director, the director must prove the procedural fairness of the transaction, and that the transaction was of fair value to the corporation.<br>|
| ***Shareholder Action by Written Consent*** | The Companies Act allows a special resolution to be passed in writing if signed by all the voting shareholders (if authorized by the memorandum and articles of association). <br>| Under the Delaware General Corporation Law, a corporation may eliminate the right of shareholders to act by written consent by amendment to its certificate of incorporation.<br>|
| ***Shareholder Proposals*** | The Companies Act does not provide shareholders any right to bring business before a meeting or requisition a general meeting. However, these rights may be provided in the company's memorandum and articles of association.<br>| Under the Delaware General Corporation Law, a shareholder has the right to put any proposal before the annual meeting of shareholders; provided that it complies with the notice provisions in the governing documents. A special meeting may be called by the board of directors or any other person authorized to do so in the governing documents, but shareholders may be precluded from calling special meetings.<br>|

---

---

| | | |
|:---|:---|:---|
| ***Cumulative Voting*** | No cumulative voting for the election of directors unless so provided in the memorandum and articles of association.<br>| Under the Delaware General Corporation Law, cumulative voting for elections of directors is not permitted unless the corporation's certificate of incorporation specifically provides for it.<br>|
| ***Removal of Directors*** | Removal of directors and filling of board vacancies are governed by the terms of the memorandum and articles of association.<br>| Under the Delaware General Corporation Law, a director of a corporation with a classified board may be removed only for cause with the approval of a majority of the issued and outstanding shares entitled to vote, unless the certificate of incorporation provides otherwise.<br>|
| ***Transactions with Interested Shareholders*** | Cayman Islands law has no comparable statute. | The Delaware General Corporation Law contains a business combination statute applicable to Delaware corporations whereby, unless the corporation has specifically elected not to be governed by such statute by amendment to its certificate of incorporation, it is prohibited from engaging in certain business combinations with an "interested shareholder" for three years following the date that such person becomes an interested shareholder. An interested shareholder generally is a person or a group who or which owns or owned 15% or more of the target's outstanding voting shares within the past three years. This has the effect of limiting the ability of a potential acquirer to make a two-tiered bid for the target in which all shareholders would not be treated equally. The statute does not apply if, among other things, prior to the date on which such shareholder becomes an interested shareholder, the board of directors approves either the business combination or the transaction which resulted in the person becoming an interested shareholder. This encourages any potential acquirer of a Delaware corporation to negotiate the terms of any acquisition transaction with the target's board of directors.<br>|

---

---

| | | |
|:---|:---|:---|
| ***Dissolution; Winding Up*** | Under the Companies Act, a company may be wound up by either an order of the courts of the Cayman Islands or by a special resolution of its members or, if the company is unable to pay its debts as they fall due, by an ordinary resolution of its members. The court has authority to order winding up in a number of specified circumstances including where it is, in the opinion of the court, just and equitable to do so. | Under the Delaware General Corporation Law, unless the board of directors approves the proposal to dissolve, dissolution must be approved by shareholders holding 100% of the total voting power of the corporation. Only if the dissolution is initiated by the board of directors may it be approved by a simple majority of the corporation's outstanding shares. Delaware law allows a Delaware corporation to include in its certificate of incorporation a supermajority voting requirement in connection with dissolutions initiated by either an order of the courts of the Cayman Islands or by the board of directors. |
| ***Variation of Rights of Shares*** | Under our Second Amended and Restated Memorandum and Articles of Association, if our share capital is divided into more than one class of shares, the rights attached to any such class may only be varied with the consent in writing of the holders of two-thirds of the issued shares of that class or with the sanction of a special resolution passed at a separate meeting of the holders of the shares of that class. The rights conferred upon the holders of the shares of any class shall not, unless otherwise expressly provided by the terms of issue of the shares of that class, be deemed to be varied by the creation or issue of further shares ranking pari passu therewith.<br>| Under the Delaware General Corporation Law, a corporation may vary the rights of a class of shares with the approval of a majority of the outstanding shares of such class, unless the certificate of incorporation provides otherwise.<br>|
| ***Amendment of Governing Documents*** | The memorandum and articles of association may only be amended by a special resolution of the shareholders.  | Under the Delaware General Corporation Law, a corporation's governing documents may be amended with the approval of a majority of the outstanding shares entitled to vote, unless the certificate of incorporation provides otherwise.<br>|
| ***Rights of Non-resident or Foreign Shareholders*** | There are no limitations imposed by our Second Amended and Restated Memorandum and Articles of Association on the rights of non-resident or foreign shareholders to hold or exercise voting rights on our shares.<br>| Under Delaware General Corporation Law, there are no restrictions on foreign shareholders, and all the stock or membership interests in a Delaware company can be owned by non-U.S. nationals. |

---

**DESCRIPTION OF AMERICAN DEPOSITARY SHARES**

Citibank, N.A. has agreed to act as the depositary bank for the American Depositary Shares. Citibank's depositary offices are located at 388 Greenwich Street, New York, New York 10013. American Depositary Shares are frequently referred to as "ADSs" and represent ownership interests in securities that are on deposit with the depositary bank. ADSs may be represented by certificates that are commonly known as "American Depositary Receipts" or "ADRs." The depositary bank typically appoints a custodian to safekeep the securities on deposit. In this case, the custodian is Citibank, N.A. – Hong Kong, located at 9/F Citi Tower, One Bay East, 83 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong.

We have appointed Citibank as depositary bank pursuant to a deposit agreement. A copy of the deposit agreement is on file with the SEC under cover of a Registration Statement on Form F-6. You may obtain a copy of the deposit agreement from the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549 and from the SEC's website (www.sec.gov). Please refer to Registration Number 333-285250 when retrieving such copy.

We are providing you with a summary description of the material terms of the ADSs and of your material rights as an owner of ADSs. Please remember that summaries by their nature lack the precision of the information summarized and that the rights and obligations of an owner of ADSs will be determined by reference to the terms of the deposit agreement and not by this summary. We urge you to review the deposit agreement in its entirety. The portions of this summary description that are italicized describe matters that may be relevant to the ownership of ADSs but that may not be contained in the deposit agreement.

Each ADS represents the right to receive, and to exercise the beneficial ownership interests in, one Class A Ordinary Share that are on deposit with the depositary bank and/or custodian. An ADS also represents the right to receive, and to exercise the beneficial interests in, any other property received by the depositary bank or the custodian on behalf of the owner of the ADS but that has not been distributed to the owners of ADSs because of legal restrictions or practical considerations. We and the depositary bank may agree to change the ADS-to-Class A Ordinary Share ratio by amending the deposit agreement. This amendment may give rise to, or change, the depositary fees payable by ADS owners. The custodian, the depositary bank and their respective nominees will hold all deposited property for the benefit of the holders and beneficial owners of ADSs. The deposited property does not constitute the proprietary assets of the depositary bank, the custodian or their nominees. Beneficial ownership in the deposited property will under the terms of the deposit agreement be vested in the beneficial owners of the ADSs. The depositary bank, the custodian and their respective nominees will be the record holders of the deposited property represented by the ADSs for the benefit of the holders and beneficial owners of the corresponding ADSs. A beneficial owner of ADSs may or may not be the holder of ADSs. Beneficial owners of ADSs will be able to receive, and to exercise beneficial ownership interests in, the deposited property only through the registered holders of the ADSs, the registered holders of the ADSs (on behalf of the applicable ADS owners) only through the depositary bank, and the depositary bank(on behalf of the owners of the corresponding ADSs) directly, or indirectly, through the custodian or their respective nominees, in each case upon the terms of the deposit agreement.

If you become an owner of ADSs, you will become a party to the deposit agreement and therefore will be bound to its terms and to the terms of any ADR that represents your ADSs. The deposit agreement and the ADR specify our rights and obligations as well as your rights and obligations as an owner of ADSs and those of the depositary bank. As an ADS holder you appoint the depositary bank to act on your behalf in certain circumstances. The deposit agreement and the ADRs are governed by New York law. However, our obligations to the holders of Class A Ordinary Shares will continue to be governed by the laws of the Cayman Islands, which may be different from the laws in the United States.

In addition, applicable laws and regulations may require you to satisfy reporting requirements and obtain regulatory approvals in certain circumstances. You are solely responsible for complying with such reporting requirements and obtaining such approvals. Neither the depositary bank, the custodian, us or any of their or our respective agents or affiliates shall be required to take any actions whatsoever on your behalf to satisfy such reporting requirements or obtain such regulatory approvals under applicable laws and regulations.

*As an owner of ADSs, we will not treat you as one of our shareholders and you will not have direct shareholder rights. The depositary bank will hold on your behalf the shareholder rights attached to the Class A Ordinary Shares underlying your ADSs. As an owner of ADSs you will be able to exercise the shareholders rights for the Class A Ordinary Shares represented by your ADSs through the depositary bank only to the extent contemplated in the deposit agreement. To exercise any shareholder rights not contemplated in the deposit agreement you will, as an ADS owner, need to arrange for the cancellation of your ADSs and become a direct shareholder.*

The manner in which you own and/or hold ADSs (e.g., in a brokerage account vs. as registered Holders on the ADS register maintained by the Depositary), the type of ADSs held (e.g., freely transferable ADSs vs. Restricted ADSs, and/or Full Entitlement ADSs vs. Partial Entitlement ADSs), the timeframe of issuance and ownership of ADSs (e.g., as of an ADS Record Date vs. before and/or after an ADS Record Date), and the number of ADSs held, may affect your rights and obligations (including, without limitation, the ADS fees payable), and the manner in which, and the extent to which, services are made available to you, in each case pursuant to the terms of the Deposit Agreement. As an owner of ADSs, you may hold your ADSs either by means of an ADR registered in your name, through a brokerage or safekeeping account, or through an account established by the depositary bank in your name reflecting the registration of uncertificated ADSs directly on the books of the depositary bank (commonly referred to as the "direct registration system" or "DRS"). The direct registration system reflects the uncertificated (book-entry) registration of ownership of ADSs by the depositary bank. Under the direct registration system, ownership of ADSs is evidenced by periodic statements issued by the depositary bank to the holders of the ADSs. The direct registration system includes automated transfers between the depositary bank and The Depository Trust Company ("DTC"), the central book-entry clearing and settlement system for equity securities in the United States. If you decide to hold your ADSs through your brokerage or safekeeping account, you must rely on the procedures of your broker or bank to assert your rights as ADS owner. Banks and brokers typically hold securities such as the ADSs through clearing and settlement systems such as DTC. The procedures of such clearing and settlement systems may limit your ability to exercise your rights as an owner of ADSs. Please consult with your broker or bank if you have any questions concerning these limitations and procedures. All ADSs held through DTC will be registered in the name of a nominee of DTC. This summary description assumes you have opted to own the ADSs directly by means of an ADS registered in your name and, as such, we will refer to you as the "holder." When we refer to "you," we assume the reader owns ADSs and will own ADSs at the relevant time.

The registration of the Class A Ordinary Shares in the name of the depositary bank or the custodian shall, to the maximum extent permitted by applicable law, vest in the depositary bank or the custodian the record ownership in the applicable Class A Ordinary Shares with the beneficial ownership rights and interests in such Class A Ordinary Shares being at all times vested with the beneficial owners of the ADSs representing the Class A Ordinary Shares. The depositary bank or the custodian shall at all times be entitled to exercise the beneficial ownership rights in all deposited property, in each case only on behalf of the holders and beneficial owners of the ADSs representing the deposited property.

**Dividends and Distributions**

As a holder of ADSs, you generally have the right to receive the distributions we make on the securities deposited with the custodian. Your receipt of these distributions may be limited, however, by practical considerations and legal limitations. Holders of ADSs will receive such distributions under the terms of the deposit agreement in proportion to the number of ADSs held as of the specified record date, after deduction of the applicable fees, taxes and expenses.

**Distributions of Cash**

Whenever we make a cash distribution for the securities on deposit with the custodian, we will deposit the funds with the custodian. Upon receipt of confirmation of the deposit of the requisite funds, the depositary bank will arrange for the funds received in a currency other than U.S. dollars to be converted into U.S. dollars and for the distribution of the U.S. dollars to the holders, subject to the laws and regulations of the Cayman Islands.

The conversion into U.S. dollars will take place only if practicable and if the U.S. dollars are transferable to the United States. The depositary bank will apply the same method for distributing the proceeds of the sale of any property (such as undistributed rights) held by the custodian in respect of securities on deposit.

The distribution of cash will be made net of the fees, expenses, taxes and governmental charges payable by holders under the terms of the deposit agreement. The depositary bank will hold any cash amounts it is unable to distribute in a non-interest bearing account for the benefit of the applicable holders and beneficial owners of ADSs until the distribution can be effected or the funds that the depositary bank holds must be escheated as unclaimed property in accordance with the laws of the relevant states of the United States.

**Distributions of Shares**

Whenever we make a free distribution of Class A Ordinary Shares for the securities on deposit with the custodian, we will deposit the applicable number of Class A Ordinary Shares with the custodian. Upon receipt of confirmation of such deposit, the depositary bank will either distribute to holders new ADSs representing the Class A Ordinary Shares deposited or modify the ADS-to-Class A Ordinary Shares ratio, in which case each ADS you hold will represent rights and interests in the additional Class A Ordinary Shares so deposited. Only whole new ADSs will be distributed. Fractional entitlements will be sold and the proceeds of such sale will be distributed as in the case of a cash distribution.

The distribution of new ADSs or the modification of the ADS-to-Class A Ordinary Shares ratio upon a distribution of Class A Ordinary Shares will be made net of the fees, expenses, taxes and governmental charges payable by holders under the terms of the deposit agreement. In order to pay such taxes or governmental charges, the depositary bank may sell all or a portion of the new Class A Ordinary Shares so distributed.

No such distribution of new ADSs will be made if it would violate a law (*e.g.*, the U.S. securities laws) or if it is not operationally practicable. If the depositary does not distribute new ADSs as described above, it may sell the Class A Ordinary Shares received upon the terms described in the deposit agreement and will distribute the proceeds of the sale as in the case of a distribution of cash.

**Distributions of Rights**

Whenever we intend to distribute rights to subscribe for additional Class A Ordinary Shares, we will give prior notice to the depositary bank and we will assist the depositary bank in determining whether it is lawful and reasonably practicable to distribute rights to subscribe for additional ADSs to holders.

The depositary bank will establish procedures to distribute rights to subscribe for additional ADSs to holders and to enable such holders to exercise such rights if it is lawful and reasonably practicable to make the rights available to holders of ADSs, and if we provide all of the documentation contemplated in the deposit agreement (such as opinions to address the lawfulness of the transaction). You may have to pay fees, expenses, taxes and other governmental charges to subscribe for the new ADSs upon the exercise of your rights. The depositary bank is not obligated to establish procedures to facilitate the distribution and exercise by holders of rights to subscribe for new Class A Ordinary Shares other than in the form of ADSs.

The depositary bank will *not* distribute the rights to you if:

● We do not timely request that the rights be distributed to you or we request that the rights not be distributed to you; or

● We fail to deliver satisfactory documents to the depositary bank; or

● It is not reasonably practicable to distribute the rights.

The depositary bank will sell the rights that are not exercised or not distributed if such sale is lawful and reasonably practicable. The proceeds of such sale will be distributed to holders as in the case of a cash distribution. If the depositary bank is unable to sell the rights, it will allow the rights to lapse.

**Elective Distributions**

Whenever we intend to distribute a dividend payable at the election of shareholders either in cash or in additional shares, we will give prior notice thereof to the depositary bank and will indicate whether we wish the elective distribution to be made available to you. In such case, we will assist the depositary bank in determining whether such distribution is lawful and reasonably practicable.

The depositary bank will make the election available to you only if it is reasonably practicable and if we have provided all of the documentation contemplated in the deposit agreement. In such case, the depositary bank will establish procedures to enable you to elect to receive either cash or additional ADSs, in each case as described in the deposit agreement.

If the election is not made available to you, you will receive either cash or additional ADSs, depending on what a shareholder in the Cayman Islands would receive upon failing to make an election, as more fully described in the deposit agreement.

**Other Distributions**

Whenever we intend to distribute property other than cash, Class A Ordinary Shares or rights to subscribe for additional Class A Ordinary Shares, we will notify the depositary bank in advance and will indicate whether we wish such distribution to be made to you. If so, we will assist the depositary bank in determining whether such distribution to holders is lawful and reasonably practicable.

If it is reasonably practicable to distribute such property to you and if we provide to the depositary bank all of the documentation contemplated in the deposit agreement, the depositary bank will distribute the property to the holders in a manner we deem practicable.

The distribution will be made net of fees, expenses, taxes and governmental charges payable by holders under the terms of the deposit agreement. In order to pay such taxes and governmental charges, the depositary bank may sell all or a portion of the property received.

The depositary bank will *not* distribute the property to you and will sell the property if:

● We do not request that the property be distributed to you or if we request that the property not be distributed to you; or

● We do not deliver satisfactory documents to the depositary bank; or

● The depositary bank determines that all or a portion of the distribution to you is not reasonably practicable.

The proceeds of such a sale will be distributed to holders as in the case of a cash distribution.

**Redemption**

Whenever we decide to redeem any of the securities on deposit with the custodian, we will notify the depositary bank in advance. If it is practicable and if we provide all of the documentation contemplated in the deposit agreement, the depositary bank will provide notice of the redemption to the holders.

The custodian will be instructed to surrender the shares being redeemed against payment of the applicable redemption price. The depositary bank will convert into U.S. dollars upon the terms of the deposit agreement the redemption funds received in a currency other than U.S. dollars and will establish procedures to enable holders to receive the net proceeds from the redemption upon surrender of their ADSs to the depositary bank. You may have to pay fees, expenses, taxes and other governmental charges upon the redemption of your ADSs. If less than all ADSs are being redeemed, the ADSs to be retired will be selected by lot or on a *pro rata* basis, as the depositary bank may determine.

**Changes Affecting Class A Ordinary Shares**

The Class A Ordinary Shares held on deposit for your ADSs may change from time to time. For example, there may be a change in nominal or par value, split-up, cancellation, consolidation or any other reclassification of such Class A Ordinary Shares or a recapitalization, reorganization, merger, consolidation or sale of assets of the Company.

If any such change were to occur, your ADSs would, to the extent permitted by law and the deposit agreement, represent the right to receive the property received or exchanged in respect of the Class A Ordinary Shares held on deposit. The depositary bank may in such circumstances deliver new ADSs to you, amend the deposit agreement, the ADRs and the applicable Registration Statement(s) on Form F-6, call for the exchange of your existing ADSs for new ADSs and take any other actions that are appropriate to reflect as to the ADSs the change affecting the Shares. If the depositary bank may not lawfully distribute such property to you, the depositary bank may sell such property and distribute the net proceeds to you as in the case of a cash distribution.

**Issuance of ADSs upon Deposit of Class A Ordinary Shares**

Upon completion of the Business Combination, the Class A Ordinary Shares being offered pursuant to the prospectus will be deposited by us with the custodian. Upon receipt of confirmation of such deposit, the depositary bank expects to issue ADSs representing the deposited Class A Ordinary Shares to the order of Continental in its capacity as transfer agent and exchange agent for the Business Combination.

After completion of the Business Combination, the depositary bank may create ADSs on your behalf if you or your broker deposit Class A Ordinary Shares with the custodian. The depositary bank will deliver these ADSs to the person you indicate only after you pay any applicable issuance fees and any charges and taxes payable for the transfer of the Class A Ordinary Shares to the custodian. Your ability to deposit Class A Ordinary Shares and receive ADSs may be limited by U.S. and Cayman Islands legal considerations applicable at the time of deposit.

The issuance of ADSs may be delayed until the depositary bank or the custodian receives confirmation that all required approvals have been given and that the Class A Ordinary Shares have been duly transferred to the custodian. The depositary bank will only issue ADSs in whole numbers.

When you make a deposit of Class A Ordinary Shares, you will be responsible for transferring good and valid title to the depositary bank. As such, you will be deemed to represent and warrant that:

● The Class A Ordinary Shares are duly authorized, validly issued, fully paid, non-assessable and legally obtained.

● All preemptive (and similar) rights, if any, with respect to such Class A Ordinary Shares have been validly waived or exercised.

● You are duly authorized to deposit the Class A Ordinary Shares.

● The Class A Ordinary Shares presented for deposit are free and clear of any lien, encumbrance, security interest, charge, mortgage or adverse claim, and are not, and the ADSs issuable upon such deposit will not be, "restricted securities" (as defined in the deposit agreement).

● The Class A Ordinary Shares presented for deposit have not been stripped of any rights or entitlements.

If any of the representations or warranties are incorrect in any way, we and the depositary bank may, at your cost and expense, take any and all actions necessary to correct the consequences of the misrepresentations.

**Transfer, Combination, and Split Up of ADRs**

As an ADR holder, you will be entitled to transfer, combine or split up your ADRs and the ADSs evidenced thereby. For transfers of ADRs, you will have to surrender the ADRs to be transferred to the depositary bank and also must:

● ensure that the surrendered ADR is properly endorsed or otherwise in proper form for transfer;

● provide such proof of identity and genuineness of signatures as the depositary bank deems appropriate;

● provide any transfer stamps required by the State of New York or the United States; and

● pay all applicable fees, charges, expenses, taxes and other government charges payable by ADR holders pursuant to the terms of the deposit agreement, upon the transfer of ADRs.

To have your ADRs either combined or split up, you must surrender the ADRs in question to the depositary bank with your request to have them combined or split up, and you must pay all applicable fees, charges and expenses payable by ADR holders, pursuant to the terms of the deposit agreement, upon a combination or split up of ADRs.

**Withdrawal of Class A Ordinary Shares Upon Cancellation of ADSs**

As a holder, you will be entitled to present your ADSs to the depositary bank for cancellation and then receive the corresponding number of underlying Class A Ordinary Shares at the custodian's offices. Your ability to withdraw the Class A Ordinary Shares held in respect of the ADSs may be limited by U.S. and Cayman Islands legal considerations applicable at the time of withdrawal. In order to withdraw the Class A Ordinary Shares represented by your ADSs, you will be required to pay to the depositary bank the fees for cancellation of ADSs and any charges and taxes payable upon the transfer of the Class A Ordinary Shares. You assume the risk for delivery of all funds and securities upon withdrawal. Once canceled, the ADSs will not have any rights under the deposit agreement.

If you hold ADSs registered in your name, the depositary bank may ask you to provide proof of identity and genuineness of any signature and such other documents as the depositary bank may deem appropriate before it will cancel your ADSs. The withdrawal of the Class A Ordinary Shares represented by your ADSs may be delayed until the depositary bank receives satisfactory evidence of compliance with all applicable laws and regulations. Please keep in mind that the depositary bank will only accept ADSs for cancellation that represent a whole number of securities on deposit.

You will have the right to withdraw the securities represented by your ADSs at any time except for:

● Temporary delays that may arise because (i) the transfer books for the Class A Ordinary Shares or ADSs are closed, or (ii) Class A Ordinary Shares are immobilized on account of a shareholders' meeting or a payment of dividends.

● Obligations to pay fees, taxes and similar charges.

● Restrictions imposed because of laws or regulations applicable to ADSs or the withdrawal of securities on deposit.

The deposit agreement may not be modified to impair your right to withdraw the securities represented by your ADSs except to comply with mandatory provisions of law.

**Voting Rights**

As a holder, you generally have the right under the deposit agreement to instruct the depositary bank to exercise the voting rights for the Class A Ordinary Shares represented by your ADSs. The voting rights of holders of Class A Ordinary Shares are described in the section of this prospectus titled "Description of Our Securities."

At our request, the depositary bank will distribute to you any notice of shareholders' meeting received from us together with information explaining how to instruct the depositary bank to exercise the voting rights of the securities represented by ADSs. In lieu of distributing such materials, the depositary bank may distribute to holders of ADSs instructions on how to retrieve such materials upon request.

If the depositary bank timely receives voting instructions from a holder of ADSs, it will endeavor to vote the securities (in person or by proxy) represented by the holder's ADSs in accordance with such voting instructions. If the depositary bank does not receive your voting instructions in a timely manner you will nevertheless be treated as having instructed the depositary bank to give a proxy to a person we designate to vote the Class A Ordinary Shares represented by your ADSs in his/her discretion. The depositary bank will deliver such discretionary proxy only if:

- we confirm that we wish the depositary bank to issue such discretionary proxy; <br>- we designate the person who is to receive such discretionary proxy;

- we certify that the matters to be considered at the shareholders meeting do not adversely affect the rights of shareholders; and <br>- we certify that there exists no substantial opposition to such matters.

Securities for which no voting instructions have been received will not be voted (except as otherwise contemplated in the deposit agreement).

Please note that the ability of the depositary bank to carry out voting instructions may be limited by practical and legal limitations and the terms of the securities on deposit. We cannot assure you that you will receive voting materials in time to enable you to return voting instructions to the depositary bank in a timely manner.

**Fees and Charges**

As an ADS holder, you will be required to pay the following fees (some of which may be cumulative) under the terms of the deposit agreement:

---

| | | |
|:---|:---|:---|
| **Service** | **Service** | **Fees** |
| ● | Issuance of ADSs (e.g., an issuance of ADS upon a deposit of Class A Ordinary Shares, upon a change in the ADS(s)-to-Class A Ordinary Share ratio, ADS conversions or for any other reason), excluding ADS issuances as a result of distributions of Class A Ordinary Shares | Up to US$0.05 per ADS issued |
| ● | Cancellation of ADSs (e.g., a cancellation of ADSs for delivery of deposited property, upon a change in the ADS(s)-to-Class A Ordinary Share ratio, ADS conversions, upon termination of the Deposit Agreement, or for any other reason) | Up to US$0.05 per ADS cancelled |
| ● | Distribution of cash dividends or other cash distributions (e.g., upon a sale of rights and other entitlements) | Up to US$0.05 per ADS held |
| ● | Distribution of ADSs pursuant to (i) stock dividends or other free stock distributions, or (ii) exercise of rights to purchase additional ADSs | Up to US$0.05 per ADS held |
| ● | Distribution of financial instruments, including, without limitation, securities other than ADSs or rights to purchase additional ADSs (e.g., upon a spin-off and contingent value rights) | Up to US$0.05 per ADS held |
| ● | ADS Services | Up to US$0.05 per ADS held on the applicable record date(s) established by the depositary bank |
| ● | Registration of ADS transfers (e.g., upon a registration of the transfer of registered ownership of ADSs, upon a transfer of ADSs into DTC and *vice versa*, or for any other reason) | Up to US$0.05 per ADS (or fraction thereof) transferred |
| ● | Conversion of ADSs of one series for ADSs of another series (e.g., upon conversion of Partial Entitlement ADSs for Full Entitlement ADSs, or upon conversion of Restricted ADSs (each as defined in the Deposit Agreement) into freely transferable ADSs, and *vice versa* or conversion of ADSs for unsponsored American Depositary Shares (e.g., upon termination of the Deposit Agreement))). | Up to US$0.05 per ADS (or fraction thereof) converted |

---

As an ADS holder, you will also be responsible to pay certain charges (some of which may be cumulative) such as:

● taxes (including applicable interest and penalties) and other governmental charges;

● the registration fees as may from time to time be in effect for the registration of Class A Ordinary Shares on the share register and applicable to transfers of Class A Ordinary Shares to or from the name of the custodian, the depositary bank or any nominees upon the making of deposits and withdrawals, respectively;

● certain cable, telex and facsimile transmission and delivery expenses;

● the fees, expenses, spreads, taxes and other charges of the depositary bank and/or service providers (which may be a division, branch or affiliate of the depositary bank) in the conversion of foreign currency;

● the reasonable and customary out-of-pocket expenses incurred by the depositary bank in connection with compliance with exchange control regulations and other regulatory requirements applicable to Class A Ordinary Shares, ADSs and ADRs;

● the fees, charges, costs and expenses incurred by the depositary bank, the custodian, or any nominee in connection with the ADR program; and

● the amounts payable to the depositary bank by any party to the deposit agreement pursuant to any ancillary agreement to the deposit agreement in respect of the ADR program, the ADSs and the ADRs.

ADS fees and charges for (i) the issuance of ADSs, and (ii) the cancellation of ADSs are charged to the person for whom the ADSs are issued (in the case of ADS issuances) and to the person for whom ADSs are cancelled (in the case of ADS cancellations). In the case of ADSs issued by the depositary bank into DTC, the ADS issuance and cancellation fees and charges may be deducted from distributions made through DTC, and may be charged to the DTC participant(s) receiving the ADSs being issued or the DTC participant(s) holding the ADSs being cancelled, as the case may be, on behalf of the beneficial owner(s) and will be charged by the DTC participant(s) to the account of the applicable beneficial owner(s) in accordance with the procedures and practices of the DTC participants as in effect at the time. ADS fees and charges in respect of distributions and the ADS service fee are charged to the holders as of the applicable ADS record date. In the case of distributions of cash, the amount of the applicable ADS fees and charges is deducted from the funds being distributed. In the case of (i) distributions other than cash and (ii) the ADS service fee, holders as of the ADS record date will be invoiced for the amount of the ADS fees and charges and such ADS fees and charges may be deducted from distributions made to holders of ADSs. For ADSs held through DTC, the ADS fees and charges for distributions other than cash and the ADS service fee may be deducted from distributions made through DTC, and may be charged to the DTC participants in accordance with the procedures and practices prescribed by DTC and the DTC participants in turn charge the amount of such ADS fees and charges to the beneficial owners for whom they hold ADSs. In the case of (i) registration of ADS transfers, the ADS transfer fee will be payable by the ADS Holder whose ADSs are being transferred or by the person to whom the ADSs are transferred, and (ii) conversion of ADSs of one series for ADSs of another series (which may entail the cancellation, issuance and transfer of ADSs and the conversion of ADSs from one series to another series), the applicable ADS issuance, cancellation, transfer and conversion fees will be payable by the Holder whose ADSs are converted or by the person to whom the converted ADSs are delivered.

In the event of refusal to pay the depositary bank fees, the depositary bank may, under the terms of the deposit agreement, refuse the requested service until payment is received or may set off the amount of the depositary bank fees from any distribution to be made to the ADS holder. Certain depositary fees and charges (such as the ADS services fee) may become payable shortly after the closing of the ADS offering. Note that the fees and charges you may be required to pay may vary over time and may be changed by us and by the depositary bank. You will receive prior notice of such changes. The depositary bank may reimburse us for certain expenses incurred by us in respect of the ADR program, by making available a portion of the ADS fees charged in respect of the ADR program or otherwise, upon such terms and conditions as we and the depositary bank agree from time to time. Any failure by us to timely pay any fees, charges and reimbursements of the depositary bank for which we are responsible pursuant to the deposit agreement, or any ancillary agreement between us and the depositary bank, may suspend the obligation of the depositary bank to provide the services contemplated in the deposit agreement at our expense (including services being made available to you), and the depositary bank shall have no obligation to provide any such services made available at our expense (including services being made available to you) unless and until we have made payment in full.

**Amendments and Termination**

We may agree with the depositary bank to modify the deposit agreement at any time without your consent. We undertake to give holders 30 days' prior notice of any modifications that would materially prejudice any of their substantial rights under the deposit agreement. We will not consider to be materially prejudicial to your substantial rights any modifications or supplements that are reasonably necessary for the ADSs to be registered under the Securities Act or to be eligible for book-entry settlement, in each case without imposing or increasing the fees and charges you are required to pay. In addition, we may not be able to provide you with prior notice of any modifications or supplements that are required to accommodate compliance with applicable provisions of law.

You will be bound by the modifications to the deposit agreement if you continue to hold your ADSs after the modifications to the deposit agreement become effective. The deposit agreement cannot be amended to prevent you from withdrawing the Class A Ordinary Shares represented by your ADSs (except as permitted by law).

We have the right to direct the depositary bank to terminate the deposit agreement. Similarly, the depositary bank may in certain circumstances on its own initiative terminate the deposit agreement. In either case, the depositary bank must give notice to the holders at least 30 days before termination. Until termination, your rights under the deposit agreement will be unaffected.

After termination, the depositary bank will continue to collect distributions received (but will not distribute any such property until you request the cancellation of your ADSs) and may sell the securities held on deposit. After the sale, the depositary bank will hold the proceeds from such sale and any other funds then held for the holders of ADSs in a non-interest bearing account. At that point, the depositary bank will have no further obligations to holders other than to account for the funds then held for the holders of ADSs still outstanding (after deduction of applicable fees, taxes and expenses).

In connection with any termination of the deposit agreement, the depositary bank may, with our consent, and shall, at our instruction, distribute to owners of ADSs the deposited property in a mandatory exchange for, and upon a mandatory cancellation of, the ADSs. The ability to receive the deposited property upon termination of the deposit agreement would be subject, in each case, to receipt by the depositary bank of (i) confirmation of satisfaction of certain U.S. regulatory requirements and (ii) payment of applicable depositary fees and taxes. The depositary bank will give notice to owners of ADSs at least 30 calendar days before termination of the deposit agreement. Owners of ADSs would be required to surrender ADSs to the depositary bank for cancellation in exchange for the deposited property.

**Books of Depositary**

The depositary bank will maintain ADS holder records at its depositary office. You may inspect such records at such office during regular business hours but solely for the purpose of communicating with other holders in the interest of business matters relating to the ADSs and the deposit agreement.

The depositary bank will maintain in New York facilities to record and process the issuance, cancellation, combination, split-up and transfer of ADSs. These facilities may be closed from time to time, to the extent not prohibited by law.

**Limitations on Obligations and Liabilities**

The deposit agreement limits our obligations and the depositary bank's obligations to you. Please note the following:

● We and the depositary bank are obligated only to take the actions specifically stated in the deposit agreement without negligence or bad faith.

● The depositary bank disclaims any liability for any failure to carry out voting instructions, for any manner in which a vote is cast or for the effect of any vote, provided it acts in good faith and in accordance with the terms of the deposit agreement.

● The depositary bank disclaims any liability for any failure to determine the lawfulness or practicality of any action, for the content of any document forwarded to you on our behalf or for the accuracy of any translation of such a document, for the investment risks associated with investing in Class A Ordinary Shares, for the validity or worth of the Class A Ordinary Shares, for any financial transaction entered into by any person in respect of the ADSs or any Deposited Property, for any tax consequences that result from the ownership of, or any transaction involving, ADSs, for the credit-worthiness of any third party, for allowing any rights to lapse under the terms of the deposit agreement, for the timeliness of any of our notices or for our failure to give notice.

● We and the depositary bank will not be obligated to perform any act that is inconsistent with the terms of the deposit agreement.

● We and the depositary bank disclaim any liability if we or the depositary bank are prevented or forbidden from or subject to any civil or criminal penalty or restraint on account of, or delayed in, doing or performing any act or thing required by the terms of the deposit agreement, by reason of any provision, present or future of any law or regulation, or by reason of present or future provision of any provision of our Memorandum and Articles of Association, Bylaws, or any provision of or governing the securities on deposit, or by reason of any act of God or war or other circumstances beyond our control.

● We and the depositary bank disclaim any liability by reason of any exercise of, or failure to exercise, any discretion provided for in the deposit agreement or in our Memorandum and Articles of Association, Bylaws or in any provisions of or governing the securities on deposit.

● We and the depositary bank further disclaim any liability for any action or inaction in reliance on the advice or information received from legal counsel, accountants, any person presenting Shares for deposit, any holder of ADSs or authorized representatives thereof, or any other person believed by either of us in good faith to be competent to give such advice or information.

● We and the depositary bank also disclaim liability for the inability by a holder to benefit from any distribution, offering, right or other benefit that is made available to holders of Class A Ordinary Shares but is not, under the terms of the deposit agreement, made available to you.

● We and the depositary bank may rely without any liability upon any written notice, request or other document believed to be genuine and to have been signed or presented by the proper parties.

● We and the depositary bank also disclaim liability for any consequential or punitive damages for any breach of the terms of the deposit agreement.

● No disclaimer of any Securities Act liability is intended by any provision of the deposit agreement.

● Nothing in the deposit agreement gives rise to a partnership or joint venture, or establishes a fiduciary relationship, among us, the depositary bank and you as ADS holder.

● Nothing in the deposit agreement precludes Citibank (or its affiliates) from engaging in transactions in which parties adverse to us or the ADS owners have interests, and nothing in the deposit agreement obligates Citibank to disclose those transactions, or any information obtained in the course of those transactions, to us or to the ADS owners, or to account for any payment received as part of those transactions.

● We and the depositary bank disclaim any liability for the manner in which you elect to own and/or hold ADSs (e.g., in a brokerage account vs. as registered Holder on the register of ADSs maintained by the depositary bank), the type of ADSs you elect to hold or own (e.g., freely transferable ADSs vs. Restricted ADSs, and/or Full Entitlement ADSs vs. Partial Entitlement ADSs), or the timeframe of issuance and ownership of ADSs (e.g., as of an ADS Record Date vs. before and/or after an ADS Record Date).

*As the above limitations relate to our obligations and the depositary's obligations to you under the deposit agreement, we believe that, as a matter of construction of the clause, such limitations would likely to continue to apply to ADS holders who withdraw the Class A Ordinary Shares from the ADS facility with respect to obligations or liabilities incurred under the deposit agreement before the cancellation of the ADSs and the withdrawal of the Class A Ordinary Shares, and such limitations would most likely not apply to ADS holders who withdraw the Class A Ordinary Shares from the ADS facility with respect to obligations or liabilities incurred after the cancellation of the ADSs and the withdrawal of the Class A Ordinary Shares and not under the deposit agreement.*

*In any event, you will not be deemed, by agreeing to the terms of the deposit agreement, to have waived our or the depositary's compliance with U.S. federal securities laws and the rules and regulations promulgated thereunder. In fact, you cannot waive our or the depositary's compliance with U.S. federal securities laws and the rules and regulations promulgated thereunder.*

**Taxes**

You will be responsible for the taxes and other governmental charges payable on the ADSs and the securities represented by the ADSs. We, the depositary bank and the custodian may deduct from any distribution the taxes and governmental charges payable by holders and may sell any and all property on deposit to pay the taxes and governmental charges payable by holders. You will be liable for any deficiency if the sale proceeds do not cover the taxes that are due.

The depositary bank may refuse to issue ADSs, to deliver, transfer, split and combine ADRs or to release securities on deposit until all taxes and charges are paid by the applicable holder. The depositary bank and the custodian may take reasonable administrative actions to obtain tax refunds and reduced tax withholding for any distributions on your behalf. However, you may be required to provide to the depositary bank and to the custodian proof of taxpayer status and residence and such other information as the depositary bank and the custodian may require to fulfill legal obligations. You are required to indemnify us, the depositary bank and the custodian for any claims with respect to taxes based on any tax benefit obtained for you.

**Foreign Currency Conversion**

The depositary bank will arrange for the conversion of all foreign currency received into U.S. dollars if such conversion is practical, and it will distribute the U.S. dollars in accordance with the terms of the deposit agreement. You may have to pay fees and expenses incurred in converting foreign currency, such as fees and expenses incurred in complying with currency exchange controls and other governmental requirements.

If the conversion of foreign currency is not practical or lawful, or if any required approvals are denied or not obtainable at a reasonable cost or within a reasonable period, the depositary bank may take the following actions in its discretion:

● Convert the foreign currency to the extent practical and lawful and distribute the U.S. dollars to the holders for whom the conversion and distribution is lawful and practical.

● Distribute the foreign currency to holders for whom the distribution is lawful and practical.

● Hold the foreign currency (without liability for interest) for the applicable holders.

**Governing Law/Waiver of Jury Trial**

The deposit agreement, the ADRs and the ADSs will be interpreted in accordance with the laws of the State of New York. The rights of holders of Class A Ordinary Shares (including Class A Ordinary Shares represented by ADSs) are governed by the laws of the Cayman Islands.

As an owner of ADSs, you irrevocably agree that any legal action arising out of the Deposit Agreement, the ADSs or the ADRs, involving the Company or the Depositary, may only be instituted in a state or federal court in the city of New York.

**AS A PARTY TO THE DEPOSIT AGREEMENT, YOU IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, YOUR RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF THE DEPOSIT AGREEMENT, THE ADSs, OR THE ADRs AGAINST US AND/OR THE DEPOSITARY BANK.**

***The deposit agreement provides that, to the extent permitted by law, ADS holders waive the right to a jury trial of any claim they may have against us or the depositary arising out of or relating to our Class A Ordinary Shares, the ADSs or the deposit agreement, including any claim under U.S. federal securities laws. If we or the depositary opposed a jury trial demand based on the waiver, the court would determine whether the waiver was enforceable in the facts and circumstances of that case in accordance with applicable case law. However, you will not be deemed, by agreeing to the terms of the deposit agreement, to have waived our or the depositary's compliance with U.S. federal securities laws and the rules and regulations promulgated thereunder.***

**SHARES ELIGIBLE FOR FUTURE SALE**

We have 81,016,310 Ordinary Shares issued and outstanding as of the date of this prospectus. All of the Class A ordinary shares issued to the shareholders of Distoken in connection with the Business Combination are freely transferable by persons other than by the Sponsor and our affiliates without restriction or further registration under the Securities Act. In addition, Class A ordinary shares held by certain shareholders are subject to lock-up restrictions described below. Sales of substantial amounts of the Class A ordinary shares in the public market could adversely affect prevailing market price of the ADSs.

***Lock-up Arrangements***

The Company, Youlife International and Distoken entered into the Founder Lock-up Agreement with the Sponsor prior to the Closing, amending and restating the lock-up agreement that was executed by the Sponsor on May 17, 2024, and superseding the provisions of the Insider Letter Agreement with respect to transfer restrictions on the Founder Shares. The Founder Lock-up Agreement provides for a lock-up period with respect to the Founder Shares commencing on the Closing Date and ending on the one-year anniversary of the Closing Date (with respect to 50% of such shares subject to early release if the last trading price of the ADSs equals or exceeds $12.50 for any 20 trading days within any 30 trading day period commencing at least 150 days after the Closing).

The Company, Youlife International and Distoken entered into the Company Founder Lock-up Agreement with Youtch Investment Co., Ltd., a holding company wholly owned by Mr. Yunlei Wang, prior to the Closing, amending and restating the lock-up agreement that was executed by Youtch Investment Co., Ltd., on May 17, 2024. The Company Founder Lock-up Agreement provides for a lock-up period commencing on the Closing Date and ending on the one-year anniversary of the Closing Date (with respect to 50% of such shares subject to early release if the last trading price of the ADSs equals or exceeds $12.50 for any 20 trading days within any 30 trading day period commencing at least 150 days after the Closing).

The Company, Youlife International and Distoken also entered into the Company Lock-up Agreements with certain shareholders of Youlife International (other than Mr. Yunlei Wang) prior to the Closing, certain of which Company Lock-Up Agreements amended and restated the lock-up agreements that were executed by certain shareholders of Youlife International on May 17, 2024. The Company Lock-up Agreements provide for a lock-up period commencing on the Closing Date and ending on the date that is 180 calendar days after the Closing Date (with respect to 50% of such shares subject to early release if the last trading price of the ADSs equals or exceeds $12.50 for any 20 trading days within any 30 trading day period commencing at least 90 days after the Closing). The restrictions set forth in the Company Lock-Up Agreements are waivable in writing by the Company the Company, Youlife International and Distoken at any time prior to the Closing, and they may do so to the extent required for the Company to have sufficient public float to meet Nasdaq initial listing requirements.

Prior to the Closing of the Business Combination, Distoken and Youlife International released Ordinary Shares issuable to certain Youlife International shareholders from the transfer restrictions under the lock-up agreements in order to satisfy the initial listing requirements of the Nasdaq Stock Market.

**TAXATION**

*The following discussion of material United States federal income tax, the Cayman Islands tax and the PRC tax consequences of an investment in our securities is based upon laws and relevant interpretations thereof in effect as of the date of this prospectus, all of which are subject to change. This discussion does not deal with all possible tax consequences relating to an investment in our securities, such as the tax consequences under United States state and local tax laws or under the tax laws of jurisdictions other than the United States, the Cayman Islands and PRC.*

 

**United States Federal Income Taxation**

The following discussion summarizes certain material U.S. federal income tax considerations generally applicable to the ownership and disposition of our ADSs or Warrants by a U.S. Holder, as defined below, that holds our ADSs or Warrants as "capital assets" for U.S. federal income tax purposes (generally, property held for investment). This discussion is based on the United States Internal Revenue Code of 1986, as amended (the "Code"), U.S. Treasury regulations promulgated thereunder, judicial decisions, administrative pronouncements, and other relevant authorities, all as in effect as of the date hereof and all of which are subject to differing interpretations and change, possibly with retroactive effect. No ruling has been sought from the Internal Revenue Service (the "IRS") with respect to any United States federal income tax consequences described below, and there can be no assurance that the IRS or a court will not take a contrary position.

The following discussion is for general information only and does not address all aspects of United States federal income taxation that may be important to particular investors in light of their individual circumstances, or to persons in special tax situations, including:

● banks and other financial institutions;

● insurance companies;

● regulated investment companies;

● real estate investment trusts;

● dealers in securities or currencies;

● traders in securities or other persons that elect mark-to-market treatment;

● partnerships or other pass-through entities and their partners or investors;

● tax-exempt organizations (including private foundations);

● investors that own (directly, indirectly, or constructively) 10% or more of our stock by vote or value;

● investors that hold their ADSs or Warrants as part of a straddle, hedge, conversion, constructive sale or other integrated transaction;

● investors that have a functional currency other than the U.S. dollar;

● certain former U.S. citizens or long-term residents;

● investors that hold their ADSs or Warrants through a permanent establishment or fixed base outside the United States;

● investors who own stock in an individual retirement or other tax-deferred account;

● persons who acquired ADSs or Warrants pursuant to the exercise of any employee share option or otherwise as compensation;

● persons holding Class B ordinary shares; or

● investors required to accelerate the recognition of any item of gross income with respect to the ADSs or Warrants as a result of such income being recognized on an applicable financial statement;

● all of whom may be subject to tax rules that differ significantly from those discussed below.

In addition, this discussion does not address any United States state, local, or non-United States tax considerations, any minimum tax, the Medicare contribution tax on net investment income, or any non-income tax (such as U.S. federal estate or gift tax) considerations. Each potential investor is urged to consult its tax advisor regarding the United States federal, state, local and non-United States income and other tax considerations of an investment in the ADSs or Warrants.

 ****

For purposes of this discussion, a "U.S. Holder" is a beneficial owner of the ADSs or Warrants that is, for United States federal income tax purposes, (1) an individual who is a citizen or resident of the United States, (2) a corporation (or other entity treated as a corporation for United States federal income tax purposes) created in, or organized under the laws of, the United States or any state thereof or the District of Columbia, (3) an estate the income of which is includible in gross income for United States federal income tax purposes regardless of its source, or (4) a trust (a) the administration of which is subject to the primary supervision of a United States court and which has one or more United States persons who have the authority to control all substantial decisions of the trust or (b) that has otherwise elected to be treated as a United States person under the Code.

If a partnership (or other entity treated as a partnership for United States federal income tax purposes) is a beneficial owner of the ADSs or Warrants, the tax treatment of a partner in the partnership will depend upon the status of the partner and the activities of the partnership. Partnerships and partners of a partnership holding the ADSs or Warrants are urged to consult their tax advisors regarding an investment in such ADSs or Warrants.

For United States federal income tax purposes, a U.S. Holder of ADSs will generally be treated as the beneficial owner of the underlying shares represented by the ADSs. Accordingly, deposits or withdrawals of Class A ordinary shares for ADSs will generally not be subject to U.S. federal income tax. Unless otherwise specified, references to "ADSs" herein should also be considered references to the Class A ordinary shares underlying such ADSs for United States federal income tax purposes.

THIS DISCUSSION IS ONLY A SUMMARY OF CERTAIN MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS ASSOCIATED WITH THE OWNERSHIP AND DISPOSITION OF ADSS OR WARRANTS. EACH HOLDER OF ADSS OR WARRANTS IS URGED TO CONSULT ITS TAX ADVISOR WITH RESPECT TO THE PARTICULAR TAX CONSEQUENCES TO SUCH HOLDER OF THE OWNERSHIP AND DISPOSITION OF ADSS OR WARRANTS, INCLUDING THE APPLICABILITY AND EFFECT OF ANY STATE, LOCAL, AND NON-U.S. TAX LAWS.

*Taxation of Distributions*

Subject to the PFIC rules described below, any cash distributions (including the amount of any PRC tax withheld) paid on the ADSs out of our current or accumulated earnings and profits, as determined under United States federal income tax principles, will generally be includible in the gross income of a U.S. Holder as dividend income on the day actually or constructively received by the U.S. Holder of the ADSs. Because we do not intend to determine our earnings and profits on the basis of United States federal income tax principles, any distribution will generally be treated as a "dividend" for United States federal income tax purposes. Such dividends paid by us will be taxable to a corporate U.S. Holder at regular rates and will not be eligible for the dividends-received deduction generally allowed to domestic corporations in respect of dividends received from other domestic corporations. Distributions in excess of such earnings and profits generally will be applied against and reduce (but not below zero) the U.S. Holder's basis in its ADSs and, to the extent in excess of such basis, will be treated as gain from the sale or exchange of such ADSs (see "—Sale or other taxable disposition of ADSs or Warrants" below).

Under current law, a non-corporate recipient of dividend income will generally be subject to tax on dividend income from a "qualified foreign corporation" at the lower applicable net capital gains rate rather than the marginal tax rates generally applicable to ordinary income, provided that certain holding period and other requirements are met.

A non-United States corporation (other than a corporation that is classified as a PFIC for the taxable year in which the dividend is paid or the preceding taxable year) will generally be considered to be a qualified foreign corporation (1) if it is eligible for the benefits of a comprehensive tax treaty with the United States, which the Secretary of Treasury of the United States determines is satisfactory for purposes of this provision and which includes an exchange of information program, or (2) with respect to any dividend it pays on stock which is readily tradable on an established securities market in the United States. We expect the ADSs (but not our Class A ordinary shares), which are listed on Nasdaq, will be considered readily tradeable on an established securities market in the United States, although there can be no assurance in this regard, or that the ADSs will continue to be considered readily tradable on an established securities market in later years. In the event we are deemed to be a PRC resident enterprise under the Enterprise Income Tax Law (see "—PRC Taxation"), although no assurance can be given, we may be eligible for the benefits of the Agreement Between the Government of the United States of America and the Government of the People's Republic of China for the Avoidance of Double Taxation and the Prevention of Tax Evasion with Respect to Taxes on Income, or the United States-PRC income tax treaty (which the Secretary of the Treasury of the United States has determined is satisfactory for this purpose). If we were eligible for such benefits, subject to the PFIC rules described below, dividends we pay on the ADSs would potentially be eligible for the reduced rates of taxation. However, notwithstanding the foregoing, we will not be treated as a qualified foreign corporation, and non-corporate U.S. Holders will not be eligible for reduced rates of taxation, for any dividends that we pay if we are a PFIC with respect to such holders in the taxable year in which the dividends are paid or in the preceding taxable year. See "— Passive foreign investment company rules" below. U.S. Holders are urged to consult their tax advisors regarding the availability of the reduced tax rate on dividends in their particular circumstances.

For United States foreign tax credit purposes, dividends paid on the ADSs will generally be treated as income from foreign sources and will generally constitute passive category income. In the event that we are deemed to be a PRC resident enterprise under the Enterprise Income Tax Law, a U.S. Holder may be subject to PRC withholding taxes on dividends paid, if any, on the ADSs. A U.S. Holder may be eligible, subject to a number of complex limitations, to claim a foreign tax credit in respect of any foreign withholding taxes imposed on dividends received on the ADSs. A U.S. Holder who does not elect to claim a foreign tax credit for foreign tax withheld may instead claim a deduction for United States federal income tax purposes in respect of such withholding, but only for a year in which such holder elects to do so for all creditable foreign income taxes. The rules governing the foreign tax credit are complex. U.S. Holders are urged to consult their tax advisors regarding the availability of the foreign tax credit under their particular circumstances.

 

*Sale or other taxable disposition of ADSs or Warrants*

 

Subject to the PFIC rules discussed below, a U.S. Holder will generally recognize capital gain or loss, if any, upon the sale or other taxable disposition of the ADSs or Warrants in an amount equal to the difference between the amount realized upon the disposition and the holder's adjusted tax basis in such ADSs or Warrants. Any capital gain or loss will be long-term capital gain or loss if the ADSs or Warrants have been held for more than one year. Long-term capital gains of non-corporate U.S. Holders are currently eligible for reduced rates of taxation. The deductibility of capital losses is subject to limitations.

Any gain or loss recognized by you will generally be treated as United States source gain or loss. However, in the event that we are treated as a PRC resident enterprise under the EIT Law, and gain from the disposition of the ADSs or Warrants is subject to tax in the PRC (see "—PRC Taxation"), and if you are eligible for the benefits of the United States-PRC income tax treaty, you may be able to elect to treat such gain as PRC source gain for foreign tax credit purposes under the United States-PRC income tax treaty. If you are not eligible for the benefits of the United States-PRC income tax treaty or fail to treat any such gain as PRC-source, then you would generally not be able to use any foreign tax credit arising from any PRC tax imposed on the disposition of the ADSs or Warrants unless such credit can be applied (subject to applicable limitations) against United States federal income tax due on other foreign source income in the appropriate category for foreign tax credit purposes. U.S. Holders are urged to consult their tax advisors regarding the tax consequences if a foreign tax is imposed on a disposition of the ADSs or Warrants, including the availability of the foreign tax credit under their particular circumstances.

*Exercise, lapse or redemption of Warrants*

Subject to the PFIC rules discussed below and except as discussed below with respect to the cashless exercise of a Warrant, a U.S. Holder generally will not recognize gain or loss upon the acquisition of ADSs on the exercise of a Warrant for cash. A U.S. Holder's initial tax basis in ADSs received upon exercise of the Warrant generally will equal the sum of the U.S. Holder's initial tax basis in the Warrant and the exercise price. It is unclear whether a U.S. Holder's holding period for the ADSs will commence on the date of exercise of the Warrant or the day following the date of exercise of the Warrant; in either case, the holding period will not include the period during which the U.S. Holder held the Warrant. If a Warrant is allowed to lapse unexercised, a U.S. Holder generally will recognize a capital loss equal to its tax basis in the Warrant.

The tax consequences of a cashless exercise of a Warrant are not clear. A cashless exercise may not be taxable, either because the exercise is not a realization event or because the exercise is treated as a recapitalization for U.S. federal income tax purposes. In either situation, a U.S. Holder's tax basis in the ADSs received generally would equal the U.S. Holder's tax basis in the Warrants surrendered. If the cashless exercise were not a realization event, it is unclear whether a U.S. Holder's holding period for the ADSs will commence on the date of exercise of the Warrants or the day following the date of exercise of the Warrants. If the cashless exercise were treated as a recapitalization, the holding period of the ADSs would include the holding period of the Warrants.

It is also possible that a cashless exercise may be treated as a taxable exchange of a portion of the Warrants surrendered in which gain or loss would be recognized. In such event, a U.S. Holder may be deemed to have surrendered a number of Warrants having a value equal to the exercise price for the total number of Warrants to be exercised. Subject to the PFIC rules discussed below, the U.S. Holder would recognize capital gain or loss in an amount equal to the difference between the fair market value of the Warrants deemed surrendered and the U.S. Holder's tax basis in such Warrants. In this case, a U.S. Holder's tax basis in the ADSs received would equal the sum of the U.S. Holder's initial tax basis in the Warrants exercised and the exercise price of such Warrants. It is unclear whether a U.S. Holder's holding period for the ADSs would commence on the date of exercise of the Warrants or the day following the date of exercise of the Warrants.

Due to the absence of authority on the U.S. federal income tax treatment of a cashless exercise, there can be no assurance which of the alternative tax consequences and holding periods described above would be adopted by the IRS or a court of law. Accordingly, a U.S. Holder should consult its tax advisor regarding the tax consequences of a cashless exercise.

While not free from doubt, a redemption of Warrants for ADSs should be treated as a "recapitalization" for U.S. federal income tax purposes. Accordingly, subject to the PFIC rules discussed below, a U.S. Holder should not recognize any gain or loss on the redemption of Warrants for ADSs. In such event, a U.S. Holder's aggregate tax basis in the ADSs received in the redemption generally should equal the U.S. Holder's aggregate tax basis in the Warrants redeemed and the holding period for the ADSs should include the U.S. Holder's holding period for the surrendered Warrants. However, there is some uncertainty regarding this tax treatment, and it is possible such a redemption could be treated in part as a taxable exchange in which gain or loss would be recognized in a manner similar to that discussed above for a cashless exercise of Warrants. Accordingly, a U.S. Holder is urged to consult its tax advisor regarding the tax consequences of a redemption of Warrants for ADSs.

Subject to the PFIC rules described below, if Warrants are redeemed for cash or if Warrants are purchased in an open market transaction, such redemption or purchase generally will be treated as a taxable disposition to the U.S. Holder, taxed as described above in "*Sale or other taxable disposition of ADSs or Warrants*."

*Possible constructive distributions*

The terms of each Warrant provide for an adjustment to the number of Class A ordinary shares (underlying the ADSs) for which the Warrant may be exercised or to the exercise price of the Warrant in certain events. An adjustment which has the effect of preventing dilution generally is not taxable. U.S. Holders of the Warrants would, however, be treated as receiving a constructive distribution from us if, for example, the adjustment increases the U.S. Holder's proportionate interest in our assets or earnings and profits (e.g., through an increase in the number of ADSs that would be obtained upon exercise) as a result of a distribution of cash or other property to the holders of ADSs which is taxable to the U.S. Holders of such ADSs as described in *"Taxation of Distributions"* above. Such constructive distribution would be subject to tax as described in that section in the same manner as if the U.S. Holders of the Warrants received a cash distribution from us equal to the fair market value of such increased interest.

***Passive foreign investment company rules***

Based on the composition of our income and assets and the estimated value of our assets, including goodwill, we do not believe we were a PFIC for the most recent taxable year ended December 31, 2025.

A non-United States corporation, such as our company, will be classified as a "passive foreign investment company," or a PFIC, for United States federal income tax purposes, if, in the case of any particular taxable year, either (1) 75% or more of its gross income for such year consists of certain types of "passive" income or (2) 50% or more of its average quarterly assets during such year is attributable to assets that produce or are held for the production of passive income. For this purpose, cash is categorized as a passive asset and a company's unbooked intangibles associated with active business activities may generally be classified as active assets. For purposes of the income test, "gross income" generally consists of sales revenues less the cost of goods sold, together with income from investments and from other sources, and "passive income" generally includes, among other things, dividends, interest, rents, royalties, and gains from the disposition of passive assets. We will be treated as owning our proportionate share of the assets and earning our proportionate share of the income of any other non-United States corporation in which we own, directly or indirectly, more than 25% (by value) of the stock.

While we reasonably do not expect to become a PFIC in the current or any future taxable year, the determination of whether we are or will become a PFIC will depend upon (i) the composition and characterization of our income (which may differ from our historical results and current projections) and (ii) the composition and characterization of our assets and the value of our assets from time to time, including, in particular the value of our goodwill and other unbooked intangibles (which may depend upon the market value of the ADSs from time-to-time and which has been and may continue to be volatile). Therefore, fluctuations in the market price of the ADSs may cause us to be or become a PFIC for the current or any future taxable year. It is also possible that the IRS may challenge our classification of assets or income or the valuation of our goodwill and other unbooked intangibles, which may result in us being, or becoming, a PFIC for the current or one or more future taxable years. Because there are uncertainties in the application of the relevant rules and PFIC status is a factual determination made annually after the close of each taxable year, there can be no assurance that we will not be a PFIC for the current taxable year ending December 31, 2026 or any future taxable year. If we are a PFIC for any year during which you hold the ADSs or Warrants, you will be subject to the special tax rules discussed below.

If we are determined to be a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. Holder of ADSs or Warrants and, in the case of ADSs, the U.S. Holder did not timely make a mark-to-market election (described below), such U.S. Holder generally would be subject to special and adverse rules with respect to (i) any gain recognized by the U.S. Holder on the sale or other disposition of its ADSs or Warrants and (ii) any "excess distribution" made to the U.S. Holder (generally, any distributions to such U.S. Holder during a taxable year of the U.S. Holder that are greater than 125% of the average annual distributions received by such U.S. Holder in respect of the ADSs or during the three preceding taxable years of such U.S. Holder or, if shorter, such U.S. Holder's holding period for the ADSs).

Under the PFIC rules:

● the excess distribution and/or gain will be allocated ratably over the U.S. Holder's holding period for the ADSs or Warrants;

● the amount of the excess distribution or gain allocated to the taxable year of distribution or gain and to any taxable years in the U.S. Holder's holding period prior to the first fiscal year in which we are classified as a PFIC (each such taxable year, a pre-PFIC year) will be taxable as ordinary income; and

● the amount of the excess distribution or gain allocated to each prior taxable year, other than the current taxable year of distribution or gain or a pre-PFIC year, will be subject to tax at the highest tax rate in effect applicable to the individuals or corporations, as appropriate, for that other taxable year, and will be increased by an additional tax equal to interest on the resulting tax deemed deferred with respect to each such other taxable year.

Although the determination of whether we are a PFIC is made annually, if we are a PFIC for any taxable year in which you hold the ADSs or Warrants, you will generally be subject to the special tax rules described above for that year and for each subsequent year in which you hold the ADSs or Warrants (even if we do not qualify as a PFIC in such subsequent years). However, if we cease to be a PFIC, you can avoid the continuing impact of the PFIC rules by making a special election to recognize gain as if your ADSs or Warrants had been sold on the last day of the last taxable year during which we were a PFIC. You are urged to consult your own tax advisors about this election.

As an alternative to the foregoing rules, a U.S. Holder of "marketable stock" in a PFIC may make a mark-to-market election with respect to the ADSs (but not the Warrants), provided that such ADSs are "regularly traded" on a "qualified exchange or other market" (within the meaning of the applicable United States Treasury regulations). Beginning on July 10, 2025, the ADSs are listed on Nasdaq. Under current law, the mark-to-market election may be available to holders of ADSs since the ADSs are listed on Nasdaq which constitutes a qualified exchange, although there can be no assurance that the ADSs will be "regularly traded" for purposes of the mark-to-market election or that the ADSs will continue to be listed on the Nasdaq. If a mark-to-market election is made, the U.S. Holder will generally (1) include as ordinary income for each taxable year that we are a PFIC the excess, if any, of the fair market value of the ADSs, held at the end of the taxable year over the U.S. Holder's adjusted tax basis in such ADSs and (2) deduct as an ordinary loss the excess, if any, of the U.S. Holder's adjusted tax basis in such ADSs over the fair market value of such ADSs held at the end of the taxable year, but only to the extent of the net amount previously included in income as a result of the mark-to-market election. The U.S. Holder's adjusted tax basis in the ADSs would be adjusted to reflect any income or loss resulting from the mark-to-market election. If a U.S. Holder makes an effective mark-to-market election, in each year that we are a PFIC any gain recognized upon the sale or other disposition of the ADSs will be treated as ordinary income and any loss will be treated as ordinary loss, but only to the extent of the net amount previously included in income as a result of the mark-to-market election.

If a U.S. Holder makes a mark-to-market election in respect of a corporation classified as a PFIC and such corporation ceases to be classified as a PFIC, the U.S. Holder will not be required to take into account the mark-to-market gain or loss described above during any period that such corporation is not classified as a PFIC. You are urged to consult your tax advisors about the availability of the mark-to-market election, and whether making the election would be advisable in your particular circumstances.

Because a mark-to-market election cannot be made for any lower-tier PFICs that a PFIC may own, a U.S. Holder who makes a mark-to-market election with respect to the ADSs may continue to be subject to the general PFIC rules with respect to such U.S. Holder's indirect interest in any of our non-United States subsidiaries that is classified as a PFIC. You are urged to consult your tax advisors about the application of the PFIC rules to any lower-tier PFIC.

Alternatively, U.S. taxpayers can sometimes avoid the rules described above by electing to treat a PFIC as a "qualified electing fund" under Section 1295 of the Code. However, this option is not available to you because we do not intend to provide information necessary for U.S. Holders to make this election.

As discussed above under "*Taxation of Distributions*," dividends that we pay on the ADSs will not be eligible for the reduced tax rate that applies to qualified dividend income if we are classified as a PFIC for the taxable year in which the dividend is paid or the preceding taxable year. In addition, if a U.S. Holder owns the ADSs or Warrants during any taxable year that we are a PFIC, the U.S. Holder must file an annual information return (on IRS Form 8621) with the IRS. Each U.S. Holder is urged to consult its tax advisor concerning the United States federal income tax consequences of holding and disposing of the ADSs or Warrants if we are or become a PFIC.

***Information reporting and Backup Withholding***

Certain U.S. Holders are required to report information to the IRS relating to an interest in "specified foreign financial assets" (as defined in the Code), including shares issued by a non-United States corporation, for any year in which the aggregate value of all specified foreign financial assets exceeds $50,000 (or a higher dollar amount prescribed by the IRS), subject to certain exceptions (including an exception for shares held in custodial accounts maintained with a United States financial institution). These rules also impose penalties if a U.S. Holder is required to submit such information to the IRS and fails to do so.

In addition, U.S. Holders may be subject to information reporting to the IRS and backup withholding with respect to dividends on and proceeds from the sale or other disposition of the ADSs or Warrants. Information reporting will apply to payments of dividends on, and to proceeds from the sale or other disposition of, the ADSs or Warrants by a paying agent within the United States to a U.S. Holder, other than U.S. Holders that are exempt from information reporting and properly certify their exemption. A paying agent within the United States will be required to withhold at the applicable statutory rate, currently 24%, in respect of any payments of dividends on, and the proceeds from the disposition of, the ADSs or Warrants within the United States to a U.S. Holder (other than U.S. Holders that are exempt from backup withholding and properly certify their exemption) if the U.S. Holder fails to furnish its correct taxpayer identification number or otherwise fails to comply with applicable backup withholding requirements. U.S. Holders who are required to establish their exempt status generally must provide a properly completed IRS Form W-9.

Backup withholding is not an additional tax. Amounts withheld as backup withholding may be credited against a U.S. Holder's United States federal income tax liability. A U.S. Holder generally may obtain a refund of any amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the IRS in a timely manner and furnishing any required information. Each U.S. Holder is advised to consult with its tax advisor regarding the application of the United States information reporting rules to their particular circumstances.

**Cayman Islands Tax Considerations**

The Cayman Islands currently levies no taxes on individuals or corporations based upon profits, income, gains or appreciation and there is no taxation in the nature of inheritance tax or estate duty. There are no other taxes likely to be material to us levied by the government of the Cayman Islands except for stamp duties which may be applicable on instruments executed in, or after execution brought within the jurisdiction of the Cayman Islands. In addition, the Cayman Islands does not impose withholding tax on payments of dividends.

**PRC Taxation**

Under the PRC Enterprise Income Tax Law and its implementation rules, an enterprise established outside of the PRC with its "de facto management body" within the PRC is considered a "resident enterprise" and will be subject to the enterprise income tax on its global income at the rate of 25%. The implementation rules define the term "de facto management body" as the body that exercises full and substantial control and overall management over the business, productions, personnel, accounts, and properties of an enterprise.

We do not believe that our Cayman Islands holding company meets all of the conditions above. Our Cayman Islands holding company is not a PRC resident enterprise for PRC tax purposes. As a holding company, its key assets are its ownership interests in its subsidiaries, and its key assets are located, and its records (including the resolutions of its board of directors and the resolutions of its shareholders) are maintained, outside China. For the same reasons, we believe our other entities outside of China are not PRC resident enterprises either. However, the tax resident status of an enterprise is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term "de facto management body." There can be no assurance that the PRC government will ultimately take a view that is consistent with ours.

Haiwen & Partners, our legal counsel as to PRC law, has advised us that if the PRC tax authorities determine that our Cayman Islands holding company is a PRC resident enterprise for enterprise income tax purposes, we may be required to withhold a 10% withholding tax from dividends we pay to our shareholders that are non-resident enterprises with no institutions or premises established in the PRC or income bearing no de facto relationship with the institution or premises established. In addition, non-resident enterprise shareholders may be subject to a 10% PRC tax on gains realized on the sale or other disposition of ordinary shares, if such income is treated as sourced from within China. It is unclear whether our non-PRC individual shareholders would be subject to any PRC tax on dividends or gains obtained by such non-PRC individual shareholders in the event we are determined to be a PRC resident enterprise. If any PRC tax were to apply to such dividends or gains, it would generally apply at a rate of 20% unless a reduced rate is available under an applicable tax treaty. However, it is also unclear whether non-PRC shareholders of our Cayman Islands holding company would be able to claim the benefits of any tax treaties between their country of tax residence and China in the event that our Cayman Islands holding company is treated as a PRC resident enterprise.

Provided that our Cayman Islands holding company is not deemed to be a PRC resident enterprise, holders of the ordinary shares who are not PRC residents will not be subject to PRC income tax on dividends distributed by us or gains realized from the sale or other disposition of our shares. However, under SAT Bulletin 37, where a non-resident enterprise conducts an "indirect transfer" by transferring taxable assets, including, in particular, equity interests in a PRC resident enterprise, indirectly by disposing of the equity interests of an overseas holding company, the non-resident enterprise, being the transferor, or the transferee or the PRC entity which directly owned such taxable assets may report to the relevant tax authority such indirect transfer. Using a "substance over form" principle, the PRC tax authority may disregard the existence of the overseas holding company if it lacks a reasonable commercial purpose and was established for the purpose of reducing, avoiding or deferring PRC tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise income tax, and the transferee obligated to withhold the applicable taxes, currently at a rate of 10% for the transfer of equity interests in a PRC resident enterprise. We and our non-PRC resident investors may be at risk of being required to file a return and being taxed under SAT Circular 7, and we may be required to expend valuable resources to comply with SAT Circular 7, or to establish that we should not be taxed thereunder. See "Risk Factors —Risks Relating to Conducting Business in China—If we are classified as a PRC resident enterprise for PRC income tax purposes, such classification could result in unfavorable tax consequences to us and our non-PRC shareholders."

**PLAN OF DISTRIBUTION**

We are registering the issuance by us of up to 7,617,500 Class A ordinary shares issuable upon the exercise of the Warrants. Pursuant to the terms of the Warrants, Ordinary Shares will be distributed to those holders who surrender the Warrants and provide payment of the exercise price to us. Upon receipt of proper notice by any of the holders of the Warrants issued that such holder desires to exercise the warrant, we will, within the time allotted by the agreement governing the warrants, issue instructions to our transfer agent to issue Ordinary Shares to the holder. If, at the time the Public Warrants are exercised, this registration statement is effective and the prospectus included herein is current, the Ordinary Shares issued upon the exercise of the Public Warrants will be issued free of a restrictive legend. We could potentially receive up to an aggregate of US$87,601,250 from the exercise of the Warrants, assuming the exercise in full of all of these warrants for cash. The likelihood that warrant holders will exercise the Warrants and any cash proceeds that we would receive is dependent upon the market price of the ADSs. Based on the closing price of the ADSs at US$0.3367 on June 8, 2026, which is less than the exercise price of US$11.50 per share for Public Warrants and Sponsor Warrants and US$12.00 for Representative Warrants, pursuant to the terms of the Warrants, we believe holders of the Warrants will be unlikely to exercise their Warrants, and we are unlikely to receive proceeds from the exercise of Warrants.

We are also registering the resale, from time to time, by the Selling Securityholders, or their permitted transferees, of up to 5,964,450 Class A ordinary shares represented by ADSs and 545,000 Sponsor Warrants. The aggregate proceeds to the Selling Securityholders from the sale of such securities will be the purchase price of the securities less any discounts and commissions. The Selling Securityholders will pay any underwriting discounts and commissions and expenses incurred by the Selling Securityholders for brokerage, accounting, tax or legal services or any other expenses incurred by the Selling Securityholders in disposing of the securities. We will bear all other costs, fees and expenses incurred in effecting the registration of the securities covered by this prospectus, including, without limitation, all registration and filing fees, Nasdaq listing fees and fees and expenses of our counsel and our independent registered public accountants.

The Selling Securityholders reserve the right to accept and, together with their respective agents, to reject, any proposed purchases of Registered Securities to be made directly or through agents. We will not receive any of the proceeds from the sale of the securities registered hereby by the Selling Securityholders.

Upon effectiveness of the registration statement of which this prospectus forms a part, the securities covered by this prospectus that are beneficially owned by the Selling Securityholders may be offered and sold from time to time by the Selling Securityholders. Notwithstanding the foregoing, Selling Securityholders subject to our insider trading policy, and any members of their immediate families, are subject to our regular pre-clearance procedures for trading of our securities. For lock-up arrangement applicable to certain securities covered by this prospectus that are beneficially owned by the Selling Securityholders, see "Shares Eligible for Future Sale — Lock-up Agreements."

Selling Securityholders may also be subject to the restrictions on transfer of shares of Rule 144 of the Securities Act if such Selling Securityholder is deemed an "affiliate" of us. Persons who may be deemed to be affiliates include individuals or entities that control, are controlled by, or are under common control with, us and may include the executive officers, directors and significant shareholders of us.

The term "Selling Securityholders" includes pledgees, donees, transferees, assignees or other successors in interest (that receive any of the securities as a gift, distribution, or other non-sale related transfer) of the Selling Securityholders named in this prospectus. The Selling Securityholders will act independently of us in making decisions with respect to the timing, manner and size of each sale. Such sales may be made on one or more exchanges or in the over-the-counter market or otherwise, at prices and under terms then prevailing or at prices related to the then current market price or in negotiated transactions. The Selling Securityholders and any of their permitted transferees may sell their securities offered by this prospectus on any stock exchange, market or trading facility on which the securities are traded or in private transactions.

The Registered Securities offered by the Selling Securityholders under this prospectus may be sold from time to time to purchasers:

● directly by the Selling Securityholders;

● to or through underwriters, broker-dealers or agents, who may receive compensation in the form of discounts, commissions or agent's commissions from the Selling Securityholders or the purchasers of the Registered Securities;

● ordinary brokerage transactions and transactions in which the broker solicits purchasers;

● block trades in which the broker-dealer so engaged will attempt to sell the securities as agent but may position and resell a portion of the block as principal to facilitate the transaction;

● through trading plans entered into by a Selling Securityholder pursuant to Rule 10b5-1 under the Exchange Act that are in place at the time of an offering pursuant to this prospectus and any applicable prospectus supplement hereto that provide for periodic sales of their securities on the basis of parameters described in such trading plans;

● directly to purchasers, including through a specific bidding, auction or other process or in privately negotiated transactions;

● through the writing of options (including the issuance by the Selling Securityholders of derivative securities), whether the options or such other derivative securities are listed on an options exchange or otherwise;

● through an exchange distribution in accordance with the rules of the applicable exchange;

● in "at the market" offerings, as defined in Rule 415 under the Securities Act, at negotiated prices, at prices prevailing at the time of sale or at prices related to such prevailing market prices, including sales made directly on a national securities exchange or sales made through a market maker other than on an exchange or other similar offerings through sales agents;

● through one or more underwritten offerings on a firm commitment or best efforts basis;

● through the settlement of short sales,

● any other method permitted pursuant to applicable law; and

● a combination of any such methods of sale.

Any underwriters, broker-dealers or agents who participate in the sale or distribution of the Registered Securities may be deemed to be "underwriters" within the meaning of the Securities Act. As a result, any discounts, commissions or concessions received by any such broker-dealer or agents who are deemed to be underwriters will be deemed to be underwriting discounts and commissions under the Securities Act. Underwriters are subject to the prospectus delivery requirements of the Securities Act and may be subject to certain statutory liabilities under the Securities Act and the Exchange Act. We will make copies of this prospectus available to the Selling Securityholders for the purpose of satisfying the prospectus delivery requirements of the Securities Act. To our knowledge, there are currently no plans, arrangements or understandings between the Selling Securityholders and any underwriter, broker-dealer or agent regarding the sale of the Registered Securities by the Selling Securityholders.

The Registered Securities may be sold in one or more transactions at:

● fixed prices;

● prevailing market prices at the time of sale;

● prices related to such prevailing market prices;

● varying prices determined at the time of sale; or

● negotiated prices.

These sales may be effected in one or more transactions:

● on any securities exchange or quotation service on which the Registered Securities may be listed or quoted at the time of sale, including Nasdaq;

● in the over-the-counter market;

● in transactions otherwise than on such exchanges or services or in the over-the-counter market;

● any other method permitted by applicable law; or

● through any combination of the foregoing.

In connection with the sales of our securities, the Selling Securityholders may enter into hedging transactions with broker-dealers or other financial institutions that, in turn, may:

● engage in short sales of the securities in the course of hedging their positions;

● sell the securities short and deliver the securities to close out short positions;

● loan or pledge the securities to broker-dealers or other financial institutions that in turn may sell the securities;

● enter into option or other transactions with broker-dealers or other financial institutions that require the delivery to the broker-dealer or other financial institution of the securities, which the broker-dealer or other financial institution may resell; or

● enter into transactions in which a broker-dealer makes purchases as a principal for resale for its own account or through other types of transactions.

In addition, a Selling Securityholder that is an entity may elect to make a *pro rata* in-kind distribution of securities to its members, partners or stockholders pursuant to the registration statement of which this prospectus is a part by delivering a prospectus with a plan of distribution. Such members, partners or stockholders would thereby receive freely tradeable securities pursuant to the distribution through a registration statement. To the extent a distributee is an affiliate of ours (or to the extent otherwise required by law), we may file a prospectus supplement in order to permit the distributees to use the prospectus to resell the securities acquired in the distribution. The Selling Securityholder also may transfer the securities in other circumstances, in which case the transferees, pledgees or other successors-in-interest will be the selling beneficial owners for purposes of this prospectus.

At the time a particular offering of the Registered Securities is made, a prospectus supplement, if required, will be distributed, which will set forth the name of the Selling Securityholders, the aggregate amount of Registered Securities being offered and the terms of the offering, including, to the extent required, (1) the name or names of any underwriters, broker-dealers or agents, (2) any discounts, commissions and other terms constituting compensation from the Selling Securityholders and (3) any discounts, commissions or concessions allowed or reallowed to be paid to broker-dealers. We may suspend the sale of the Registered Securities by the Selling Securityholders pursuant to this prospectus for certain periods of time for certain reasons, including if the prospectus is required to be supplemented or amended to include additional material information.

There can be no assurance that the Selling Securityholders will sell any or all of the Registered Securities under this prospectus. Further, we cannot assure you that the Selling Securityholders will not transfer, distribute, devise or gift the Registered Securities by other means not described in this prospectus. In addition, any Registered Securities covered by this prospectus that qualify for sale under Rule 144 of the Securities Act may be sold under Rule 144 rather than under this prospectus. The Registered Securities may be sold in some states only through registered or licensed brokers or dealers. In addition, in some states the Registered Securities may not be sold unless they have been registered or qualified for sale or an exemption from registration or qualification is available and complied with.

The Selling Securityholders and any other persons participating in the sale of the Registered Securities will be subject to the Exchange Act. The Exchange Act rules include, without limitation, Regulation M, which may limit the timing of purchases and sales of any of the Registered Securities by the Selling Securityholders and any other person. In addition, Regulation M may restrict the ability of any person engaged in the distribution of the Registered Securities to engage in market-making activities with respect to the particular Registered Securities being distributed. This may affect the marketability of the Registered Securities and the ability of any person or entity to engage in market-making activities with respect to the Registered Securities.

With respect to those Registered Securities being registered pursuant to the A&R Registration Rights Agreement, the Subscription Agreement and the Backstop Agreement, we and the Selling Securityholders have agreed to indemnify or hold harmless each other and certain related persons against certain liabilities, including certain liabilities under the Securities Act. The Selling Securityholders may also indemnify any broker or underwriter that participates in transactions involving the sale of the Registered Securities against certain liabilities, including liabilities arising under the Securities Act.

For additional information regarding expenses of registration, see the section titled "Use of Proceeds."

**EXPENSES RELATED TO THE OFFERING**

We estimate the following expenses in connection with the offer and sale of our Ordinary Shares by the Selling Securityholders. With the exception of the SEC Registration Fee, all amounts are estimates.

---

| | |
|:---|:---|
| SEC registration fee | $15101.09 |
| FINRA filing fee |  |
| Legal fees and expenses | 1100000.00 |
| Accountants' fees and expenses | 820000.00 |
| Printing expenses | 140000.00 |
| Transfer agent fees and expenses | 86000.00 |
| Miscellaneous costs | 674000.00 |
| **Total** | $2835101.09 |

---

\* These fees are calculated based on the securities offered and the number of issuances and accordingly cannot be defined at this time.

Under agreements to which we are party with the Selling Securityholders, we have agreed to bear all expenses relating to the registration of the resale of the securities pursuant to this prospectus.

**LEGAL MATTERS**

We are being represented by Baker & McKenzie LLP with respect to certain legal matters as to United States federal securities and New York State law, and by Campbells with respect to certain legal matters as to Cayman Islands law. Certain legal matters relating to laws of the PRC will be passed upon for us by Haiwen & Partners. Baker & McKenzie LLP may rely upon Campbells with respect to matters governed by Cayman Islands law, and Haiwen & Partners with respect to matters governed by laws of the PRC.

**EXPERTS**

The financial statements as of December 31, 2014 and 2025 and for each of the three years in the period ended December 31, 2025 included in this prospectus have been so included in reliance on the report of Onestop Assurance PAC, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.

The registered business address of Onestop Assurance PAC is located at 10 Anson Road #21-14 International Plaza, Singapore.

**WHERE YOU CAN FIND MORE INFORMATION**

We are subject to the periodic reporting and other information requirements of the Exchange Act as applicable to a "Foreign Private Issuer," and we will file annual reports and other information from time to time with the SEC in accordance with such requirements. Our SEC filings will be available to the public on the internet at a website maintained by the SEC located at *www.sec.gov*.

We also maintain an Internet website at https://ir.youlife.cn/. Through the "Investor Relations" portal available through our website, we will make available, free of charge, the following documents as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC: our Annual Reports on Form 20-F; our reports on Form 6-K; amendments to these documents; and other information as may be required by the SEC. The information contained on, or that may be accessed through, our website is not part of, and is not incorporated into, this prospectus.

As a foreign private issuer, we are exempt under the Exchange Act from, among other things, the rules prescribing the furnishing and content of proxy statements, and our officers, directors and principal shareholders are exempt from the reporting and short-swing profit recovery provisions contained in Section 16 of the Exchange Act. In addition, we will not be required under the Exchange Act to file periodic reports and financial statements with the SEC as frequently or as promptly as U.S. companies whose securities are registered under the Exchange Act.

**INDEX TO FINANCIAL STATEMENTS**

**Youlife Group Inc.**

---

| | |
|:---|:---|
|  | **Page** |
| [Report of Independent Registered Public Accounting Firm (PCAOB ID# 6732)](#fin_001) | F-2 |
| [Balance Sheets as of December 31, 2025 and 2024](#fin_002) | F-3 |
| [Statements of Operations for the years ended December 31, 2025 and 2024](#fin_003) | F-5 |
| [Statements of Changes in Shareholders' Deficit for the years ended December 31, 2025 and 2024](#fin_004) | F-6 |
| [Statements of Cash Flows for the years ended December 31, 2025 and 2024](#fin_005) | F-8 |
| [Notes to Financial Statements](#fin_006) | F-10 |

---

 

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the shareholders and the board of directors of

Youlife group Inc.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Youlife Group Inc. (the "Company") and its subsidiaries (collectively, the "Group") as of December 31, 2025 and 2024, and the related consolidated statements of operations and comprehensive (loss)/income, changes in shareholders' equity, and cash flows for each of the three years in the period ended December 31, 2025 (the "Relevant Years") and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

---

| |
|:---|
| /s/ Onestop Assurance PAC |
| We have served as the Company's auditor since 2023. |
| Singapore |
| April 30, 2026 |

---

PCAOB ID# 6732

**YOULIFE GROUP INC.**

**CONSOLIDATED BALANCE SHEETS**

**(Amount in thousands of Renminbi ("RMB") and U.S. dollars ("USD"), except for share and per share data, or otherwise noted)**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
| ASSETS |  |  |  |
| Current assets |  |  |  |
| Cash and cash equivalents | 126531 | 144219 | 20623 |
| Accounts receivables, net | 287860 | 342783 | 49017 |
| Prepayments and other receivables, net | 248494 | 448083 | 64075 |
| Inventories, net | 3704 | 2086 | 298 |
| **Total current assets** | **666589** | **937171** | **134013** |
| Property and equipment | 147303 | 61864 | 8846 |
| Right-of-use assets | 43156 | 37048 | 5298 |
| Intangible assets | 9986 | 8361 | 1196 |
| Long-term investment | - | 96738 | 13833 |
| Deferred tax assets | 28147 | 23369 | 3342 |
| Other non-current assets | 13182 | 78305 | 11198 |
| **Total non-current assets** | **241774** | **305685** | **43713** |
| **Total assets** | **908363** | **1242856** | **177726** |
| **LIABILITIES AND SHAREHOLDERS' DEFICIT** |  |  |  |
| Current liabilities |  |  |  |
| Contract liabilities | 19991 | 34640 | 4953 |
| Trade payables | 70690 | 74485 | 10651 |
| Other payables and accruals | 141888 | 212849 | 30437 |
| Short-term borrowings | 45893 | 126054 | 18025 |
| Lease liabilities | 9401 | 6793 | 971 |
| Tax payable | 2182 | 9300 | 1330 |
| **Total current liabilities** | **290045** | **464121** | **66367** |
| Lease liabilities-non current | 27902 | 25491 | 3645 |
| Long-term borrowings | 1474 | - | - |
| **Total non-current liabilities** | **29376** | **25491** | **3645** |
| **Total liabilities** | **319421** | **489612** | **70012** |

---

**YOULIFE GROUP INC.**

**CONSOLIDATED BALANCE SHEETS (CONTINUED)**

**(Amount in thousands of Renminbi ("RMB") and U.S. dollars ("USD"), except for share and per share data, or otherwise noted)**

---

| | | | |
|:---|:---|:---|:---|
| **Commitments and Contingencies** |  |  |  |
| **SHAREHOLDERS' EQUITY** | | | |
| Ordinary shares (US$0.0001 par value; 500,000,000 shares authorized as at December 31, 2024 and December 31, 2025; 70,000,000 shares and 76,048,501 shares issued and outstanding as at December 31, 2024 and December 31, 2025, respectively)\* | 51 | 55 | 8 |
| Treasury shares | (31) | (31) | (4) |
| Additional paid-in capital | 1181993 | 1303581 | 186410 |
| Statutory surplus reserve | 9367 | 10531 | 1506 |
| Accumulated losses | (621794) | (579876) | (82921) |
| **Total Youlife Group Inc. shareholders' equity** | **569586** | **734260** | **104999** |
| Non-controlling interests | 19356 | 18984 | 2715 |
| **Total shareholders' equity** | **588942** | **753244** | **107714** |
| **Total liabilities, mezzanine equity and shareholders' equity** | **908363** | **1242856** | **177726** |

---

\* On July 9, 2025, the Company consummated a business combination with Distoken Acquisition Corporation. In connection therewith, the Company amended its memorandum and articles of association to increase the authorized share capital to 500,000,000 ordinary shares, comprising 400,000,000 Class A ordinary shares and 100,000,000 Class B ordinary shares, par value US$0.0001 each. Upon consummation of the Business Combination, all preferred shares were converted into Class A ordinary shares, and the share capital structure has been retroactively adjusted.

**YOULIFE GROUP INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND**

**COMPREHENSIVE INCOME**

**(Amount in thousands of Renminbi ("RMB") and U.S. dollars ("USD"), except for share and per share data, or otherwise noted)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD** |
| **Revenue** | 1365865 | 1585640 | 1854302 | 265162 |
| &nbsp;&nbsp;&nbsp;Cost of revenue | (1165446) | (1356511) | (1662236) | (237697) |
| **Gross profit** | **200419** | **229129** | **192066** | **27465** |
| &nbsp;&nbsp;&nbsp;**Operating expenses** |  |  |  |  |
| Selling and distribution expenses | (91688) | (51867) | (79749) | (11404) |
| Administrative expenses | (115367) | (126705) | (88683) | (12682) |
| Research and development expenses | (12285) | (10017) | (16869) | (2412) |
| **Total operating expenses** | **(219340)** | **(188589)** | **(185301)** | **(26498)** |
| **(Loss)/income from operations** | **(18921)** | **40540** | **6765** | **967** |
| **Other income/(expense)** |  |  |  |  |
| Fair value gains/(losses) | 36500 | (21248) | 3524 | 504 |
| Other incomes | 2815 | 11611 | 50270 | 7188 |
| Other expenses | (2220) | (422) | (4913) | (703) |
| Gain/(loss) on dissolution of subsidiaries and branches | 29312 | (8820) | 4844 | 693 |
| Loss from disposal of equity investment | - | (59018) | - | - |
| Financial income/(expenses), net | 1530 | (3941) | (10033) | (1435) |
| **Total other income/(expense), net** | **67937** | **(81838)** | **43692** | **6247** |
| **(LOSS)/PROFIT BEFORE TAX** | **49016** | **(41298)** | **50457** | **7214** |
| Income tax (expenses)/benefits | 30256 | (11090) | (7747) | (1108) |
| **Net profit/(loss) for the year from continuing operations** | **79272** | **(52388)** | **42710** | **6106** |
| Net profit from discontinued operations | 17774 | - | - | - |
| Net loss attribute to non-controlling interests | (2217) | (12) | (372) | (53) |
| **Net profit/(loss) attribute to ordinary shareholders** | **99263** | **(52376)** | **43082** | **6159** |
| **Net earnings/(loss) per share:** |  |  |  |  |
| **Basic and diluted** |  |  |  |  |
| Continuing operations | 1.13 | (0.75) | 0.59 | 0.08 |
| Discontinued operations | 0.29 | - | - | - |
| Basic net earnings/(loss) per share | 1.42 | (0.75) | 0.59 | 0.08 |
| Continuing operations | 1.13 | (0.75) | 0.59 | 0.08 |
| Discontinued operations | 0.29 | - | - | - |
| Diluted net earnings/(loss) per share | 1.42 | (0.75) | 0.59 | 0.08 |
| **Shares used in net earnings per share computation** |  |  |  |  |
| Basic | 70000000 | 70000000 | 72899967 | 72899967 |
| Diluted | 70000000 | 70000000 | 72899967 | 72899967 |
| **TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR** | **97046** | **(52388)** | **42710** | **6106** |
| Comprehensive loss attribute to non-controlling interest | (2217) | (12) | (372) | (53) |
| **Comprehensive (loss)/income attribute to ordinary shareholders** | **99263** | **(52376)** | **43082** | **6159** |

---

**YOULIFE GROUP INC.**

**CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY**

**(Amount in thousands of Renminbi ("RMB") and U.S. dollars ("USD"), except for share and per share data, or otherwise noted)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | | |
|  | **Ordinary shares\*** | **Ordinary shares\*** | | | | | | | | |
|  | **Shares** | **Class B** |<br>**Amount** | **Treasury**<br> **shares** | **Additional paid-in**<br>**capital** | **Statutory surplus**<br>**reserve** | **Accumulated**<br>**losses** |<br>**Total** |<br>**Non-<br> controlling**<br>**interests** |<br>**Total**<br>**equity** |
|  | | | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** |
| **Balance as of January 1, 2023** | 45292909 | 11160808 | 31 | (31) | 226396 | 8253 | (647669) | (413020) | 28591 | (384429) |
| Profit/(loss) for the year | - | - | - | - | - | - | 99263 | 99263 | (2217) | 97046 |
| Total comprehensive loss for the year |  |  | - | - | - | - | 99263 | 99263 | (2217) | 97046 |
| Waiver of receivables from founder |  |  | - | - | (48731) | - |  | (48731) | - | (48731) |
| Conversion of preferred shares to ordinary shares | 24707091 |  | 20 | - | 1006028 | - | - | 1006048 | - | 1006048 |
| Dividends paid to non-controlling shareholders, and dissolution of subsidiaries and branches |  |  | - | - | - | (442) | - | (442) | 275 | (167) |
| Transfer from retained profits | - | - | - | - |  | 1406 | (1406) | - | - | - |
| **Balance as of December 31, 2023** | 70000000 | 11160808 | 51 | (31) | 1183693 | 9217 | (549812) | 643118 | 26649 | 669767 |

---

**YOULIFE GROUP INC.**

**CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED)**

**(Amount in thousands of Renminbi ("RMB") and U.S. dollars ("USD"), except for share and per share data, or otherwise noted)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | | |
|  | **Ordinary shares\*** | **Ordinary shares\*** | | | | | | | | |
|  | **Shares** | **Class B** |<br>**Amount** | **Treasury**<br> **shares** | **Additional paid-in**<br>**capital** | **Statutory surplus**<br>**reserve** | **Accumulated**<br>**losses** |<br>**Total** |<br>**Non-<br> controlling**<br>**interests** |<br>**Total**<br>**equity** |
|  | | | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** |
| **Balance as of January 1, 2024** | 70000000 | 11160808 | 51 | (31) | 1183693 | 9217 | (549812) | 643118 | 26649 | 669767 |
| Loss for the year | - | - | - | - | - | - | (52376) | (52376) | (12) | (52388) |
| Total comprehensive loss for the year |  |  | - | - | - | - | (52376) | (52376) | (12) | (52388) |
| Dividends paid to non-controlling shareholders |  |  | - | - | - | - | - | - | (1269) | (1269) |
| Transfer from retained profits |  |  | - | - | - | 1330 | (1330) | - | - | - |
| Disposal of discontinued operations**<sup>(1)</sup>** | - | - | - | - | (1700) | (1180) | (18276) | (21156) | (6012) | (27168) |
| **Balance as of December 31, 2024** | 70000000 | 11160808 | 51 | (31) | 1181993 | 9367 | (621794) | 569586 | 19356 | 588942 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) On June 29, 2022, Shanghai Youerlan Information Technology Co., Ltd.("Shanghai Youerlan") entered into the contractual arrangements with Shanghai Youzhilan Education Technology Co., Ltd. ("Shanghai Youzhilan")and its registered shareholders, pursuant to which, Shanghai Youerlan has acquired effective control over the financial and operational policies of Shanghai Youzhilan and its subsidiaries and Jiangsu Youlan Network Technology Co., Ltd. and its subsidiaries (collectively, "PRC Technology Entities"), and has become entitled to all the relevant economic benefits derived from their operations. The Group terminated the contractual agreement on January 1, 2024, and PRC Technology Entities were accounted for as discontinued operations under U.S. GAAP. in accordance with ASC 205-20-45 in the financial statements for the year ended December 31, 2023.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | | |
|  | **Ordinary shares\*** | **Ordinary shares\*** | | | | | | | | |
|  | **Shares** | **Class B** |<br>**Amount** | **Treasury**<br> **shares** | **Additional paid-in**<br>**capital** | **Statutory surplus**<br>**reserve** | **Accumulated**<br>**losses** |<br>**Total** |<br>**Non-<br> controlling**<br>**interests** |<br>**Total**<br>**equity** |
|  | | | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** |
| **Balance as of January 1, 2025** | 70000000 | 11160808 | 51 | (31) | 1181993 | 9367 | (621794) | 569586 | 19356 | 588942 |
| Profit (Loss) for the year | - | - | - | - | - | - | 43082 | 43082 | (372) | 42710 |
| Total comprehensive profit for the year |  |  | - | - | - | - | 43082 | 43082 | (372) | 42710 |
| Shares issued in connection with reverse recapitalization | 3343552 |  | 2 | - | (14455) | - | - | (14453) | - | (14453) |
| Issuance of common stocks-cash | 2704949 |  | 2 | - | 192310 | - | - | 192312 | - | 192312 |
| Transfer from retained profits |  |  | - | - | - | 1164 | (1164) | - | - | - |
| Costs incurred in connection with reverse recapitalization | - | - | - | - | (56267) | - | - | (56267) | - | (56267) |
| **Balance as of December 31, 2025** | 76048501 | 11160808 | 55 | (31) | 1303581 | 10531 | (579876) | 734260 | 18984 | 753244 |
| **Balance as of December 31, 2025 in USD** | 76048501 | 11160808 | 8 | (4) | 186410 | 1506 | (82921) | 104999 | 2715 | 107714 |

---

\* On July 9, 2025, the Company consummated a business combination with Distoken Acquisition Corporation. In connection therewith, the Company amended its memorandum and articles of association to increase the authorized share capital to 500,000,000 ordinary shares, comprising 400,000,000 Class A ordinary shares and 100,000,000 Class B ordinary shares, par value US$0.0001 each. Upon consummation of the Business Combination, all preferred shares were converted into Class A ordinary shares, and the share capital structure has been retroactively adjusted.

**YOULIFE GROUP INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Amount in thousands of Renminbi ("RMB") and U.S. dollars ("USD"), except for share and per share data, or otherwise noted)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |  |  |
| Net profit/(loss) | 97046 | (52388) | 42710 | 6106 |
| Net profit from discontinued operations | 17774 | - | - | - |
| Net profit/(loss) from continuing operations | 79272 | (52388) | 42710 | 6106 |
| Adjustments for: |  |  |  |  |
| Depreciation of items of property and equipment | 8317 | 10070 | 11456 | 1638 |
| Amortization of right-of-use assets | 15296 | 14802 | 13310 | 1903 |
| Amortization of other intangible assets | 3263 | 1793 | 1625 | 232 |
| Interest on lease liabilities | 1835 | 2045 | 4602 | 658 |
| (Gain)/Loss on dissolution of subsidiaries and branches | (29312) | 8820 | (4844) | (693) |
| Gain/(loss) from waive of other payables | - | - | (13005) | (1858) |
| Other payables from Distoken | - | - | 25185 | 3601 |
| Fair value (gains)/losses from financial assets at fair value through profit or loss | (36500) | 21248 | (3524) | (504) |
| (Reversal)/provision for credit loss of trade receivables | (2371) | 1827 | 3288 | 470 |
| Reversal of credit loss of other receivables | (9590) | (1637) | (25665) | (3670) |
| Foreign exchange differences, net | (3783) | (24) | (51) | (7) |
| Gain on disposal of property and equipment | - | - | (28637) | (4095) |
| Shares issued in connection with reverse recapitalization | - | - | (14455) | (2067) |
| Loss from disposal of equity investment | - | 59018 | - | - |
| **Changes in operating assets and liabilities:** |  |  |  |  |
| Increase in accounts receivables | (140792) | (27216) | (58211) | (8324) |
| (Increase)/Decrease in prepayments, other receivables and other assets | (2493) | (7551) | 2477 | 354 |
| Decrease/(Increase) in inventories | 5039 | (444) | 1618 | 231 |
| (Increase)/Decrease in deferred tax assets, net | (35469) | 7322 | 4778 | 683 |
| Increase/(Decrease) in contract liabilities | 36583 | (19290) | 14648 | 2095 |
| Increase/(Decrease) in accounts payables | 64728 | (31952) | 3795 | 543 |
| Increase in other payables and accruals | 82363 | 29440 | 45776 | 6546 |
| (Decrease)/Increase in tax payable | (15077) | 1627 | 7118 | 1018 |
| Increase in right-of-use assets | (1091) | - | (12379) | (1770) |
| Payment in lease liabilities | (9940) | (11247) | (9621) | (1376) |
| **Net cash flows generated from operating activities from continuing operations** | **10278** | **6263** | **11994** | **1714** |
| Net cash flows generated from operating activities from discontinued operations | 1223 | - | - | - |
| **Total Net cash flows generated from operating activities** | **11501** | **6263** | **11994** | **1714** |

---

**YOULIFE GROUP INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)**

**(Amount in thousands of Renminbi ("RMB") and U.S. dollars ("USD"), except for share and per share data, or otherwise noted)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD** |
| **CASH FLOWS USED IN INVESTING ACTIVITIES** |  |  |  |  |
| Purchases of items of property and equipment | (94652) | (1126) | (27) | (4) |
| Purchases of items of intangible assets | (8675) | (116) | - | - |
| Long-term investments | - | - | (93214) | (13329) |
| Net cash paid for business acquisitions | - | (9634) | - | - |
| Short-term investment | 84230 | - | - | - |
| **Net cash flows used in investing activities from continuing operations** | **(19097)** | **(10876)** | **(93241)** | **(13333)** |
| Net cash flows used in investing activities from discontinued operations | (3508) | - | - | - |
| **Total Net cash flows used in investing activities** | **(22605)** | **(10876)** | **(93241)** | **(13333)** |
| **CASH FLOWS USED IN FINANCING ACTIVITIES** |  |  |  |  |
| Proceeds from issuance of common stocks-cash | - | - | 192312 | 27500 |
| Payment for listing expenses | (46442) | (14069) | (56267) | (8046) |
| Dividends paid to non-controlling interests | - | (1269) | - | - |
| New bank and other borrowings | 35274 | 45061 | 172640 | 24687 |
| Repayment of bank and other borrowings | (9000) | (25474) | (93953) | (13435) |
| Repayment of advances from third parties | (96500) | (58554) | (115848) | (16566) |
| **Net cash flows used in financing activities from continuing operations** | **(116668)** | **(54305)** | **98884** | **14140** |
| Net cash flows generated used in financing activities from discontinued operations | (115170) | - | - | - |
| **Total Net cash flows generated used in financing activities** | **(231838)** | **(54305)** | **98884** | **14140** |
| Net (decrease)/increase in cash and cash equivalents from continuing operations | (125487) | (58918) | 17637 | 2521 |
| Net decrease in cash and cash equivalents from discontinued operations | (117455) | - | - | - |
| Effect of foreign exchange rate changes, net | 2931 | 24 | 51 | 8 |
| Cash and cash equivalents at beginning of year from continuing operations | 307981 | 185425 | 126531 | 18094 |
| Cash and cash equivalents at beginning of the year from discontinued operations | 120980 | 3525 | - | - |
| Less: cash and cash equivalents at beginning of the year from discontinued operations | - | 3525 | - | - |
| **Cash and cash equivalents at end of year** | **188950** | **126531** | **144219** | **20623** |
| Less: cash and cash equivalents at end of the year from discontinued operations | 3525 | - | - | - |
| **Cash and cash equivalents at end of the year from continuing operations** | **185425** | **126531** | **144219** | **20623** |
| **Supplemental disclosures of cash flow information:** |  |  |  |  |
| Income taxes paid | 9467 | 5939 | 2355 | 337 |
| Interest received | 127 | 431 | 217 | 31 |
| Interest expense | 3171 | 2176 | 2602 | 372 |

---

**YOULIFE GROUP INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**1. GENERAL INFORMATION, ORGANIZATION AND PRINCIPAL ACTIVITIES**

Youlife Group Inc. (the "Company") was incorporated as a Cayman Islands exempted company on April 2, 2024. The registered office of the Company is located at Floor 4, Willow House, Cricket Square, Grand Cayman KY1-9010, Cayman Islands.

On July 9, 2025, the Company consummated a de-SPAC transaction with Distoken Acquisition Corporation ("Distoken") pursuant to the Business Combination Agreement dated May 17, 2024, as amended. In connection with the Business Combination, Youlife International Holdings Inc. ("Youlife") and Distoken became wholly-owned subsidiaries of the Company, and the Company changed its name to Youlife Group Inc.

Youlife International Holdings Inc. was incorporated in the Cayman Islands on February 26, 2019. Its registered office is located at Floor 4, Willow House, Cricket Square, Grand Cayman KY1-9010, Cayman Islands.

Youlife International Holdings Inc. is an investment holding company. Prior to the Business Combination, it and its subsidiaries were principally engaged in the provision of vocational education services, human resources recruitment services, employee management services and market services in the People's Republic of China.

The largest shareholder of Youlife International Holdings Inc. is Youtch Investment Co., Ltd., a British Virgin Islands company indirectly controlled by Mr. Yunlei Wang since its incorporation on July 15, 2020.

The Group refers to Youlife Group Inc. (the "Company") and its consolidated subsidiaries.

As a result of the Business Combination completed on July 9, 2025, Youlife International Holdings Inc. became a wholly-owned subsidiary of the Company.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Date of<br> Incorporation** | **Place of<br> Incorporation** | **Percentage of<br> Effective<br> Ownership** | **Principal Activities** |
| Shanghai Youerlan Information Technology Co., Ltd. ("Shanghai Youerlan") | July 10, 2014 | PRC | 100% | Provision of employee management service, HR recruitment service |
| Wuhu Lanfu Internet Technology Co., Ltd. | December 13, 2019 | PRC | 100% | Provision of employee management service, HR recruitment service |
| Hubei Youlife External Service Information Technology Co., Ltd. | August 25, 2020 | PRC | 100% | Provision of employee management service, HR recruitment service |
| Shanghai Lanyu Cloud Software Development Co., Ltd. | December 8, 2023 | PRC | 100% | Provision of market service |
| Anqing Bicai Property Management Co., Ltd. | January 12, 2023 | PRC | 51% | Provision of employee management service, HR recruitment service |
| Zhejiang Youlan International Holding Co., Ltd. | April 4, 2023 | PRC | 100% | Provision of employee management service, HR recruitment service |
| Youlife Technology Limited | March 27, 2019 | Hong Kong | 100% | Investment holding |

---

**2. SIGNIFICANT ACCOUNTING POLICIES**

***Basis of presentation***

The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America ("U.S. GAAP"). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below.

***Going concern consideration***

 ****

In accordance with Accounting Standards Update ("ASU") 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (Subtopic 205-40)", the Group has evaluated whether there are conditions and events, considered in the aggregate, the Group has the ability to continue as a going concern within one year after the date that the consolidated financial statements are issued. The Group recorded net profit of RMB 42,710 for the year ended December 31, 2025. As of December 31, 2025, the Group had a shareholders' equity of RMB734,260, net current assets of RMB 473,050.Net increase in cash and cash equivalents from continuing operations were RMB17,688. Based on these factors, management has concluded that no conditions or events exist that raise substantial doubt about the Group's ability to continue as a going concern for a period of at least one year after the issuance date of these consolidated financial statements.

Accordingly, the accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.

***Principle of consolidation***

The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances have been eliminated upon consolidation.

***Fair value measurement***

The Group measures its financial assets at fair value through profit or loss at the end of each of the Relevant Years. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, if market participants act in their best economic interest.

A fair value measurement of a non-financial asset considers a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximize the use of relevant observable inputs and minimize the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

---

| | |
|:---|:---|
| Level 1 – | based on quoted prices (unadjusted) in active markets for identical assets or liabilities |
| Level 2 – | based on valuation techniques for which the lowest level input that is significant to the fair value measurement is observable, either directly or indirectly |
| Level 3 – | based on valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable |

---

The carrying value of financial instruments included in current assets and liabilities approximate their fair values because of the short-term nature of these instruments.

***Impairment of non-financial assets other than goodwill***

Where an indication of impairment exists, or when annual impairment testing for an asset is required (other than financial assets), the asset's recoverable amount is estimated. An asset's recoverable amount is the higher of the asset's or cash-generating unit's value in use and its fair value less costs of disposal, and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case the recoverable amount is determined for the cash-generating unit to which the asset belongs. In testing a cash-generating unit for impairment, a portion of the carrying amount of a corporate asset is allocated to an individual cash-generating unit if it can be allocated on a reasonable and consistent basis or, otherwise, to the smallest group of cash-generating units.

An impairment loss is recognized only if the carrying amount of an asset exceeds its recoverable amount. In assessing recoverable amount, the estimated future cash flows are undiscounted expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets when the market prices are not readily available. An impairment loss is charged to the profit or loss in the period in which it arises in those expense categories consistent with the function of the impaired asset.

***Business combination***

 ****

The Group accounts for its business combinations using the purchase method of accounting in accordance with ASC 805, Business Combinations ("ASC 805"). The purchase method of accounting requires that the Company allocate the fair value of purchase consideration to the separately identifiable tangible and intangible assets acquired as well as liabilities assumed based on their estimated fair values. The consideration transferred in an acquisition includes the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent consideration and all contractual contingencies as of the acquisition date. The excess of the total of cost of acquisition, over the fair value of the identifiable net assets of the acquiree, is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the businesses acquired, the difference is recognized directly in earnings. Transaction costs directly attributable to the acquisitions are expensed as incurred. The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed, and non-controlling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. Significant estimates include but are not limited to future expected cash flows from acquired assets, assumptions on useful lives, discount rates and terminal values. The Company's estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. The Company determines discount rates to be used based on the risk inherent in the related activity's current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows over that period.

***Derecognition of financial assets***

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e., removed from the Group's consolidated balance sheet) when:

● the rights to receive cash flows from the asset have expired; or

● the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a "pass-through" arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risk and rewards of ownership of the asset. When it has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the Group continues to recognize the transferred asset to the extent of the Group's continuing involvement. In that case, the Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.

***Related parties***

A party is considered to be related to the Group if:

(a) the
 party is a person or a close member of that person's family and that person

&nbsp;&nbsp;&nbsp;&nbsp;(i) has
 control or joint control over the Group;

&nbsp;&nbsp;&nbsp;&nbsp;(ii) has
 significant influence over the Group; or

&nbsp;&nbsp;&nbsp;&nbsp;(iii) is
 a member of the key management personnel of the Group or of a parent of the Group;

or

(b) the
 party is an entity where any of the following conditions applies:

&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 entity and the Group are members of the same group;

&nbsp;&nbsp;&nbsp;&nbsp;(ii) one
 entity is an associate or joint venture of the other entity (or of a parent, subsidiary or fellow subsidiary of the other entity);

&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 entity and the Group are joint ventures of the same third party;

&nbsp;&nbsp;&nbsp;&nbsp;(iv) one
 entity is a joint venture of a third entity, and the other entity is an associate of the third entity;

&nbsp;&nbsp;&nbsp;&nbsp;(v) the
 entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group;

&nbsp;&nbsp;&nbsp;&nbsp;(vi) the
 entity is controlled or jointly controlled by a person identified in (a);

&nbsp;&nbsp;&nbsp;&nbsp;(vii) a
 person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity
 (or of a parent of the entity); and

&nbsp;&nbsp;&nbsp;&nbsp;(viii) the
 entity, or any member of a group of which it is a part, provides key management personnel services to the Group or the parent of
 the Group.

***Use of estimates***

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the reported revenues, costs and expenses during the reported year in the consolidated financial statements and accompanying notes. These accounting estimates reflected in the Group's consolidated financial statements mainly include, but are not limited to, current expected credit losses, useful lives of intangible assets and property and equipment, provision of income tax, valuation allowance for deferred tax assets and fair value measurement of convertible redeemable preferred shares and unlisted equity investments. Actual results could differ from those estimates.

***Foreign currency translation***

The functional currency and booking currency are both RMB for substantial all entities of the Group, transactions, assets and liabilities dominated in foreign currency were few within 2025.

For the purpose of such translation in cost-efficiency way, the financial statements are translated into USD in the convenience rate (USD 1 = RMB 6.9931) prevailing at the balance date. No translation adjustments incurred to comprehensive income (loss).

***Current expected credit losses***

The Group adopted ASC Topic 326, "Financial Instruments — Credit Losses", for credit loss assessment using the modified retrospective approach for all in-scope assets. The Group's in-scope assets are primarily account receivables, prepayments and other receivables. To estimate expected credit losses, the Group has identified the relevant risk factors which include clients' credits and accounts aging. Accounts with similar risk factors have been grouped into pools. For each pool, the Group considers the collection experience, current economic conditions and future economic conditions.

***Cash and cash equivalents***

Cash and cash equivalents represent cash at bank and on hand, on-demand deposits.

***Accounts receivable***

Accounts receivable are recognized and carried at the cost amount less an allowance for credit losses. An estimate for the allowance for credit losses is discussed above in "*Current Expected Credit Losses*".

***Prepayments and other receivables***

They are recognized at the cost amount less an allowance for credit losses. An estimate for the allowance for credit losses is discussed above in "*Current Expected Credit Losses*".

***Property and equipment***

Property and equipment, is stated at historical cost less accumulated depreciation and impairment, if any, and is depreciated using straight-line method over the following useful lives. The residual rate is determined based on the economic value of the asset at the end of the estimated useful lives as a percentage of the original cost. Certain events or changes in circumstances may indicate that the recoverability of the carrying amount of property, plant and equipment should be assessed, including, among others, a significant decrease in market value, a significant change in the business climate in a particular market, or a current period operating or cash flow loss combined with historical losses or projected future losses. When such events or changes in circumstances are present and a recoverability test is performed, we estimate the future cash flows expected to result from the use of the asset or asset group and its eventual disposition. These estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment charge. The impairment charge recognized is the amount by which the carrying amount of the asset or asset group exceeds the fair value. We may use a variety of methodologies to determine the fair value of property, plant and equipment, including appraisals and discounted cash flow models. These appraisals and models include assumptions we believe are consistent with those a market participant would use.

Depreciation is calculated on the straight-line basis to write off the cost of each item of property and equipment to its residual value over its estimated useful life. The principal annual rates used for this purpose are as follows:

---

| | |
|:---|:---|
| Electronic equipment | 33% |
| Office equipment | 20% |
| Motor vehicles | 25% |
| Leasehold improvements | Over the shorter of the lease terms and estimated useful lives |

---

***Intangible assets***

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is the fair value at the date of the acquisition. The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are subsequently amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at each financial year end.

*Software*

Software is stated at cost less any impairment losses and is amortized on the straight-line basis over its estimated useful life of 3 to 10 years.

*Trademark*

Trademark is stated at cost less any impairment losses and is amortized on the straight-line basis over its estimated useful life of 10 years.

***Leases***

The Group follows ASC Topic 842, Leases. The Group leases office spaces, warehouse, and farmland which are classified as operating leases in accordance with Topic 842. Under Topic 842, lessees are required to recognize the following for all leases (with the exception of short-term leases, usually with initial term of 12 months or less) on the commencement date: (i) lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) right-of-use ("ROU") asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Group's leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and includes initial direct costs incurred. The Group's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Group will exercise that option. Lease expenses for minimum lease payments are recognized on a straight-line basis over the lease term. All operating lease ROU assets are reviewed for impairment annually.

***Government grants***

Government grants are recognized at their fair value where there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the costs, for which it is intended to compensate, are expensed.

***Revenue recognition***

Revenue from contracts with customers

Revenue from contracts with customers is recognized when control of goods or services is transferred to the customers at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services.

Revenue is presented net of value-added taxes ('VAT') collected on behalf of tax authorities, as the Group acts as an agent in collecting such taxes from customers.

When the consideration in a contract includes a variable amount, the amount of consideration is estimated to which the Group will be entitled in exchange for transferring the goods or services to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognized will not occur when the associated uncertainty with the variable consideration is subsequently resolved.

When the contract contains a financing component which provides the customer with a significant benefit of financing the transfer of goods or services to the customer for more than one year, revenue is measured at the present value of the amount receivable, discounted using the discount rate that would be reflected in a separate financing transaction between the Group and the customer at contract inception. When the contract contains a financing component which provides the Group with a significant financial benefit for more than one year, revenue recognized under the contract includes the interest expense accredited on the contract liability under the effective interest method. For a contract where the period between the payment by the customer and the transfer of the promised goods or services is one year or less, the transaction price is not adjusted for the effects of a significant financing component.

*(a) Vocational education services*

The Group provides vocational education services mainly including vocational education entrusted management services, self-operated vocational school services, curriculum co-development projects services, vocational training services and connotation construction services.

For vocational education entrusted management services, the Group agrees the price with the sponsors of managed schools upfront and recognizes the management fee received or receivable as its revenue on a straight-line basis over the agreed management period based on pre-agreed fixed amounts or unit rate per students for management services provided or the estimated results of operations of the managed schools in the whole management period.

For self-operated vocational school services, the tuition and boarding fees from students are paid in advance at the beginning of each semester of an academic year and are initially recorded as contract liabilities. Tuition and boarding fees are recognized on a straight-line basis over the relevant period of the applicable program. The portion of tuition payments received from students but not earned is recorded as contract liabilities and is reflected as a current liability as such amounts represent revenue that the Group expects to earn within one year. The academic year of the Group's schools is generally from September to June of the following year and has two semesters.

For curriculum co-development projects services, the Group agrees the price with the curriculum or subordinate schools upfront and recognizes the service fee received or receivable as its revenue on a straight-line basis over the relevant period of the applicable program based on pre-agreed fixed unit rate per student for services provided in the whole period.

For vocational training services, the Group recognizes the training fee received or receivable as its revenue on a straight-line basis over the training period as the customers simultaneously receives and consumes the benefits provided by the Group.

For connotation construction services, revenue is recognized at the point in time when control of the asset is transferred to the customer, generally on acceptance by the customer.

*(b) HR recruitment services*

The Group provides HR recruitment services regarding blue-collar talent to customers, and revenue is recognized at the point in time when the services are rendered and accepted by the customers.

*(c) Employee management services*

The Group provides employee management services mainly including labor outsourcing services and labor dispatch services and others.

For labor outsourcing services, the Group charged service fees in respect of the labor outsourcing services on a lump sum basis. The Group acts as principal and is primarily responsible for providing the labor outsourcing services to customers. The Group recognizes the fee received or receivable from customers as its revenue and all related labor outsourcing services costs as its cost of services. The Group recognizes the labor outsourcing services fee received or receivable as its revenue over time in the period in which the customer simultaneously receives and consumes the benefits provided by the Group.

For labor dispatch services, the Group acts as a dispatching agent and is mainly responsible for administrative work, which is considered as one performance obligation, and the Group does not control employee's labor services; therefore, the Group's labor dispatch revenue is recorded on a net basis over time in the period in which the customer simultaneously receives and consumes the benefits provided by the administration work performed by the Group, while the labor costs paid to the employees are recorded to net off revenue.

The Group's other revenue includes income from the provision of HR agency services, which is recognized when the services are rendered and accepted by the customers.

*(d) Market services*

The Group provides market services mainly including sale of retail goods to end customers via online retail platform and provision of value-added services to students of vocational schools, such as shopping, catering and dormitory management services.

For market services, revenue is recognized at the point in time when the services are rendered and accepted by the customers.

***Selling and marketing Expenses***

Selling and marketing expenses consist primarily of payroll, advertising and promotion expenses for marketing and business development. They are expensed as incurred.

***Administrative Expenses***

Administrative expenses consist of payroll, rental, expenses for employees involved in general corporate functions, including finance, legal and human resources, costs associated with use of facilities and equipment, such as depreciation and amortization, professional fees and other general corporate related expenses.

***Other (expense)/ incomes, net***

Other incomes mainly consist of non-operating income and gains, such as government grants, proceeds of interest from maturities of short-term investments, fair value gains or losses, other gain or loss, loss from disposal of equity investment and gain or loss on dissolution of subsidiaries and branches. Financial expenses mainly consist of interest income and expense, bank charges and exchange gain or loss.

***Income tax***

The Group follows the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes ("ASC 740"). Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Group records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate.

The Group accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties arising from underpayment of income taxes shall be computed in accordance with the related PRC tax law. The amount of interest expense is computed by applying the applicable statutory rate of interest to the difference between the tax position recognized and the amount previously taken or expected to be taken in a tax return. Interest and penalties recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive loss as income tax expense.

In accordance with the provisions of ASC 740, the Group recognizes in its consolidated financial statements the impact of a tax position if a tax return position or future tax position is "more likely than not" to prevail based on the facts and technical merits of the position. Tax positions that meet the "more likely than not" recognition threshold are measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. The Group's estimated liability for unrecognized tax benefits, if any, will be recorded in the "other non-current liabilities" in the accompanying consolidated financial statements, and is periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The actual benefits ultimately realized may differ from the Group's estimates. As each audit is concluded, adjustments, if any, are recorded in the Group's consolidated financial statements. Additionally, in future periods, changes in facts, circumstances, and new information may require the Company to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which the changes occur.

***Earnings per share***

Basic earnings per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised into ordinary shares. Common share equivalents are excluded from the computation of the diluted earnings per share in years when their effect would be anti-dilutive.

 ****

***Segment reporting***

The Group's business activities, for which discrete financial information is available, are regularly reviewed and evaluated by the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the executive directors of the Company that make strategic decisions. As a result of this evaluation, the Group determined that it has operating segments as follows:

&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 vocational education segment engages in the provision of vocational education entrusted management
 services, self-operated vocational school services, curriculum co-development projects services
 and vocational training services;

&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 HR recruitment segment engages in the provision of HR recruitment services regarding blue-collar
 talent to customers;

&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 employee management segment engages in the provision of labor outsourcing services, labor
 dispatch services and others;

&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 market service segment engages in the provision of value-added services.

The chief operating decision-maker monitors the results of the Group's operating segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on reportable segment revenue and segment results which is measured based on gross profit of the respective segment. No analysis of segment assets and liabilities is presented as management does not regularly review such information for the purposes of resource allocation and performance assessment. Therefore, only segment revenue and segment results are presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** |
|  | **Continuing operation** | **Continuing operation** | **Continuing operation** | **Continuing operation** | **Continuing operation** |
|  | **Vocational<br> education** | **HR<br> recruitment** | **Employee<br> management** | **Market <br> service** | **Total** |
|  | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** |
| **Segment revenue** | | | | | |
| Sales to external customers | 146372 | 61665 | 1029360 | 128468 | 1365865 |
| Cost of revenue | (103708) | (11385) | (946543) | (103810) | (1165446) |
| Gross profit | 42664 | 50280 | 82817 | 24658 | 200419 |
| Gross profit % | 29.1 | 81.5 | 8.0 | 19.2 | 14.7 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** |
|  | **Discontinued operation** | **Discontinued operation** | **Discontinued operation** | **Discontinued operation** | **Discontinued operation** |
|  | **Vocational<br> education** | **HR<br> recruitment** | **Employee<br> management** | **Market <br> service** | **Total** |
|  | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** |
| **Segment revenue** | | | | | |
| Sales to external customers | 32659 | 13814 | 4477 | 1232 | 52182 |
| Cost of revenue | (20758) | (752) | (4854) | - | (26364) |
| Gross profit | 11901 | 13062 | (377) | 1232 | 25818 |
| Gross profit % | 36.4 | 94.6 | (8.4) | 100.0 | 49.5 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** |
|  | **Continuing operation** | **Continuing operation** | **Continuing operation** | **Continuing operation** | **Continuing operation** | **Continuing operation** |
|  | **Vocational<br> education** | **HR<br> recruitment** | **Employee<br> management** | **Market <br> service** | **Total** | **Total** |
|  | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **USD** |
| **Segment revenue** | | | | | | |
| Sales to external customers | 50029 | 24237 | 1382580 | 128794 | 1585640 | 217232 |
| Cost of revenue | (25856) | (10781) | (1220725) | (99149) | (1356511) | (185841) |
| Gross profit | 24173 | 13456 | 161855 | 29645 | 229129 | 31391 |
| Gross profit % | 48.3 | 55.5 | 11.7 | 23.0 | 14.5 | 14.5 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** |
|  | **Continuing operation** | **Continuing operation** | **Continuing operation** | **Continuing operation** | **Continuing operation** | **Continuing operation** |
|  | **Vocational<br> education** | **HR<br> recruitment** | **Employee<br> management** | **Market <br> service** | **Total** | **Total** |
|  | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **USD** |
| **Segment revenue** | | | | | | |
| Sales to external customers | 45108 | 17694 | 1719620 | 71880 | 1854302 | 265162 |
| Cost of revenue | (22121) | (7742) | (1577482) | (54891) | (1662236) | (237697) |
| Gross profit | 22987 | 9952 | 142138 | 16989 | 192066 | 27465 |
| Gross profit % | 51.0 | 56.2 | 8.3 | 23.6 | 10.4 | 10.4 |

---

Loss from Continuing Operations before Income Tax:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD** |
| Vocational education | 19800 | 6834 | 7486 | 1070 |
| HR recruitment | 11527 | 9887 | 8644 | 1236 |
| Employee management | 193383 | 136814 | 168157 | 24046 |
| Market service | 15320 | 35054 | 1014 | 146 |
| Total operating expenses | **240030** | **188589** | **185301** | **26498** |
| Less: revenues from the discontinued operations | 20690 | - | - | - |
| Revenues from the continuing operations | **219340** | **188589** | **185301** | **26498** |
| Income (Loss) from continuing operations before income tax | **49016** | **(41298)** | **50457** | **7214** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
| Segment assets: |  |  |  |
| Vocational education | 74234 | 86620 | 12386 |
| HR recruitment | 10958 | 14209 | 2032 |
| Employee management | 784490 | 1105533 | 158089 |
| Market service | 38681 | 36493 | 5219 |
| Total assets | **908363** | **1242855** | **177726** |

---

*Geographical information*

More than 95% of the Group's revenues for the year ended December 31, 2023, 2024 and 2025 were generated from the PRC. As of December 31, 2023, 2024 and 2025, all of the long-lived assets of the Group are located in the PRC, and therefore, no geographical segments are presented.

*Information about major customers*

No revenue from sales to a single customer or a group of customers under common control accounted for 10% or more of the Group's revenue for the year ended December 31, 2023, 2024 and 2025.

***Significant risks and uncertainties***

The Group's principal financial instruments comprise lease liabilities, interest-bearing bank and other borrowings, and cash and bank balances. The main purpose of these financial instruments is to raise finance for the Group's operations. The Group has various other financial assets and liabilities such as trade receivables and trade payables, which arise directly from its operations.

The main risks arising from the Group's financial instruments are currency risk, credit risk and liquidity risk. The board of directors reviews and agrees policies for managing each of these risks and they are summarized below.

1) Currency risk

Currency risk arises from the possibility that fluctuations in foreign exchange rates will impact the financial instruments. The Group is not exposed to significant transactional foreign currency risk since it usually recognizes revenues and purchases in RMB. At the same time, the Group is not exposed to translational foreign currency risk since most operating subsidiaries are in the PRC, which has RMB as the functional currency.

2) Credit Risk

The carrying amounts of cash and bank balances, trade receivables, financial assets included in prepayments, other receivables and other assets, and financial assets included in other non-current assets included in the consolidated statements of financial position represent the Group's maximum exposure to credit risk in relation to its financial assets as at December 31, 2023, 2024 and 2025. The Group classifies financial instruments based on shared credit risk characteristics, such as instrument types and credit risk ratings for the purpose of determining significant increases in credit risk and calculation of impairment.

*Cash and cash balances*

As of December 31, 2023, 2024 and 2025, all cash and bank balances were deposited in high-credit-quality financial institutions without significant credit risk. These financial assets were not yet past due, and their credit exposure is classified as stage 1.

*Account receivable*

To manage the risk arising from trade receivables, the Group has policies in place to ensure that credit terms are made only to counterparties with an appropriate credit history and management performs ongoing credit evaluations of the Group's counterparties. The credit period granted to the customers is generally within 30 days to 90 days and the credit quality of these customers is assessed, considering their financial position, experience and other factors. The Group also has other monitoring procedures to ensure that follow-up action is taken to recover overdue receivables. In addition, the Group reviews regularly the recoverable amount of trade receivables to ensure that adequate impairment losses are made. For the year ended December 31, 2023, 2024 and 2025, revenue from the Group's five largest customers accounted for approximately 25.5%, 30.8% and 27.8% of total revenue. Despite this customer concentration, the Group does not consider the associated credit risk to be significant, as the remaining exposure is spread across a large number of diversified counterparties and customers.

The Group applies the simplified approach to provide for ECLs, which permits the use of the lifetime expected loss provision for all trade receivables. The expected credit losses also incorporate forward-looking information based on key economic variables such as inflation rate.

*Accounts Payable*

 

Trade payables are settled within 30 to 90 days. For the years ended December 31, 2023, 2024 and 2025, purchases from the Group's five largest suppliers represented approximately 38.8%, 21.3% and 36.7% of total purchases. Management does not believe this supplier concentration poses a material risk to the Group, as alternative sources of supply are readily available.

*Other receivables*

Management makes periodic collective assessments for other receivables as well as individual assessment on the recoverability of other receivables based on historical settlement records and experience. The Group recognized allowance for these financial assets based on lifetime ECLs and adjusted for forward-looking macroeconomic data.

(3) Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting financial obligations due to shortage of funds. The Group's exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Group's objective is to maintain a balance for continuity of funding to finance its working capital needs as well as capital expenditure.

*Long-term investment*

 

The Group has elected to apply the NAV practical expedient under ASC 820-10-15-4 to measure the fair value of this investment. The investment represents an equity interest in a segregated portfolio of an SPC fund and meets the eligibility criteria. Accordingly, the investment is excluded from the Level 1/2/3 fair value hierarchy, no additional independent valuation support is required, and disclosures will be provided in accordance with ASC 820-10-50-6A through 50-6B. The investment is subject to a mandatory 10-year lock-up period, which represents a restriction on redemption. The investment was made in May 2025.

***Newly adopted accounting pronouncements***

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of the Group's portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. In November 2019, the FASB issued ASU 2019-10, which extends the adoption date for certain registrants. The amendments in ASU 2016-13 are effective for fiscal years beginning after December 15, 2022, including interim periods within fiscal years beginning after December 15, 2023. In February 2020 the FASB issued ASU 2020-02 which updated SEC Staff Accounting Bulletin No. 119 providing interpretive guidance on methodology and supporting documentation for measuring credit losses. The Group adopted the ASU on January 1, 2022, which did not have a material impact on the consolidated financial statements.

In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity ("ASU 2020-06") — Simplifying the accounting for convertible instruments by removing major separation models required under current GAAP. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, and it also simplifies the diluted earnings per share calculation in certain areas. ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption permitted. The Group adopted ASU on January 1, 2022, which did not have a material impact on the consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07 "Segment Reporting (Topic 280)". The amendment in this Update is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments also require a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. The ASU is effective for the Group for annual periods beginning after December 15, 2023.

***Recently issued accounting pronouncements not yet adopted***

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805*)*: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The update will generally result in an entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The new standard is effective on a prospective basis for fiscal years beginning after December 15, 2022, with early adoption permitted. The ASU is effective for the Group on July 1, 2023 and the Group does not expect a significant impact to the consolidated financial statements upon adoption. However, the ultimate impact is dependent upon the size and frequency of future acquisitions.

In December 2023, the FASB issued ASU 2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures". The Update requires that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate). The ASU is effective for public business entities for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. The Group is in the process determine the impact of the adoption of this standard on its consolidated financial statements.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income -Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (collectively with subsequent amendments in ASU 2025-01, "ASU 2024-03"). This ASU requires new financial statement disclosures disaggregating prescribed expense categories within relevant income statement expense captions. ASU 2024-03 will be effective for the Company beginning December 15, 2026. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard.

**3. REVERSE CAPITALIZATION**

On July 9, 2025, in accordance with the Business Combination Agreement, the Closing occurred, pursuant to which the Company issued ordinary shares to Distoken Acquisition Corporation shareholders.

Immediately after giving effect to the Business Combination, the Company has 76,048,501 ordinary shares issued and outstanding consisting of (i) 70,000,000 ordinary shares issued to the shareholders of the Company pursuant to the Merger Agreement; (ii) 3,343,552 ordinary shares held by former Distoken public shareholders and its Sponsor; and (iii) 2,704,949 ordinary shares issued to PIPE investors as part of the private placement.

The 3,343,552 ordinary shares held by former Distoken public shareholders and its Sponsor consist of (a) 51,052 ordinary shares held by former Distoken public shareholders; (b) 690,000 ordinary shares converted from Public Rights; (c) 1,725,000 ordinary shares converted from Founder Shares held by the Sponsor; (d) 545,000 ordinary shares converted from Private Shares held by the Sponsor; (e) 54,500 ordinary shares converted from Private Rights held by the Sponsor; and (f) 278,000 ordinary shares held as Representative Shares.

Common shares issued and outstanding following the Closing are as follows:

---

| | | |
|:---|:---|:---|
|  | **Shares Outstanding** | **Shares Outstanding** |
|  | **Shars** | **%** |
| Youlife Shareholders A | 58839192 | 77.3 |
| Youlife Shareholders B | 11160808 | 14.6 |
| Distoken Public Shareholders | 51052 | 0.1 |
| Holder of Founder Shares | 1725000 | 2.3 |
| Holder of Private Shares | 545000 | 0.7 |
| Holders of Representative Shares | 278000 | 0.4 |
| Holders of Public Rights | 690000 | 0.9 |
| Holders of Private Rights | 54500 | 0.1 |
| PIPE Investors | 2704949 | 3.6 |
| Total Shares Outstanding | 76048501 | 100.0 |

---

**4. ACCOUNTS RECEIVABLES, NET**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
| Accounts receivable | 310449 | 368660 | 52717 |
| Less: allowance for credit loss | (22589) | (25877) | (3700) |
| Accounts receivable, net | **287860** | **342783** | **49017** |

---

Movement of allowance of doubtful accounts is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
| Beginning balance | 20762 | 22589 | 3230 |
| Charge to expense | 1827 | 3288 | 470 |
| Ending balance | **22589** | **25877** | **3700** |

---

**5. PREPAYMENTS AND OTHER RECEIVABLES, NET**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
| Other receivables | 189066 | 269426 | 38528 |
| Receivable from asset disposal | - | 89000 | 12726 |
| Less: allowance for credit loss of other receivables | (28565) | (2900) | (415) |
| Prepayments | 72904 | 73705 | 10540 |
| Deductible input VAT | 7565 | 14710 | 2104 |
| Deposits | 7524 | 4142 | 592 |
| Prepayment, other receivables other, net | **248494** | **448083** | **64075** |

---

Other receivables primarily include:

Fund transaction receivables from third parties – arising from cash transactions and fund settlements with external parties;

Social security advances and withholdings – amounts paid by the Group on behalf of employees for social security and housing provident fund contributions, which will be either recovered from employees or remitted to government authorities;

Staff advances and borrowings – travel advances and petty cash advances provided to employees in the ordinary course of business;

Other short-term receivables expected to be recovered within twelve months.

Prepayments primarily include:

Project prepayments – advances made to third-party vendors for specific project-based development and implementation activities;

Online promotion fees – prepayments made to internet platforms for digital marketing, advertising, and promotional services;

Other short-term balances expected to be realized within twelve months.

Receivable from asset disposal represents the consideration receivable from the transfer of school trusteeship rights for five schools completed in December 2025. The transfer has been finalized. The buyer is a third party. As of April 17, 2026, RMB 4 million has been received. Of the remaining balance, RMB85 million is expected to be collected by the end of 2026, and the remainder RMB17 million is expected to be collected by the end of 2027. The expected credit loss for this receivable is not material to the consolidated financial statements.

Movement of allowance for credit loss is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
| Beginning balance | 42683 | 28565 | 4085 |
| Reversal of expense | (1637) | (25665) | (3670) |
| Less: disposal of discontinued operations | (12481) | - | - |
| Ending balance | **28565** | **2900** | **415** |

---

**6. INVENTORIES**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2024** | **2025** | **2025** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **RMB** | **USD** | **USD** |
| Finished Goods | | **3,704** | | **2,086** | | **298** |

---

Inventories, finished goods as retail goods, are accounted for using the first-in-first-out cost method and are valued at the lower of cost and net realizable value. Net realizable value is based on estimated selling prices less any estimated costs to be incurred to completion and disposal.

No impairment provision made as the carrying amounts of inventories are lower than the net realizable value.

**7. PROPERTY AND EQUIPMENT**

Property and equipment consisted of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
| Leasehold improvement | 145720 | 64521 | 9225 |
| Furniture and office equipment | 2182 | 1972 | 282 |
| Electronic equipment | 9893 | 9893 | 1415 |
| Vehicles | 2696 | 2613 | 374 |
| Less: accumulated depreciation | (13188) | (17135) | (2450) |
| Property and equipment, net | **147303** | **61864** | **8846** |

---

As of December 31, 2025, leasehold improvements decreased by approximately RMB81 million, primarily attributable to disposals following the transfer of school trusteeship rights for five schools completed in December 2025.

Depreciation of property and equipment was RMB8,317, RMB10,070 and RMB11,456 for the years ended December 31, 2023, 2024 and 2025, respectively.

**8. LEASES**

The Group's operating leases mainly related to various buildings. The total lease cost for the year ended December 31, 2024 and 2025 was RMB18,254 and RMB11,029, comprised of operating lease expenses of RMB16,847 and RMB9,621, and short-term lease expenses of RMB1,407 and RMB1,408, and depreciation of right-of-use assets of RMB14,802 and RMB13,310 (USD1,903), respectively.

Supplemental balance sheet information related to operating lease was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
| Operating lease right-of-use assets | 43156 | 37048 | 5298 |
| Lease liabilities – current | 9401 | 6793 | 971 |
| Lease liabilities – non-current | 27902 | 25491 | 3645 |
| Total operating lease liabilities | **37303** | **32284** | **4616** |

---

The weighted average remaining lease terms and discount rates for the operating lease as of December 31, 2024 and 2025 were as follows:

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** |
| Weighted average remaining lease term (years) | 5.87 | 5.61 |
| Weighted average discount rate | 4.77% | 4.77% |

---

The undiscounted future minimum payments under the Company's operating lease liabilities and reconciliation to the operating lease liabilities recognized on the consolidated balance sheet was as below:

---

| | | |
|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **RMB** | **USD** |
| 2026 | 8173 | 1169 |
| 2027 | 7228 | 1034 |
| 2028 | 5567 | 796 |
| 2029 | 5355 | 766 |
| 2030 and after | 10294 | 1471 |
| Total undiscounted cashflows | **36617** | **5236** |
| Less: imputed interest | (4333) | (620) |
| Present value of lease liabilities | **32284** | **4616** |

---

**9. INTANGIBLE ASSETS**

Intangible assets consisted of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
| As of December 31: |  |  |  |
| Systems software | 15228 | 15228 | 2178 |
| Trademark | 132 | 132 | 19 |
| Less: accumulated amortization | (5374) | (6999) | (1001) |
| Intangible assets, net | 9986 | 8361 | 1196 |

---

Amortization of intangible assets was RMB1,793 and RMB1,625 for the years ended December 31, 2024 and 2025, respectively.

---

| | | |
|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **RMB** | **USD** |
| 2026 | 1687 | 241 |
| 2027 | 1415 | 202 |
| 2028 | 940 | 134 |
| 2029 | 940 | 134 |
| 2030 and after | 3379 | 485 |
| Total | 8361 | 1196 |

---

**10. GOODWILL**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
| Net carrying amount as at the beginning of the year | 19713 |  |  |
| Less: impairment provided during the year | - |  |  |
| Net carrying amount as at the end of the year | **19713** |  |  |
| Less: net carrying amount of the discontinued operation | (19713) |  |  |
| Net carrying amount of the continuing operations | **-**  |  |  |

---

**11. LONG-TERM INVESTMENT**

In May 2025, the Group invested HKD103,950 in 13,413 Class B participating shares. The Group holds an investment in Renascence Global Capital SPC Limited - Number 1 SP. The Fund is a BVI-registered high-risk closed-end fund investing primarily in non-investment grade bonds, private equity and derivatives, aiming for medium-to-long-term capital appreciation through diversified asset allocation. The 10-year lock-up period is consistent with market practice for such funds, and the associated liquidity discount is embedded in the NAV. The fair value is determined accordingly based on the net asset value (NAV) per share provided by the fund administrator. In accordance with ASC 820-10-50-6A, the Group provides the following supplemental disclosures: The investment objective and strategy of the fund have not been provided by the fund manager as of the reporting date; the Group has no unfunded commitments and the subscription amount has been fully paid; no redemption is permitted without the prior written consent of the Fund's directors, and if permitted, not less than 60 days' prior written notice is required.

Based on fund's governing documents, the Fund meets the definition of an investment company under ASC 946. Accordingly, this investment is measured using the NAV practical expedient and is not classified within the fair value hierarchy (Level 1, 2 or 3).

As of December 31, 2025, accordingly to the NAV per share confirmed by third-party valuation, the fair value of long-term investment was HKD 107,669 (RMB96,738, USD13,833), resulting in a fair value gain of HKD 3,719(RMB3,524, USD504) recognized in profit.

**12. OTHER NON-CURRENT ASSETS**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
| Receivable from asset disposal | - | 17025 | 2434 |
| Deposit | 8000 | 56098 | 8022 |
| Long-term prepayment for service fee | 5182 | 5182 | 742 |
| Other non-current assets | **13182** | **78305** | **11198** |

---

The long-term prepayment for service fee represented the advance payment made for catering services of vocational education and will subsequently be charged to profit or loss as service fee expenses for catering services over the cooperation period with vocational education schools.

Deposits mainly represent business cooperation security deposits paid to third parties under various contractual arrangements. These include:

Performance security deposits – paid to ensure the Group's fulfillment of contractual obligations under service agreements;

Lease deposits – paid to lessors under operating lease agreements;

Other refundable deposits – paid to business partners as collateral for cooperation arrangements, which are typically refundable upon contract expiry or termination.

Receivable from asset disposal represents the consideration receivable from the transfer of school trusteeship rights for five schools completed in December 2025. The transfer has been finalized. The buyer is a third party. As of April 17, 2026, RMB 4 million has been received. Of the remaining balance, RMB85 million is expected to be collected by the end of 2026, and the remainder RMB17 million is expected to be collected by the end of 2027. No allowance for credit losses is considered necessary.

**13. ACCOUNTS PAYABLES**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
| Service fees payable | 70690 | 74485 | 10651 |
| Total | **70690** | **74485** | **10651** |

---

**14. OTHER PAYABLES AND ACCRUED LIABILITIES**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
| Payroll and welfare payables | 128521 | 149415 | 21366 |
| Other liabilities | 13367 | 63434 | 9071 |
| Total | **141888** | **212849** | **30437** |

---

Other liabilities primarily include:

Accrued consultation fees – professional fees incurred but not yet paid for consulting, legal, audit, and other advisory services;

Staff costs for outsourced personnel – social security contributions, and housing provident fund payments payable on behalf of outsourced personnel engaged in the Group's employee management services;

Fund transaction payables – temporary payables arising from cash transactions and fund settlements with third parties;

Deposits – refundable deposits received from business partners, customers, or other third parties as collateral for performance or cooperation arrangements;

Other miscellaneous payables – various other short-term payables expected to be settled within one year.Other liabilities include accrued consultation fees, staff costs for outsourced personnel, fund transaction payables, and deposits.

**15. BORROWINGS**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
| CURRENT |  |  |  |
| Bank borrowings – unsecured | 43005 | 124580 | 17815 |
| Long-term borrowing – secured, current portion | 2888 | 1474 | 210 |
| **Subtotal** | **45893** | **126054** | **18025** |
| NON-CURRENT |  |  |  |
| Long-term borrowing – secured | 1474 | - | - |
| **Subtotal** | **1474** | - | - |
| **Total** | **47367** | **126054** | **18025** |

---

Effective interest rate range of bank borrowings was 3.65% to 4.00% as of December 31, 2025.

The Group has entered into finance lease arrangements for certain property and equipment. As of December 31, 2025, the effective interest rate implicit in the finance leases was 6.04%, and the lease liabilities mature in September 2026. The finance lease liabilities are secured by the underlying leased assets.

**16. REVENUES**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD** |
| Vocational education services | 179031 | 50029 | 45108 | 6451 |
| Employee management services | 1033837 | 1382580 | 1719620 | 245902 |
| HR recruitment services | 75479 | 24237 | 17694 | 2530 |
| Market Services | 129700 | 128794 | 71880 | 10279 |
| Revenues | **1418047** | **1585640** | **1854302** | **265162** |
| Less: revenues from the discontinued operations | (52182) | - | - | - |
| Revenues from the continuing operations | **1365865** | **1585640** | **1854302** | **265162** |

---

Under the requirements of ASC 606-10-50-8, the changes in contract liabilities are presented as follows:

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **RMB** | **USD** |
| **As of January 1, 2023** | 2698 | 386 |
| Addition | 1402448 | 200547 |
| Recognized as revenue from continuing operations | (1365865) | (195316) |
| **As of December 31, 2023** | 39281 | 5617 |
| Addition | 1566350 | 223985 |
| Recognized as revenue | (1585640) | (226744) |
| **As of December 31, 2024** | 19991 | 2858 |
| Addition | 1868951 | 267257 |
| Recognized as revenue | (1854302) | (265162) |
| **As of December 31, 2025** | 34640 | 4953 |

---

**17. FAIR VALUE MEASUREMENT**

The following tables illustrate the fair value measurement hierarchy of the Company's financial instruments:

---

| | | | |
|:---|:---|:---|:---|
| | **Quoted prices<br> in active markets** | **Significant<br> observable inputs** | **Significant<br> unobservable inputs** |
| | **(Level 1)** | **(Level 2)** | **(Level 3)** |
| <br>**For the Year Ended December 31, 2024** | **RMB** | **RMB** | **RMB** |
| **Financial assets at fair value through** | | | |
| Fair value gains from financial assets at fair value through profit or loss-Chengdu Fish Bubble Technology Co, Ltd., net |  |  | (21248) |

---

The movements of financial assets at fair value through profit or loss are set out as below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2023** | **2024** | **2025\*** | **2025\*** |
|  | **RMB** | **RMB** | **RMB** | **USD** |
| At the beginning of year | 69129 | 105629 | - | - |
| Exchange difference of beginning balance | - | - | - | - |
| Total gains recognized in profit or loss | 36500 | (21248) | 3524 | 504 |
| Disposals | - | (84381) | - | - |
| At the end of year | **105629** | **-**  | 3524 | 504 |

---

\* Fair value measurement was RMB3,524 (USD504) for the year ended December 31, 2025. The Group elected the NAV practical expedient under ASC 820-10-15-4 to measure this investment. The investment is excluded from the Level 1/2/3 fair value hierarchy. The fund's NAV as of December 31, 2025 was HKD 8,027.23 per share (confirmed by third- party valuation). The investment has a 10-year lock-up period. The Group subscribed in May 2025 for HKD 103,950.

The fair values of the unlisted equity investments included in the financial assets at fair value through profit or loss have been estimated using the option-pricing method based on assumptions that are not supported by observable market prices or rates. Management has estimated the potential effect of using reasonably possible alternatives as inputs to the valuation model. This disclosure applies only to the unlisted equity investment held and disposed of in 2024. The following table lists the inputs to the model used:

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** |
|  | % | % |
| Risk-free interest rate | 4.48% |  |
| Discounts for lack of marketability | 5%-22 |  |

---

**18. TAXATION**

Under the current laws of the Cayman Islands, the Group is not subject to tax on income or capital gains. Additionally, upon payment of dividends by the Group to its shareholders, no Cayman Islands withholding tax will be imposed. The Company's subsidiaries in Hong Kong are subject to Hong Kong Profits Tax rate at 16.5%, and foreign-derived income is exempted from income tax. There are no withholding taxes upon payment of dividends by the subsidiaries incorporated in Hong Kong to its shareholders. The Group's subsidiaries incorporated in Hong Kong are not liable for income tax as they did not have any assessable profits arising in Hong Kong during the Relevant Periods.

PRC corporate income tax has been provided at the rate of 25% on the taxable profits of the Group's PRC subsidiaries for the Relevant Periods. Certain of the Group's PRC subsidiaries are qualified as small and micro enterprises and were entitled to a preferential corporate income tax rate of 2.5% to 5% during 2024 and 2025, respectively. Certain of the Group's PRC subsidiaries are accredited as "High and New Technology Enterprise" and were therefore entitled to a preferential income tax rate of 15% for the years ended 31 December 2024 but lost the "High and New Technology Enterprise" qualification in 2025. Accordingly, the 25% standard CIT rate applies in 2025. This change may affect the recoverability of deferred tax assets. If taxable profits remain low, the recognized DTAs may not be fully recoverable. Management reassesses the valuation allowance adequacy annually. Any additional allowance would reduce net profit.

The income tax expense of the Group for the Relevant Periods is analysed as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended 31 December,** | **For the Year Ended 31 December,** | **For the Year Ended 31 December,** | **For the Year Ended 31 December,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD** |
| Current tax: |  |  |  |  |
| PRC corporate income tax | 5776 | 3767 | 2969 | 425 |
| Deferred tax liabilities | (1497) | - | - | - |
| Deferred tax assets, net | (35469) | 7323 | 4778 | 683 |
| Total income tax expense/(benefit) | **(31190)** | **11090** | **7747** | **1108** |
| Less: income tax expenses from the discontinued operations | 934 | - | - | - |
| Income tax income tax expense/(benefit) from the continuing operations | **(30256)** | **11090** | **7747** | **1108** |

---

A reconciliation of tax expense applicable to profit before tax at the statutory rate for the jurisdictions in which the majority of the Group's subsidiaries are domiciled to the income tax expense at the effective income tax rate for each of the Relevant Periods is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended 31 December,** | **For the Year Ended 31 December,** | **For the Year Ended 31 December,** | **For the Year Ended 31 December,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD** |
| Profit/(Loss) before tax | 49016 | (41298) | 50457 | 7214 |
| Tax at the statutory tax rate (25%) | 12254 | (10325) | 12614 | 1804 |
| Impact of preferential tax rates | 1836 | 13190 | (756) | (108) |
| Non-taxable income | (8912) | (822) | (6910) | (988) |
| Non-deductible expense | 622 | 605 | 5127 | 733 |
| Research and development super-deduction | (12254) | (2504) | (4217) | (603) |
| Loss from equity investment | - | 13244 | - | - |
| Change of valuation allowance | (23802) | (2298) | 1889 | 270 |
| Income tax (benefit)/ expense | **(30256)** | **11090** | **7747** | **1108** |

---

Deferred taxes

The components of deferred tax assets and liabilities are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
| Deferred tax assets: |  |  |  |
| Bad debt provision | 12788 | 7194 | 1029 |
| Lease liabilities | 9326 | 8071 | 1154 |
| Net operating loss carry forwards | 57345 | 59778 | 8548 |
| Total gross deferred tax assets | 79459 | 75043 | 10731 |
| Valuation allowance on deferred tax assets | (40523) | (42412) | (6065) |
| Deferred tax assets, net of valuation allowance | 38936 | 32631 | 4666 |
| Deferred tax (liabilities)-non current: |  |  |  |
| Right-of-use assets | (10789) | (9262) | (1324) |
| Total deferred tax | 28147 | 23369 | 3342 |

---

As of December 31, 2025, there was no significant unrecognized deferred tax liability for taxes that would be payable on the unremitted earnings of the Group's subsidiaries.

Uncertain Tax Position

The Group evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2024 and 2025, the Group did not have any significant unrecognized uncertain tax positions.

As of December 31, 2025, the Group had net operating loss carry forwards of RMB239,112, primarily attributable to the PRC subsidiaries. For HNTEs, the loss carried forward will expire during the period from year 2025 to year 2034. For the other PRC companies, the loss carried forward will expire during the period from year 2025 to year 2029.

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **RMB** | **USD** |
| 2026 | 28689 | 4103 |
| 2027 | 44331 | 6339 |
| 2028 | 58698 | 8394 |
| 2029 | 71436 | 10215 |
| Thereafter | 35958 | 5142 |
| **Total** | 239112 | 34193 |

---

**19. ORDINARY SHARES**

On 26 February 2019, the Company was incorporated as an exempted company with limited liability in the Cayman Islands with an authorized share capital of US$50,000 divided into 372,691,551 class A ordinary shares and 127,308,449 class B ordinary shares with a par value of US$0.0001 each. On July 9, 2025, the Company amended its memorandum and articles of association to increase the authorized share capital to 500,000,000 ordinary shares, comprising 400,000,000 Class A ordinary shares and 100,000,000 Class B ordinary shares, with a par value of US$0.0001 each.

Upon the completion of the Business Combination on July 9, 2025: (i) the Company issued 3,343,552 ordinary shares to the shareholders of Distoken as consideration for the merger; (ii) the Company issued 2,704,949 ordinary shares to PIPE investors, at a purchase price equal to $10.00 per share; (iii) all preferred shares were converted into 24,707,091 Class A ordinary shares, and the share capital structure has been retroactively adjusted; (iv) as of December 31, 2024, the Company had 45,292,909 ordinary shares issued and outstanding.

As of December 31, 2025, the Company had 76,048,501 ordinary shares issued.

**20. SHARE-BASED COMPENSATION**

On July 9, 2025, the Company adopted a new RSU Plan. The maximum number of Class A ordinary shares available for issuance under the plan is 10,018,119. As of December 31, 2025, no awards have been granted under the plan.

**21. EARNINGS PER SHARE**

The following table sets forth the basic and diluted net (loss)/earnings per share for the following periods:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended 31 December,** | **For the Year Ended 31 December,** | **For the Year Ended 31 December,** | **For the Year Ended 31 December,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD** |
| Basic and diluted earnings per share calculation |  |  |  |  |
| Numerator: |  |  |  |  |
| Net profit attribute to ordinary shareholders | 99263 | (52376) | 43082 | 6159 |
| Net profit/(loss) attribute to ordinary shareholders | 99263 | (52376) | 43082 | 6159 |
| Denominator: |  |  |  |  |
| Basic Weighted average number of shares outstanding | 70000000 | 70000000 | 72899967 | 72899967 |
| &nbsp;&nbsp;&nbsp;Continuing operations | 1.13 | (0.75) | 0.59 | 0.08 |
| &nbsp;&nbsp;&nbsp;Discontinued operations | 0.29 | - | - | - |
| Basic net earnings per share | 1.42 | (0.75) | 0.59 | 0.08 |
| Diluted Weighted average number of shares outstanding | 70000000 | 70000000 | 72899967 | 72899967 |
| &nbsp;&nbsp;&nbsp;Continuing operations | 1.13 | (0.75) | 0.59 | 0.08 |
| &nbsp;&nbsp;&nbsp;Discontinued operations | 0.29 | - | - | - |
| Diluted net earnings per share | 1.42 | (0.75) | 0.59 | 0.08 |

---

**22. GAIN/(LOSS) ON DISSOLUTION OF SUBSIDIARIES AND BRANCHES**

The total gains (loss) on dissolution of subsidiaries and branches for the year ended December 31, 2023 and 2024 were RMB29,312 and RMB(8,820). The Group recorded gain of RMB4,844 on dissolution of subsidiaries and branches for the year ended December 31, 2025. The dissolution of subsidiaries and branches does not represent a strategic shift, but rather an ordinary course of business. Subsidiaries and branches are set up to provide employee management services to cater to customers' evolving needs and localization preferences and are dissolved when contracts end.

**23. BUSINESS COMBINATION**

*2024 Acquisitions*

 

On January 4, 2024, the Group acquired Ankang Jiren Human Resources Service Co., Ltd., Hetian Tiankun Landing Human Resources Service Co., Ltd. and Shangluo Hesheng Human Resources Co., Ltd. with total cash consideration of RMB 12,575, fully paid in 2024. The companies mentioned above were engaged in labor dispatch services.

The following table summarizes the purchase price allocation for the 2024 acquisition:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Ankang Jiren Human Resources<br> Service Co., Ltd.** | **Hetian Tiankun Landing Human Resources Service Co., Ltd.** | **Shangluo Hesheng Human Resources Co., Ltd.** | **2024 Acquisitions** |
|  | **2024** | **2024** | **2024** | **2024** |
|  | **RMB** | **RMB** | **RMB** | **RMB** |
| Purchase consideration | 3048 | 3107 | 6419 | 12574 |
| Less: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash | 257 | 615 | 2068 | 2940 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 2149 | 1510 | 2187 | 5846 |
| &nbsp;&nbsp;&nbsp;Prepayments and other current assets | 11530 | 670 | 8039 | 20239 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | - | - | 3 | 3 |
| &nbsp;&nbsp;&nbsp;Accounts payable | (2588) | 10 | (2789) | (5367) |
| &nbsp;&nbsp;&nbsp;Other liabilities | (8300) | 302 | (3089) | (11087) |
| Goodwill | **-**  | **-**  | **-**  | **-**  |

---

The fair value assessment for the acquisitions was based on a valuation determined by the Group with the assistance of an independent third-party valuation firm. No goodwill is recognized as the consideration is based on the net assets.

The results of operations of the acquired companies were included in the consolidated statement of comprehensive loss from the acquisition date. Pro forma results of operations were not presented because the effect of the acquisition was not material to the Group's consolidated financial statements.

**24. SUBSEQUENT EVENTS**

On January 22, 2026, the Company entered into a Share Exchange Agreement to acquire 100% of YouheHR Group Inc. Upon closing, YouheHR will become a wholly-owned subsidiary. Consideration consists of 4,967,809 newly issued Class A Ordinary Shares (approx. 7.1% of outstanding Class A shares). Closing is subject to customary conditions.

**25. COMMITMENT AND CONTINGENCIES**

The Group does not have any material commitments and contingencies as of December 31, 2025

**26. DISCONTINUED OPERATIONS**

The Group terminated the Contractual Agreement on January 1, 2024, stated in 2. SIGNIFICANT ACCOUNTING POLICIES, Principle of Consolidation.

For the year ended December 31, 2024 and 2025, the Group had no discontinued operations. The summarized results of operations of discontinued operations for the years ended December 31, 2023 consist of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD** |
| Revenue | 52182 |  |  |  |
| Cost of revenue | (26364) |  |  |  |
| Gross profit | **25818** |  |  |  |
| Selling and distribution expenses | (6368) |  |  |  |
| Administrative expenses | (14322) |  |  |  |
| Other income, net | 10972 |  |  |  |
| Financial income, net | 740 |  |  |  |
| PROFIT BEFORE TAX FROM DISCONTINUED OPERATIONS | **16840** |  |  |  |
| Income tax profit | 934 |  |  |  |
| Net profit for the year from discontinued operations | **17774** |  |  |  |
| Comprehensive income for the year from discontinued operations | **17774** |  |  |  |

---

**27. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY**

The ultimate holding company of the Group was Youlife International Holdings Inc. in 2024. Following the Business Combination on July 9, 2025, the ultimate holding company became Youlife Group Inc.

The table below presents the standalone financial information of the parent company at each reporting date:

(1) CONDENSED STATEMENTS OF FINANCIAL POSITION OF THE COMPANY

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
| ASSETS |  |  |  |
| Current assets |  |  |  |
| Cash and bank equivalents | 84 | 82 | 12 |
| Prepayments, other receivables and other assets | 228170 | 52616 | 7524 |
| **Total current assets** | **228254** | **52698** | **7536** |
| Investments in subsidiaries | 341332 | 681562 | 97463 |
| **Total non-current assets** | **341332** | **681562** | **97463** |
| **Total assets** | **569586** | **734260** | **104999** |
| Commitments and Contingencies |  |  |  |
| SHAREHOLDERS' EQUITY |  |  |  |
| Ordinary shares (US$0.0001 par value; 500,000,000 shares authorized as at December 31, 2024 and December 31, 2025; 70,000,000 shares and 76,048,501 shares issued and outstanding as at December 31, 2024 and December 31, 2025, respectively) | 51 | 55 | 8 |
| Treasury shares | (31) | (31) | (4) |
| Additional paid-in capital | 1181993 | 1303581 | 186410 |
| Statutory surplus reserve | 9367 | 10531 | 1506 |
| Accumulated losses | (621794) | (579876) | (82921) |
| **Total equity** | **569586** | **734260** | **104999** |

---

(2) CONDENSED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME OF THE COMPANY

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD** |
| Administrative expenses | (9628) | (9348) | (1480) | (212) |
| Financial expense, net | (508) | (13) | (3564) | (510) |
| Share of income/(loss) of subsidiaries | 109401 | (43015) | 47754 | 6828 |
| PROFIT/(LOSS) BEFORE TAX | 99265 | (52376) | 42710 | 6106 |
| Income tax expenses | (2) | - | - | - |
| Net profit/(loss) for the year | **99263** | **(52376)** | **42710** | **6106** |
| Net profit attribute to ordinary shareholders | 99263 | (52376) | 42710 | 6106 |
| Net profit attribute to non-controlling interests | 2217 | 12 | (372) | (53) |
| **Comprehensive income/(loss)** | **97046** | **(52388)** | **43082** | **6159** |

---

Condensed Statements of Cash Flows

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **RMB** | **USD** |
| Net cash (used in) generated from operating activities | (8775) | 8911 | (37400) | (5348) |
| Net cash flows used in investing activities | - | - | (98512) | (14087) |
| Net cash used in financing activities | (9498) | (9348) | 136045 | 19454 |
| Exchange rate effect on cash and cash equivalents | (501) | (2) | (51) | (7) |
| Net (decrease) increase in cash and cash equivalents | (18774) | (439) | 82 | 12 |
| Cash and cash equivalents at beginning of the year | 19297 | 523 | - | - |
| Cash and cash equivalents at end of the year | 523 | 84 | 82 | 12 |

---

***Basis of presentation***

For the presentation of the parent company only condensed financial information, the Company records its investments in subsidiaries under the equity method of accounting as prescribed in ASC 323. Such investments are presented on the condensed balance sheets as "Investments in subsidiaries" and the subsidiaries' losses and incomes as "Share of (loss)/income of subsidiaries" on the condensed statements of comprehensive (loss)/income.

Under PRC rules and regulations, all subsidiaries of the Company in the PRC are required to appropriate 10% of their net income to a statutory surplus reserve until the reserve balance reaches 50% of their registered capital. The appropriation to this statutory surplus reserve must be made before distribution of dividends can be made. The statutory reserve is non-distributable, other than during liquidation, and can be used to fund previous years losses, if any, and may be converted into share capital by issuing new shares to existing shareholders in proportion to their shareholders or by increasing the par value of the shares currently outstanding, provided that the remaining balance of the statutory reserve after such issue is not less than 25% of the registered capital. The restriction amounted to RMB552,845 (USD79,056) as of December 31, 2025.

The subsidiaries did not pay any dividends to the Company for the periods presented.

The Company does not have significant commitments or long-term obligations as of the period end other than those presented.

The parent company only financial statements should be read in conjunction with the Company's consolidated financial statements.

**PART II**

**INFORMATION NOT REQUIRED IN PROSPECTUS**

**Item 6. Indemnification of Directors and Officers**

The laws of the Cayman Islands do not limit the extent to which a company's memorandum and articles of association may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against willful default, willful neglect, civil fraud or the consequences of committing a crime. The Amended and Restated Memorandum and Articles of Association provide for indemnification of our officers and directors against all actions, proceedings, costs, charges, expenses, losses, damages or liabilities incurred or sustained by such person, other than by reason of such person's own dishonesty, willful default or fraud, in or about the conduct of our business or affairs (including as a result of any mistake of judgment) or in the execution or discharge of his duties, powers, authorities or discretions, including without prejudice to the generality of the foregoing, any costs, expenses, losses or liabilities incurred by such person in defending (whether successfully or otherwise) any civil proceedings concerning us or our affairs in any court whether in the Cayman Islands or elsewhere.

Under the indemnification agreement, we will agree to indemnify each such person and hold him harmless against expenses, judgments, fines and amounts payable under settlement agreements in connection with any threatened, pending or completed action, suit or proceeding to which he has been made a party or in which he became involved by reason of the fact that he is or was our director or officer. Except with respect to expenses to be reimbursed by us in the event that the indemnified person has been successful on the merits or otherwise in defense of the action, suit or proceeding, our obligations under the indemnification agreements are subject to certain customary restrictions and exceptions.

In addition, we maintain standard policies of insurance under which coverage is provided to our directors and officers against loss rising from claims made by reason of breach of duty or other wrongful act, and to us with respect to payments which may be made by us to such directors and officers pursuant to the above indemnification provision or otherwise as a matter of law.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is theretofore unenforceable.

**Item 7. Recent Sales of Unregistered Securities**

In the past three years, we issued the following securities that were not registered under the Securities Act. Each of these securities were issued in reliance upon the exemptions provided by Section 4(a)(2) and/or Regulation S under the Securities Act. No underwriters were involved in these issuances of securities.

On April 16, 2025, we and Distoken entered into a subscription agreement with certain investor to purchase 1,184,949 Class A ordinary shares, par value $0.0001 per share, at a price of $10.00 per share, for an aggregate purchase price of $11,849,490, in a private placement to be consummated simultaneously with the closing of the Business Combination. Ms. Yunqiu Dai, a director of Youlife, is the sole director of the investor. The consummation of the transactions contemplated by the subscription agreement is conditioned on the substantially concurrent closing of the Business Combination and other customary closing conditions. The investor was granted certain customary resale registration rights in the subscription agreement.

On April 28, 2025, we and Distoken entered into additional subscription agreements with additional investors to purchase an aggregate of 1,520,000 Class A ordinary shares, at a price of $10.00 per Share, for an aggregate purchase price of $15,200,000, in a private placement to be consummated simultaneously with the closing of the Business Combination. The consummation of the transactions contemplated by the subscription agreements is conditioned on the substantially concurrent closing of the Business Combination and other customary closing conditions. The investors were granted certain customary resale registration rights in the subscription agreements.

**Item 8. Exhibits**

The following exhibits are filed herewith unless otherwise indicated:

---

| | |
|:---|:---|
| **Exhibit<br> Number** | **Description** |
| 2.1\*<sup>†</sup> | [Business Combination Agreement, dated as of May 15, 2024, by and among Distoken Acquisition Corporation, Youlife Group Inc., Xiaosen Sponsor LLC, Youlife I Limited, Youlife II Limited and Youlife International Holdings Inc. (incorporated by reference to Exhibit 2.1 to the Registration Statement on Form F-4 (Reg. No. 333-285178), initially filed with the SEC on February 25, 2025).](http://www.sec.gov/Archives/edgar/data/2028177/000149315225008121/formf-4.htm#an_006) |
| 2.2\*<sup>†</sup> | [First Amendment to the Business Combination Agreement, dated November 13, 2024, by and among Distoken Acquisition Corporation, Youlife Group Inc., Xiaosen Sponsor LLC, Youlife I Limited, Youlife II Limited and Youlife International Holdings Inc. (incorporated by reference to Exhibit 2.3 to the Registration Statement on Form F-4 (Reg. No. 333-285178), initially filed with the SEC on February 25, 2025).](http://www.sec.gov/Archives/edgar/data/2028177/000149315225008121/formf-4.htm#t_001) |
| 2.3\*<sup>†</sup> | [Second Amendment to the Business Combination Agreement, dated January 17, 2025, by and among Distoken Acquisition Corporation, Youlife Group Inc., Xiaosen Sponsor LLC, Youlife I Limited, Youlife II Limited and Youlife International Holdings Inc. (incorporated by reference to Exhibit 2.4 to the Registration Statement on Form F-4 (Reg. No. 333-285178), initially filed with the SEC on February 25, 2025).](http://www.sec.gov/Archives/edgar/data/2028177/000149315225008121/formf-4.htm#Anx_A3) |
| 3.1<sup>†</sup> | [Second Amended and Restated Memorandum and Articles of Association of Youlife Group Inc., as currently in effect (incorporated by reference to Exhibit 1.1 to the Shell Company Report on Form 20-F filed with the SEC on July 17, 2025).](http://www.sec.gov/Archives/edgar/data/2028177/000121390025065134/ea024853001ex1-1_youlife.htm) |
| 4.1<sup>†</sup> | [Specimen American Depositary Receipt of Youlife Group Inc. (incorporated by reference to Exhibit 4.4 to the Registration Statement on Form F-4 (Reg. No. 333-285178) (included in Exhibit 4.5 thereto), initially filed with the SEC on February 25, 2025)](http://www.sec.gov/Archives/edgar/data/2028177/000149315225008121/ex4-5.htm) |
| 4.2<sup>†</sup> | [Specimen Class A Ordinary Share Certificate of Youlife Group Inc. (incorporated by reference to Exhibit 4.6 to the Registration Statement on Form F-4 (Reg. No. 333-285178), initially filed with the SEC on February 25, 2025).](http://www.sec.gov/Archives/edgar/data/2028177/000149315225008121/ex4-6.htm) |
| 4.3<sup>†</sup> | [Specimen Warrant Certificate of Youlife Group Inc. (incorporated by reference to Exhibit 4.6 to the Registration Statement on Form F-4 (Reg. No. 333-285178), initially filed with the SEC on February 25, 2025).](http://www.sec.gov/Archives/edgar/data/2028177/000149315225008121/ex4-6.htm) |
| 4.4<sup>†</sup> | [Warrant Agreement, dated February 15, 2023, by and between Distoken Acquisition Corporation and Continental Stock Transfer & Trust Company (incorporated by reference to Exhibit 4.1 to Distoken Acquisition Corporation's Current Report on Form 8-K, filed with the U.S. Securities and Exchange Commission on February 17, 2023).](http://www.sec.gov/Archives/edgar/data/1818605/000110465923023349/tm237270d1_ex4-1.htm) |
| 4.5<sup>†</sup> | [Amendment to Warrant Agreement, dated July 9, 2025, by and between Distoken Acquisition Corporation, Youlife Group Inc. and Continental Stock Transfer & Trust Company (incorporated by reference to Exhibit 2.6 to the Shell Company Report on Form 20-F filed with the SEC on July 17, 2025).](http://www.sec.gov/Archives/edgar/data/2028177/000121390025065134/ea024853001ex2-6_youlife.htm) |
| 5.1<sup>†</sup> | [Opinion of Campbells as to the validity of the ordinary shares of Youlife Group Inc.](http://www.sec.gov/Archives/edgar/data/2028177/000149315225008121/ex5-1.htm) |
| 5.2<sup>†</sup> | [Opinion of Baker & McKenzie LLP as to the validity of warrants of Youlife Group Inc.](http://www.sec.gov/Archives/edgar/data/2028177/000164117225009390/ex5-2.htm) |
| 8.1<sup>†</sup> | [Principal Subsidiaries of Youlife Group Inc. (incorporated by reference to Exhibit 8.1 to the annual report on Form 20-F (Reg. No. 001-42682) filed with the SEC on April 30, 2026).](http://www.sec.gov/Archives/edgar/data/2028177/000121390026050196/ea028586601ex8-1.htm) |

---

---

| | |
|:---|:---|
| **Exhibit<br> Number** | **Description** |
| 10.1<sup>†</sup> | [Registration Rights Agreement, dated February 15, 2023, by and among Distoken Acquisition Corporation, Xiaosen Sponsor LLC, and certain securityholders (incorporated by reference to Exhibit 10.2 to Distoken Acquisition Corporation's Current Report on Form 8-K, filed with the U.S. Securities and Exchange Commission on February 17, 2023).](http://www.sec.gov/Archives/edgar/data/1818605/000110465923023349/tm237270d1_ex10-2.htm) |
| 10.2<sup>†</sup> | [Amendment to Founder Registration Rights Agreement, dated as of July 9, 2025, by and among Youlife Group Inc., Distoken Acquisition Corporation, Xiaosen Sponsor LLC, and certain shareholders (incorporated by reference to Exhibit 4.5 to the Shell Company Report on Form 20-F filed with the SEC on July 17, 2025).](http://www.sec.gov/Archives/edgar/data/2028177/000121390025065134/ea024853001ex4-5_youlife.htm) |
| 10.3<sup>†</sup> | [Seller Registration Rights Agreement, dated as of July 9, 2025, by and among Youlife Group Inc. and certain shareholder (incorporated by reference to Exhibit 4.6 to the Shell Company Report on Form 20-F filed with the SEC on July 17, 2025).](http://www.sec.gov/Archives/edgar/data/2028177/000121390025065134/ea024853001ex4-6_youlife.htm) |
| 10.4<sup>†</sup> | [Form of PIPE Subscription Agreement by and among Youlife Group Inc., Distoken Acquisition Corporation and certain investor named therein. (incorporated by reference to Exhibit 10.23 to the Post-Effective Amendment No.1 to the Registration Statement on Form F-4 (Reg. No. 333-285178), initially filed with the SEC on May 9, 2025).](http://www.sec.gov/Archives/edgar/data/2028177/000164117225009390/ex10-23.htm) |
| 10.5<sup>†</sup> | [Form of Director and Officer Indemnification Agreement. (incorporated by reference to Exhibit 10.21 to the Registration Statement on Form F-4 (Reg. No. 333-285178), initially filed with the SEC on February 25, 2025).](http://www.sec.gov/Archives/edgar/data/2028177/000149315225008121/ex10-21.htm) |
| 10.6<sup>†</sup> | [Form of Amended Founder Lock-Up Agreement (incorporated by reference to Exhibit 10.1 to Distoken Acquisition Corporation's Current Report on Form 8-K, filed with the U.S. Securities and Exchange Commission on November 18, 2024).](http://www.sec.gov/Archives/edgar/data/1818605/000110465924120192/tm2428743d1_ex10-1.htm) |
| 10.7<sup>†</sup> | [Form of Amended Company Founder Lock-Up Agreement (incorporated by reference to Exhibit 10.2 to Distoken Acquisition Corporation's Current Report on Form 8-K, filed with the U.S. Securities and Exchange Commission on November 18, 2024).](http://www.sec.gov/Archives/edgar/data/1818605/000110465924120192/tm2428743d1_ex10-2.htm) |
| 10.8<sup>†</sup> | [Form of Amended Company Lock-Up Agreement (incorporated by reference to Exhibit 10.3 to Distoken Acquisition Corporation's Current Report on Form 8-K, filed with the U.S. Securities and Exchange Commission on November 18, 2024).](http://www.sec.gov/Archives/edgar/data/1818605/000110465924120192/tm2428743d1_ex10-3.htm) |
| 10.9<sup>†</sup> | [RSU Plan of Youlife Group Inc. (incorporated by reference to Exhibit 10.19 to the Registration Statement on Form F-4 (Reg. No. 333-285178), initially filed with the SEC on February 25, 2025).](http://www.sec.gov/Archives/edgar/data/2028177/000149315225008121/formf-4.htm#bss_001) |
| 23.1 | [Consent of Onestop Assurance PAC., as the independent registered accounting firm for Youlife Group Inc.](ea029053901ex23-1.htm) |
| 23.3<sup>†</sup> | [Consent of Campbells (included in Exhibit 5.1)](http://www.sec.gov/Archives/edgar/data/2028177/000149315225008121/ex5-1.htm) |
| 23.4<sup>†</sup> | [Consent of Baker & McKenzie LLP (included in Exhibit 5.2)](http://www.sec.gov/Archives/edgar/data/2028177/000164117225009390/ex5-2.htm) |
| 23.5<sup>†</sup> | [Consent of Haiwen & Partners.](http://www.sec.gov/Archives/edgar/data/2028177/000149315225008121/ex23-6.htm) |
| 23.6 | [Consent of China Insights Consultancy.](ea029053901ex23-6.htm) |
| 97.1 | [Youlife Group Inc. Compensation Recovery Policy (incorporated by reference to Exhibit 97.1 to the annual report on Form 20-F (Reg. No. 001-42682) filed with the SEC on April 30, 2026).](http://www.sec.gov/Archives/edgar/data/2028177/000121390026050196/ea028586601ex97-1.htm) |
| 99.1<sup>†</sup> | [Code of Business Conduct and Ethics of Youlife Group Inc. (incorporated by reference to Exhibit 99.6 to the Registration Statement on Form F-4 (Reg. No. 333-285178), initially filed with the SEC on February 25, 2025).](http://www.sec.gov/Archives/edgar/data/2028177/000149315225008121/ex99-6.htm) |
| 107<sup>†</sup> | [Filing Fee Table](http://www.sec.gov/Archives/edgar/data/2028177/000164117225009390/ex107.htm) |

---

\* All schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule and/or exhibit will be furnished to the SEC upon request. <br><sup>†</sup> Previously filed

**Item 9. Undertakings**

The undersigned registrant hereby undertakes:

(1) To file, during any period in which offers or sales are being made, a post-effective amendment
 to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;i. To include any prospectus required by Section 10(a)(3) of the Securities
 Act of 1933;

&nbsp;&nbsp;&nbsp;&nbsp;ii. To reflect in the prospectus any facts
 or events arising after the effective date of the registration statement (or the most recent
 post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental
 change in the information set forth in the registration statement. Notwithstanding the foregoing,
 any increase or decrease in volume of securities offered (if the total dollar value of securities
 offered would not exceed that which was registered) and any deviation from the low or high
 end of the estimated maximum offering range may be reflected in the form of prospectus filed
 with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and
 price represent no more than 20 percent change in the maximum aggregate offering price set
 forth in the "Calculation of Registration Fee" table in the effective registration
 statement.

&nbsp;&nbsp;&nbsp;&nbsp;iii. To include any material information
 with respect to the plan of distribution not previously disclosed in the registration statement
 or any material change to such information in the registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;(2) That, for the purpose of determining any liability under the Securities
 Act of 1933, each such post- effective amendment shall be deemed to be a new registration statement
 relating to the securities offered therein, and the offering of such securities at that time shall
 be deemed to be the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;(3) To remove from registration by means of a post-effective amendment
 any of the securities being registered which remain unsold at the termination of the offering.

&nbsp;&nbsp;&nbsp;&nbsp;(4) To file a post-effective amendment to the registration statement to
 include any financial statements required by Item 8.A of Form 20-F at the start of any delayed offering
 or throughout a continuous offering.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and shall be governed by the final adjudication of such issue.

That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

● any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

● any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

● the portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

● any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

The undersigned registrant hereby undertakes as follows: that prior to any public reoffering of the securities registered hereunder through use of a prospectus which is a part of this registration statement, by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c), the issuer undertakes that such reoffering prospectus shall contain the information called for by the applicable registration form with respect to re-offerings by persons who may be deemed underwriters, in addition to the information called for by the other items of the applicable form.

The registrant undertakes that every prospectus: (1) that is filed pursuant to the immediately preceding paragraph, or (2) that purports to meet the requirements of Section 10(a)(3) of the Act and is used in connection with an offering of securities subject to Rule 415, shall be filed as a part of an amendment to the registration statement and shall not be used until such amendment is effective, and that, for purposes of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

The undersigned registrant hereby undertakes to respond to requests for information that is incorporated by reference into the prospectus pursuant to Item 4, 10(b), 11, or 13 of this form, within one business day of receipt of such request, and to send the incorporated documents by first class mail or other equally prompt means. This includes information contained in documents filed subsequent to the effective date of the registration statement through the date of responding to the request.

The undersigned registrant hereby undertakes to supply by means of a post-effective amendment all information concerning a transaction, and the company being acquired involved therein, that was not the subject of and included in the registration statement when it became effective.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form F-1 and has duly caused this registration statement on Form F-1 to be signed on its behalf by the undersigned, thereunto duly authorized, in Shanghai, PRC, on June 11, 2026.

---

| | | |
|:---|:---|:---|
| **Youlife Group Inc.** | **Youlife Group Inc.** | **Youlife Group Inc.** |
| By: | /s/ Yunlei Wang | /s/ Yunlei Wang |
|  | Name: | Yunlei Wang |
|  | Title: | Chairman of the Board, Chief Executive Officer |

---

**POWER OF ATTORNEY**

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Mr. Yunlei Wang as his or her true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments to this Registration Statement on Form F-4, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the United States Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or his or her substitutes or substitute, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities indicated.

---

| | | |
|:---|:---|:---|
| */s/ Yunlei Wang* | Chairman of the Board, Chief Executive Officer | June 11, 2026 |
| Yunlei Wang | *(Principal Executive Officer)* |  |
| */s/ Liqun Yao* | Chief Financial Officer | June 11, 2026 |
| Liqun Yao | *(Principal Financial and Accounting Officer)* |  |
| *\** | Director | June 11, 2026 |
| Xiaolin Gou |  |  |
| *\** | Director | June 11, 2026 |
| Yunqiu Dai |  |  |
| */s/ Jianming Yan* | Independent Director | June 11, 2026 |
| Jianming Yan |  |  |
| *\** | Independent Director | June 11, 2026 |
| Yeeli Hua Zheng |  |  |
| *\** | Independent Director | June 11, 2026 |
| Huifang Cheng |  |  |

---

---

| | |
|:---|:---|
| \* By | */s/ Yunlei Wang* |
|  | Yunlei Wang |
|  | Attorney-in-fact |

---

**AUTHORIZED REPRESENTATIVE**

Pursuant to the requirement of the Securities Act of 1933, the undersigned, solely in his capacity as the duly authorized representative of Youlife Group Inc., has signed this registration statement or amendment thereto on June 11, 2026.

---

| | |
|:---|:---|
| Authorized Representative in the U.S. | Authorized Representative in the U.S. |
| **Cogency Global Inc.** | **Cogency Global Inc.** |
| By: | /s/ Colleen A. DeVries |
| Name: | Colleen A. DeVries |
| Title: | Senior Vice President on behalf of Cogency Global Inc. |

---

## Exhibit 23.1

**Exhibit 23.1**

---

| | |
|:---|:---|
| ![](ea029053901_ex23-1img1.jpg) | **Onestop Assurance PAC** |
| ![](ea029053901_ex23-1img1.jpg) | **10 Anson Road** |
| ![](ea029053901_ex23-1img1.jpg) | **#21-14 International Plaza** |
| ![](ea029053901_ex23-1img1.jpg) | **Singapore 079903** |
| ![](ea029053901_ex23-1img1.jpg) | Email:**audit@onestop-ca.com** |
| ![](ea029053901_ex23-1img1.jpg) | **Website: www.onestop-ca.com** |
| ![](ea029053901_ex23-1img1.jpg) | |

---

**<u>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u>**

We hereby consent to the incorporation of our report dated April 30, 2026 in Post-effective Amendment No. 1 to the Registration Statement (Registration no. 333-289480) on Form F-1 of Youlife Group Inc., relating to the audit of the consolidated balance sheets of Youlife Group Inc. and its subsidiaries (collectively the "Group") as of December 31, 2025 and 2024, and the related consolidated statements of operations and comprehensive income / (loss), changes in equity, and cash flows in each of the three-years period ended December 31, 2025, and the related notes included herein.

We also consent to the reference to our firm under the heading "Experts" in such Registration Statements.

/s/ Onestop Assurance PAC

Onestop Assurance PAC

Singapore

June 11, 2026

## Exhibit 23.6

**Exhibit 23.6**

---

| | |
|:---|:---|
| ![](ea029053901_ex23-6img1.jpg) | ![](ea029053901_ex23-6img2.jpg) |

---

Date: 11 June 2026

**<u>Re: Youlife Group Inc.</u>**

Ladies and Gentlemen,

We understand that Youlife Group Inc. (the "**Company**") plans to file a post-effective amendment No.1 to F-1, including all amendments and supplements thereto (the "**Post-effective Amendment**"), filed with the Securities and Exchange Commission (the "**SEC**").

We hereby consent to the references to our name and the inclusion of information, data and statements from our research reports and amendments thereto (collectively, the "Reports"), and any subsequent amendments to the Reports, as well as the citation of our research reports and amendments thereto, in the Post-effective Amendment and any amendments thereto, in any other future filings with the SEC by the Company (collectively, the "**SEC Filings**").

We further hereby consent to the filing of this letter as an exhibit to the Post-effective Amendment and any amendments thereto and as an exhibit to any other SEC Filings.

We do not assume any responsibility for any part of the Post-effective Amendment other than the information derived from our Reports.

![](ea029053901_ex23-6img3.jpg)

---

| | |
|:---|:---|
| ![](ea029053901_ex23-6img1.jpg) | ![](ea029053901_ex23-6img2.jpg) |

---

Yours faithfully,

For and on behalf of

**China Insights Industry Consultancy Limited**

---

| | |
|:---|:---|
| /s/ Julia Zhu | /s/ Julia Zhu |
| Name: | Julia Zhu |
| Title/Position: | Partner |

---

![](ea029053901_ex23-6img3.jpg)