#China #Beijing #Youlife Group #Blue-Collar Services

Youlife Group Inc. Advances with Strategic Acquisition Plans

In a significant announcement on December 12, 2025, Youlife Group Inc. (NASDAQ: YOUL) disclosed its entry into a non-binding letter of intent (LOI) aimed at a strategic expansion through the acquisition of four regional human resources service companies. This move marks a pivotal transition for Youlife as it shifts from a model focused purely on organic growth to adopting a dual-engine strategy that leverages both organic and strategic mergers and acquisitions.

Under the outlined LOI, which expresses intent rather than obligation, Youlife plans to consolidate the target companies within an offshore holding structure. This strategic restructuring is part of a broader goal to align the interests of Youlife and the sellers while preserving cash resources. As detailed in the announcement, the consideration for any equity transaction would likely involve performance-based mechanisms to protect shareholder value, which reflects Youlife’s commitment to ensuring that future business performance aligns with investor expectations.

The target companies, recognized leaders in job placement, flexible staffing, and workforce management across various provinces, specialize in labor-intensive sectors such as logistics and livestock farming. With established relationships with market-leading enterprises, this acquisition is anticipated to enhance Youlife’s comprehensive blue-collar service ecosystem that includes vocational education, recruitment, and employee management. Should the acquisition proceed, it is expected to significantly expand Youlife’s geographic reach, intensify network density, and create notable operational synergies.

Mr. Yunlei Wang, Youlife's CEO and Chairman, emphasized the importance of this LOI, describing it as a milestone in Youlife’s commitment to integrating regional strengths into a cohesive, high-quality nationwide service platform. He noted the ongoing transformation within China's blue-collar human resources sector, fueled by industrial advancements, heightened compliance requirements, and the swift adoption of digital and AI technologies in workforce solutions. These developments present new pathways for consolidation within the industry, aligning with Youlife’s vision for a modernized service model.

Echoing Wang’s sentiments, Ms. Liqun Yao, acting CFO of Youlife, added that the LOI illustrates the company's disciplined approach to identifying and evaluating strategic expansion opportunities. By adopting an equity-based structure linked to the future success of the newly acquired companies, Youlife aims to not only conserve cash but also sustain financial flexibility, thereby aligning management incentives with long-term shareholder value.

However, it is crucial to note that no definitive agreements have yet been reached. The outcome of the proposed transaction is dependent on successful negotiations and completion of due diligence processes, leaving the timeline and terms subject to change. Shareholders are urged to temper their expectations and not rely too heavily on preliminary announcements amid these ongoing discussions.

About Youlife Group Inc.

Youlife operates a nationwide network across China, managing 25 vocational schools and 25 curriculum development projects that span 37 cities and counties over 16 provinces. Its broad service model is designed to address the diverse needs of blue-collar workers through comprehensive training and placement services. For more information about the company’s service offerings and future developments, visit Youlife's Investor Relations page.