Youlife Group Secures US$3 Million in Convertible Note Financing

SHANGHAI, Nov. 4, 2026 /CourierPR/ -- Youlife Group Inc., a leading provider of blue-collar lifecycle services in China, has announced a significant funding round to bolster its operations and expand its reach. The company has entered into a securities purchase agreement with an institutional investor for the issuance and sale of a 9% senior original issue discount convertible promissory note with an original principal amount of US$3.0 million. This note, referred to as the "Note," is part of a registered direct offering, with the primary goal of raising capital for working capital and general corporate purposes.

In addition to the initial US$3.0 million offering, the Purchase Agreement also provides for potential subsequent closings involving up to an additional US$9.0 million in aggregate principal amount of convertible notes, subject to mutual consent of the parties and the satisfaction of applicable conditions. The Note will be issued for a subscription amount of US$2.73 million, reflecting a 9% original issue discount. The company will also issue 262,009 Class A ordinary shares represented by American depositary shares ("ADSs") as an additional 2% original issue discount, equal to US$60,000, on the principal amount of the Note. Youlife expects to receive gross cash proceeds of approximately US$2.7 million, before deducting offering expenses.

The Note will mature 12 months after issuance and will not bear interest before an event of default. It will be convertible at the investor's option into the company's Class A ordinary shares represented by ADSs, with up to 65,502,184 Class A ordinary shares represented by ADSs issuable upon conversion of the Note, at the lower of a fixed conversion price and a market-based alternative conversion price, subject to a floor price, applicable adjustments, and a 9.99% beneficial ownership limitation. In connection with the Offering, 3,300,000 treasury shares represented by ADSs will be delivered to the investor and held in abeyance as pre-delivery ADSs to facilitate the settlement of future conversions of the Note. These ADSs are subject to restrictions on sale, voting, and the exercise of shareholder rights before their application in accordance with the transaction documents, as well as additional registration, purchase, and cancellation provisions described in the prospectus supplement.

The Offering is expected to close on or about November 3, 2026, subject to the satisfaction or waiver of the applicable closing conditions. The company intends to use the net proceeds for working capital and general corporate purposes. The securities are being offered pursuant to the company's shelf registration statement on Form F-3 (File No. 333-299194), which was declared effective by the U.S. Securities and Exchange Commission (the "SEC") on October 19, 2026. A prospectus supplement relating to the Offering has been filed with the SEC. Investors should read the prospectus supplement and accompanying prospectus, together with the documents incorporated by reference therein, for complete information about the company and the Offering.