With the transformation of economy and society to high-quality development, the demand for blue-collar talents is showing a trend of transferring from low-skilled groups to high-skilled groups, giving birth to a huge demand for blue-collar talent services.

According to the prospectus, Youlan International is China's leading blue-collar lifetime service platform, which aims to become the preferred lifetime service platform for blue-collar talents to help blue-collar talents upgrade their skills and achieve lifelong career development. According to Zhenshi Consulting, the company ranks first in China's blue-collar lifetime service platform in terms of revenue generated by blue-collar lifetime service in 2021.

Youlan International has been deeply involved in the blue-collar talent market since 2014 and has achieved sustained growth during the performance record period. The company's gross profit increased from 2.7 million yuan in 2019 to 160 million yuan in 2021. Youlan International has won many awards and certifications, such as the China Vocational Education Innovation Award in 2017 and the Top 100 Human Resources Service Brands in Greater China for four consecutive years.

In terms of business model, Ulam International provides blue-collar lifelong services to students, blue-collar talents and corporate clients, including vocational education services, talent recruitment services, employee management services and marketing services. In different parts of the company, vocational education service has been the focus of the company since its inception, through the company to provide industry-oriented professional settings, the continuous training of technical personnel. Talent recruitment service promotes recruitment through innovative OMO recruitment service system. Employee management services meet the changing employment needs of corporate customers, while reducing their labor costs and improving their management efficiency in a more flexible way.

In terms of vocational education services, as of the last practical date, the company's nationwide vocational education network includes 23 vocational schools, 1 self-run school, 37 professional co-construction projects and 9 skills training schools under the entrusted management mode. it covers 46 cities or counties in 16 provinces or autonomous regions. In terms of talent recruitment services, as of the last practical date, more than 19 million blue-collar talents have been registered in Youlan recruitment, and the number of resumes in the company's database has exceeded 21.6 million.

In terms of financial data, in 2019, 2020, 2021 and the six months ended June 30, 2021 and 2022, Youlan International lost about 192 million yuan (RMB), 12.452 million yuan, 221 million yuan, 32.1 million yuan and 118 million yuan during the period. In the same period, the company's revenue was 665 million yuan, 636 million yuan, 738 million yuan, 387 million yuan and 304 million yuan respectively. The company's gross profit margin is 0.4%, 9.5%, 21.6%, 20% and 24.2%, respectively.

In recent years, the state has successively issued a series of laws, regulations and policies, such as the revised Vocational Education Law, the opinions on promoting the High-quality Development of Modern Vocational Education, the implementation Plan for the Reform of Vocational Education in China and the implementation Plan for the Project of reaching the Standards for running Vocational Schools, etc., actively promote the high-quality development of vocational education.

Thanks to the increasing demand for high-quality labor force in the job market and the state's support policies for vocational education, China's vocational education market continues to grow substantially. According to Zhuangshi Consulting, the size of China's vocational education market has increased from 510.2 billion yuan in 2016 to 709.4 billion yuan in 2021, with a compound annual growth rate of 6.8 percent. It is expected to grow to 1.1621 trillion yuan in 2026 and 10.4 percent from 2021 to 2026.

In terms of market size, the blue-collar market service industry includes consumer services for students, corporate customers and blue-collar talents, catering services, student dormitory operation and corporate welfare services. The demand for blue-collar market services continues to grow. The size of China's blue-collar market service market is expected to increase from 321.9 billion yuan in 2021 to 674.4 billion yuan in 2026, with a compound annual growth rate of 15.9 percent from 2021 to 2026, according to Zhenshi Consulting.

With the deepening of the transformation of China's industrial structure and the changing role of workers' division of labor in the global value chain, the market demand for blue-collar talents with professional and high-quality skills is growing steadily. superimposed by the national public finance, the expenditure on human resources is increasing, driving the rapid development of the blue-collar talent life-long service market.

In terms of competition pattern, in terms of 2021 income, the market size of China's blue-collar lifetime service market (including vocational education services, talent recruitment services, employee management services and market services) is about 1.1903 trillion yuan, of which, the total income of the five blue-collar lifetime service platforms in 2021 is 2.6 billion yuan. Blue-collar life-long service platform is a blue-collar life-long service provider covering vocational education services, talent recruitment services, employee management services and market services. The total income of blue-collar lifetime service in 2021 is about 670 million yuan. According to the income generated by blue-collar lifetime service, Youlan International is the largest blue-collar lifetime service platform in China's blue-collar lifetime service market in 2021.