BEIJING, April 15, 2021 /PRNewswire/ -- Ucommune
International Ltd. (NASDAQ: UK) ("Ucommune" or the
"Company"), a leading agile office space manager and provider
in China, today announced its
unaudited financial results for the fourth quarter and full year
ended December 31, 2020.
Fourth Quarter 2020 Financial
Highlights
- Net revenues were RMB278.7
million, representing an increase of 39.4% from the third
quarter of 2020 and a decrease of 4.8% from the fourth quarter of
2019.
- Net loss was RMB149.1
million, narrowing by 11.9% from the third quarter of 2020
and by 36.8% from the fourth quarter of 2019.
- Adjusted net income was RMB62.8
million, compared with an adjusted net loss (non-GAAP) of
RMB122.8 million in the third quarter
of 2020 and an adjusted net loss (non-GAAP) of RMB194.6 million in the fourth quarter of 2019.
For a reconciliation of net loss to adjusted net income, see the
"Non-GAAP Financial Measures" section and the table captioned
"Ucommune Group Holdings Limited Reconciliation of GAAP and
Non-GAAP Results" below.
- EBITDA loss was
RMB94.8 million, narrowing by 40.1%
from RMB158.2 million in the third
quarter of 2020 and by 51.0% from RMB193.6
million in the fourth quarter of 2019. For a reconciliation
of net loss to EBITDA, see the "Non-GAAP Financial Measures"
section and the table titled "Ucommune International Ltd.
Reconciliation of GAAP and Non-GAAP Results" below.
- Adjusted EBITDA loss was RMB9.4 million, narrowing by 87.7% from
RMB76.1 million in the third quarter
of 2020 and by 91.4% from RMB109.2
million in the fourth quarter of 2019. For a reconciliation
of net loss to adjusted EBITDA, see the "Non-GAAP Financial
Measures" section and the table titled "Ucommune International Ltd.
Reconciliation of GAAP and Non-GAAP Results" below.
Fourth Quarter 2020 Operating Highlights
- As of December 31, 2020, Ucommune
had committed to 234 office spaces in 54 cities, among which 163
spaces were in operation, and provided approximately 647,700 square
meters of managed area to 1,044,700 members.
- As of December 31, 2020, under
Ucommune's asset-light model, the Company's total number of spaces
under contract had increased by 166.0% to 125 across 46 cities from
47 across 25 cities as of December 31,
2019, while the Company's total managed area under contract
had increased by 105.3% to 351,500 square meters from 171,200
square meters as of December 31,
2019.[1]
[1] Spaces
and managed area under contract include those in operation, under
construction, and in preparation for construction.
|
Dr. Daqing Mao, Founder of
Ucommune, commented, "As the urbanization of core cities has
gradually wound down, high-quality land has become scarce and the
demand from existing enterprises for commercial office space
remains strong. At the end of 2019, in response to the market's
evolution and a tightening regulatory environment across
China's commercial real estate
industry, we began to shift our business from a self-operated model
to an asset-light model to further augment our operational
flexibility. Leveraging our asset-light services, operational
expertise, potent customer acquisition capabilities, and refined
partnership network, we successfully capitalized on these trends,
ramping up the total managed area under our asset-light model to
54.3% of our total managed area by the end of 2020. Meanwhile, our
subsidiary Xiyu Information, a provider of SaaS services and IoT
solutions, continued to gain traction, with our other service
revenue increasing by 297.3% year over year in the fourth quarter.
As our business roadmap is fully aligned with the industry's
long-term trajectory, we are well-positioned to benefit from the
rising demand for more flexible, scalable, and efficient workspace
solutions. Looking ahead, we plan to continue fueling our business
transformation while refining our operations to deliver lasting
value to our members, partners, and society at large."
Mr. Cheong Kwok Mun, Chief
Financial Officer of Ucommune, added, "As a result of the residual
impact of COVID-19 and its corresponding effects from our decision
to streamline our self-operated business, we experienced a
minor decline in total revenues during the fourth quarter of 2020,
as compared to the corresponding quarter in 2019. Nevertheless,
full year of 2020 revenue of RMB877.1
million came in at the top end of the RMB850-870 million revenue guidance provided in
our third quarter 2020 results release. As we continued to advance
our transition to an asset-light model while also improving our
operating efficiency, we significantly reduced our net loss by
36.8% year over year and recorded adjusted net income of
RMB62.8 million. In light of the
increasing market demand for quality agile office space services
and office space management services, we remain confident in our
long-term business prospects. Going forward, we plan to prudently
utilize our healthy capital position to take advantage of these
market opportunities, to generate positive cash flow, and direct
resources towards managing our workspace profitability. Ucommune
remains confident that we are on the path to profitability over the
foreseeable future."
Fourth Quarter 2020 Financial Results
Total net revenues decreased by 4.8% to RMB278.7 million in the fourth quarter
of 2020 from RMB292.8
million in the fourth quarter of 2019. Revenues
from the asset-light model increased by 220.8% to RMB10.8 million in the fourth quarter
of 2020 from RMB3.4 million
in the fourth quarter of 2019.
- Workspace membership
services revenues decreased by 44.5% to
RMB76.8 million in the fourth quarter
of 2020 from RMB138.4 million in the
fourth quarter of 2019, mainly due to the closure of unprofitable
spaces in operation and the contraction of the Company's co-working
space services as a result of the COVID-19 outbreak in 2020.
- Marketing and branding services revenues decreased by 16.2% to
RMB110.1 million in the fourth
quarter of 2020 from RMB131.3 million
in the fourth quarter of 2019, mainly due to the reduction in
customers' budgets for advertising and marketing services as a
result of COVID-19.
- Other services revenues increased by 297.3% to
RMB91.7 million in the fourth quarter
of 2020 from RMB23.1 million in the
fourth quarter of 2019, primarily due to increased net revenue from
the Company's interior design and construction services and SaaS
services.
Total costs of revenues decreased by 19.0% to
RMB285.2 million in the
fourth quarter of 2020 from RMB352.0 million in the fourth quarter
of 2019. Costs of revenues from the asset-light model
increased by 141.9% to RMB5.7 million in the fourth quarter
of 2020 from RMB2.4
million in the fourth quarter of 2019.
- Costs of workspace membership decreased by 47.0%
to RMB110.6 million in the fourth
quarter of 2020 from RMB208.8 million
in the fourth quarter of 2019, mainly due to decreased operational
costs related to leases, property services and staff.
- Costs of marketing and branding
services decreased by 10.1% to RMB108.8 million in the fourth quarter of 2020
from RMB121.0 million in the fourth
quarter of 2019, mainly due to decreased advertising costs.
- Costs of other services increased by 196.7% to
RMB65.9 million in the fourth quarter
of 2020 from RMB22.2 million in the
fourth quarter of 2019, which was in line with the increase in
other services revenues.
General and administrative expenses increased by 341.7%
to RMB233.0 million in the fourth
quarter of 2020 from RMB52.7
million in the fourth quarter of 2019, mainly due to
increased share-based compensation expenses.
Sales and marketing expenses decreased by 12.0% to
RMB24.2 million in the fourth
quarter of 2020 from RMB27.5
million in the fourth quarter of 2019, mainly due to
the reductions in staff costs and promotional marketing
costs, which were partly offset by the increase in share-based
compensation expenses.
EBITDA loss decreased by 51.0% to
RMB94.8 million in the fourth quarter
of 2020 from RMB193.6 million in the
fourth quarter of 2019.
Adjusted EBITDA loss (Non-GAAP)
decreased by 91.4% to RMB9.4 million
in the fourth quarter of 2020 from RMB109.2
million in the fourth quarter of 2019. For a
reconciliation of net loss to EBITDA and Adjusted EBITDA, see the
"Non-GAAP Financial Measures" section and the table titled
"Ucommune International Ltd. Reconciliation of GAAP and Non-GAAP
Results" below.
Impairment loss on long-lived assets decreased by 48.4%
to RMB3.0 million in the fourth
quarter of 2020 from RMB5.9
million in the fourth quarter of 2019,
primarily due to the decrease in impairment costs from
ROU assets and improvement in leaseholds as a result of the
Company's voluntary closure of those office spaces that had a
negative impact on its cash flows.
Pre-opening expenses decreased by 100.0% to nil in
the fourth quarter of 2020 from RMB1.0 million in the fourth quarter
of 2019, mainly due to the Company's decision to gradually
shift its workspace management strategy from a self-managed
approach to an asset-light management approach.
Other income, net improved substantially to RMB126.5 million in the fourth quarter
of 2020 from other expense, net of RMB43.0 million in the fourth quarter
of 2019, mainly due to the Company's decision to voluntarily
close office spaces as part of its business transformation, which
led to the early termination of lease contracts and a corresponding
reversal of expenses related to the lease contracts.
Net loss narrowed by 36.8% to RMB149.1 million in the fourth quarter
of 2020 from RMB236.0
million in the fourth quarter of 2019. Adjusted net
income was RMB62.8
million in the fourth quarter of 2020, compared with an
adjusted net loss of RMB194.6 million
in the fourth quarter of 2019. For a reconciliation of net
loss to adjusted net income, see the "Non-GAAP Financial Measures"
section and the table captioned "Ucommune Group Holdings Limited
Reconciliation of GAAP and Non-GAAP Results" below.
Basic and diluted net loss per share were both
RMB2.23 in the fourth quarter
of 2020, representing a decrease of 53.3% from RMB4.78 in the fourth quarter
of 2019, mainly as the result of lower net loss and an
increase in weighted average shares outstanding.
Basic and diluted adjusted net income per share were
both RMB1.02 in the fourth quarter
of 2020, compared to basic and diluted adjusted net loss per
share of RMB3.95 in the fourth
quarter of 2019. For a reconciliation of net loss to
adjusted net income, see the "Non-GAAP Financial Measures" section
and the table captioned "Ucommune Group Holdings Limited
Reconciliation of GAAP and Non-GAAP Results" below.
Cash, cash equivalents and restricted
cash were RMB400.8
million as of December 31, 2020, representing
an increase of 104.2% from RMB196.3
million as of December 31, 2019, primarily due to
the PIPE financing in connection with the Company's business
combination, which was consummated on November 17, 2020.
Business Outlook
For the first quarter of 2021, the Company expects net revenues
to be in the range of RMB210 million
to RMB230 million. With the rapid
development of its asset-light businesses in the coming quarter,
the Company expects that net loss and EBITDA loss will continue to
narrow in the foreseeable future. These forecasts reflect the
Company's current and preliminary views on the market and its
operational conditions, which are subject to change.
Recent Developments
On February 2, 2021, the Company
successfully concluded its public offering of Class A ordinary
shares and warrants and obtained approximately $20.0 million in gross proceeds.
On January 25, 2021, the Company
announced an additional investment in Beijing Xiyu Information
Technology Co., Ltd. ("Xiyu Information"), a subsidiary of the
Company and provider of SaaS services and IOT solutions, increasing
its ownership in Xiyu Information from 51.0% to 53.2%. The
Company decided to increase its investment in Xiyu Information to
meet the growing market demand for SaaS services and IOT solutions
in China.
Conference Call
The Company's management will hold a conference call on
Thursday, April 15, 2021 at
08:00 A.M. Eastern Time or
08:00 P.M. Beijing Time to discuss
the financial results. Listeners may access the call by dialing the
following numbers:
International:
|
1-412-902-4272
|
United States Toll
Free:
|
1-888-346-8982
|
Mainland China Toll
Free:
|
4001-201203
|
Hong Kong Toll Free:
|
852-301-84992
|
Conference
ID:
|
Ucommune
International Ltd.
|
|
|
The replay will be accessible through April 22, 2021 by dialing the following
numbers:
International:
|
1-412-317-0088
|
United States Toll
Free:
|
1-877-344-7529
|
Access
Code:
|
10154283
|
|
|
A live and archived webcast of the conference call will also be
available at the Company's investor relations website at
https://ir.ucommune.com/.
About Ucommune International Ltd.
Ucommune is China's leading
agile office space manager and provider. Founded in 2015, Ucommune
has created a large-scale intelligent agile office ecosystem
covering economically vibrant regions throughout China to empower its members with flexible and
cost-efficient office space solutions. Ucommune's various offline
agile office space services include self-operated models, such as U
Space, U Studio, and U Design, as well as asset-light models, such
as U Brand and U Partner. By utilizing its expertise in the real
estate and retail industries, Ucommune operates its agile office
spaces with high efficiency and engages in the urban transformation
of older and under-utilized buildings to redefine commercial real
estate in China.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars ("US$") at specified rates solely for the
convenience of the reader. Unless otherwise stated, all
translations from RMB to US$ were made at the rate of RMB6.5250 to US$1.00, the exchange rate on December 31, 2020, set forth in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or US$ amounts referred could be
converted into US$ or RMB, as the case may be, at any particular
rate or at all.
Statement Regarding Preliminary Unaudited Financial
Information
The unaudited financial information set out in this earnings
release is preliminary and subject to potential
adjustments. Adjustments to the consolidated financial
statements may be identified when audit work has been performed for
the Company's year-end audit, which could result in
significant differences from this preliminary unaudited financial
information.
The financial statements for the fourth quarter and the full
year ended December 31, 2020 included
in this earnings release have not been audited or reviewed by the
Company's Independent Registered Public Accounting Firm. The
Company is in the process of finalizing the accounting treatment
related to the warrants issued by Orisun Acquisition Corp., the
Company's predecessor entity. These warrants could potentially be
classified as a liability. The fair value of the warrants could be
material to the financial statements and is currently not reflected
in the financial statements for the fourth quarter or the full year
ended December 31, 2020 in this
earning release.
Safe Harbor Statements
This announcement contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements are made under the "safe
harbor" provisions of the U.S. Private Securities Litigation Reform
Act of 1995. These statements can be identified by terminology such
as "will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "potential," "continue," "ongoing,"
"targets," "guidance" and similar statements. The Company may also
make written or oral forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission (the "SEC"),
in its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Any statements that are
not historical facts, including statements about the Company's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: the
Company's growth strategies; its future business development,
results of operations and financial condition; its ability to
understand members' needs and provide products and services to
attract and retain members; its ability to maintain and enhance the
recognition and reputation of its brand; its ability to maintain
and improve quality control policies and measures; its ability to
establish and maintain relationships with members and business
partners; trends and competition in China's agile office space market; changes in
its revenues and certain cost or expense items; the expected growth
of China's agile office space
market; PRC governmental policies and regulations relating to the
Company's business and industry, and general economic and business
conditions in China and globally
and assumptions underlying or related to any of the foregoing.
Further information regarding these and other risks, uncertainties
or factors is included in the Company's filings with the SEC. All
information provided in this press release and in the attachments
is as of the date of this press release, and the Company undertakes
no obligation to update any forward-looking statement, except as
required under applicable law.
Non-GAAP Financial Measures
To supplement the Company's combined and consolidated financial
statements, which are prepared and presented in accordance with
U.S. GAAP, Ucommune uses the following non-GAAP financial measures
for Ucommune's combined and consolidated results: EBITDA (including
EBITDA margin), adjusted EBITDA (including adjusted EBITDA margin)
and adjusted net income. The Company believes that
EBITDA, adjusted EBITDA and adjusted net income help
understand and evaluate the Company's core operating
performance.
EBITDA, adjusted EBITDA and adjusted net income are presented to
enhance investors' overall understanding of the Company's financial
performance and should not be considered a substitute for, or
superior to, the financial information prepared and presented in
accordance with U.S. GAAP. Investors are encouraged to review the
reconciliation of the historical non-GAAP financial measure to its
most directly comparable GAAP financial measures. As EBITDA,
adjusted EBITDA and adjusted net income have material limitations
as analytical metrics and may not be calculated in the same manner
by all companies, they may not be comparable to other similarly
titled measures used by other companies.
In light of the foregoing limitations, you should not consider
EBITDA, adjusted EBITDA and adjusted net income as substitutes for,
or superior to, net loss prepared in accordance with GAAP. The
Company encourages investors and others to review its financial
information in its entirety and not rely on any single financial
measure. For more information on these non-GAAP financial measures,
please see the table captioned "Ucommune International Ltd.
Reconciliation of GAAP and Non-GAAP Results" near the end of this
release.
EBITDA represents net loss before interest expense, net,
provision for income taxes, depreciation of property and equipment
and amortization of intangible assets.
Adjusted EBITDA represents net loss before (i) interest expense,
net, other (expense)/income, net, provision for income taxes and
loss on disposal of subsidiaries and (ii) certain non-cash
expenses, consisting of share-based compensation expense,
impairment loss on long-term investments. impairment loss on
long-lived assets, depreciation of property and equipment,
amortization of intangible assets and change in fair value of
liabilities to be settled in shares, which we do not believe are
reflective of the Company's core operating performance during the
periods presented.
Adjusted net income represents net income before share-based
compensation expense, impairment loss on long-lived assets,
impairment loss on long-term investments, change in fair value of
liabilities to be settled in shares and loss on disposal of
subsidiaries.
For investor and media inquiries, please contact:
Ucommune International Ltd.
ir@ucommune.com
ICR, LLC.
Sharon Zhou
ucommune@icrinc.com
+1 (212) 537-3847
FINANCIAL
STATEMENTS
|
UCOMMUNE
INTERNATIONAL LTD.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Amounts in
thousands of RMB and USD, except for number of
shares)
|
|
|
As of December
31, 2019
|
|
As of December 31,
2020
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
175,774
|
|
348,064
|
|
53,343
|
Restricted
cash
|
-
|
|
52,199
|
|
8,000
|
Term
deposits
|
41,715
|
|
47,710
|
|
7,312
|
Short-term
investments
|
37,930
|
|
5,900
|
|
904
|
Accounts
receivable
|
86,200
|
|
125,359
|
|
19,212
|
Prepaid expenses and
other current assets
|
135,830
|
|
163,401
|
|
25,039
|
Amounts due from
related parties, current
|
52,611
|
|
24,504
|
|
3,755
|
Held-for-sale
asset
|
356,233
|
|
-
|
|
-
|
Total current
assets
|
886,293
|
|
767,137
|
|
117,565
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Restricted
cash
|
20,527
|
|
527
|
|
81
|
Long-term
investments
|
29,329
|
|
9,051
|
|
1,387
|
Property and
equipment, net
|
567,844
|
|
350,980
|
|
53,790
|
Right-of-use assets,
net
|
1,851,729
|
|
879,348
|
|
134,766
|
Intangible assets,
net
|
40,105
|
|
28,420
|
|
4,356
|
Goodwill
|
1,533,485
|
|
1,533,485
|
|
235,017
|
Rental
deposit
|
98,486
|
|
61,170
|
|
9,375
|
Long-term prepaid
expenses
|
116,363
|
|
113,271
|
|
17,360
|
Amounts due from
related parties, non-current
|
884
|
|
297
|
|
46
|
Other assets,
non-current
|
185
|
|
194,444
|
|
29,800
|
Total non-current
assets
|
4,258,937
|
|
3,170,993
|
|
485,978
|
TOTAL
ASSETS
|
5,145,230
|
|
3,938,130
|
|
603,543
|
UCOMMUNE
INTERNATIONAL LTD.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS -
continued
|
(Amounts in
thousands of RMB and USD, except for number of
shares)
|
|
|
As of December
31, 2019
|
|
As of December 31,
2020
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
borrowings
|
138,647
|
|
49,457
|
|
7,580
|
Long-term borrowings,
current portion
|
14,390
|
|
3,618
|
|
554
|
Note
payable
|
-
|
|
12,105
|
|
1,855
|
Accounts
payable
|
325,682
|
|
272,299
|
|
41,732
|
Accrued expenses and
other current liabilities
|
276,577
|
|
263,997
|
|
40,459
|
Amounts due to related
parties, current
|
43,251
|
|
92,737
|
|
14,213
|
Advance workspace
membership fee
|
99,226
|
|
53,667
|
|
8,225
|
Contract
liabilities
|
23,875
|
|
14,833
|
|
2,273
|
Income taxes
payable
|
325
|
|
1,366
|
|
209
|
Deferred subsidy
income
|
11,974
|
|
9,562
|
|
1,465
|
Convertible
bond
|
69,762
|
|
-
|
|
-
|
Held-for-sale
liabilities
|
32,514
|
|
-
|
|
-
|
Lease liabilities,
current
|
589,467
|
|
365,049
|
|
55,946
|
Total current
liabilities
|
1,625,690
|
|
1,138,690
|
|
174,511
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Long-term
borrowings
|
5,000
|
|
15,242
|
|
2,336
|
Refundable deposits
from members, non-current
|
14,308
|
|
16,477
|
|
2,525
|
Deferred tax
liabilities
|
2,427
|
|
1,543
|
|
236
|
Lease liabilities,
non-current
|
1,393,691
|
|
580,562
|
|
88,975
|
Total non-current
liabilities
|
1,415,426
|
|
613,824
|
|
94,072
|
TOTAL
LIABILITIES
|
3,041,116
|
|
1,752,514
|
|
268,583
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Class A ordinary
shares
|
44
|
|
49
|
|
7
|
Class B ordinary
shares
|
-
|
|
6
|
|
1
|
Additional paid-in
capital
|
3,645,669
|
|
4,230,656
|
|
648,376
|
Statutory
reserves
|
3,827
|
|
5,065
|
|
776
|
Accumulated
deficit
|
(1,750,475)
|
|
(2,240,205)
|
|
(343,326)
|
Accumulated other
comprehensive (loss) income
|
(926)
|
|
4,742
|
|
727
|
Total Ucommune
International Ltd.
shareholders' equity
|
1,898,139
|
|
2,000,313
|
|
306,561
|
Noncontrolling
interests
|
205,975
|
|
185,303
|
|
28,399
|
TOTAL
EQUITY
|
2,104,114
|
|
2,185,616
|
|
334,960
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
5,145,230
|
|
3,938,130
|
|
603,543
|
UCOMMUNE
INTERNATIONAL LTD.
|
UNAUDITED
CONDENSED COMBINED AND CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(Amounts in
thousands of RMB and USD, except for number of shares
and per share data)
|
|
|
For the
Three Months Ended
December 31,
|
|
For the
Year Ended December 31,
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Workspace membership
revenue
|
138,360
|
|
76,822
|
|
11,773
|
|
557,994
|
|
422,984
|
|
64,825
|
Marketing and branding
service revenue
|
131,342
|
|
110,104
|
|
16,874
|
|
534,826
|
|
317,461
|
|
48,653
|
Other service
revenue
|
23,087
|
|
91,735
|
|
14,059
|
|
74,538
|
|
136,692
|
|
20,949
|
Total
revenue
|
292,789
|
|
278,661
|
|
42,706
|
|
1,167,358
|
|
877,137
|
|
134,427
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Workspace
membership
|
(208,812)
|
|
(110,576)
|
|
(16,947)
|
|
(814,002)
|
|
(557,102)
|
|
(85,380)
|
Marketing and branding
service
|
(121,031)
|
|
(108,816)
|
|
(16,677)
|
|
(485,473)
|
|
(297,893)
|
|
(45,654)
|
Other
services
|
(22,195)
|
|
(65,852)
|
|
(10,092)
|
|
(69,917)
|
|
(113,074)
|
|
(17,329)
|
Total cost of
revenue
|
(352,038)
|
|
(285,244)
|
|
(43,716)
|
|
(1,369,392)
|
|
(968,069)
|
|
(148,363)
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Impairment loss on
long-lived assets
|
(5,908)
|
|
(3,048)
|
|
(467)
|
|
(52,030)
|
|
(36,505)
|
|
(5,595)
|
Pre-opening
expenses
|
(976)
|
|
-
|
|
-
|
|
(15,124)
|
|
-
|
|
-
|
Sales and marketing
expenses
|
(27,497)
|
|
(24,208)
|
|
(3,710)
|
|
(75,841)
|
|
(47,061)
|
|
(7,212)
|
General and
administrative expenses
|
(52,746)
|
|
(232,982)
|
|
(35,706)
|
|
(181,582)
|
|
(320,202)
|
|
(49,073)
|
Remeasurement gain of
previously held equity
interests in connection with step
acquisitions
|
-
|
|
-
|
|
-
|
|
386
|
|
-
|
|
-
|
Change in fair value
of advance for equity interests
subscription
|
-
|
|
-
|
|
-
|
|
(179,475)
|
|
-
|
|
-
|
Loss from
operations
|
(146,376)
|
|
(266,821)
|
|
(40,893)
|
|
(705,700)
|
|
(494,700)
|
|
(75,816)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(7,343)
|
|
(2,134)
|
|
(327)
|
|
(10,402)
|
|
(12,863)
|
|
(1,971)
|
Subsidy
income
|
(3,739)
|
|
1,225
|
|
188
|
|
16,782
|
|
13,931
|
|
2,135
|
Impairment loss on
long-term investments
|
(35,453)
|
|
(6,553)
|
|
(1,004)
|
|
(37,453)
|
|
(10,060)
|
|
(1,542)
|
Gain on disposal of
long-term investments
|
-
|
|
-
|
|
-
|
|
-
|
|
8,561
|
|
1,312
|
Loss on disposal of
subsidiaries
|
-
|
|
-
|
|
-
|
|
-
|
|
(39,703)
|
|
(6,085)
|
Other
(expense)/income, net
|
(43,011)
|
|
126,459
|
|
19,381
|
|
(63,480)
|
|
30,393
|
|
4,658
|
Loss before income
taxes and loss from equity
method investments
|
(235,922)
|
|
(147,824)
|
|
(22,655)
|
|
(800,253)
|
|
(504,441)
|
|
(77,309)
|
Provision for income
taxes
|
(92)
|
|
(534)
|
|
(82)
|
|
(4,872)
|
|
(2,864)
|
|
(439)
|
Loss from equity
method investments
|
52
|
|
(783)
|
|
(120)
|
|
(1,548)
|
|
(639)
|
|
(98)
|
Net
loss
|
(235,962)
|
|
(149,141)
|
|
(22,857)
|
|
(806,673)
|
|
(507,944)
|
|
(77,846)
|
Less: Net loss
attributable to noncontrolling interests
|
3,240
|
|
(3,955)
|
|
(606)
|
|
(15,523)
|
|
(19,452)
|
|
(2,981)
|
Net loss
attributable to Ucommune International
Ltd.
|
(239,202)
|
|
(145,186)
|
|
(22,251)
|
|
(791,150)
|
|
(488,492)
|
|
(74,865)
|
Net loss per share
attributable to ordinary shareholders
of Ucommune International Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
- Basic
|
(4.78)
|
|
(2.23)
|
|
(0.34)
|
|
(15.80)
|
|
(7.50)
|
|
(1.15)
|
- Diluted
|
(4.78)
|
|
(2.23)
|
|
(0.34)
|
|
(15.80)
|
|
(7.50)
|
|
(1.15)
|
Weighted average
shares used in calculating net loss per
share
|
|
|
|
|
|
|
|
|
|
|
|
- Basic
|
50,074,152
|
|
65,141,759
|
|
65,141,759
|
|
50,074,152
|
|
65,141,759
|
|
65,141,759
|
- Diluted
|
50,074,152
|
|
65,141,759
|
|
65,141,759
|
|
50,074,152
|
|
65,141,759
|
|
65,141,759
|
UCOMMUNE
INTERNATIONAL LTD.
|
UNAUDITED
CONDENSED COMBINED AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
|
(Amounts in
thousands of RMB and USD, except for number of shares
and per share data)
|
|
|
For the
Three Months Ended
December 31,
|
|
For the
Year Ended December 31,
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
(235,962)
|
|
(149,141)
|
|
(22,857)
|
|
(806,673)
|
|
(507,944)
|
|
(77,846)
|
Other comprehensive
loss, net of tax
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Foreign currency
translation adjustments
|
2,151
|
|
4,729
|
|
725
|
|
(69)
|
|
5,768
|
|
884
|
Total
Comprehensive loss
|
(233,811)
|
|
(144,412)
|
|
(22,132)
|
|
(806,742)
|
|
(502,176)
|
|
(76,962)
|
Less: Comprehensive
loss attributable to noncontrolling
interest
|
3,269
|
|
(3,856)
|
|
(591)
|
|
(15,524)
|
|
(19,352)
|
|
(2,966)
|
Comprehensive loss
attributable to Ucommune
International Ltd.'s shareholders
|
(237,080)
|
|
(140,556)
|
|
(21,541)
|
|
(791,218)
|
|
(482,824)
|
|
(73,996)
|
UCOMMUNE
INTERNATIONAL LTD.
|
RECONCILIATION OF
GAAP AND NON-GAAP RESULTS
|
(Amounts in
thousands of RMB and USD, except for number of shares
and per share data)
|
|
The following table
sets forth a reconciliation of net loss to EBITDA and adjusted
EBITDA for the periods indicated:
|
|
|
For the Three
Months
Ended December 31,
|
|
For the Year
Ended December 31,
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
(235,962)
|
|
(149,141)
|
|
(22,857)
|
|
(806,673)
|
|
(507,944)
|
|
(77,846)
|
Interest expense,
net
|
7,343
|
|
2,134
|
|
327
|
|
10,402
|
|
12,863
|
|
1,971
|
Provision for income
taxes
|
92
|
|
534
|
|
82
|
|
4,872
|
|
2,864
|
|
439
|
Depreciation of
property and equipment
|
29,666
|
|
45,344
|
|
6,949
|
|
108,303
|
|
76,353
|
|
11,702
|
Amortization of
intangible assets
|
5,289
|
|
6,295
|
|
965
|
|
10,803
|
|
11,202
|
|
1,717
|
EBITDA
(non-GAAP)
|
(193,572)
|
|
(94,834)
|
|
(14,534)
|
|
(672,293)
|
|
(404,662)
|
|
(62,017)
|
Share-based
compensation expense
|
-
|
|
202,333
|
|
31,009
|
|
-
|
|
202,333
|
|
31,009
|
Impairment loss on
long-lived assets
|
5,908
|
|
3,048
|
|
467
|
|
52,030
|
|
36,505
|
|
5,595
|
Change in fair value
of liabilities to be
settled in shares
|
-
|
|
-
|
|
-
|
|
179,475
|
|
-
|
|
-
|
Impairment loss on
long-term investments
|
35,453
|
|
6,553
|
|
1,004
|
|
37,453
|
|
10,060
|
|
1,542
|
Loss on disposal of
subsidiaries
|
-
|
|
-
|
|
-
|
|
-
|
|
39,703
|
|
6,085
|
Other
expense/(income), net
|
43,011
|
|
(126,459)
|
|
(19,381)
|
|
63,480
|
|
(30,393)
|
|
(4,658)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(non-GAAP)
|
(109,200)
|
|
(9,359)
|
|
(1,435)
|
|
(339,855)
|
|
(146,454)
|
|
(22,444)
|
The table below sets
forth a reconciliation of net loss to adjusted (net loss)/income
for the periods indicated:
|
|
|
For the Three
Months
Ended December 31,
|
|
For the Year
Ended December 31,
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
(235,962)
|
|
(149,141)
|
|
(22,857)
|
|
(806,673)
|
|
(507,944)
|
|
(77,846)
|
Share-based
compensation expense
|
-
|
|
202,333
|
|
31,009
|
|
-
|
|
202,333
|
|
31,009
|
Impairment loss on
long-lived assets
|
5,908
|
|
3,048
|
|
467
|
|
52,030
|
|
36,505
|
|
5,595
|
Change in fair value
of liabilities to be
settled in shares
|
-
|
|
-
|
|
-
|
|
179,475
|
|
-
|
|
-
|
Impairment loss on
long-term investments
|
35,453
|
|
6,553
|
|
1,004
|
|
37,453
|
|
10,060
|
|
1,542
|
Loss on disposal of
subsidiaries
|
-
|
|
-
|
|
-
|
|
-
|
|
39,703
|
|
6,085
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted (net
loss)/income (non-GAAP)
|
(194,601)
|
|
62,793
|
|
9,623
|
|
(537,715)
|
|
(219,343)
|
|
(33,615)
|
View original
content:http://www.prnewswire.com/news-releases/ucommune-international-ltd-announces-unaudited-fourth-quarter-and-full-year-2020-financial-results-301269581.html
SOURCE Ucommune International Ltd.