BEIJING, Nov. 26, 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 third quarter ended
September 30, 2021.
Third Quarter 2021 Financial Highlights
- Net revenues were RMB253.5
million, representing an increase of 26.8% from the third
quarter of 2020.
- Net loss was RMB181.5
million, compared with RMB169.3
million in the third quarter of 2020.
- Adjusted net loss[1], which excluded
share-based compensation expense, impairment loss on long-lived
assets, change in fair value of warrant liability, impairment loss
on long-term investments and loss on disposal of subsidiaries, was
RMB60.4 million, narrowing by 49.5%
year over year from RMB119.8 million
in the third quarter of 2020.
- EBITDA loss[2] was RMB161.2 million, compared with RMB158.2 million in the third quarter of
2020.
- Adjusted EBITDA loss[3] was RMB40.4 million, compared with RMB76.1 million in the third quarter of
2020.
Third Quarter 2021 Operating Highlights
- As of September 30, 2021,
Ucommune had committed to 274 office spaces in 62 cities, including
106 office spaces in tier-1 cities, 66 office spaces in new tier-1
cities and 97 office spaces in cities tier-2 and below, and was
providing approximately 758,000 square meters of managed area to
1,170,400 members. Among those, 215 office spaces, or 78.5% of
total committed spaces, were in operation.
- As of September 30, 2021,
Ucommune's total number of spaces contracted under the Company's
asset-light model increased by 56% to 165 spaces located across 54
cities from 106 spaces located across 42 cities as of September 30, 2020. The Company's total managed
area under contract[4] for the asset-light model
increased by 84% to 502,000 square
meters from 273,000 square meters as of September 30, 2020.
[1] For a
reconciliation of net loss to adjusted net loss, see the "Non-GAAP
Financial Measures" section and the table captioned "Ucommune
International Ltd. Reconciliation of GAAP and Non-GAAP Results"
below.
|
[2] 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.
|
[3] 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.
|
[4] Spaces
and managed area under contract include those in operation, under
construction, and in preparation for construction.
|
Dr. Daqing Mao, Founder and
Chairman of Ucommune, commented, "In sync with China's urbanization trend of focusing more on
quality development rather than outward expansion, we continued to
penetrate domestic and international markets with our intelligent
agile office service ecosystem. During the third quarter, we
increased our asset-light model's contribution to our business in
terms of both total number of spaces contracted and total managed
area under contract. By the end of 2021, we expect to have grown
the proportion of projects managed under the asset-light model to
about 75% from roughly 50% in 2020. Evidence of the progressive
development of our asset-light model was shown through several new
partnerships during the quarter, as we entered into an agreement in
the domestic market to help Besunyen improve its operating
efficiency and accelerate its corporate transformation by providing
customized office spaces and comprehensive facility services. In
addition, we formed a partnership with Australia-based Hexa Group to jointly develop
the 'Hexa Space-Ucommune' co-working project in Melbourne, adding another international market
to our geographic footprint in addition to Hong Kong and Singapore. Leveraging our expertise in agile
workspace management and operations, we plan to capitalize on the
emerging market demand for green, smart, and efficient urban
development and augment our growth momentum going forward."
Ms. Xin Guan, Chief Executive
Officer of Ucommune, commented, "As we continued to shift our
project mix towards the asset-light business model, we not only
expanded our geographic coverage by entering into 2 new cities and
adding 11 new office spaces, but also broadened our comprehensive
facility service offerings. During the quarter, we acquired an
equity interest of 60% in 'Xiao Sushi', to officially enter the
consumer services sector by integrating its 300,000 self-owned
platform members into our operations of nearly 300 chain office
spaces and 1.16 million offline members. Utilizing our combined
resources, we plan to form a closed-loop ecosystem offering a
variety of new products, including working meals, conference event
meals, afternoon tea sets, and affordably-priced beverages, as well
as for a wide range of sales scenarios, including those for office
buildings, office parks, and commercial buildings. Going forward,
we will continue to explore new business opportunities that have
synergies with our core business to sustain our growth
trajectory."
Mr. Siyuan Wang, Chief Financial
Officer of Ucommune, added, "In the third quarter, we grew our net
revenues by 26.8% to RMB253.5 million
while narrowing our adjusted net loss by 49.5% to RMB60.4 million year over year. Despite the
revenue recognition impact from our business mix shift, we improved
the occupancy rates of our self-operated co-working spaces,
increased our advertising and marketing service revenues, and
expanded our interior design and construction services as well as
our SaaS services. Meanwhile, we continued to simplify our
corporate structure, streamline our business processes, optimize
our operating efficiency, and reduce our costs and expenses.
With a leaner, fitter, and more agile business operation, we are
well positioned to seize emerging market opportunities and grow in
a healthy manner for the long run."
Third Quarter 2021 Financial Results
Total net revenues increased by 26.8% to RMB253.5 million in the third quarter of
2021 from RMB199.9 million in the
third quarter of 2020. Revenues from the asset-light model
increased by 275.9% to RMB21.8
million in the third quarter of 2021 from RMB5.8 million in the third quarter of 2020.
- Workspace
membership services revenues decreased
by 8.5% to RMB98.0 million in the
third quarter of 2021 from RMB107.2
million in the third quarter of 2020. This decrease was
mainly due to the closure of unprofitable spaces in operation and
contraction of the Company's self-operated coworking space services
resulting from the Company's transformation to an asset-light
model.
- Marketing and branding services revenues increased by 23.8% to
RMB100.1 million in the third quarter
of 2021 from RMB80.9 million in the
third quarter of 2020, mainly due to increased demand for
advertising and marketing services from certain customers.
- Other services revenues increased by 366.0% to
RMB55.3 million in the third quarter
of 2021 from RMB11.9 million in the
third quarter of 2020, primarily due to increased net revenues from
the Company's interior design and construction services and its
SaaS services.
Total costs of revenues increased by 15.8% to
RMB273.1 million in the third
quarter of 2021 from RMB235.8 million
in the third quarter of 2020. Costs of revenues from the Company's
asset-light model increased by 427.0% to RMB19.5 million in the third quarter of
2021 from RMB3.7 million in the
third quarter of 2020, which was primarily in line with the
increase in revenues from the Company's asset-light model.
- Costs of workspace membership decreased by 11.4% to
RMB129.0 million in the third quarter
of 2021 from RMB145.6 million in the
third quarter of 2020, mainly due to decreased operational costs
related to leases and staff, partly offset by an increase in
share-based compensation expense, amounting to RMB9.0 million.
- Costs of marketing and branding services increased by
33.2% to RMB95.2 million in the third
quarter of 2021 from RMB71.5 million
in the third quarter of 2020, mainly due to increased advertising
spending, which was in line with the increase in advertising
revenue.
- Costs of other services increased by 161.6% to
RMB49.0 million in the third quarter
of 2021 from RMB18.7 million in the
third quarter of 2020, which was in line with the increase in other
services revenues.
General and administrative expenses increased by 71.0% to
RMB79.7 million in the third quarter
of 2021 from RMB46.6 million in the
third quarter of 2020, mainly due to an increase in share-based
compensation expense of RMB41.2
million and professional service fees.
Sales and marketing expenses increased by 196.4% to
RMB17.7 million in the third
quarter of 2021 from RMB6.0 million
in the third quarter of 2020, mainly due to the increase in
share-based compensation expense.
EBITDA loss[5] was
RMB161.2 million in the third quarter
of 2021, compared with RMB158.2
million in the third quarter of 2020. Adjusted EBITDA
loss[6] narrowed by 47.0% to RMB40.4 million in the third quarter of 2021 from
RMB76.1 million in the third quarter
of 2020.
[5] 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.
|
[6] 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.
|
Impairment loss on long-lived assets was RMB74.1 million in the third quarter of 2021,
compared with nil in the third quarter of 2020, primarily due to
the impairment of three substantial prepaid rent from previous
periods accrued in the third quarter of 2021 as a result that the
carrying value is not expected to be recoverable based on current
market conditions.
Other income, net was RMB0.2
million in the third quarter of 2021, compared to other
expense, net of RMB32.5 million in
the third quarter of 2020, primarily due to a disposal loss of
long-term assets of unprofitable spaces was recorded during the
third quarter of 2020.
Net loss was RMB181.5 million in the third quarter
of 2021, compared with RMB169.3
million in the third quarter of 2020.
Adjusted net loss[7] was RMB60.4 million in the third quarter of 2021,
compared with RMB119.8 million in the
third quarter of 2020.
[7] For a
reconciliation of net loss to adjusted net loss, see the "Non-GAAP
Financial Measures" section and the table captioned "Ucommune
International Ltd. Reconciliation of GAAP and Non-GAAP Results"
below.
|
Basic and diluted net loss per share were both
RMB2.01 in the third quarter of 2021,
compared with RMB2.50 in the third
quarter of 2020.
Basic and diluted adjusted net loss per
share[8] were both RMB0.58 in the third quarter of 2021, compared
with RMB1.71 in the third quarter of
2020.
[8] For a
reconciliation of net loss to adjusted net income, see the
"Non-GAAP Financial Measures" section and the table captioned
"Ucommune International Ltd. Reconciliation of GAAP and Non-GAAP
Results" below.
|
Cash, cash equivalents and restricted cash were
RMB288.7 million as of September 30, 2021, compared with RMB400.8 million as of December 31,
2020.
Business Outlook
For the fourth quarter of 2021, the Company expects net revenues
to be in the range of RMB250 million
to RMB280 million. The forecasts
reflect the Company's current and preliminary views on the market
and its operating conditions, which are subject to change.
Recent Developments
On July 1, 2021, Besunyen Holdings
Company Limited, an investment company engaged in the manufacture
and sale of therapeutic tea products, agreed to occupy 3,047.6
square meters at the Company's landmark asset-light project in the
Beijing Asia Finance Center for a total of 327 workstations
from July 1, 2021, to December 31, 2023. In addition, the Company will
also furnish its one-stop customized U Design services to
Besunyen.
In September
2021, the Company's wholly owned subsidiary, Beijing
Zerone Management & Consulting Company Ltd. ("Beijing Zerone"),
an office space management services provider in China, acquired a 60% equity interest in
Beijing Kuanneng Technology Co., Ltd., which owns and operates the
Japanese culinary restaurant brand "Xiao Sushi." In October,
Beijing Zerone acquired a 60% equity interest in Beijing Jiajia
Renhe Intelligent Technology Co., Ltd, a human resources solution
platform.
On October 1, 2021, the Company
started a five-year cooperation with Hexa Group, an Australian
property developer, to jointly develop the "Hexa
Space-Ucommune" co-working project located in Melbourne, Australia.
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 RMB6.4434 to US$1.00, the exchange rate on September 30, 2021, set forth in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or US$ 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.
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 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 consolidated results: EBITDA, adjusted EBITDA and
adjusted net loss. The Company believes that EBITDA, adjusted
EBITDA and adjusted net loss help understand and evaluate the
Company's core operating performance.
EBITDA, adjusted EBITDA and adjusted net loss 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 loss 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 loss 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-lived assets, impairment loss on long-term
investments, depreciation of property and equipment,
amortization of intangible assets and change in fair value of
warrant liability, which we do not believe are reflective of the
Company's core operating performance during the periods
presented.
Adjusted net loss represents net loss before share-based
compensation expense, impairment loss on long-lived assets,
impairment loss on long-term investments, change in fair value of
warrant liability and loss on disposal of subsidiaries.
For investor and media inquiries, please contact:
Ucommune International Ltd.
ir@ucommune.com
ICR, LLC.
Robin Yang
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, 2020
|
|
As of September
30, 2021
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
348,064
|
|
236,914
|
|
36,768
|
Restricted
cash
|
52,199
|
|
51,742
|
|
8,030
|
Term
deposits
|
47,710
|
|
4,760
|
|
739
|
Short-term
investments
|
5,900
|
|
5,905
|
|
916
|
Accounts receivable,
net
|
125,359
|
|
139,045
|
|
21,579
|
Prepaid expenses and
other current assets
|
163,401
|
|
149,146
|
|
23,149
|
Amounts due from
related parties, current
|
24,504
|
|
22,527
|
|
3,496
|
Total current
assets
|
767,137
|
|
610,039
|
|
94,677
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Restricted
cash
|
527
|
|
-
|
|
-
|
Long-term
investments
|
9,051
|
|
22,831
|
|
3,543
|
Property and equipment,
net
|
350,980
|
|
262,022
|
|
40,665
|
Right-of-use assets,
net
|
879,348
|
|
733,485
|
|
113,835
|
Intangible assets,
net
|
28,420
|
|
33,129
|
|
5,141
|
Goodwill
|
1,533,485
|
|
1,547,535
|
|
240,174
|
Rental
deposit
|
61,170
|
|
52,883
|
|
8,207
|
Long-term prepaid
expenses
|
113,271
|
|
72,135
|
|
11,195
|
Amounts due from
related parties, non-current
|
297
|
|
498
|
|
77
|
Other assets,
non-current
|
194,444
|
|
194,444
|
|
30,177
|
Total non-current
assets
|
3,170,993
|
|
2,918,962
|
|
453,014
|
TOTAL
ASSETS
|
3,938,130
|
|
3,529,001
|
|
547,691
|
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, 2020
|
|
As of September 30,
2021
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
borrowings
|
49,457
|
|
71,566
|
|
11,107
|
Long-term borrowings,
current portion
|
3,618
|
|
14,432
|
|
2,240
|
Note
payable
|
12,105
|
|
-
|
|
-
|
Accounts
payable
|
272,299
|
|
223,978
|
|
34,761
|
Accrued expenses and
other current liabilities
|
263,997
|
|
214,238
|
|
33,249
|
Amounts due to related
parties, current
|
92,737
|
|
30,357
|
|
4,711
|
Advance workspace
membership fee
|
53,667
|
|
60,077
|
|
9,324
|
Contract
liabilities
|
14,833
|
|
10,209
|
|
1,584
|
Income taxes
payable
|
1,366
|
|
958
|
|
149
|
Deferred subsidy
income
|
9,562
|
|
8,366
|
|
1,298
|
Share-based liability,
current
|
-
|
|
3,578
|
|
555
|
Lease liabilities,
current
|
365,049
|
|
329,550
|
|
51,145
|
Total current
liabilities
|
1,138,690
|
|
967,309
|
|
150,123
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Long-term
borrowings
|
15,242
|
|
2,842
|
|
441
|
Refundable deposits
from members, non-current
|
16,477
|
|
23,310
|
|
3,618
|
Deferred tax
liabilities
|
1,543
|
|
1,140
|
|
177
|
Share-based liability,
non-current
|
-
|
|
2,254
|
|
350
|
Lease liabilities,
non-current
|
580,562
|
|
448,049
|
|
69,536
|
Warrant
liability
|
-
|
|
16,372
|
|
2,541
|
Total non-current
liabilities
|
613,824
|
|
493,967
|
|
76,663
|
TOTAL
LIABILITIES
|
1,752,514
|
|
1,461,276
|
|
226,786
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Class A ordinary
shares (400,000,000 and 400,000,000 authorized,
70,999,436 and 75,937,707 issued and outstanding as of December
31, 2020 and September 30, 2021, with par value of US$0.0001
and
US$0.0001, respectively)
|
49
|
|
54
|
|
8
|
Class B ordinary
shares (100,000,000 and 100,000,000 authorized,
9,452,407 and 9,452,407 issued and outstanding as of December
31,
2020 and September 30, 2021, with par value of US$0.0001 and
US$0.0001, respectively)
|
6
|
|
6
|
|
1
|
Additional paid-in
capital
|
4,230,656
|
|
4,563,595
|
|
708,259
|
Statutory
reserves
|
5,065
|
|
5,065
|
|
786
|
Accumulated
deficit
|
(2,240,205)
|
|
(2,708,643)
|
|
(420,375)
|
Accumulated other
comprehensive income
|
4,742
|
|
4,351
|
|
675
|
Total Ucommune
International Ltd.
shareholders' equity
|
2,000,313
|
|
1,864,428
|
|
289,354
|
Noncontrolling
interests
|
185,303
|
|
203,297
|
|
31,551
|
TOTAL
EQUITY
|
2,185,616
|
|
2,067,725
|
|
320,905
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
3,938,130
|
|
3,529,001
|
|
547,691
|
UCOMMUNE
INTERNATIONAL LTD.
|
UNAUDITED
CONDENSED 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
September 30,
|
|
For the Nine
Months
Ended
September 30,
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Workspace membership
revenue
|
107,158
|
|
98,040
|
|
15,216
|
|
346,162
|
|
283,119
|
|
43,939
|
Marketing and branding
service revenue
|
80,877
|
|
100,120
|
|
15,538
|
|
207,357
|
|
338,812
|
|
52,583
|
Other service
revenue
|
11,874
|
|
55,332
|
|
8,587
|
|
44,957
|
|
132,596
|
|
20,579
|
Total
revenue
|
199,909
|
|
253,492
|
|
39,341
|
|
598,476
|
|
754,527
|
|
117,101
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Workspace
membership
|
(145,617)
|
|
(128,961)
|
|
(20,014)
|
|
(446,526)
|
|
(373,778)
|
|
(58,009)
|
Marketing and branding
service
|
(71,465)
|
|
(95,157)
|
|
(14,768)
|
|
(189,077)
|
|
(323,423)
|
|
(50,194)
|
Other
services
|
(18,726)
|
|
(48,994)
|
|
(7,604)
|
|
(47,222)
|
|
(106,021)
|
|
(16,454)
|
Total cost of
revenue
|
(235,808)
|
|
(273,112)
|
|
(42,386)
|
|
(682,825)
|
|
(803,222)
|
|
(124,657)
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Impairment loss on
long-lived assets
|
-
|
|
(74,147)
|
|
(11,507)
|
|
(33,457)
|
|
(83,889)
|
|
(13,019)
|
Sales and marketing
expenses
|
(5,975)
|
|
(17,722)
|
|
(2,750)
|
|
(22,853)
|
|
(45,863)
|
|
(7,118)
|
General and
administrative expenses
|
(46,602)
|
|
(79,689)
|
|
(12,368)
|
|
(87,220)
|
|
(307,581)
|
|
(47,736)
|
Change in fair value of
warrant liability
|
-
|
|
22,082
|
|
3,427
|
|
-
|
|
1,901
|
|
295
|
Loss from
operations
|
(88,476)
|
|
(169,096)
|
|
(26,243)
|
|
(227,879)
|
|
(484,127)
|
|
(75,134)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(3,644)
|
|
(1,389)
|
|
(216)
|
|
(10,729)
|
|
(2,053)
|
|
(319)
|
Subsidy
income
|
6,128
|
|
1,988
|
|
309
|
|
12,706
|
|
4,611
|
|
716
|
Impairment loss on
long-term investments
|
(3,507)
|
|
-
|
|
-
|
|
(3,507)
|
|
(461)
|
|
(72)
|
Loss on disposal of
subsidiaries
|
(46,050)
|
|
(12,829)
|
|
(1,991)
|
|
(43,032)
|
|
(13,779)
|
|
(2,138)
|
Other
(expense)/income, net
|
(32,529)
|
|
200
|
|
31
|
|
(84,176)
|
|
32,055
|
|
4,975
|
Loss before income
taxes and loss from equity
method investments
|
(168,078)
|
|
(181,126)
|
|
(28,110)
|
|
(356,617)
|
|
(463,754)
|
|
(71,972)
|
Provision for income
taxes
|
(1,245)
|
|
(366)
|
|
(57)
|
|
(2,330)
|
|
(1,448)
|
|
(225)
|
Gain/(loss) from
equity method investments
|
-
|
|
-
|
|
-
|
|
144
|
|
(27)
|
|
(4)
|
Net
loss
|
(169,323)
|
|
(181,492)
|
|
(28,167)
|
|
(358,803)
|
|
(465,229)
|
|
(72,201)
|
Less: Net
(loss)/income attributable to noncontrolling
interests
|
(12,272)
|
|
(11,176)
|
|
(1,734)
|
|
(15,497)
|
|
3,209
|
|
498
|
Net loss
attributable to Ucommune International
Ltd.
|
(157,051)
|
|
(170,316)
|
|
(26,433)
|
|
(343,306)
|
|
(468,438)
|
|
(72,699)
|
Net loss per share
attributable to ordinary shareholders
of Ucommune International Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
- Basic
|
(2.50)
|
|
(2.01)
|
|
(0.31)
|
|
(5.47)
|
|
(5.52)
|
|
(0.86)
|
- Diluted
|
(2.50)
|
|
(2.01)
|
|
(0.31)
|
|
(5.47)
|
|
(5.52)
|
|
(0.86)
|
Weighted average
shares used in calculating net loss
per share
|
|
|
|
|
|
|
|
|
|
|
|
- Basic
|
62,811,339
|
|
84,811,269
|
|
|
|
62,811,339
|
|
84,811,269
|
|
|
- Diluted
|
62,811,339
|
|
84,811,269
|
|
|
|
62,811,339
|
|
84,811,269
|
|
|
UCOMMUNE
INTERNATIONAL LTD.
|
UNAUDITED
CONDENSED 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
September 30,
|
|
For the Nine
Months
Ended
September 30,
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
(169,323)
|
|
(181,492)
|
|
(28,167)
|
|
(358,803)
|
|
(465,229)
|
|
(72,201)
|
Other comprehensive
loss, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(13)
|
|
1,642
|
|
255
|
|
1,039
|
|
(391)
|
|
(61)
|
Total
Comprehensive loss
|
(169,336)
|
|
(179,850)
|
|
(27,912)
|
|
(357,764)
|
|
(465,620)
|
|
(72,262)
|
Less: Comprehensive
(loss)/income attributable to
noncontrolling interest
|
(12,282)
|
|
(11,176)
|
|
(1,734)
|
|
(15,496)
|
|
3,209
|
|
498
|
Comprehensive loss
attributable to Ucommune
International Ltd.'s shareholders
|
(157,054)
|
|
(168,674)
|
|
(26,178)
|
|
(342,268)
|
|
(468,829)
|
|
(72,760)
|
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
September 30,
|
|
For the Nine
Months
Ended
September 30,
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
(169,323)
|
|
(181,492)
|
|
(28,167)
|
|
(358,803)
|
|
(465,229)
|
|
(72,201)
|
Interest expense,
net
|
3,644
|
|
1,389
|
|
216
|
|
10,729
|
|
2,053
|
|
319
|
Provision for income
taxes
|
1,245
|
|
366
|
|
57
|
|
2,330
|
|
1,448
|
|
225
|
Depreciation of
property and equipment
and amortization of intangible assets
|
6,220
|
|
18,496
|
|
2,871
|
|
35,916
|
|
62,278
|
|
9,666
|
EBITDA
(non-GAAP)
|
(158,214)
|
|
(161,241)
|
|
(25,023)
|
|
(309,828)
|
|
(399,450)
|
|
(61,991)
|
Share-based
compensation expense
|
-
|
|
56,167
|
|
8,717
|
|
-
|
|
239,984
|
|
37,245
|
Impairment loss on
long-lived assets
|
-
|
|
74,147
|
|
11,507
|
|
33,457
|
|
83,889
|
|
13,019
|
Change in fair value
of warrant liability
|
-
|
|
(22,082)
|
|
(3,427)
|
|
-
|
|
(1,901)
|
|
(295)
|
Impairment loss on
long-term investments
|
3,507
|
|
-
|
|
-
|
|
3,507
|
|
461
|
|
72
|
Loss on disposal of
subsidiaries
|
46,050
|
|
12,829
|
|
1,991
|
|
43,032
|
|
13,779
|
|
2,138
|
Other
expense/(income), net
|
32,529
|
|
(200)
|
|
(31)
|
|
84,176
|
|
(32,055)
|
|
(4,975)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(non-GAAP)
|
(76,128)
|
|
(40,380)
|
|
(6,266)
|
|
(145,656)
|
|
(95,293)
|
|
(14,787)
|
|
The table below sets
forth a reconciliation of net loss to adjusted net loss for the
periods indicated:
|
|
|
For the Three
Months Ended September
30,
|
|
For the Nine
Months
Ended
September 30,
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
(169,323)
|
|
(181,492)
|
|
(28,167)
|
|
(358,803)
|
|
(465,229)
|
|
(72,201)
|
Share-based
compensation expense
|
-
|
|
56,167
|
|
8,717
|
|
-
|
|
239,984
|
|
37,245
|
Impairment loss on
long-lived assets
|
-
|
|
74,147
|
|
11,507
|
|
33,457
|
|
83,889
|
|
13,019
|
Change in fair value
of warrant liability
|
-
|
|
(22,082)
|
|
(3,427)
|
|
-
|
|
(1,901)
|
|
(295)
|
Impairment loss on
long-term investments
|
3,507
|
|
-
|
|
-
|
|
3,507
|
|
461
|
|
72
|
Loss on disposal of
subsidiaries
|
46,050
|
|
12,829
|
|
1,991
|
|
43,032
|
|
13,779
|
|
2,138
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net loss
(non-GAAP)
|
(119,766)
|
|
(60,431)
|
|
(9,379)
|
|
(278,807)
|
|
(129,017)
|
|
(20,022)
|
View original
content:https://www.prnewswire.com/news-releases/ucommune-international-ltd-announces-unaudited-third-quarter-2021-financial-results-301432322.html
SOURCE Ucommune International Ltd.