BEIJING, May 10, 2022 /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, 2021.
Fourth Quarter 2021 Financial Highlights
- Net revenues were RMB303.0
million (US$47.5 million),
representing an increase of 8.7% from the fourth quarter of
2020.
- Net loss was RMB1,697.6
million (US$266.4 million),
compared with RMB149.1 million in the
fourth quarter of 2020.
- Adjusted net loss[1], which excluded
share-based compensation expense, impairment loss on long-lived
assets and long-term prepaid expenses, impairment loss on goodwill,
change in fair value of warrant liability, impairment loss on
long-term investments, and loss on disposal of subsidiaries, was
RMB156.0 million (US$24.5 million), as compared to an adjusted net
income of RMB62.8 million in the
fourth quarter of 2020.
- EBITDA loss[2] was RMB1,673.8 million (US$262.7 million), compared with RMB94.8 million in the fourth quarter of
2020.
- Adjusted EBITDA loss[3] was RMB80.9 million (US$12.7
million), compared with RMB9.4
million in the fourth quarter of 2020.
Fourth Quarter 2021 Operating Highlights
- As of December 31, 2021, Ucommune
had committed to 273 office spaces in 65 cities, including 106
office spaces in tier-1 cities, 63 office spaces in new tier-1
cities and 104 office spaces in cities tier-2 and below, and was
providing approximately 865,150 square meters of managed area to
1,177,000 members. Among those, 220 office spaces, or 80.6% of
total committed spaces, were in operation.
- As of December 31, 2021,
Ucommune's total number of spaces contracted under the Company's
asset-light model increased by 32% to 165 spaces located across 55
cities from 125 spaces located across 46 cities as of December 31, 2020. The Company's total managed
area under contract[4] for the asset-light model
increased by 77% to 622,815 square meters from 351,500 square
meters as of December 31,
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, "As the real estate industry
matures and the macro environment becomes increasingly supportive
of the real estate investment cycle, operation and management of
industrial parks has become a fundamental factor contributing to
value growth in the real estate industry. While continuing to drive
growth in our agile workspace management business, we also plan to
exercise greater prudence in managing our costs going forward so
that we can shorten our path to profitability."
Ms. Xin Guan, Chief Executive
Officer of Ucommune, commented, "During 2021, we established a new
precedent in industrial park projects by adding value to our
partners' assets while boosting the economic development of an
ever-greater number of parks. Leveraging our operational
capabilities and our asset-light business model, we provided full
services along the industry park value chain including planning,
positioning, content creation, incubation, advertising, and
operations. The effectiveness of our asset-light model is
illustrated by our continued cooperation with a number of partners
to develop asset-light projects and further expand our closed loop
ecology. Furthermore, 2021 marked our initial entry into the
international market. During the year, building on the foundation
of our asset-light model, we expanded our offerings in the consumer
services sector and provided additional marketing and advertising
solutions to our clients. At the same time, we further developed
our cutting-edge real estate digital management system, delivering
ever more value to its users. Going forward, we will continue to
explore our asset-light model, optimize and further develop our
comprehensive service platform, enhance our operational efficiency,
and cultivate our healthy business expansion."
Mr. Siyuan Wang, Chief Financial
Officer of Ucommune, added, "In the fourth quarter, our revenues
exceeded the high-end of our previously announced guidance range,
increasing by 8.7% to RMB303.0
million (US$47.5 million). In
addition, we further diversified our financing sources as we
recently entered into a securities purchase agreement to issue a
debenture and warrants to an investor in a private placement.
During the quarter, we increased our workspace membership services
revenues and marketing and branding services revenues by 21.7% and
13.2% respectively. We continued to grow our asset-light business,
as the total number of spaces contracted under our asset-light
model increased by 32% and our asset-light total managed area under
contract increased by 77% during 2021. We are well-positioned to
grow in a healthy manner for the long run."
Fourth Quarter 2021 Financial Results
Total net revenues increased by 8.7% to RMB303.0 million (US$47.5 million) in the fourth quarter of 2021
from RMB278.7 million in the fourth
quarter of 2020. Revenues from the asset-light model increased by
78.7% to RMB19.3
million (US$3.0 million) in the
fourth quarter of 2021 from RMB10.8
million in the fourth quarter of 2020.
- Workspace membership services
revenues increased by 21.7% to RMB93.5 million (US$14.7 million) in the fourth quarter of 2021
from RMB76.8 million in the fourth
quarter of 2020. This increase mainly resulted from the Company's
expansion of its U partner model, a category under the Company's
asset-light model, of which the revenue is recognized as workspace
membership revenue.
- Marketing and branding services revenues
increased by 13.2% to RMB124.7 million (US$19.6 million) in the fourth quarter of
2021 from RMB110.1 million in the
fourth quarter of 2020, mainly due to increased demand for
advertising and marketing services from certain customers.
- Other services revenues decreased by 7.6% to
RMB84.8 million (US$13.3 million) in the fourth quarter of
2021 from RMB91.7 million in the
fourth quarter of 2020, mainly due to decreased net revenues from
the Company's SaaS services, partially offset by the increased net
revenues from the Company's interior design and construction
services and net revenues related to the acquisition of "Xiao
Sushi."
Total costs of revenues increased by 16.0% to
RMB330.8 million (US$51.9 million) in the fourth quarter of 2021
from RMB285.2 million in the fourth
quarter of 2020.Costs of revenues from the Company's asset-light
model increased by 208.8% to RMB17.6 million (US$2.8 million) in the fourth quarter of
2021 from RMB5.7 million in the
fourth quarter of 2020, which was primarily in line with the
increase in revenues from the Company's asset-light model.
- Costs of workspace membership increased by 21.5% to
RMB134.3 million (US$21.1 million) in the fourth quarter of 2021
from RMB110.6 million in the fourth
quarter of 2020, which was mainly due to more U Partner projects
opened during the fourth quarter of 2021 and in line with the
increase in workspace membership services revenue.
- Costs of marketing and branding services increased
by 11.5% to RMB121.3 million
(US$19.0 million) in the fourth
quarter of 2021 from RMB108.8 million
in the fourth 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 14.2% to
RMB75.2 million (US$11.8 million) in the fourth quarter of
2021 from RMB65.9 million in the
fourth quarter of 2020, mainly due to increased construction and
design service cost and software and hardware purchase cost
spending by the Company's construction services and SaaS services,
respectively.
Impairment loss on goodwill was RMB1.5 billion (US$236.1
million) in the fourth quarter of 2021, compared to nil in
the four quarter of 2020, representing the amount by which the
carrying value of all the three reporting units exceeds their fair
value, based on an annual
goodwill impairment assessment.
General and administrative expenses decreased by 70.5% to
RMB68.8 million (US$10.8 million) in the fourth quarter of 2021
from RMB233.0 million in the fourth
quarter of 2020, mainly due to a decrease in share-based
compensation expense of RMB190.1
million (US$29.8 million) in the
fourth quarter of 2021, partially offset by an increase in
professional service fees.
Sales and marketing expenses decreased by 34.7% to
RMB15.8 million (US$2.5 million) in the fourth quarter of 2021
from RMB24.2 million in the fourth
quarter of 2020, mainly due to the decrease in share-based
compensation expense in the fourth quarter of 2021.
Impairment loss on long-lived assets and long-term prepaid
expenses was RMB30.6 million
(US$4.8 million) in the fourth
quarter of 2021, compared with RMB3.0
million in the fourth quarter of 2020, primarily due to the
increase in impairment costs for spaces where the carrying value is
not expected to be fully recoverable.
Other expense, net was RMB51.3
million (US$8.1 million) in
the fourth quarter of 2021, compared to other income, net of
RMB126.5 million in the fourth
quarter of 2020, primarily due to the penalty resulting from breach
of service agreement and estimated contingent loss from legal
proceedings in the fourth quarter of 2021.
Net loss was RMB1,697.6 million (US$266.4 million) in the fourth quarter of 2021,
compared with RMB149.1 million in the
fourth quarter of 2020.
Adjusted net loss[5] was RMB156.0 million (US$24.5
million) in the fourth quarter of 2021, compared with
adjusted net income of RMB62.8
million in the fourth quarter of 2020.
EBITDA loss[6] was
RMB1,673.8 million (US$262.7 million) in the fourth quarter of 2021,
compared with RMB94.8 million in the
fourth quarter of 2020.
Adjusted
EBITDA loss[7] increased by 763.9%
to RMB80.9 million (US$12.7 million) in the fourth quarter of 2021
from RMB9.4 million in the fourth
quarter.
Basic and diluted net loss per share were both
RMB354.27 (US$55.59) in the fourth quarter of 2021,
compared with RMB44.58 in the fourth
quarter of 2020 (retroactively adjusted to reflect the 20-to-1
Share Consolidation (as defined below) effected on April 21, 2022).
Basic and diluted adjusted net loss per
share[8] were both RMB32.6 (US$5.12) in the fourth quarter of 2021,
compared with basic and diluted adjusted net income per share
RMB20.49 in the fourth quarter of
2020 (retroactively adjusted to reflect the Share
Consolidation).
Cash, cash equivalents and restricted cash were
RMB216.5 million (US$34.0 million) as of December 31, 2021, compared with RMB400.8 million as of December 31,
2020.
[5] 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.
|
[6] 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.
|
[7] 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.
|
[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.
|
Business Outlook
For the first quarter of 2022, the Company expects net revenues
to be in the range of RMB130 million
to RMB150 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 January 26, 2022, the Company
entered into and closed a private placement pursuant to a
securities purchase agreement (the "Securities Purchase
Agreement"), as amended on March 1,
2022, with an investor for the offering of a certain
debenture and warrants. The Company intends to use the proceeds for
working capital purposes.
On February 8, 2022, Dr.
Mei Han resigned as an independent
director of the Company with immediate effect due to personal
reasons. In connection with her resignation, Dr. Han also stepped
down as a member of the audit committee and compensation committee
of the board of directors of the Company. Dr. Han's resignation was
not the result of any disagreement with the Company on any matter
relating to the Company's operations, policies, or practices.
On March 15, 2022, the Company
announced that it would seek shareholder approval for a 20-for-1
reverse stock split at its upcoming extraordinary general meeting
held on April 21, 2022 (the "Share
Consolidation"). At the extraordinary general meeting, the reverse
stock split was approved on April 21. As a result, the Share
Consolidation became effective at 5
P.M. on April 21, 2022, U.S. Eastern time, and the
Class A ordinary shares began trading on a post-Share
Consolidation basis on the Nasdaq Capital Market when the market
opened on the next business trading day under the same symbol
"UK" but under a new CUSIP number of G9449A 209. Each 20 pre-split
ordinary shares outstanding automatically combined and converted to
one issued and outstanding ordinary share without any action on the
part of the shareholders, and the terms of the outstanding
warrants, unit purchase options, senior convertible debentures and
awards under share incentive plans of the Company were adjusted
automatically without any action on the part of the holders of
those warrants, unit purchase options, senior convertible
debentures and awards under share incentive plans.
On May 6, 2022, the Company
received written notification from the Listing Qualifications
Department of The Nasdaq Stock Market ("Nasdaq") that it has
regained compliance with the minimum bid price requirement of
US$1.00 per share under the Nasdaq
Listing Rules (the "Listing Rules"). Previously on January 24, 2022, Nasdaq notified the Company
that its Class A ordinary shares had failed to maintain a minimum
bid price of $1.00 over the previous
30 consecutive business days as required by the Listing Rules. On
May 6, 2022, Nasdaq confirmed that
for the last 10 consecutive business days, from April 22, 2022 to May 5,
2022, the closing bid price of the Company's Class A
ordinary shares was at US$1.00 per
share or greater. Accordingly, the Company has regained compliance
with Listing Rule 5550(a)(2) and this matter is now closed.
About Ucommune International Ltd.
Ucommune is China's leading
agile office space manager and provider. Founded in 2015, Ucommune
has created a large-scale intelligent agile office ecosystem
covering economically vibrant regions throughout China to empower its members with flexible and
cost-efficient office space solutions. Ucommune's various offline
agile office space services include self-operated models, such as U
Space, U Studio, and U Design, as well as asset-light models, such
as U Brand and U Partner. By utilizing its expertise in the real
estate and retail industries, Ucommune operates its agile office
spaces with high efficiency and engages in the urban transformation
of older and under-utilized buildings to redefine commercial real
estate in China.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars ("US$") 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 RMB6.3726 to US$1.00, the exchange rate on December 31, 2021, set forth in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or US$ 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 condensed 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 condensed and 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 and long-term prepaid
expenses, impairment loss on goodwill, 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 and
long-term prepaid expenses, impairment loss on goodwill, 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 December 31,
2021
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
348,064
|
|
165,792
|
|
26,016
|
Restricted
cash
|
52,199
|
|
50,703
|
|
7,956
|
Term
deposits
|
47,710
|
|
-
|
|
-
|
Short-term
investments
|
5,900
|
|
26,423
|
|
4,146
|
Accounts receivable,
net
|
125,359
|
|
132,264
|
|
20,755
|
Prepaid expenses and
other current assets, net
|
163,401
|
|
147,676
|
|
23,173
|
Amounts due from
related parties, current
|
24,504
|
|
54,715
|
|
8,586
|
Total current
assets
|
767,137
|
|
577,573
|
|
90,632
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Restricted
cash
|
527
|
|
-
|
|
-
|
Long-term
investments
|
9,051
|
|
22,231
|
|
3,489
|
Property and equipment,
net
|
350,980
|
|
231,795
|
|
36,374
|
Right-of-use assets,
net
|
879,348
|
|
678,769
|
|
106,514
|
Intangible assets,
net
|
28,420
|
|
16,639
|
|
2,611
|
Goodwill
|
1,533,485
|
|
43,011
|
|
6,749
|
Rental
deposit
|
61,170
|
|
35,920
|
|
5,637
|
Long-term prepaid
expenses
|
113,271
|
|
72,135
|
|
11,320
|
Amounts due from
related parties, non-current
|
297
|
|
498
|
|
78
|
Other assets,
non-current
|
194,444
|
|
194,444
|
|
30,512
|
Total non-current
assets
|
3,170,993
|
|
1,295,442
|
|
203,284
|
TOTAL
ASSETS
|
3,938,130
|
|
1,873,015
|
|
293,916
|
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 December 31,
2021
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
borrowings
|
49,457
|
|
47,774
|
|
7,497
|
Long-term borrowings,
current portion
|
3,618
|
|
15,137
|
|
2,375
|
Note
payable
|
12,105
|
|
-
|
|
-
|
Accounts
payable
|
272,299
|
|
263,218
|
|
41,305
|
Accrued expenses and
other current liabilities
|
263,997
|
|
294,382
|
|
46,196
|
Amounts due to related
parties, current
|
92,737
|
|
34,660
|
|
5,440
|
Deferred workspace
membership fee
|
53,667
|
|
52,131
|
|
8,180
|
Contract
liabilities
|
14,833
|
|
23,913
|
|
3,752
|
Income taxes
payable
|
1,366
|
|
4,436
|
|
696
|
Deferred subsidy
income
|
9,562
|
|
8,108
|
|
1,272
|
Share-based
liabilities, current
|
-
|
|
2,571
|
|
403
|
Lease liabilities,
current
|
365,049
|
|
285,200
|
|
44,754
|
Total current
liabilities
|
1,138,690
|
|
1,031,530
|
|
161,870
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Long-term
borrowings
|
15,242
|
|
646
|
|
101
|
Refundable deposits
from members, non-current
|
16,477
|
|
21,766
|
|
3,416
|
Deferred tax
liabilities
|
1,543
|
|
362
|
|
57
|
Lease liabilities,
non-current
|
580,562
|
|
428,486
|
|
67,239
|
Warrant
liabilities
|
-
|
|
11,211
|
|
1,759
|
Share-based
liabilities, non-current
|
-
|
|
1,303
|
|
204
|
Total non-current
liabilities
|
613,824
|
|
463,774
|
|
72,776
|
TOTAL
LIABILITIES
|
1,752,514
|
|
1,495,304
|
|
234,646
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Class A ordinary
shares (20,000,000 and 20,000,000 authorized,
3,549,969 and 3,896,916 issued and outstanding as of December
31,
2020 and December 31, 2021, with par value of US$0.002 and
US$0.002, respectively(i))
|
49
|
|
54
|
|
8
|
Class B ordinary
shares (5,000,000 and 5,000,000 authorized,
472,622 and 472,622 issued and outstanding as of December 31,
2020 and December 31, 2021, with par value of US$0.002 and
US$0.002, respectively(i))
|
6
|
|
6
|
|
1
|
Additional paid-in
capital
|
4,230,656
|
|
4,566,956
|
|
716,655
|
Statutory
reserves
|
5,065
|
|
6,051
|
|
950
|
Accumulated
deficit
|
(2,240,205)
|
|
(4,237,604)
|
|
(664,973)
|
Accumulated other
comprehensive income
|
4,742
|
|
1,091
|
|
171
|
Total Ucommune
International Ltd.
shareholders' equity
|
2,000,313
|
|
336,554
|
|
52,812
|
Noncontrolling
interests
|
185,303
|
|
41,157
|
|
6,458
|
TOTAL
EQUITY
|
2,185,616
|
|
377,711
|
|
59,270
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
3,938,130
|
|
1,873,015
|
|
293,916
|
(i) The ordinary
shares are presented on a retroactive basis to reflect the
Company's Share Consolidation effected on April 21,
2022.
|
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
December 31,
|
|
For the Twelve
Months
Ended
December 31,
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Workspace membership
revenue
|
76,822
|
|
93,523
|
|
14,676
|
|
422,984
|
|
376,642
|
|
59,103
|
Marketing and branding
service revenue
|
110,104
|
|
124,663
|
|
19,562
|
|
317,461
|
|
463,475
|
|
72,729
|
Other service
revenue
|
91,735
|
|
84,795
|
|
13,306
|
|
136,692
|
|
217,391
|
|
34,113
|
Total
revenue
|
278,661
|
|
302,981
|
|
47,544
|
|
877,137
|
|
1,057,508
|
|
165,945
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Workspace
membership
|
(110,576)
|
|
(134,343)
|
|
(21,081)
|
|
(557,102)
|
|
(508,121)
|
|
(79,735)
|
Marketing and branding
service
|
(108,816)
|
|
(121,294)
|
|
(19,034)
|
|
(297,893)
|
|
(444,717)
|
|
(69,786)
|
Other
services
|
(65,852)
|
|
(75,202)
|
|
(11,801)
|
|
(113,074)
|
|
(181,222)
|
|
(28,438)
|
Total cost of
revenue
|
(285,244)
|
|
(330,839)
|
|
(51,916)
|
|
(968,069)
|
|
(1,134,060)
|
|
(177,959)
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Impairment loss on
long-lived assets and long-term
prepaid expenses
|
(3,048)
|
|
(30,596)
|
|
(4,801)
|
|
(36,505)
|
|
(114,485)
|
|
(17,965)
|
Impairment loss on
goodwill
|
-
|
|
(1,504,525)
|
|
(236,093)
|
|
-
|
|
(1,504,525)
|
|
(236,093)
|
Sales and marketing
expenses
|
(24,208)
|
|
(15,807)
|
|
(2,480)
|
|
(47,061)
|
|
(61,670)
|
|
(9,677)
|
General and
administrative expenses
|
(232,982)
|
|
(68,836)
|
|
(10,802)
|
|
(320,202)
|
|
(376,417)
|
|
(59,068)
|
Change in fair value of
warrant liability
|
-
|
|
4,936
|
|
775
|
|
-
|
|
6,837
|
|
1,073
|
Loss from
operations
|
(266,821)
|
|
(1,642,686)
|
|
(257,773)
|
|
(494,700)
|
|
(2,126,812)
|
|
(333,744)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(2,134)
|
|
(1,209)
|
|
(190)
|
|
(12,863)
|
|
(3,262)
|
|
(512)
|
Subsidy
income
|
1,225
|
|
2,741
|
|
430
|
|
13,931
|
|
7,352
|
|
1,154
|
Impairment loss on
long-term investments
|
(6,553)
|
|
(910)
|
|
(143)
|
|
(10,060)
|
|
(1,371)
|
|
(215)
|
Gain on disposal of
long-term investments
|
-
|
|
-
|
|
-
|
|
8,561
|
|
-
|
|
-
|
Loss on disposal of
subsidiaries
|
-
|
|
(1,199)
|
|
(188)
|
|
(39,703)
|
|
(14,978)
|
|
(2,350)
|
Other
(expense)/income, net
|
126,459
|
|
(51,315)
|
|
(8,052)
|
|
30,393
|
|
(19,260)
|
|
(3,022)
|
Loss before income
taxes and loss from equity
method investments
|
(147,824)
|
|
(1,694,578)
|
|
(265,916)
|
|
(504,441)
|
|
(2,158,331)
|
|
(338,689)
|
Provision for income
taxes
|
(534)
|
|
(3,031)
|
|
(476)
|
|
(2,864)
|
|
(4,479)
|
|
(703)
|
Loss from equity
method investments
|
(783)
|
|
-
|
|
-
|
|
(639)
|
|
(27)
|
|
(4)
|
Net
loss
|
(149,141)
|
|
(1,697,609)
|
|
(266,392)
|
|
(507,944)
|
|
(2,162,837)
|
|
(339,396)
|
Less: Net loss
attributable to noncontrolling interests
|
(3,955)
|
|
(169,633)
|
|
(26,619)
|
|
(19,452)
|
|
(166,424)
|
|
(26,116)
|
Net loss
attributable to Ucommune International
Ltd.
|
(145,186)
|
|
(1,527,976)
|
|
(239,773)
|
|
(488,492)
|
|
(1,996,413)
|
|
(313,280)
|
Net loss per share
attributable to ordinary shareholders
of Ucommune International Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
- Basic and
diluted(i)
|
(44.58)
|
|
(354.27)
|
|
(55.59)
|
|
(149.98)
|
|
(462.88)
|
|
(72.64)
|
Weighted average
shares used in calculating net loss per share
|
|
|
|
|
|
|
|
|
|
|
|
- Basic and
diluted(i)
|
3,257,088
|
|
4,313,064
|
|
4,313,064
|
|
3,257,088
|
|
4,313,064
|
|
4,313,064
|
(i) The ordinary
shares are presented on a retroactive basis to reflect the
Company's Share Consolidation effected on April 21,
2022.
|
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
December 31,
|
|
For the Twelve
Months
Ended
December 31,
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
(149,141)
|
|
(1,697,609)
|
|
(266,392)
|
|
(507,944)
|
|
(2,162,837)
|
|
(339,396)
|
Other comprehensive
loss, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
4,729
|
|
(3,260)
|
|
(512)
|
|
5,768
|
|
(3,651)
|
|
(573)
|
Total
Comprehensive loss
|
(144,412)
|
|
(1,700,869)
|
|
(266,904)
|
|
(502,176)
|
|
(2,166,488)
|
|
(339,969)
|
Less: Comprehensive
loss attributable to
noncontrolling interest
|
(3,856)
|
|
(169,633)
|
|
(26,619)
|
|
(19,352)
|
|
(166,424)
|
|
(26,116)
|
Comprehensive loss
attributable to
Ucommune International Ltd.'s
shareholders
|
(140,556)
|
|
(1,531,236)
|
|
(240,285)
|
|
(482,824)
|
|
(2,000,064)
|
|
(313,853)
|
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 Twelve
Months
Ended
December 31,
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
(149,141)
|
|
(1,697,609)
|
|
(266,392)
|
|
(507,944)
|
|
(2,162,837)
|
|
(339,396)
|
Interest expense,
net
|
2,134
|
|
1,209
|
|
190
|
|
12,863
|
|
3,262
|
|
512
|
Provision for income
taxes
|
534
|
|
3,031
|
|
476
|
|
2,864
|
|
4,479
|
|
703
|
Depreciation of
property and equipment
and amortization of intangible assets
|
51,639
|
|
19,573
|
|
3,071
|
|
87,555
|
|
81,851
|
|
12,844
|
EBITDA
(non-GAAP)
|
(94,834)
|
|
(1,673,796)
|
|
(262,655)
|
|
(404,662)
|
|
(2,073,245)
|
|
(325,337)
|
Share-based
compensation expense
|
202,333
|
|
9,333
|
|
1,465
|
|
202,333
|
|
249,317
|
|
39,123
|
Impairment loss on
long-lived assets and
long-term prepaid expenses
|
3,048
|
|
30,596
|
|
4,801
|
|
36,505
|
|
114,485
|
|
17,965
|
Impairment loss on
goodwill
|
-
|
|
1,504,525
|
|
236,093
|
|
-
|
|
1,504,525
|
|
236,093
|
Change in fair value
of warrant liability
|
-
|
|
(4,936)
|
|
(775)
|
|
-
|
|
(6,837)
|
|
(1,073)
|
Impairment loss on
long-term investments
|
6,553
|
|
910
|
|
143
|
|
10,060
|
|
1,371
|
|
215
|
Loss on disposal of
subsidiaries
|
-
|
|
1,199
|
|
188
|
|
39,703
|
|
14,978
|
|
2,350
|
Other
expense/(income), net
|
(126,459)
|
|
51,315
|
|
8,052
|
|
(30,393)
|
|
19,260
|
|
3,022
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(non-GAAP)
|
(9,359)
|
|
(80,854)
|
|
(12,688)
|
|
(146,454)
|
|
(176,146)
|
|
(27,642)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below sets
forth a reconciliation of net loss to adjusted net loss for the
periods indicated:
|
|
|
For the Three
Months Ended December
31,
|
|
For the Twelve
Months
Ended
December 31,
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
(149,141)
|
|
(1,697,609)
|
|
(266,392)
|
|
(507,944)
|
|
(2,162,837)
|
|
(339,396)
|
Share-based
compensation expense
|
202,333
|
|
9,333
|
|
1,465
|
|
202,333
|
|
249,317
|
|
39,123
|
Impairment loss on
long-lived assets and
long-term prepaid expenses
|
3,048
|
|
30,596
|
|
4,801
|
|
36,505
|
|
114,485
|
|
17,965
|
Impairment loss on
goodwill
|
-
|
|
1,504,525
|
|
236,093
|
|
-
|
|
1,504,525
|
|
236,093
|
Change in fair value
of warrant liability
|
-
|
|
(4,936)
|
|
(775)
|
|
-
|
|
(6,837)
|
|
(1,073)
|
Impairment loss on
long-term investments
|
6,553
|
|
910
|
|
143
|
|
10,060
|
|
1,371
|
|
215
|
Loss on disposal of
subsidiaries
|
-
|
|
1,199
|
|
188
|
|
39,703
|
|
14,978
|
|
2,350
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net loss
(non-GAAP)
|
62,793
|
|
(155,982)
|
|
(24,477)
|
|
(219,343)
|
|
(284,998)
|
|
(44,723)
|
View original
content:https://www.prnewswire.com/news-releases/ucommune-international-ltd-announces-unaudited-fourth-quarter-and-full-year-2021-financial-results-301543973.html
SOURCE Ucommune International Ltd.