Ucommune's Wuhan Project Achieves 86.59% Occupancy Rate in Just 5 Months via Asset-light Model
Ucommune International Ltd. (NASDAQ: UK) reported a rapid growth in occupancy at its Wuhan Lingjiaohu Yihao project, reaching 86.59% within 5 months since its launch. Over 40 companies, primarily in technology and Internet sectors, have occupied the office spaces, which total 4,860m² and accommodate nearly 800 professionals. This project, developed with Yuzhou Group, highlights Ucommune's effective asset-light model, which has doubled revenue and geographical reach in 2020. Plans are underway for expansion across all 34 provinces in China by year-end.
- Achieved 86.59% occupancy in just 5 months for the Wuhan project.
- Over 40 companies have relocated to the office spaces, indicating strong demand.
- Partnership with Yuzhou Group enhances operational efficiency and asset utilization.
- Revenue and geographical coverage from asset-light model doubled in 2020.
- None.
BEIJING, May 06, 2021 /PRNewswire/ -- Ucommune International Ltd. (NASDAQ: UK) ("Ucommune" or the "Company"), a leading agile office space manager and provider in China, today announced that it has leveraged its asset-light model to increase the occupancy rate of its Wuhan Lingjiaohu Yihao project (the "Project") to
Jointly operated by Ucommune and Yuzhou Group (HKSE: 01628), the Project is located in Yuyueli, which is at the core of Hanjiang area in Wuhan, the largest city in Hubei Province and the most populous city in Central China. With 4,860m² of office space and capacity for nearly 800 professionals, the Project's premium working spaces and services have been highly attractive to those companies affected by the pandemic. Project tenants currently comprise more than 20 companies in the technology and Internet industries, including Julive, Guazi, Liutiaoyu, and Zancheng, while the remaining companies are start-ups in industries such as media, tourism, and education.
Ucommune has partnered with Yuzhou Group under its U Partner asset-light model. As part of this model, Yuzhou Group, the property owner, offers Ucommune the right to use its office spaces, while Ucommune operates and manages the office spaces under its brand. Benefitting from the Company's robust promotional capabilities and agile office space management, Yuzhou Group has enjoyed more business activity through this cooperation while its property's asset utilization rates and asset value have also increased.
The general manager of Yuzhou Group's operations in Wuhan commented, "We decided to partner with Ucommune based on its proven workspace solutions, operational efficiency, and significant brand influence. Through both parties' joint efforts, we have not only accelerated the recovery of our underlying business, but also helped to revitalize business operations in Wuhan. As more new businesses move into our office spaces, Wuhan's Yuyueli will experience a flywheel effect, leading to more new customers with higher consumption power and more new merchant services for existing businesses."
Dr. Daqing Mao, Founder of Ucommune, commented, "Our partnership with Yuzhou Group is another successful use case for our asset-light model. Moreover, the Project's healthy tenant mix further illustrates the increasing adoption of co-working spaces by companies at each stage of growth. Our ability to upgrade asset utilization rates and asset values through this model has resulted in a compelling value proposition for property owners. In 2020, for example, our asset-light model revenue and geographical coverage doubled. Looking ahead, we plan to expand this model into all 34 provinces in China by the end of 2021."
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.
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.
For investor and media inquiries, please contact:
Ucommune International Ltd.
ir@ucommune.com
ICR, LLC.
Sharon Zhou
ucommune@icrinc.com
+1 (212) 537-3847
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SOURCE Ucommune International Ltd.
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