Founded in 2015, the Beijing-based Ucommune (优客工场) is a co-working space provider that creates a large-scale intelligent agile office ecosystem in China. Recently, the company released its second annual report, with net loss reaching CNY 2.163 billion.
In 2021, Ucommune experienced jaw-dropping losses in its operating and net revenue, which were the largest loss in the past four years. The company aims to provide flexible and cost-efficient office space services while operating models such as U Space, U Studio, and U Design, as well as asset-light models like U Brand and U Partner.
Since 2021, the company has shifted its focus on asset-light model with a number of partners to develop relevant projects and further expand the closed-loop ecology.
The primary reasons for the revenue loss were due to the high operating costs. The company disclosed that the operating costs overshadow operating revenues, which generated negative gross profit. This situation has been long-standing for the past four years. From 2019 to 2021, Ucommune all had negative gross profit, respectively.
In 2021, Ucommune experienced the highest revenue loss because of the COVID-19 pandemic. Standing as a niche market, co-working space industry requires high efficiency and level of engagement in redefining commercial real estate in China.
The Founder and Chairman of Ucommune also explained the significance of increasingly support the operation and management of industrial parks that contribute to value growth in the real estate industry. The company is expecting to manage their costs going forward so that it can shorten the path to profitability.