Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

Equity Analyst

Ucommune Group, WeWork’s Chinese Counterpart: Profitability Is a Distant Dream

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

Ucommune Group Holdings Ltd / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ucommune-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:775:1" rel="noopener">Ucommune Group (UK US)</a> is China’s leading co-working community operator and had 197 co-working spaces across 41 cities in Greater China and Singapore as of September 2019. Its co-working space network covers economically vibrant regions, including tier-1 and new tier-1 cities in China. More than 50% of the spaces are located in Beijing, Shanghai, and Shenzhen.</li>
<li>Currently, its co-working space service business mainly operates under two business models: the self-operated model and the asset light model, which manage 469,900 and 138,700 Sqm respectively.</li>
<li>Just months after US rival <a href="https://www.smartkarma.com/entities/we-co" target="_blank" data-smartkarma-citation="entities:28061:1" rel="noopener">The We Company (WeWork) (WE US)</a> shelved its IPO, Ucommune Group filed for an IPO to list its ADSs on the New York Stock Exchange. The IPO is expected to raise approximately $100m. The filings with the U.S Security and Exchange commission are still preliminary and therefore, additional details regarding the deal have not made public.</li>
<li>It is important to note that immediately prior to the completion of the public offering, the company’s share capital will be re-assigned into Class A and Class B ordinary shares. Class A ordinary shares are entitled to one vote per share, while Class B Shares are entitled to 15 votes. All Class B Shares will be owned by Dr Daqing Mao (Founder, Chairman of the Board of Directors and Chief Executive Officer). Dr Daqing Mao currently owns 35.27% of the share capital, and given the preferential voting rights, we expect him to essentially maintain control of everything after the IPO.</li>
</ul><h2>Use of Proceeds</h2><ul>
<li>To expand the company’s spaces and services offerings.                                                      </li>
<li>To strengthen its technologies.</li>
<li>To invest in working capital and other general corporate purposes.</li>
</ul>



Ucommune Group (UK US) is China’s leading co-working community operator and had 197 co-working spaces across 41 cities in Greater China and Singapore as of September 2019. Its co-working space network covers economically vibrant regions, including tier-1 and new tier-1 cities in China. More than 50% of the spaces are located in Beijing, Shanghai, and Shenzhen.
Currently, its co-working space service business mainly operates under two business models: the self-operated model and the asset light model, which manage 469,900 and 138,700 Sqm respectively.
Just months after US rival The We Company (WeWork) (WE US) shelved its IPO, Ucommune Group filed for an IPO to list its ADSs on the New York Stock Exchange. The IPO is expected to raise approximately $100m. The filings with the U.S Security and Exchange commission are still preliminary and therefore, additional details regarding the deal have not made public.
It is important to note that immediately prior to the completion of the public offering, the company’s share capital will be re-assigned into Class A and Class B ordinary shares. Class A ordinary shares are entitled to one vote per share, while Class B Shares are entitled to 15 votes. All Class B Shares will be owned by Dr Daqing Mao (Founder, Chairman of the Board of Directors and Chief Executive Officer). Dr Daqing Mao currently owns 35.27% of the share capital, and given the preferential voting rights, we expect him to essentially maintain control of everything after the IPO.
Use of Proceeds
To expand the company’s spaces and services offerings.                                                      
To strengthen its technologies.
To invest in working capital and other general corporate purposes.


Ucommune Group IPO: WeWork’s Chinese Counterpart Another Disaster Waiting to Happen