By Muhammad Ali
5:59 AM UTC
Shares of the Ucommune International Ltd (UK) stock were popping high in the premarket trading session today on January 20, 2022. UK stock price saw a push of 20.53% to reach $0.88 a share at the time of this writing. The stock was gloomy in the previous trading session and went down by 6.40% at closing. Let’s understand the reason behind this rise.
UK stock has captivated the attention of investors in today’s premarket after experiencing a bearish trend in the last trade. This week is going well for UK stock as it gained nearly 16% in the last five days so far. We can attribute this rise to the recent announcement of a partnership with Nanchang Qinghu Industrial Park Management Company. Under this partnership agreement, Ucommune International will work along with Nanchang Qinghu to jointly develop the Nanchang Honggutan-Ucommune project. The project has a managed area of 56,990 square meters at Nanchang, Jiangxi. The agreement tells that the formal cooperation between both parties started on December 21, 2021, and will end on December 20, 2024.
Ucommune will take care of all the services related to Honggutan Digital Economy Industrial Park. The smart digital park will provide an industrial ecosystem, online infrastructure, and intelligent operation systems. Moreover, this park will provide premium office spaces to mid-to large-scale digital companies as well as new startups.
On December 28, 2021, the company announced that it has signed a cooperation agreement with Sanhe Metro Land Zhiyuan Real Estate Company Limited, which is a subsidiary of Metro Land Corporate Ltd. Both companies under this agreement will jointly develop the Zhuojun-Ucommune” project in Hebei, China. This project covers the 41,599-square-meter with a managed area of over 10,000-square-meters. The formal cooperation started on January 1, 2022, and will end on June 30, 2023.
In the third quarter of 2021, Ucommune international reported that it has generated RMB253.5 million in net revenues. This represents a 26.8% increase from the same period of the previous year.Net loss of the UK stock was RMB181.5 million, higher than RMB169.3 million in the same quarter of the previous year. Adjusted net loss in the last reported quarter RMB60.4 million, representing a significant decrease of 49.5% from the same quarter of last year. EBITDA loss of the company was RMB161.2 million and adjusted EBITDA loss was RMB40.4 million in the third quarter of 2021.