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Organizations and Principal Activities | 6 Months Ended | 12 Months Ended
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Jun. 30, 2021 | Dec. 31, 2020
Accounting Policies [Abstract] |  |
ORGANIZATIONS AND PRINCIPAL ACTIVITIES | 1. ORGINAZATIONS AND PRINCIPAL ACTIVITIES Ucommune Group Holdings Limited (“Ucommune Group”) was founded in 2018 and was incorporated in the Cayman Islands. On June 29, 2020, Orisun Acquistion Corp. (“Orisun”), a special purpose acquisition company (“SPAC”), entered into a share exchange agreement (the “Share Exchange Agreement”) with Ucommune Group. Pursuant to the Share Exchange Agreement, Ucommune International Ltd (“the Company”), which is a subsidiary wholly owned by Orisun, acquired all of the issued and outstanding ordinary shares of Ucommune Group from the shareholders of Ucommune Group by newly issuing ordinary shares of Orisun to the shareholders of Ucommune Group (“SPAC Transaction”). The SPAC Transaction was consummated on November 17, 2020. Ucommune Group’s shareholders remains the controlling financial interests of Ucommune Group after the SPAC Transaction, which was accounted for as a reverse recapitalization and fully described below. In connection with the closing of the SPAC Transaction, Orisun had been ceased and Ucommune International Ltd continued as the surviving company. Ucommune International Ltd, its consolidated subsidiaries, variable interest entities (“VIEs”) and VIEs’ subsidiaries (collectively referred to as the “Group”) is primarily engaged in providing long-term leasing, on-demand and short-term leasing solutions to freelancers, start-up entrepreneurs, small medium enterprises and corporations by delivering well-furnished and fully-serviced space on a flexible basis in the People’s Republic of China (“PRC”). The individuals and enterprises registered on U bazaar, a mobile app of the Group are referred to as members. (a) Reverse recapitalization On November 17, 2020, the Company consummated the SPAC Transaction pursuant to the Share Exchange Agreement, where the Company acquired 100% of the issued and outstanding ordinary shares of Ucommune Group in exchange for 70,000,000 ordinary shares of the newly issued to the Company. In connection with Ucommune Group’s indemnification obligations under the Share Exchange Agreement, 3,140,567 Ordinary Shares escrow shares (which will not be fully paid at issuance) will be issued to the escrow agent to hold in escrow for the escrow period to satisfy any potential claims against the current Ucommune Group shareholders brought pursuant to the Share Exchange Agreement. Ucommune Group was determined to be the accounting acquirer given Ucommune Group effectively controlled the combined entity after the SPAC Transaction. The transaction is not a business combination because the Company was not a business. The transaction is accounted for as a reverse recapitalization, which is equivalent to the issuance of shares by Ucommune Group for the net monetary assets of the Company, accompanied by a recapitalization. Ucommune Group is determined as the predecessor and the historical financial statements of Ucommune Group became the Company’s historical financial statements, with retrospective adjustments to give effect of the reverse recapitalization. The equity is restated using the exchange ratio of 0.4783 established in the reverse recapitalization transaction, which is 70,000,000 divided by 146,341,551 (131,312,984 ordinary shares and 15,028,567 ordinary shares to be issued for options granted by Ucommune Group), to reflect the equity structure of the Company. Loss (income) per share is retrospectively restated using the historical weighted-average number of ordinary shares outstanding multiplied by the exchange ratio. The par value of ordinary shares remained $0.0001, the subscription receivable was adjusted retrospectively from negative $12 to $nil, and the difference of $5 was adjusted retrospectively as in addition paid-in capital as of December 31, 2020. The consolidated statements of changes in equity for the six months ended June 30, 2020 were also adjusted retrospectively to reflect these changes. The weighted average number of ordinary shares outstanding used in computing net loss per ordinary share — basic and diluted was adjusted retrospectively from104,684,701 to 62,811,339 for the six months ended June 30, 2020. Upon the consummation of the SPAC Transaction, the net assets of the Company were USD 5,885 in cash which had been consolidated in the consolidated balance sheets. In addition, 4.0 million earnout shares (“Earnout Shares”) were granted to certain shareholders of Ucommune Group. The shareholders may be entitled to receive Earnout Shares as follows: (a) 2,000,000 Class A Ordinary Shares if (i) the volume weighted average price(“VWAP”)of the Company Class A Ordinary Shares equals or exceeds $16.50 (or any foreign currency equivalent) in any twenty trading days within a thirty trading day period before December 31, 2022 on any securities exchange or securities market on which the Company Ordinary Shares are then traded or (ii) the revenue of Ucommune Group exceeds RMB850,000,000 in the fiscal year of 2020 pursuant to the audited consolidated financial statements of Ucommune Group as of and for the fiscal year ended December 31, 2020; (b) 1,000,000 Class A Ordinary Shares if (i) the VWAP of the Company Class A Ordinary Shares equals or exceeds $22.75 (or any foreign currency equivalent) in any twenty trading days within a thirty trading day period before December 31, 2023 on any securities exchange or securities market on which the Company Ordinary Shares are then traded or (ii) the revenue of Ucommune Group exceeds RMB1,275,000,000 in the fiscal year of 2021 pursuant to the audited consolidated financial statements of Ucommune Group as of and for the fiscal year ended December 31, 2021; and (c) 1,000,000 Class A Ordinary Shares if (i) the VWAP of the Company Class A Ordinary Shares equals or exceeds $30.00 (or any foreign currency equivalent) in any twenty trading days within a thirty trading day period before December 31, 2024 on any securities exchange or securities market on which the Company Ordinary Shares are then traded or (ii) the revenue of Ucommune Group exceeds RMB1,912,000,000 in the fiscal year of 2022 pursuant to the audited consolidated financial statements of Ucommune Group as of and for the fiscal year ended December 31, 2022. (b) Reorganization Prior to the SPAC Transaction, Ucommune Group undertook a series of steps as follows to restructure its business (the “Reorganization”): Ucommune (Beijing) Venture Investment Co., Ltd. (“Ucommune Venture”) was established in April 2015, as a limited liability company in the PRC incorporated by Dr. Daqing Mao and other co-founders. After the incorporation, Ucommune Venture completed a series of financing by issuing equity interests with certain preferential rights to investors. During September 2018 to June 2019, Ucommune Venture undertook a series of reorganization transactions to re-domicile its business from the PRC to the Cayman Islands (the “Re-domiciliation”). The Re-domiciliation was executed in the following steps: (1) In September 2018, Ucommune Group was incorporated in the Cayman Islands to be the holding company of the Group. In December 2018, the Company established Ucommune Group Holdings (Hong Kong) Limited (“Ucommune HK”), a wholly owned subsidiary of the Company as an intermediate holding company. In January 2019, Ucommune HK established a wholly foreign owned enterprise, Ucommune (Beijing) Technology Co., Ltd. (“WFOE”), for the purpose of establishing a VIE structure as further described in 3) below. (2) In May and June 2019, Ucommune Group issued an aggregate of 90,646,360 ordinary shares to all Ucommune Venture’s then existing shareholders at par value, in the same proportions as the percentage of equity interest they held in Ucommune Venture. Upon the issuance of the ordinary shares, the equity structure of Ucommune Group is identical to that of Ucommune Venture. The preferential rights of Ucommune Venture’s equity interest holders were cancelled upon the issuance of ordinary shares by the Company, which was accounted for as a modification. (3) In May 2019, a series of VIE agreements were entered into between WFOE, Ucommune Venture and the shareholders of Ucommune Venture. Those arrangements effectively provided control over the operations of Ucommune Venture to WFOE. Upon the completion of step 2) and 3), the Re-domiciliation was completed. Prior to the Re-domiciliation, Ucommune Group and Ucommune Venture are under the same ownership. The Re-domiciliation was accounted for as a reorganization of entities under common ownership. As a result, the accompanying financial statements have been prepared on a combined basis using historical cost. (c) The VIE arrangements The Company operates substantially all of its business through its VIEs including Ucommune Venture and Beijing U Bazaar. On May 20, 2019, WFOE entered into a series of contractual arrangements with Ucommune Venture, Beijing U Bazaar, and the respective equity interest holders. The series of contractual agreements include exclusive business cooperation agreement, exclusive call option agreement, equity pledge agreement, powers of attorney and spousal consent letters. The Group believes that these contractual arrangements enable the Company to (1) have power to direct the activities that most significantly affects the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Company is considered the primary beneficiary of the VIEs and is able to consolidate the VIEs and VIEs’ subsidiaries. The Group’s business has been directly operated by the VIEs and their subsidiaries. As of December 31, 2020 and June 30 2021, the VIEs and their subsidiaries accounted for an aggregate of 88.5% and 89.6%, respectively, of the Group’s consolidated total assets, and 94.3% and 102.2% respectively of the Group’s consolidated total liabilities. The following financial information of the Company’s VIEs and VIEs’ subsidiaries after the elimination of inter-company transactions and balances as of December 31, 2020 and June 30, 2021 and for the six months ended June 30, 2020 and 2021 was included in the accompanying consolidated financial statements:
|  | As of December 31, 2020 |  | As of June 30, 2021
|  | RMB |  | RMB (unaudited) |  | USD (Note 2)
Cash and cash equivalents |  | 122,354 |  | 167,663 |  | 25,968
Other current assets |  | 376,221 |  | 333,209 |  | 51,608
Total current assets |  | 498,575 |  | 500,872 |  | 77,576
Property and equipment, net |  | 329,322 |  | 307,737 |  | 47,662
Right-of-use assets, net |  | 832,411 |  | 680,882 |  | 105,455
Goodwill |  | 1,440,769 |  | 1,440,769 |  | 223,147
Other non-current assets |  | 382,218 |  | 389,971 |  | 60,399
Total non-current assets |  | 2,984,720 |  | 2,819,359 |  | 436,663
TOTAL ASSETS |  | 3,483,295 |  | 3,320,231 |  | 514,239
Accounts payable |  | 267,558 |  | 228,507 |  | 35,391
Lease liabilities, current |  | 351,225 |  | 313,407 |  | 48,541
Other current liabilities |  | 447,621 |  | 556,494 |  | 86,189
Total current liabilities |  | 1,066,404 |  | 1,098,408 |  | 170,121
Lease liabilities, non-current |  | 553,034 |  | 430,507 |  | 66,677
Other non-current liabilities |  | 33,261 |  | 34,996 |  | 5,420
Total non-current liabilities |  | 586,295 |  | 465,503 |  | 72,097
Total liabilities |  | 1,652,699 |  | 1,563,911 |  | 242,218
|  | For the Six Months Ended June 30,
|  | 2020 |  | 2021 |  | 2021
|  | RMB |  | RMB |  | USD
Net revenues |  | 381,517 |  |  | 485,863 |  |  | 75,251 |
Net loss |  | (177,970 | ) |  | (129,256 | ) |  | (20,019 | )
Net cash (used in)/provided by operating activities |  | (11,763 | ) |  | 61,527 |  |  | 9,529 |
Net cash (used in)/provided by investing activities |  | (27,266 | ) |  | (5,145 | ) |  | (797 | )
Net cash provided by/(used in) financing activities |  | (25,923 | ) |  | 3,008 |  |  | 466 |
There are no consolidated VIEs’ assets that are collateral for the VIEs’ obligations. No creditors (or beneficial interest holders) of the VIEs have recourse to the general credit of the Company or any of its consolidated subsidiaries. No terms in any arrangements, considering both explicit arrangements and implicit variable interests, require the Company or its subsidiaries to provide financial support to the VIEs. However, if the VIEs ever need financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to the VIE through loans to the shareholders of the VIEs or entrustment loans to the VIEs. (d) Recent development Novel coronavirus (COVID-19) was first found in December of 2019 and spread rapidly around the world. To reduce the impacts of the pandemic, the governments of many countries implemented measures such as quarantines, travel restrictions, and the temporary restrictions of business activities. This has resulted in a material and negative effect on the economy and rental market in China and caused significant loss of our business, decrease in our occupancy rates. In subsequent to June 2021, the COVID-19 pandemic has been well controlled by Chinese government, economy and rental market are recovering gradually. The COVID-19 pandemic has created unique global and industry-wide challenges, including challenges to many aspects of our business. Substantially all of our revenues and workforce are concentrated in China. The extent to which COVID-19 impacts our financial position, results of operations and cash flows in 2021 will depend on the future developments of the outbreak, including new information concerning the global severity of and actions taken to contain the outbreak, which are highly uncertain and unpredictable. In addition, our financial position, results of operations and cash flows could be adversely affected to the extent that the outbreak harms the Chinese economy in general. | 1. ORGANIZATIONS AND PRINCIPAL ACTIVITIES Ucommune Group Holdings Limited (“Ucommune Group”) was founded in 2018 and was incorporated in the Cayman Islands. On June 29, 2020, Orisun Acquisition Corp (“Orisun”), a special purpose acquisition company (“SPAC”), entered into a share exchange agreement (the “Share Exchange Agreement”) with Ucommune Group. Pursuant to the Share Exchange Agreement, Ucommune International Ltd (“the Company”), which is a subsidiary wholly owned by Orisun, acquired all of the issued and outstanding ordinary shares of Ucommune Group from the shareholders of Ucommune Group by newly issuing ordinary shares of Orisun to the shareholders of Ucommune Group (“SPAC Transaction”). The SPAC Transaction was consummated on November 17, 2020. Ucommune Group’s shareholders remains the controlling financial interests of Ucommune Group after the SPAC Transaction, which was accounted for as a reverse recapitalization and fully described below. In connection with the closing of the SPAC Transaction, Orisun had been ceased and Ucommune International Ltd continued as the surviving company. Ucommune International Ltd, its consolidated subsidiaries, variable interest entities (“VIEs”) and VIEs’ subsidiaries (collectively referred to as the “Group”) is primarily engaged in providing long-term leasing, on-demand and short-term leasing solutions to freelancers, start-up entrepreneurs, small medium enterprises and corporations by delivering well-furnished and fully-serviced space on a flexible basis in the People’s Republic of China (“PRC”). The individuals and enterprises registered on U bazaar, a mobile app of the Group are referred to as members. a. Reverse recapitalization On November 17, 2020, the Company consummated the SPAC Transaction pursuant to the Share Exchange Agreement, where the Company acquired 100% of the issued and outstanding ordinary shares of Ucommune Group in exchange for 70,000,000 ordinary shares of the newly issued to the Company. In connection with Ucommune Group’s indemnification obligations under the Share Exchange Agreement, 3,140,567 Ordinary Shares escrow shares (which will not be fully paid at issuance) will be issued to the escrow agent to hold in escrow for the escrow period to satisfy any potential claims against the current Ucommune Group shareholders brought pursuant to the Share Exchange Agreement. Ucommune Group was determined to be the accounting acquirer given Ucommune Group effectively controlled the combined entity after the SPAC Transaction. The transaction is not a business combination because the Company was not a business. The transaction is accounted for as a reverse recapitalization, which is equivalent to the issuance of shares by Ucommune Group for the net monetary assets of the Company, accompanied by a recapitalization. Ucommune Group is determined as the predecessor and the historical financial statements of Ucommune Group became the Company’s historical financial statements, with retrospective adjustments to give effect of the reverse recapitalization. The equity is restated using the exchange ratio of 0.4783 established in the reverse recapitalization transaction, which is 70,000,000 divided by 146,341,551 (131,312,984 ordinary shares and 15,028,567 ordinary shares to be issued for options granted by Ucommune Group), to reflect the equity structure of the Company. Loss (income) per share is retrospectively restated using the historical weighted-average number of ordinary shares outstanding multiplied by the exchange ratio. The share and per share data is retrospectively restated using the exchange ratio in the share-based compensation footnote, see Note 20. The adjustments are also applied to income tax and parent only information, see Note 17 — income tax and Note 26 — condensed financial information of parent company where relevant, respectively. The par value of ordinary shares remained $0.0001, the subscription receivable was adjusted retrospectively from negative $12 to $nil, and the difference of $5 was adjusted retrospectively as in addition paid-in capital as of December 31, 2020. The consolidated statements of changes in equity for the years ended December 31, 2018 and 2019 were also adjusted retrospectively to reflect these changes. The weighted average number of ordinary shares outstanding used in computing net loss per ordinary share — basic and diluted was adjusted retrospectively from 131,312,984 to 70,000,000 for the years ended December 31, 2018 and 2019. The loss per share before and after the retrospective adjustments are as follows.
|  | Year Ended December 31,
|  | 2018 |  | 2019
|  | Before adjustment |  | After adjustment |  | Before adjustment |  | After adjustment
Net loss per share attributable to ordinary shareholders of Ucommune International Ltd. |  |  |  |  |  |  |  |  |  |  |  |
– Basic |  | (4.74 | ) |  | (9.91 | ) |  | (7.56 | ) |  | (15.80 | )
– Diluted |  | (4.74 | ) |  | (9.91 | ) |  | (7.56 | ) |  | (15.80 | )
Weighted average shares used in calculating net loss per share |  |  |  |  |  |  |  |  |  |  |  |
– Basic |  | 90,646,360 |  |  | 43,359,150 |  |  | 104,684,701 |  |  | 50,074,152 |
– Diluted |  | 90,646,360 |  |  | 43,359,150 |  |  | 104,684,701 |  |  | 50,074,152 |
Upon the consummation of the SPAC Transaction, the net assets of the Company were USD 5,885 in cash which had been consolidated in the consolidated balance sheets. In addition, 4.0 million earnout shares (“Earnout Shares”) were granted to certain shareholders of Ucommune Group. The shareholders may be entitled to receive Earnout Shares as follows: (a) 2,000,000 Class A Ordinary Shares if (i) the volume weighted average price(“VWAP”)of the Company Class A Ordinary Shares equals or exceeds $16.50 (or any foreign currency equivalent) in any twenty trading days within a thirty trading day period before December 31, 2022 on any securities exchange or securities market on which the Company Ordinary Shares are then traded or (ii) the revenue of Ucommune Group exceeds RMB850,000,000 in the fiscal year of 2020 pursuant to the audited consolidated financial statements of Ucommune Group as of and for the fiscal year ended December 31, 2020; (b) 1,000,000 Class A Ordinary Shares if (i) the VWAP of the Company Class A Ordinary Shares equals or exceeds $22.75 (or any foreign currency equivalent) in any twenty trading days within a thirty trading day period before December 31, 2023 on any securities exchange or securities market on which the Company Ordinary Shares are then traded or (ii) the revenue of Ucommune Group exceeds RMB1,275,000,000 in the fiscal year of 2021 pursuant to the audited consolidated financial statements of Ucommune Group as of and for the fiscal year ended December 31, 2021; and (c) 1,000,000 Class A Ordinary Shares if (i) the VWAP of the Company Class A Ordinary Shares equals or exceeds $30.00 (or any foreign currency equivalent) in any twenty trading days within a thirty trading day period before December 31, 2024 on any securities exchange or securities market on which the Company Ordinary Shares are then traded or (ii) the revenue of Ucommune Group exceeds RMB1,912,000,000 in the fiscal year of 2022 pursuant to the audited consolidated financial statements of Ucommune Group as of and for the fiscal year ended December 31, 2022. b. Reorganization Prior to the SPAC Transaction, Ucommune Group undertook a series of steps as follows to restructure its business (the “Reorganization”): Ucommune (Beijing) Venture Investment Co., Ltd. (“Ucommune Venture”) was established in April 2015, as a limited liability company in the PRC incorporated by Dr. Daqing Mao and other co-founders. After the incorporation, Ucommune Venture completed a series of financing by issuing equity interests with certain preferential rights to investors. During September 2018 to June 2019, Ucommune Venture undertook a series of reorganization transactions to re-domicile its business from the PRC to the Cayman Islands (the “Re-domiciliation”). The Re-domiciliation was executed in the following steps: 1) In September 2018, Ucommune Group was incorporated in the Cayman Islands to be the holding company of the Group. In December 2018, the Company established Ucommune Group Holdings (Hong Kong) Limited (“Ucommune HK”), a wholly owned subsidiary of the Company as an intermediate holding company. In January 2019, Ucommune HK established a wholly foreign owned enterprise, Ucommune (Beijing) Technology Co., Ltd. (“WFOE”), for the purpose of establishing a VIE structure as further described in 3) below. 2) In May and June 2019, Ucommune Group issued an aggregate of 90,646,360 ordinary shares to all Ucommune Venture’s then existing shareholders at par value, in the same proportions as the percentage of equity interest they held in Ucommune Venture. Upon the issuance of the ordinary shares, the equity structure of Ucommune Group is identical to that of Ucommune Venture. The preferential rights of Ucommune Venture’s equity interest holders were cancelled upon the issuance of ordinary shares by the Company, which was accounted for as a modification. 3) In May 2019, a series of VIE agreements were entered into between WFOE, Ucommune Venture and the shareholders of Ucommune Venture. Those arrangements effectively provided control over the operations of Ucommune Venture to WFOE. Upon the completion of step 2) and 3), the Re-domiciliation was completed. Prior to the Re-domiciliation, Ucommune Group and Ucommune Venture are under the same ownership. The Re-domiciliation was accounted for as a reorganization of entities under common ownership. As a result, the accompanying financial statements have been prepared on a combined basis using historical cost. As of December 31, 2020, the Company’s major subsidiaries, its VIEs and the VIEs’ major subsidiaries were as follow:
Name |  | Later of date of establishment or acquisition |  | Place of establishment |  | Percentage of legal ownership of the Company |  | Principal activities
Major Subsidiaries of the Company: |  |  |  |  |  |  |  |
Ucommune Group Holdings Limited |  | September 21, 2018 |  | Cayman |  | 100% |  | Investment holding
Ucommune Group Holdings (Hong Kong) Limited (“Ucommune HK”) |  | December 7, 2018 |  | Hong Kong |  | 100% |  | Shared workspace
Ucommune (Beijing) Information Technology Co., Ltd (“WFOE”) |  | January 3, 2019 |  | PRC |  | 100% |  | Technology and internet service
Melo, Inc. |  | May 15, 2019 |  | Delaware |  | 100% |  | Technology Innovation
Melo Hongkong Limited |  | May 15, 2019 |  | Hong Kong |  | 100% |  | Technology Innovation
Beijing Melo Technology Co. Ltd |  | May 15, 2019 |  | PRC |  | 100% |  | Technology Innovation
Name |  | Later of date of establishment or acquisition |  | Place of establishment |  | Percentage of legal ownership of the Company |  | Principal activities
VIEs: |  |  |  |  |  |  |  |
Ucommune (Beijing) Venture Investment Co., Ltd (“Ucommune Investment”) |  | April 3, 2015 |  | PRC |  | Nil |  | Shared workspace
Beijing Youxianji Technology Co., Ltd (“Youxianji”) |  | August 29, 2018 |  | PRC |  | Nil |  | Technology and internet service
Beijing Weixue Tianxia Educational Technology Co. Ltd |  | May 15, 2019 |  | PRC |  | Nil |  | Technology Innovation
Major VIEs’ subsidiaries: |  |  |  |  |  |  |  |
Beijing Sunshine 100 Ucommune Venture Investment Co., Ltd. |  | May 18, 2015 |  | PRC |  | Nil |  | Shared workspace
Beijing Pengda Ucommune Venture Investment Co., Ltd. |  | July 31, 2015 |  | PRC |  | Nil |  | Shared workspace
Shanghai Ucommune Venture Investment Co., Ltd. |  | October 30, 2015 |  | PRC |  | Nil |  | Shared workspace
Beijing Weituo Ucommune Venture Investment Co., Ltd. |  | January 04, 2016 |  | PRC |  | Nil |  | Shared workspace
Beijing Hongkun Enterprise Management Consulting Co., Ltd. |  | May 16, 2016 |  | PRC |  | Nil |  | Shared workspace
Beijing Jingchao Ucommune Technology Services Co., Ltd. |  | September 19, 2016 |  | PRC |  | Nil |  | Shared workspace
Beijing Dongke Ucommune Technology Service Co., Ltd. |  | July 06, 2017 |  | PRC |  | Nil |  | Shared workspace
Hongtai Innovation Space (Beijing) Venture Investment Co., Ltd. (“Hongtai Space”) |  | December 05, 2017 |  | PRC |  | Nil |  | Shared workspace
Hongkunyouxiang (Beijing)Technology Co., Ltd. |  | December 06, 2017 |  | PRC |  | Nil |  | Shared workspace
Shenzhen Weido Union Technology Co., Ltd. and Subsidiaries (“Shenzhen Weido”) |  | June 01, 2018 |  | PRC |  | Nil |  | Shared workspace
Hezuogongchuang (Beijing) Office Services Co., Ltd. and its Subsidiaries (“Wujie Space”) |  | June 01, 2018 |  | PRC |  | Nil |  | Shared workspace
Beijing Dongyi Yuanda Architectural Decoration Engineering Co., Ltd. (“Dongyi Yuanda”) |  | July 01,2018 |  | PRC |  | Nil |  | Construction
Beijing Daguan Architectural Design Consulting Co., Ltd. and Subsidiary (“Daguan”) |  | July 01,2018 |  | PRC |  | Nil |  | Interior design
Zhuhai Shengguang Zhongshuo Digital Marketing Co., Ltd. (“Shengguang Zhongshuo”) |  | December 20, 2018 |  | PRC |  | Nil |  | Marketing service
Beijing Xiyu Information Technology Co., Ltd. |  | March 20, 2017 |  | PRC |  | Nil |  | SaaS services and IOT solutions
c. The VIE arrangements The Company operates substantially all of its business through its VIEs including Ucommune Venture and Beijing U Bazaar. On May 20, 2019, WFOE entered into a series of contractual arrangements with Ucommune Venture, Beijing U Bazaar, and the respective equity interest holders. The series of contractual agreements include exclusive business cooperation agreement, exclusive call option agreement, equity pledge agreement, powers of attorney and spousal consent letters. The Group believes that these contractual arrangements enable the Company to (1) have power to direct the activities that most significantly affects the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Company is considered the primary beneficiary of the VIEs and is able to consolidate the VIEs and VIEs’ subsidiaries. Details of the contractual agreements are set forth below. • Agreements that transfer economic benefits to the Group: Exclusive Business Cooperation Agreement Pursuant to the exclusive business cooperation agreement between WFOE and the VIEs, WFOE has the exclusive right to provide or designate any third-party to provide, among other things, leasing solution, permission of intellectual property rights, technological support and business support to the VIEs and their subsidiaries. In exchange, the VIEs and their subsidiaries pay service fees to WFOE in an amount determined by WFOE in its sole discretion. Without the prior written consent of WFOE, the VIEs and their subsidiaries cannot accept services provided by or establish similar cooperation relationship with any third-party. WFOE owns the exclusive intellectual property rights created as a result of the performance of this agreement unless otherwise provided by PRC laws or regulations. The agreement will be effective upon signing by both parties until WFOE signs a separate agreement to acquire the whole equity of the VIEs. Unless otherwise required by applicable PRC laws, the VIEs and their shareholders do not have any right to terminate the agreement. • Agreements that provide the Company effective control over VIEs: Equity Pledge Agreement Under the equity interest pledge agreement among WFOE, the VIEs and their shareholders, the VIEs’ shareholders pledged all of their equity interests of the VIEs to WFOE as security for performance of the obligations of the VIEs and its shareholders under the exclusive call option agreement, the exclusive business cooperation agreement and the powers of attorney. If any of the specified events of default occurs, WFOE may exercise the right to enforce the pledge immediately. WFOE may transfer all or any of its rights and obligations under the equity interest pledge agreement to its designee(s) at any time. The agreement will remain in effect until the fulfillment of all the obligations under the exclusive call option agreement, the exclusive business cooperation agreement and the powers of attorney. Exclusive Call Option Agreement Under the exclusive call option agreement among WFOE, the VIEs and their shareholders, each of the shareholders of the VIEs irrevocably granted WFOE a right to purchase, or designate a third-party to purchase, all or any part of their equity interests in the VIEs at a purchase price equal to the lowest price permissible by the then-applicable PRC laws and regulations at WFOE’s sole and absolute discretion to the extent permitted by PRC law. The shareholders of the VIEs shall promptly give all considerations they received from the exercise of the options to WFOE or its designee(s). The VIEs and their shareholders covenant that, without WFOE’s prior written consent, they will not, among other things, (i) sell, transfer, create any pledge or otherwise dispose of their equity interests in the VIEs or create any pledge or encumbrance on their equity interests in the VIEs; (ii) vote for shareholders’ resolution regarding sell, transfer, create any pledge or otherwise dispose of their equity interests in the VIEs; (iii) change the VIEs’ registered capital; (iv) amend the VIEs’ articles of association; (v) cause the VIEs to enter into any major contracts or terminate any material contracts to which the VIEs is a party; (vi) declare or distribute dividends; (vii) terminate, liquidate or dissolve the VIEs; or (viii) allow the VIEs to incur, inherit, guarantee or permit any debts, except for those payables incurred in the ordinary or usual course of business but not incurred by way of borrowing. The agreement will remain effective until terminated by WFOE at its discretion or the entire equity interests in the VIEs have been transferred to WFOE or its designee(s). Powers of Attorney Pursuant to the powers of attorney executed by the VIEs’ shareholders, each of them irrevocably authorized WFOE or its designee(s) to act on their respective behalf as exclusive agent and attorney, to the extent permitted by law, with respect to all rights of shareholders concerning all the equity interest held by each of them in the VIEs, including but not limited to proposing to convene or attend shareholder meetings, signing the resolutions and minutes of such meetings, exercising all the rights as shareholders (including but not limited to voting rights, nomination rights, appointment rights, the right to receive dividends and the right to sell, transfer, pledge or dispose of all the equity held in part or in whole). Spousal Consent Letters Pursuant to the spousal consent letters executed by the spouses of relevant individual shareholders of the VIEs, the signing spouses unconditionally and irrevocably agreed that the equity interest in the VIEs held by and registered in the name of their spouses be disposed of in accordance with the exclusive call option agreement, the exclusive business cooperation agreement, the equity interest pledge agreement and the powers of attorney described above, and that their spouses may perform, amend or terminate such agreements without their additional consent. Additionally, the signing spouses agreed not to assert any rights over the equity interest in the VIEs held by their spouses. In addition, in the event that the signing spouses obtain any equity interests in the VIEs held by their spouses for any reason, they agree to be bound by and sign any legal documents substantially similar to the contractual arrangements described above, as may be amended from time to time. Risks in relation to VIE structure The Company believes that the contractual arrangements with VIEs and their shareholders are in compliance with existing PRC laws and regulations and are legally enforceable. However, the contractual arrangements are subject to risks and uncertainties, including: — VIEs and their shareholders may have or develop interests that conflict with the Group’s interests, which may lead them to pursue opportunities in violation of the aforementioned contractual agreements. If the Group cannot resolve any conflicts of interest or disputes between the Group and the shareholders of VIEs, the Group would have to rely on legal proceedings, which could result in disruption of its business, and there is substantial uncertainty as to the outcome of any such legal proceedings. — VIEs and their shareholders could fail to obtain proper operating licenses or fail to comply with other regulatory requirements. As a result, the PRC government could impose fines, new requirements or other penalties on the VIE or the Group, mandate a change in ownership structure or operations for the VIEs or the Group, restrict the VIEs or the Group’s use of financing sources or otherwise restrict the VIEs or the Group’s ability to conduct business. — The PRC government may declare the aforementioned contractual arrangements invalid. They may modify the relevant regulations, have a different interpretation of such regulations, or otherwise determine that the Group or the VIEs have failed to comply with the legal obligations required to effectuate such contractual arrangements. — If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government may restrict or prohibit the Group’s business and operations in China. The Group’s ability to conduct its business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Group may not be able to consolidate VIEs and their subsidiaries in the combined and consolidated financial statements as the Group may lose the ability to exert effective control over VIEs and their shareholders, and the Group may lose the ability to receive economic benefits from VIEs. The Group’s business has been directly operated by the VIEs and their subsidiaries. As of December 31, 2019, and 2020, the VIEs and their subsidiaries accounted for an aggregate of 95.6% and 88.5%, respectively, of the Group’s consolidated total assets, and 92.7% and 94.3% respectively of the Group’s consolidated total liabilities. The following financial information of the Company’s VIEs and VIEs’ subsidiaries after the elimination of inter-company transactions and balances as of December 31, 2019 and 2020 and for the years ended December 31, 2018, 2019 and 2020 was included in the accompanying consolidated financial statements:
|  | As of December 31,
|  | 2019 |  | 2020
|  | RMB |  | RMB |  | USD
Cash and cash equivalents |  | 169,530 |  | 122,354 |  | 18,752
Held-for-sale asset, current |  | 356,233 |  | — |  | —
Other current assets |  | 362,155 |  | 376,221 |  | 57,658
Total current assets |  | 887,918 |  | 498,575 |  | 76,410
Property and equipment, net |  | 538,514 |  | 329,322 |  | 50,471
Right-of-use assets, net |  | 1,778,734 |  | 832,411 |  | 127,573
Goodwill |  | 1,440,769 |  | 1,440,769 |  | 220,808
Other non-current assets |  | 272,772 |  | 382,218 |  | 58,577
Total non-current assets |  | 4,030,789 |  | 2,984,720 |  | 457,429
TOTAL ASSETS |  | 4,918,707 |  | 3,483,295 |  | 533,839
Accounts payable |  | 317,816 |  | 267,558 |  | 41,005
Lease liabilities, current |  | 557,647 |  | 351,225 |  | 53,828
Other current liabilities |  | 574,779 |  | 447,621 |  | 68,600
Total current liabilities |  | 1,450,242 |  | 1,066,404 |  | 163,433
Lease liabilities, non-current |  | 1,345,623 |  | 553,034 |  | 84,756
Other non-current liabilities |  | 21,735 |  | 33,261 |  | 5,097
Total non-current liabilities |  | 1,367,358 |  | 586,295 |  | 89,853
Total liabilities |  | 2,817,600 |  | 1,652,699 |  | 253,286
|  | For the Years Ended December 31,
|  | 2018 |  | 2019 |  | 2020 |  | 2020
|  | RMB |  | RMB |  | RMB |  | USD
Net revenues |  | 448,508 |  |  | 1,147,942 |  |  | 846,298 |  |  | 129,701 |
Net loss |  | (445,155 | ) |  | (736,149 | ) |  | (396,494 | ) |  | (60,765 | )
Net cash (used in)/provided by operating activities |  | (52,071 | ) |  | (164,856 | ) |  | 8,435 |  |  | 1,293 |
Net cash (used in)/provided by investing activities |  | (29,685 | ) |  | 36,329 |  |  | (41,915 | ) |  | (6,424 | )
Net cash provided by/(used in) financing activities(1) |  | 189,862 |  |  | 13,538 |  |  | (34,223 | ) |  | (5,245 | )
(1) With respect to the cash flows of the Company’s VIEs and VIEs’ subsidiaries after the elimination of inter-company transactions for the years ended December 31, 2018 and 2019, the Company disclosed the net cash provided by financing activities was RMB 189,682 and RMB 13,358, respectively. The Company noted there were typos and the correct amount should be RMB 189,862 and RMB 13, 538 for the two years, respectively. The Group analysed the misstatement of these disclosure on quantitative impact and qualitative impact, and concluded that the impact of above difference was not material in both quantitative view and qualitative view. Therefore, no restatement on the previously issued financial statement is necessary. However, the Company revised the comparable financial statement disclosure for the years ended December 31, 2018 and 2019 in this registration statement for the comparable purpose. There are no combined and consolidated VIEs’ assets that are collateral for the VIEs’ obligations. No creditors (or beneficial interest holders) of the VIEs have recourse to the general credit of the Company or any of its combined and consolidated subsidiaries. No terms in any arrangements, considering both explicit arrangements and implicit variable interests, require the Company or its subsidiaries to provide financial support to the VIEs. However, if the VIEs ever need financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to the VIE through loans to the shareholders of the VIEs or entrustment loans to the VIEs. d. Recent development Novel coronavirus (COVID-19) was first found in December of 2019. Subsequently, COVID-l9 spread rapidly around the world. To reduce the impacts of the pandemic, the governments of many countries implemented measures such as quarantines, travel restrictions, and the temporary restrictions of business activities. This has resulted in a material and negative effect on the economy and rental market in China and caused significant loss of our business, decrease in our occupancy rates, particularly in the quarters ended March 31, 2020 and June 30, 2020, which in turn resulted in a decrease in our revenue. The COVID-19 pandemic has created unique global and industry-wide challenges, including challenges to many aspects of our business. Substantially all of our revenues and workforce are concentrated in China. The extent to which COVID-19 impacts our financial position, results of operations and cash flows in 2021 will depend on the future developments of the outbreak, including new information concerning the global severity of and actions taken to contain the outbreak, which are highly uncertain and unpredictable. In addition, our financial position, results of operations and cash flows could be adversely affected to the extent that the outbreak harms the Chinese economy in general.

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