Q&K International Group Limited (NASDAQ: QK) (“Q&K” or the
“Company”), a leading technology-driven long-term apartment rental
platform in China, today announced its unaudited financial results
for the six months ended March 31, 2020.
First Half of Fiscal Year 2020 Financial
Highlights
- Net revenues were
RMB627.1million (US$88.6 million), an increase of 6.5% from
RMB588.6 million in the same period of fiscal year 2019.
- Net loss
attributable to the Company was RMB416.8 million
(US$58.9 million), compared to RMB301.5 million in the same period
of fiscal year 2019.
- EBITDA1(Non-GAAP)
was negative RMB237.7 million (negative US$33.6 million), compared
to negative RMB151.9 million in the same period of fiscal year
2019.
- Adjusted
EBITDA1(Non-GAAP) was negative RMB72.4 million (US$10.2
million), a decrease of 22.4% from negative RMB93.3 million in the
same period of fiscal year 2019.
First Half of Fiscal Year 2020 Operational
Highlights
- Number of rental units contracted2 was 98,379
as of March 31, 2020, compared to 96,061 as of March 31,
2019.
- Number of available rental units3 was 96,378
as of March 31, 2020, compared to 91,640 as of March 31,
2019.
- Number of occupied rental units4 was 76,724 as
of March 31, 2020, compared to 86,042 as of March 31,
2019.
- Period-average occupancy rate5 was 87.7%,
compared to 90.9% in the same period of fiscal year
2019.
- Average month-end occupancy rate6 was 88.4%,
compared to 92.6% in the same period of fiscal year
2019.
- Rental spread margin before discount for rental
prepayment7 was 22.9%, compared to 25.7% in the same
period of fiscal year 2019.
- Rental spread margin after discount for rental
prepayment8 was 21.3%, compared to 20.6% in the same
period of fiscal year 2019.
Mr. Chengcai Qu, Chief Operating Officer of
Q&K, commented, “We are pleased that we achieved reasonable
growth during the first half of fiscal year 2020 while experiencing
challenges due to COVID-19 pandemic. During this period, we adopted
a defensive strategy after a prudent assessment of the broader
macroeconomic downturn by consolidating our internal resources,
further improving our operating efficiencies and focusing on asset
quality improvement rather than aggressive expansion. During the
period, our average month-end occupancy rate was 88.4%, compared to
92.6% in the same period of fiscal year 2019 mainly due to the
impact of COVID-19, while our rental spread margin after discount
for rental prepayments was 21.3%, increasing 70 basis
points from 20.6% in the same period of fiscal year 2019.
The COVID-19 pandemic presents a great challenge
to China’s apartment rental industry, however, the fundamental
drivers of its long-term growth remain intact. We continue to focus
on optimizing asset quality and streamlining our corporate
structure to weather the negative impact of the pandemic. Though
the pandemic impacted our revenue growth in the short term, we are
confident that the measures taken will have a positive effect on
the Company’s development in the long run."
First Half of Fiscal Year 2020 Financial
Results
Net revenues increased by 6.5%
to RMB627.1 million (US$88.6 million) from RMB588.6 million in the
same period of fiscal year 2019, due to the following reasons.
- Rental service revenues
increased by 5.8% to RMB555.7 million (US$78.5 million) from
RMB525.1 million in the same period of fiscal year 2019, driven by
an increase in leased-out rental unit nights, partially offset by a
decrease in average monthly rental after discount for rental
prepayment due to COVID-19 pandemic.
- Net revenues from value-added
services and others increased by 12.3% to RMB71.4 million (US$10.1
million) from RMB63.6 million in the same period of fiscal year
2019, primarily due to an increase of revenues from broadband
internet and utility service which is in line with the increase in
leased-out rental unit nights, partially offset by a decrease in
revenue from indemnity, which were the deposits forfeited or
compensation received from the tenants and landlords who terminated
their leases with us before expiration of the lock-in period.
Operating costs and expenses
increased by 32.5% to RMB1,079.8 million (US$152.5 million) from
RMB815.1 million in the same period of fiscal year 2019, primarily
due to an increase in impairment loss, operating cost and general
and administrative expenses, partially offset by a decrease in
selling and marketing expenses, pre-operation expenses and research
and development expenses.
- Operating cost increased by 7.9% to
RMB682.2 million (US$96.3 million) from RMB632.4 million in the
same period of fiscal year 2019, which was generally in line with
our revenue growth.
- Selling and marketing expenses
decreased by 27.8% to RMB40.5 million (US$5.7 million) from RMB56.0
million in the same period of fiscal year 2019, primarily due to
cost-saving efforts.
- General and administrative expenses
increased by 26.1% to RMB65.1 million (US$9.2 million) from RMB51.6
million in the same period of fiscal year 2019. The increase was
mainly attributable to an increase in expenses related to our
initial public offering and share-based compensation.
- Pre-operation expenses decreased by
55.0% to RMB12.7 million (US$1.8 million) from RMB28.3 million in
the same period of fiscal year 2019, primarily due to fewer new
rental units being developed in the first half of fiscal year 2020,
in contrast to the expansion in the same period of fiscal year
2019.
- Impairment loss was RMB250.0
million (US$35.3 million) compared to RMB20.6 million in the same
period of fiscal year 2019, primarily due to provisions provided
for the impact of the COVID-19 pandemic on our business.
Loss from operations was
RMB452.7 million (US$63.9 million) compared to RMB226.5 million in
the same period of fiscal year 2019, as a result of the foregoing
factors.
Interest expense, net increased
by 37.4% to RMB61.5 million (US$8.7 million), compared to RMB44.8
million in the same period of fiscal year 2019. This increase was
primarily attributable to the increased average balance of capital
leases and other financing and bank borrowings compared with the
same period of fiscal year 2019.
Fair value change of contingent earn-out
liabilities was gain of RMB97.4 million (US$13.8 million)
compared with loss of RMB29.8 million in the same period of fiscal
year 2019.
Loss before income taxes was
RMB416.8 million (US$58.9 million) compared to RMB301.5 million in
the same period of fiscal year
2019.
As of March 31, 2020, the Company had
cash and cash equivalents of RMB125.5 million
(US$17.7 million), and restricted cash of RMB8.9
million (US$1.3 million).
Recent Developments
On January 17, 2020, the Company entered into agreements with a
rental service company to acquire lease contracts with landlords
and tenants and related fixtures and equipment for approximately
47,000 rental units in Sichuan and Chongqing. Given the closing
conditions were not fulfilled by September 30, 2020, the management
is considering terminating this acquisition. As the acquisition was
not completed, the Company did not consolidate the entity related
to this acquisition in the condensed consolidated financial
statements as of March 31, 2020. As of date of the press release,
the result and impact on the Company’s financial statements related
to the possible termination are subject to uncertainty and
potential adjustment.
On July 31, 2020, the Company issued series 1 and series 2
convertible notes in the aggregate principal amount of US$30.050
million at par (the “Notes”) and warrants to purchase 104,871 ADSs
(the “Warrants”) pursuant to convertible note and warrant purchase
agreements with certain investors dated July 22, 2020.
In addition, pursuant to agreements dated July 22, 2020 entered
into by the Company and a rental service company and its affiliates
(the “Transferor”) for the acquisition of certain lease contracts
and other related assets, the Company paid US$5.8 million to the
Transferor to settle the first installment of the consideration on
July 29, 2020, which was financed by the proceeds of the above
Notes issuance. The remaining consideration for the acquisition,
which consists of US$23.2 million in cash and 128.6 million class A
ordinary shares of the Company, subject to adjustments based on
terms and conditions set forth in the agreements, will be payable
in installments upon reaching certain milestones linked to the
transfer of lease contracts and other related assets.
Conference Call
Q&K’s management will hold an earnings
conference call at 7:30 AM on September 30, 2020, U.S. Eastern Time
(7:30 PM on the same day Beijing/Hong Kong Time).
Please register in advance of the conference
using the link provided below and dial in 10 minutes prior to the
call, using participant dial-in numbers, Direct Event passcode and
unique registrant ID which would be provided upon registering. You
will be automatically linked to the live call after completion of
this process, unless required to provide the conference ID below
due to regional restrictions.
PRE-REGISTER LINK:
http://apac.directeventreg.com/registration/event/9477087.CONFERENCE
ID: 9477087
A telephone replay of the call will be available after the
conclusion of the conference call through October 8, 2020.
International: |
61-2-8199-0299 |
United States: |
1-646-254-3697 |
Passcode: |
9477087 |
A live and archived webcast of the conference call will be
available on the Investor Relations section of Q&K’s website at
http://ir.qk365.com .
Currency Convenience Translation
This press release contains translations of
Renminbi amounts into U.S. dollars at specific rates solely for the
convenience of the reader. Unless otherwise noted, all translations
from Renminbi to U.S. dollars and from U.S. dollars to Renminbi
were made at a rate of RMB7.0808 to US$1.00, the noon buying rate
on March 31, 2020 set forth in the H.10 statistical release of the
U.S. Federal Reserve Board. We make no representation that the
Renminbi or U.S. dollar amounts referred to in this prospectus
could have been or could be converted into U.S. dollars or
Renminbi, as the case may be, at any particular rate or at all. The
PRC government restricts or prohibits the conversion of Renminbi
into foreign currency and foreign currency into Renminbi for
certain types of transactions.
Use of Non-GAAP Financial Measures
The Company uses EBITDA and adjusted EBITDA,
non-GAAP financial measures, as supplemental measures in evaluating
and assessing our operating results.
EBITDA represents the net loss before (i)
interest income (expense), net, (ii) income tax, and (iii)
depreciation and amortization. Adjusted EBITDA represents the net
loss before (i) interest income (expense), net, (ii) income tax,
(iii) depreciation and amortization, (iv) impairment loss, (v) fair
value change of contingent earn-out liabilities, and (vi)
share-based compensation.
The Company believes that EBITDA and adjusted
EBITDA help identify underlying trends in the Company’s business
that could otherwise be distorted by the effect of certain expenses
that the Company includes in net loss.
EBITDA and adjusted EBITDA should not be
considered in isolation or construed as alternatives to net loss or
any other measure of performance or as an indicator of our
operating performance. Investors are encouraged to review the
historical non-GAAP financial measures to the most directly
comparable GAAP measure. EBITDA and adjusted EBITDA presented here
may not be comparable to similarly titled measure presented by
other companies. In addition, EBITDA and adjusted EBITDA have
certain limitations as an analytical tool.
Safe Harbor Statement
This press release contains forward-looking
statements. These statements constitute “forward-looking”
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, and as defined in the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as “will,” “expects,”
“anticipates,” “future,” “intends,” “plans,” “believes,”
“estimates” and similar statements. Among other things, the
quotations from management in this press release and the Company
and its subsidiaries’ (collectively, the “Group”) operations and
business outlook contain forward-looking statements. Such
statements involve certain risks, uncertainties and other factors
that could cause actual results to differ materially from those in
the forward-looking statements. These risks and uncertainties
include, but are not limited to the following: the Group’s ability
to access financing on favorable terms in a timely manner and
maintain and expand its cooperation with financial institutions;
the Group’s ability to expand into new markets; the Group’s ability
to manage its growth; the Group’s ability to integrate strategic
investments, acquisitions and new business initiatives; the Group’s
ability to control the quality of its operations, including the
operation of the rental apartments managed by its own apartment
managers or by third-party contractors; the Group’s ability to
attract and retain tenants and landlords, including tenants and
landlords from its acquired lease contracts; the Group’s ability to
manage its brand and reputation; the Group’s goal and strategies;
the Group’s limited operating history; the Group’s ability to
achieve or maintain profitability or continue as a going concern in
the future; the Group’s ability to compete effectively; and
assumptions underlying or related to any of the foregoing. Further
information regarding these and other risks is included in the
Group’s filings with the U.S. Securities and Exchange Commission.
Except as required by law, the Group does not undertake any
obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise.
About Q&K
Q&K International Group Limited (NASDAQ: QK)
is a leading technology-driven long-term apartment rental platform
in China. The Company offers young, emerging urban residents
conveniently-located, ready-to-move-in, and affordable branded
apartments as well as facilitates a variety of value-added
services. Q&K signs long-term leases with individual landlords
in different locations in relatively inexpensive yet convenient
locations and manages them centrally, leveraging its advanced IT
and mobile technologies. Technology is the core of Q&K’s
business and is applied to every step of its operational process
from apartment sourcing, renovation, and tenant acquisition, to
property management. The focus on technology enables Q&K to
operate a large, dispersed, and fast-growing portfolio of
apartments with high operational efficiency and deliver a superior
user experience.
For investor and media inquiries, please
contact:
Q&K
E-mail: ir@qk365.com
Christensen
In China
Mr. Rene Vanguestaine
Phone: +86-10-5900-1548
E-mail: rvanguestaine@ChristensenIR.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com
---------
Q&K
INTERNATIONAL GROUP LIMITED UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS (Renminbi in
thousands, except for share and per share data, unless otherwise
stated) |
|
|
|
|
|
|
|
As of |
|
As of |
|
September 30, |
|
March 31, |
|
2019 |
|
2020 |
|
RMB |
|
RMB |
|
USD(‘000) |
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
159,799 |
|
125,481 |
|
17,721 |
Restricted cash |
91,015 |
|
8,884 |
|
1,255 |
Accounts receivable, net of allowance of nil as of September 30,
2019 and March 31, 2020 |
1,306 |
|
3,296 |
|
466 |
Amounts due from related parties |
5,587 |
|
929 |
|
131 |
Prepaid rent and deposit |
128,213 |
|
66,871 |
|
9,444 |
Advances to suppliers |
64,028 |
|
9,809 |
|
1,385 |
Other current assets |
146,559 |
|
352,535 |
|
49,787 |
|
|
|
|
|
|
Total current
assets |
596,507 |
|
567,805 |
|
80,189 |
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
Property and equipment, net |
1,185,311 |
|
917,589 |
|
129,588 |
Intangible assets, net |
1,248 |
|
926 |
|
131 |
Land use rights |
10,734 |
|
10,591 |
|
1,496 |
Other assets |
5,946 |
|
72,824 |
|
10,285 |
|
|
|
|
|
|
Total non-current
assets |
1,203,239 |
|
1,001,930 |
|
141,500 |
|
|
|
|
|
|
Total
assets |
1,799,746 |
|
1,569,735 |
|
221,689 |
|
|
|
|
|
|
LIABILITIES, MEZZANINE
EQUITY AND SHAREHOLDERS’ DEFICIT |
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
277,103 |
|
348,104 |
|
49,162 |
Amounts due to related parties |
3,121 |
|
5,118 |
|
723 |
Deferred revenue |
78,540 |
|
60,439 |
|
8,536 |
Short-term debt |
319,103 |
|
420,950 |
|
59,449 |
Rental installment loans |
756,749 |
|
451,778 |
|
63,803 |
Deposits from tenants |
163,203 |
|
129,839 |
|
18,337 |
Accrued expenses and other current liabilities |
99,292 |
|
166,455 |
|
23,508 |
|
|
|
|
|
|
Total current
liabilities |
1,697,111 |
|
1,582,683 |
|
223,518 |
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
Long-term debt |
428,345 |
|
482,619 |
|
68,159 |
Long-term deferred rent |
387,739 |
|
404,689 |
|
57,153 |
Contingent earn-out liabilities |
97,417 |
|
- |
|
- |
|
|
|
|
|
|
Total non-current
liabilities |
913,501 |
|
887,308 |
|
125,312 |
|
|
|
|
|
|
Total
liabilities |
2,610,612 |
|
2,469,991 |
|
348,830 |
|
|
|
|
|
|
Q&K
INTERNATIONAL GROUP LIMITED UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS (Renminbi in
thousands, except for share and per share data, unless otherwise
stated) |
|
|
|
|
|
As of |
As of |
|
September 30, |
March 31, |
|
2019 |
|
2020 |
|
RMB |
|
RMB |
USD(‘000) |
|
|
|
|
Total mezzanine equity |
1,425,485 |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Shareholders’ deficit: |
|
|
|
Ordinary shares (US$0.00001 par value per share; 3,500,000,000 and
5,000,000,000 shares authorized; 430,450,490 and 1,436,010,850
shares issued and outstanding as of September 30, 2019 and
March 31, 2020, respectively) |
27 |
|
|
92 |
|
|
13 |
|
Series A non-redeemable preferred shares |
35,777 |
|
|
- |
|
|
- |
|
Additional paid-in capital |
- |
|
|
1,790,118 |
|
|
252,813 |
|
Accumulated deficit |
(2,275,924 |
) |
|
(2,692,747 |
) |
|
(380,289 |
) |
Accumulated other comprehensive income (loss) |
(5,908 |
) |
|
(7,372 |
) |
|
(1,041 |
) |
|
|
|
|
|
|
|
|
|
Total Q&K
International Group Limited shareholders’ deficit |
(2,246,028 |
) |
|
(909,909 |
) |
|
(128,504 |
) |
Noncontrolling interest |
9,677 |
|
|
9,653 |
|
|
1,363 |
|
|
|
|
|
|
|
|
|
|
Total shareholder’s
deficit |
(2,236,351 |
) |
|
(900,256 |
) |
|
(127,141 |
) |
|
|
|
|
|
|
|
|
|
Total liabilities,
mezzanine equity and shareholders’ deficit |
1,799,746 |
|
|
1,569,735 |
|
|
221,689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q&K INTERNATIONAL GROUP LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS (Renminbi in thousands, except
for share and per share data, unless otherwise
stated) |
|
|
|
Six months ended March 31, |
|
2019 |
|
2020 |
|
|
|
|
|
RMB |
RMB |
USD(‘000) |
Net revenues: |
|
|
|
Rental service |
525,077 |
|
|
555,706 |
|
|
78,481 |
|
Value-added services and others |
63,560 |
|
|
71,395 |
|
|
10,083 |
|
|
|
|
|
|
|
|
|
|
Total net
revenues |
588,637 |
|
|
627,101 |
|
|
88,564 |
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses: |
|
|
|
Operating cost |
(632,385 |
) |
|
(682,225 |
) |
|
(96,349 |
) |
Selling and marketing expenses |
(56,034 |
) |
|
(40,450 |
) |
|
(5,713 |
) |
General and administrative expenses |
(51,628 |
) |
|
(65,089 |
) |
|
(9,192 |
) |
Research and development expenses |
(26,033 |
) |
|
(15,412 |
) |
|
(2,177 |
) |
Pre-operation expenses |
(28,270 |
) |
|
(12,725 |
) |
|
(1,797 |
) |
Impairment loss |
(20,605 |
) |
|
(250,048 |
) |
|
(35,314 |
) |
Other income(expense), net |
(177 |
) |
|
(13,870 |
) |
|
(1,959 |
) |
|
|
|
|
|
|
|
|
|
Total operating costs
and expenses |
(815,132 |
) |
|
(1,079,819 |
) |
|
(152,501 |
) |
|
|
|
|
|
|
|
|
|
Loss from
operations |
(226,495 |
) |
|
(452,718 |
) |
|
(63,937 |
) |
Interest income (expense),
net |
(44,774 |
) |
|
(61,518 |
) |
|
(8,688 |
) |
Foreign exchange gain (loss),
net |
(418 |
) |
|
(4 |
) |
|
(1 |
) |
Fair value change of contingent
earn-out liabilities |
(29,797 |
) |
|
97,417 |
|
|
13,758 |
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes |
(301,484 |
) |
|
(416,823 |
) |
|
(58,868 |
) |
|
|
|
|
Income tax expense |
(85 |
) |
|
(26 |
) |
|
(4 |
) |
|
|
|
|
|
|
|
|
|
Net loss |
(301,569 |
) |
|
(416,849 |
) |
|
(58,872 |
) |
Less: net loss attributable to
noncontrolling interests |
(59 |
) |
|
(26 |
) |
|
(4 |
) |
|
|
|
|
|
|
|
|
|
Net loss attributable
to Q&K International Group Limited |
(301,510 |
) |
|
(416,823 |
) |
|
(58,868 |
) |
Deemed dividend |
(113,062 |
) |
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to ordinary shareholders |
(414,572 |
) |
|
(416,823 |
) |
|
(58,868 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share attributable
to ordinary shareholders of Q&K International Group
Limited—Basic and diluted |
(0.96 |
) |
|
(0.34 |
) |
|
(0.05 |
) |
Weighted average number of
ordinary shares used in computing net loss per share—Basic and
diluted |
430,450,490 |
|
|
1,226,807,606 |
|
|
1,226,807,606 |
|
Q&K INTERNATIONAL GROUP LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS (Renminbi in thousands, except
for share and per share data, unless otherwise
stated) |
|
|
|
Six months ended
March
31, |
|
2019 |
|
2020 |
|
|
|
|
|
RMB |
RMB |
USD(‘000) |
Net loss |
(301,569 |
) |
|
(416,849 |
) |
|
(58,872 |
) |
Other comprehensive
income (loss), net of tax of nil: |
|
|
|
Foreign currency translation
adjustments |
879 |
|
|
(1,463 |
) |
|
(207 |
) |
|
|
|
|
|
|
|
|
|
Comprehensive
loss |
(300,690 |
) |
|
(418,312 |
) |
|
(59,079 |
) |
Less: comprehensive loss
attributable to noncontrolling interests |
(59 |
) |
|
(26 |
) |
|
(4 |
) |
|
|
|
|
|
|
|
|
|
Comprehensive loss
attributable to Q&K International Group Limited |
(300,631 |
) |
|
(418,286 |
) |
|
(59,075 |
) |
|
|
|
|
|
|
|
|
|
Deemed dividend |
(113,062 |
) |
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Comprehensive loss
attributable to ordinary shareholders |
(413,693 |
) |
|
(418,286 |
) |
|
(59,075 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Q&K INTERNATIONAL GROUP LIMITED
UNAUDITED RECONCILIATION OF GAAP AND Non-GAAP
RESULTS (Renminbi in thousands, except for share
and per share data, unless otherwise stated) |
|
|
|
Six months ended
March
31, |
|
2019 |
|
2020 |
|
|
|
|
|
|
|
RMB |
RMB |
USD(‘000) |
Net loss |
(301,569 |
) |
|
(416,849 |
) |
|
(58,872 |
) |
Add/(less): |
|
|
|
Interest income(expense),
net |
44,774 |
|
|
61,518 |
|
|
8,688 |
|
Income tax expense |
85 |
|
|
26 |
|
|
4 |
|
Depreciation and
amortization |
104,792 |
|
|
117,616 |
|
|
16,611 |
|
|
|
|
|
|
|
|
|
|
EBITDA(Non-GAAP) |
(151,918 |
) |
|
(237,689 |
) |
|
(33,569 |
) |
Impairment loss |
20,605 |
|
|
250,048 |
|
|
35,314 |
|
Fair value change of contingent
earn-out liabilities |
29,797 |
|
|
(97,417 |
) |
|
(13,758 |
) |
Share-based compensation |
8,173 |
|
|
12,661 |
|
|
1,788 |
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(Non-GAAP) |
(93,343 |
) |
|
(72,397 |
) |
|
(10,225 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________________________
1“EBITDA” and “Adjusted EBITDA” are Non-GAAP measures. Please
refer to “Unaudited reconciliation of GAAP and Non-GAAP results”
for details. Adjusted EBITDA includes lease cost of RMB17.8
million(US$2.5 million) and RMB36.9 million for the first half of
fiscal years 2020 and 2019, for which we record, but do not pay,
rent in the current period. Such rent is a current operating cost
and we will pay such rent in future periods.
Our landlords typically offer a 90-160-day rent-free period at
the beginning of the lease, in which we have possession of the
rental apartments but are not required to pay any cash lease costs,
and we use the rent-free period to renovate the rental apartments.
This is a common arrangement in our industry. Additionally, we pay
a fixed rent to our landlords typically with an approximately 5%
annual, non-compounding increase after the first three years of the
lease term. Under U.S. GAAP, we are required to record rent-free
periods and lease cost escalations on a straight-line basis over
the term of the lease. In other words, we are required to record
the total of all payments due under the lease evenly over the
period of the lease, regardless of what our cash lease cost
obligations may be in a particular period.
2 “Rental units contracted” refer to rental units that the
Company has leased in from landlords.
3 “Available rental units” refer to rental units in operation,
which have been renovated and are ready to rent to tenants.
4 “Occupied rental units” refers to available rental units that
have been leased out to tenants.
5 “Period-average occupancy rate” refers to the aggregate number
of leased-out rental unit nights as a percentage of the aggregate
number of available rental unit nights during the relevant
period.
6 “Average month-end occupancy rate” refers to the aggregate
number of leased-out rental unit nights of the last day of each
month in the relevant period as a percentage of the aggregate
number of available rental unit nights of the last day of each
month in the relevant period.
7 “Rental spread margin before discount for rental prepayment”
refers to the rental spread as a percentage of the average monthly
rental before discount for rental prepayment on a lease to a tenant
on the same space.
8 “Rental spread margin after discount for rental prepayment”
refers to the rental spread as a percentage of the average monthly
rental after discount for rental prepayment on a lease to a tenant
on the same space.
Grafico Azioni Q and K (NASDAQ:QK)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Q and K (NASDAQ:QK)
Storico
Da Giu 2023 a Giu 2024