Ucommune Announces Merger With Guangdong Wanhe to Promote Carbon Neutrality and Eco-friendly Office Environments

Ucommune International Ltd. (NASDAQ: UK) (“Ucommune” or the “Company”), a leading agile office space manager and provider in China, today announced it has signed a merger agreement (the “Agreement”) with Guangdong Wanhe Green Technology Co., Ltd (“Guangdong Wanhe”), an eco-friendly and intelligent space renovation service provider in China, on May 31, 2021.

As part of the Agreement, the Company will benefit from Guangdong Wanhe’s established expertise in eco-friendly building materials, energy-saving construction plans, resource recycling, and renovation best practices. As such, the merger is expected to enable the Company to optimize its project energy consumption, reduce its carbon footprint, and decrease pollution. It should also allow the Company to implement more standardized processes for its construction, design, decoration, and renovation services, enhancing the Company’s operational efficiency. By integrating Guangdong Wanhe into Ucommune, the Company expects to effectively increase its number of low-carbon emission use cases for office workers, including fully digital meetings and digital approval processes.

The Agreement is in line with Ucommune’s ongoing commitment to corporate social responsibility and environmental sustainability. Guangdong Wanhe developed its renovation services in accordance with the Chinese government’s 14th Five-Year Plan for National Economic and Social Development and the Long-Range Objectives Through the Year 2035. The Chinese government has repeatedly emphasized its goals and specific requirements for peak emissions and carbon neutrality, making carbon neutrality a clear strategic national goal. Guangdong Wanhe’s space renovation services are at the frontier of carbon neutral and green technology. For example, Guangdong Wanhe has improved the utilization rate of traditional space components to reduce secondary waste in space design and renovation. Guangdong Wanhe also replaces traditional materials with new eco-friendly materials of higher energy efficiency to reduce the total carbon emissions throughout a building’s entire life cycle. The polymer materials used by Guangdong Wanhe can be recycled and reused later on.

Guangdong Wanhe has a track record of success in renovating large-scale properties in an efficient and eco-friendly manner. For example, Jiahongbao Huizhou Industrial Park, a client of Guangdong Wanhe, is a 6-story building with a total construction area of around 500 million square meters that has benefited significantly from working with Guangdong Wanhe. During the building’s renovation service period, Guangdong Wanhe used its standardized procedures for building information modeling design and construction management to replace the building’s traditional materials with eco-friendly materials. Guangdong Wanhe also applied its standardized methods of production during the renovation process to reduce construction noise and waste as well as to extend the service life of the building, resulting in a faster implementation time and significantly reducing noise and dust pollution.

Kevin Wei, Founder of Guangdong Wanhe, commented, “By merging with Ucommune, we will introduce our mature suite of eco-friendly solutions to more properties across China. Ucommune’s potent brand influence and established capabilities in agile office space management will pair well with our expertise in green intelligent renovation. We are excited to work hand-in-hand to help landlords better utilize their existing office spaces while also reducing total carbon emissions.”

Dr. Daqing Mao, Founder of Ucommune, commented, “Since our initial launch, we have remained committed to fulfilling our corporate social responsibilities, delivering eco-friendly agile space solutions, and aligning our business goals with the government’s long-term visions. Our asset-light model continues to gain traction, and we have been able to partner with more landlords to improve people’s work-life balances, reduce commuting times and the associated pollution, maximize commercial office space utility, and temper resource consumption. Our urban area renovation practice is another example of how we are revitalizing older city areas to foster new, attractive, and intelligent working environments. By merging with Guangdong Wanhe, we will not only improve our bottom line, but also help to bring more corporate office environments into the modern age of sustainability.”

Source: Ucommune International Ltd.