Disposal of WFOE
QK announced the disposal of WFOE on 26th October 2021. The Disposal was carried out in order to redirect the Company’s business resources to its subsidiaries in China, which manage higher-quality rental units. The Company no longer operates under a variable interest entity as a result of the Disposal.
The Disposal will allow the company to focus its energies on providing higher-quality rental flats in the future. With this new beginning, QK will continue its efforts in the long-term apartment business.
Change in Board of Directors
On 22nd April 2021, QK announced that Mr. Xiao quit the job for personal reasons and does not have any issues with the company. The board of directors of the company wishes him well in his future pursuits and thanks to him for his services.
Changes to Directors and Senior Management – What’s new?
On 28th January 2021, QK reported changes to its board of directors, senior leadership team, and shareholders. Mr. Guangjie Jin, Ms. Qiong Hong, Mr. Zhaochun Zheng, Ms. Kaiyu Yao, and Mr. Wing Cheung Ryan have resigned from different positions in the company. However, Q&K’s director, chief operating officer, and vice president, Mr. Chengcai Qu, has now been appointed.
The COVID-19 outbreak wreaked havoc on China’s apartment rental industry, posing significant hurdles for the company. QK got through this tough time by optimizing the business model, improving operating performance, divesting underperforming assets, and discovering commercial opportunities. This has only been possible because of the hard work of the management and employees, as well as support from many of the landlords, tenants, creditors, and other business associates, and favorable legislation such as tax reliefs.
In addition, the apartment rental market and business have been progressively rebounding after China’s COVID-19 outbreak was brought under control. QK finalized the purchase of lease contracts with landlords and renters, as well as associated fixtures, equipment, and other assets, from another rental service firm and its affiliates in the fiscal year ended September 30, 2020, which greatly expanded the asset portfolio.
The company will continue to develop organically and explore further consolidation opportunities by purchasing high-quality assets since the demand for rental flats remains one of China’s most inelastic wants. Lastly, the new management team will boost the capacity to execute plans and continue to focus on growing the business.