A subsidiary of Q&K International Group Limited (the “Company”) entered into agreements with a rental service company (the “Transferor”) around January 17, 2020, pursuant to which the Transferor will transfer its lease contracts with landlords and tenants and the related fixtures and equipment for approximately 47,000 rental units in Sichuan and Chongqing, China, to the Company (the “Transfer”). The Transfer is expected to be completed by January 31, 2020. The Company will pay a consideration of RMB580 million, subject to adjustments based on the quality of the assets according to the agreement, to the Transferor by December 31, 2020. The Company has paid a deposit of approximately RMB200 million to secure this transaction.
The same subsidiary of the Company has engaged a contractor (the “Contractor”) to manage these rental units in Sichuan and Chongqing, China, starting from February 1, 2020 for eight years. The Company will pay the Contractor a monthly management fee as a percentage of the monthly rentals from the rental units under the Contractor’s management, subject to adjustments based on certain performance indicators set forth in the agreement.
Safe Harbor Statement
This Form6-K 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 Form6-K 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.
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