China-based coworking company Kr Space has closed its coworking location in Hong Kong Times Square that opened in April of this year, officially ending its operations in the city.

A Kr Space spokesperson explained that the company failed to meet its goal of freeing up cash flow and to become profitable by the end of 2020. 

The operator’s asset-heavy model, long-term leases and high interior design costs weighed down its operations. Still, the firm hopes to find opportunities elsewhere in the city.“We will shift to an asset-light model,” said the spokesperson. “For example, we’d like to cooperate with landlords.”