Financial Data and Key Metrics Changes - Total net revenue reached RMB7.06 billion, marking a 91.2% year-over-year increase [15] - Operating profit margin stood at 3%, with a self-operated store operating profit margin of 13.5% [15] - For the full year of 2023, total net revenues soared to nearly RMB25 billion, representing an impressive 87.3% increase from fiscal year 2022 [54] - Operating income for fiscal year 2023 reached RMB3 billion, with an operating income margin of 12.1% [56] - Net profit margin increased to 11.4% from 3.7% last year [41] Business Line Data and Key Metrics Changes - Revenue from self-operated stores in the fourth quarter reached RMB5.1 billion, representing an increase of 89.2% from RMB2.7 billion in the same quarter of 2022 [34] - Revenues from partnership stores in the fourth quarter amounted to RMB1.8 billion, a substantial 109.1% increase [53] - Same-store sales growth for self-operated stores in fiscal year 2023 achieved an impressive 21% [55] Market Data and Key Metrics Changes - The number of Luckin Coffee stores doubled from the previous year, reaching a total of 16,218 stores [2][17] - Average monthly transacting customers reached 62.4 million, a substantial 154.2% increase from the fourth quarter of 2022 [37] - Total cumulative transacting customers reached 230 million, firmly placing the company in a leading position in the industry [16] Company Strategy and Development Direction - The company plans to further increase the number of stores in high-tier cities and accelerate expansion into lower-tier city markets through the partnership model [18] - Luckin Coffee aims to drive continuous development of the Chinese coffee market while rewarding customers [5] - The company will continue to focus on social responsibility and sustainable development [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining and solidifying market leadership despite intense competition [72] - The coffee market in China is still in the early stages of development, with significant growth potential [74] - The company will closely monitor market changes and continue to focus on customer value [65] Other Important Information - Luckin Coffee launched 102 new products in 2023, with total items sold exceeding 2 billion [27] - The company has no interest-bearing debt and ended 2023 with about RMB3.8 billion in cash [44] - The company donated RMB5 million for disaster relief efforts in response to Typhoon Doksuri [31] Q&A Session Summary Question: How does the company view the significant drop in profit in Q4? Are there plans for pricing adjustment? - Management indicated that the decline in profits was due to seasonal factors and adjustments in product portfolio structure, aligning with industry trends and strategic expectations [71] Question: Is the company continuing the store expansion strategy from 2023? - Management confirmed that the company will continue with the current store expansion and pricing strategies to enlarge market share [72] Question: What is the outlook for the coffee market in China? - Management noted that the coffee market is in the early stages of development, with a growing consumer base and potential for further growth [74]

Financial Performance - Total net revenues in Q4 2023 were RMB7,065.0 million (US$995.1 million), an increase of 91.2% from RMB3,695.0 million in Q4 2022[8]. - Total net revenues for fiscal year 2023 were RMB24,903.2 million (US$3,507.5 million), representing an increase of 87.3% from RMB13,293.0 million in fiscal year 2022[7]. - Net income for Q4 2023 was RMB296.4 million (US$41.7 million), with a net income margin of 4.2%, compared to RMB54.5 million (1.5%) in Q4 2022[15]. - Non-GAAP net income for Q4 2023 was RMB356.6 million (US$50.2 million), representing a non-GAAP net income margin of 5.0%, up from RMB166.9 million (4.5%) in Q4 2022[15]. - Net income for the year ended December 31, 2023, was RMB 2,847,933, compared to RMB 488,246 for the year ended December 31, 2022, representing a significant increase[38]. - The total comprehensive income attributable to ordinary shareholders for the year ended December 31, 2023, was RMB 2,847,573 thousand, compared to RMB 488,246 thousand in 2022, indicating a substantial increase[39]. Customer Growth - Average monthly transacting customers in Q4 2023 reached 62.4 million, a 154.2% increase from 24.6 million in Q4 2022[4]. - Average monthly transacting customers reached 62,438 in Q4 2023, compared to 24,559 in Q4 2022, indicating strong customer growth[20]. Store Expansion - Net new store openings in fiscal year 2023 were 8,034, resulting in a year-over-year store unit growth of 97.8%[7]. - Total stores increased to 16,248 as of December 31, 2023, up from 8,214 a year earlier, reflecting significant expansion[20]. Revenue Sources - Revenues from self-operated stores in Q4 2023 were RMB5,103.4 million (US$718.8 million), an increase of 89.2% from RMB2,697.1 million in Q4 2022[4]. - Revenues from partnership stores in Q4 2023 were RMB1,763.8 million (US$248.4 million), an increase of 109.1% from RMB843.4 million in Q4 2022[11]. - Revenues from product sales in Q4 2023 were RMB 5,301,221, up 85.8% from RMB 2,851,660 in Q4 2022[38]. Operating Income and Expenses - GAAP operating income in Q4 2023 was RMB212.7 million (US$30.0 million), with a GAAP operating income margin of 3.0%, down from 8.5% in Q4 2022[13]. - Store level operating profit for self-operated stores in fiscal year 2023 was RMB3,974.9 million (US$559.9 million), with a margin of 22.2%[7]. - Store level operating profit margin for self-operated stores decreased to 13.5% in Q4 2023 from 21.6% in Q4 2022, attributed to lower average selling prices[14]. - Delivery expenses rose to RMB467.4 million (US$65.8 million) in Q4 2023, a 23.3% increase from RMB379.1 million in Q4 2022, driven by higher delivery orders[14]. - Sales and marketing expenses surged to RMB399.1 million (US$56.2 million) in Q4 2023, a 130.2% increase from RMB173.4 million in Q4 2022, reflecting strategic branding investments[14]. - General and administrative expenses were RMB562.0 million (US$79.2 million) in Q4 2023, up 36.6% from RMB411.4 million in Q4 2022, primarily due to increased payroll and R&D costs[14]. Cash Flow and Assets - Cash and cash equivalents as of December 31, 2023, were RMB3,752.7 million (US$528.6 million), an increase from RMB3,577.9 million a year earlier, driven by higher operating profits[18]. - Net cash used in operating activities was RMB926.7 million (US$130.5 million) in Q4 2023, a significant decline from net cash provided of RMB48.3 million in Q4 2022, mainly due to increased raw material purchases[17]. - Cash and cash equivalents as of December 31, 2023, were RMB 3,534,304, an increase from RMB 2,925,709 as of December 31, 2022[36]. - Total assets decreased to RMB 10,480,397 as of December 31, 2023, from RMB 18,291,978 as of December 31, 2022[36]. - Total liabilities decreased to RMB 3,853,110 as of December 31, 2023, from RMB 8,577,533 as of December 31, 2022[36]. Strategic Initiatives - The company launched more than 100 SKUs in 2023 to cater to diverse customer needs[6]. - The company plans to continue expanding its technology-driven retail network to enhance customer experience and brand recognition[33]. - Luckin Coffee aims to maintain its growth strategies in the competitive coffee industry, focusing on quality control and customer retention[33]. - The company is committed to ongoing product innovation and market expansion to solidify its position in the food and beverage sector[33].

VCG/Visual China Group via Getty Images Luckin Coffee (OTCPK:LKNCY) is a Chinese coffee chain founded in 2017 with a digital-first business model that had been rapidly growing to overtake Starbucks (SBUX) before accounting fraud issues led to bankruptcy. Since 2022, they have been rebuilding trust under new management. So far, things have been looking relatively good. Since 2022, the share price has nearly doubled, though performance has been rather volatile. Luckin saw a 1-year high of $34 in just October ...

Luckin Coffee (LKNCY) stock price will be on edge on Wednesday as investors read the tea leaves from the latest Starbucks earnings report. Shares of Luckin, the biggest Chinese coffee giant, have plunged by more than 43% from their highest point in 2023.China economic woesCopy link to sectionLuckin Coffee is one of the fastest growing coffee chains in the world. In just a few years, the company has moved from zero stores to over 13,700 in the last quarter and the management expects that this growth will acc ...

Completed company carbon inventory and verification by Bureau Veritas for the first time The scope of the verification includes Luckin Coffee's office areas, factories and stores in 2022, laying the development foundation for the of future carbon reduction targets. Completed product carbon footprint 2verification for the first time Compared to regular Latte, one cup of Coconut Milk Latte has (hot drink) (iced drink) Notes: (1) Carbon emission • Scope 1 emissions are direct emissions from owned or controlled ...

Luckin Coffee Inc. (OTCPK:LKNCY) Q3 2023 Earnings Conference Call November 1, 2023 8:00 AM ET Company Participants Alicia Guo - IR Jinyi Guo - Chairman and CEO Jing An - CFO Reinout Schakel - CSO Conference Call Participants Operator Ladies and gentlemen, welcome to Luckin Coffee's Third Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode during management's prepared remarks and there will be a question-and-answer session to follow. Today's conference is being recorded. At th ...

Financial Performance - Total net revenues for the third quarter of 2023 were RMB7,200.0 million (US$986.8 million), an increase of 84.9% from RMB3,894.6 million in the same quarter of 2022[3] - Net income for Q3 2023 was RMB 988,011, representing a 87.1% increase compared to RMB 528,597 in Q3 2022[37] - Operating income for the nine months ended September 30, 2023, was RMB 2,812,905, a significant increase from RMB 842,949 in the same period of 2022[37] - Total comprehensive income for the nine months ended September 30, 2023, was RMB 2,553,938, compared to RMB 371,200 in the same period of 2022[37] - Non-GAAP net income for the nine months ended September 30, 2023, was RMB 2,823,035, up 63.5% from RMB 1,728,053 in the same period of 2022[40] - The company reported a basic net income per share of 0.39 for Q3 2023, compared to 0.21 for Q3 2022[37] - Non-GAAP net income per share (diluted) for Q3 2023 was $0.06, compared to $0.20 in Q3 2022, reflecting a significant increase in profitability[40] - The company’s adjusted net income for Q3 2023 was RMB 1,143,962, reflecting a strong operational performance despite external pressures[40] Customer Metrics - Average monthly transacting customers reached 58.5 million, representing a year-over-year increase of 132.9% from 25.1 million[3] - Average monthly transacting customers reached 58,477, a significant increase from 24,559 a year ago, reflecting a growth of 137.5%[19] Store Expansion - The company opened 2,437 net new stores in the third quarter, resulting in a total of 13,273 stores, including 8,807 self-operated and 4,466 partnership stores[3] - The total number of stores increased to 13,273 as of September 30, 2023, up from 8,214 a year earlier, representing a growth of 61.5%[19] - Self-operated stores grew to 8,807, a 55.5% increase from 5,652 in the same period last year[19] - The company plans to continue expanding its store network and enhancing its technology-driven retail model to improve customer experience and operational efficiency[30] Revenue Sources - Revenues from self-operated stores were RMB5,141.0 million (US$704.6 million), a 79.3% increase from RMB2,867.1 million in the same quarter of 2022[3] - Same-store sales growth for self-operated stores was 19.9%, compared to 19.4% in the same quarter of 2022[3] - Same-store sales growth for self-operated stores was 19.9% for the three months ended September 30, 2023, compared to 9.2% in the same period last year[19] - Revenues from product sales for the nine months ended September 30, 2023, were RMB 13,376,169, up from RMB 7,372,060 in the same period of 2022[37] Operating Income and Costs - GAAP operating income was RMB961.7 million (US$131.8 million), with a GAAP operating income margin of 13.4%, down from 15.0% in the same quarter of 2022[3] - Non-GAAP operating income for Q3 2023 reached RMB 1,025,483, a 47.9% increase from RMB 693,768 in Q3 2022[40] - Cost of materials increased to RMB3,166.6 million (US$434.0 million), a 119.8% rise from RMB1,440.5 million in the same quarter of 2022[3] - Share-based compensation expenses decreased to RMB 63,759 in Q3 2023 from RMB 108,504 in Q3 2022, indicating improved cost management[40] Cash and Assets - Net cash provided by operating activities was RMB1,310.1 million (US$179.6 million), compared to RMB416.9 million in the same quarter of 2022[16] - As of September 30, 2023, cash and cash equivalents totaled RMB5,736.8 million (US$786.3 million), an increase from RMB3,577.9 million as of December 31, 2022, primarily due to operational cash generation[17] - Total assets increased to RMB 17,171,093 as of September 30, 2023, compared to RMB 10,480,397 as of December 31, 2022[34] - Total current liabilities increased to RMB 5,482,003 as of September 30, 2023, from RMB 2,828,836 as of December 31, 2022[34] Future Plans and Strategy - The company plans to enhance product offerings and continue its pricing and expansion strategy to serve more customers and expand its global footprint[4] - Luckin Coffee aims to build a world-class coffee brand and integrate into customers' daily lives through its technology-driven retail network[32] Legal and Compliance - The provision for equity litigants in Q3 2023 was RMB 92,192, indicating ongoing legal challenges[40] Conference Call - The conference call to discuss financial results is scheduled for November 1, 2023, at 8:00 am Eastern Time[27]

Financial Data and Key Metrics Changes - The company achieved total net revenue of RMB6.2 billion, representing an 88% year-on-year growth [5][60] - The operating profit margin was reported at 18.9%, with a net profit margin of 16.1% for the second quarter [12][61] - The number of cumulative transacting customers surpassed 170 million, with an average of 43.07 million monthly transacting customers [5][11] Business Line Data and Key Metrics Changes - Revenue from self-operated stores reached nearly RMB4.5 billion, reflecting an 85.2% year-over-year increase, while same-store sales growth was over 20.8% [10] - Partnership stores saw a revenue increase of 91.1% year-over-year, reaching nearly RMB1.5 billion [10] Market Data and Key Metrics Changes - The company maintained its position as the largest coffee shop chain in China, with self-operated and partnership stores across 70 and 265 cities, respectively [11] - The coffee market in China is experiencing rapid growth, with significant potential for further expansion [50] Company Strategy and Development Direction - The company launched a new brand concept called LUCK IN HAND and initiated a promotional campaign offering high-quality coffee at RMB9.9 [3][18] - The company plans to continue expanding its presence in international markets, with seven stores in Singapore as of the end of the second quarter [19] - The focus remains on enhancing operational efficiency, brand building, and sustainable development [37][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining profitability while expanding market share through the RMB9.9 promotional campaign [28][29] - The company aims to achieve long-term, sustainable growth while enhancing customer value and brand influence [47][50] Other Important Information - The company reported a net operating cash inflow of RMB1,444.4 million, a significant improvement from the previous year [27] - General and administrative expenses as a percentage of revenue decreased from 10.4% to 6.9% year-over-year, indicating improved efficiency [26] Q&A Session Summary Question: How can you balance scale advantages and profitability while maintaining a competitive leading position? - Management noted that the RMB9.9 promotion has driven increased revenue and profit margins, reflecting customer recognition and brand loyalty [28] Question: Will you accelerate the speed of store openings in the second half of 2023? - The company confirmed plans to continue expanding its store network and emphasized the importance of a new partnership model to encourage high-quality partners [49][50]

luckin coffee August 1, 2023 This presentation contains certain financial measures that are not recognized under generally accepted accounting principles in the United States ("GAAP"), including non-GAAP operating income/(loss), non-GAAP net income/(loss), non-GAAP basic and diluted net income/(loss) per ADS. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For ...

Luckin Coffee Inc. Announces Second Quarter 2023 Financial Results Second Quarter Net Revenues Increased 88.0% Improved Profitability with Record High GAAP Operating Income Margin of 18.9% More than 1,400 Net New Store Openings; Ended Quarter with More than 10,000 Stores BEIJING, August 1, 2023 (GLOBE NEWSWIRE) — Luckin Coffee Inc. ("Luckin Coffee" or the "Company") (OTC: LKNCY) today announced its unaudited financial results for the three months ended June 30, 2023. SECOND QUARTER 2023 HIGHLIGHTS Please re ...