Luckin Coffee(LKNCY) - 2023 Q4 - Annual Report

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]