UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For
the month of October 2024
Commission File Number 001-38896
Luckin Coffee Inc.
(Exact Name of Registrant as Specified in Its Charter)
28th Floor, Building T3, Haixi Jingu Plaza
1-3 Taibei Road
Siming District, Xiamen City, Fujian
People’s Republic of China, 361008
+86-592-3386666
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F x
Form 40-F ¨
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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Luckin Coffee Inc. |
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| Date: |
October 30, 2024 |
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By: |
/s/ Jing An |
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Name: |
Jing An |
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Title: |
Chief Financial Officer |
EXHIBIT INDEX
Exhibit 99.1
Luckin
Coffee Inc. Announces Third Quarter 2024 Financial Results
Quarterly Revenue
Exceeded RMB10 Billion; Year-on-Year Increase of 41.4%
Profitability
Improved with GAAP Operating Margin of 15.3%
1,382
Net New Store Openings; Ended Quarter With More Than 21,300 Stores
BEIJING,
October 30, 2024 (GLOBE NEWSWIRE) — Luckin
Coffee Inc. (“Luckin Coffee” or the “Company”) (OTC: LKNCY) today announced its unaudited financial results for
the three months ended September 30, 2024.
THIRD
QUARTER 2024 HIGHLIGHTS1
| · | Total
net revenues in the third quarter were RMB10,180.8 million (US$1,452.1 million), representing
an increase of 41.4% from RMB7,200.0 million in the same quarter of 2023. |
| · | Net
new store openings during the third quarter was 1,382, resulting in a quarter-over-quarter
store unit growth of 6.9% from the number of stores at the end of the second quarter of 2024,
ending the third quarter with 21,343 stores which include 13,936 self-operated stores and
7,407 partnership stores. |
| · | Average
monthly transacting customers in the third quarter was 79.8 million, representing an
increase of 36.5% from 58.5 million in the same quarter of 2023. |
| · | Revenues
from self-operated stores in the third quarter were RMB7,501.4 million (US$1,069.9 million),
representing an increase of 45.9% from RMB5,141.0 million in the same quarter of 2023. |
| · | Same-store
sales growth for self-operated stores in the third quarter was negative 13.1%, compared
to positive 19.9% in the same quarter of 2023. |
| · | Store
level operating profit – self-operated stores in the third quarter was RMB1,745.6
million (US$249.0 million) with store level operating profit margin of 23.3%, compared to
RMB1,185.4 million with store level operating profit margin of 23.1% in the same quarter
of 2023. |
| · | Revenues
from partnership stores in the third quarter were RMB2,341.3 million (US$333.9 million),
representing an increase of 27.2% from RMB1,840.8 million in the same quarter of 2023. |
| · | GAAP
operating income in the third quarter was RMB1,557.5 million (US$222.1 million), representing
a GAAP operating margin of 15.3%, compared to RMB961.7 million, or a GAAP operating
margin of 13.4%, in the same quarter of 2023. Non-GAAP operating income in
the third quarter, which adjusts for share-based compensation expenses, was RMB1,655.6 million
(US$236.1 million), representing a non-GAAP operating margin of 16.3%, compared to
RMB1,025.5 million, or a non-GAAP operating margin of 14.2%, in the same quarter of
2023. |
| · | Additional information on international business. The Company recognizes
the importance of the international market and is actively pursuing global expansion. The international market encompasses diverse regions,
each requiring long-term investment before realizing substantial financial returns. |
We have strategically chosen Singapore as the launch point
for our international expansion, given its status as a key hub in Southeast Asia. Our first store in Singapore opened in 2023, and in
the third quarter, we added eight new stores, bringing the total to 45 self-operated stores. We are also actively evaluating opportunities in the United States and other
markets. Given the maturity, saturation, and competitiveness of the U.S. coffee market, we intend to approach our expansion strategy there
with careful consideration and a disciplined execution plan.
For the nine months ended September 30, 2024, net revenues
from Singapore reached RMB91.4 million, while costs and expenses, primarily including store operations, regional expenses, and support
costs incurred at headquarters, totaled approximately RMB167.7 million. We remain committed to investing in our international growth,
although we do not anticipate profitability in this area in the near term. Similar to our strategy in China, the international business
will need to reach significant scale to achieve profitability.
1
Please refer to the section “KEY DEFINITIONS” on Page 4 for detailed definitions
on certain terms used.
COMPANY STATEMENT
“I’m pleased to report that Luckin delivered outstanding
results in the third quarter of 2024,” said Dr. Jinyi Guo, Chairman and Chief Executive Officer of Luckin Coffee. “With
the hard work and dedication of our team and the loyalty of our customers, we achieved record net revenue and operating profit while maintaining
a healthy margin. Despite the many coffee options available in China, Luckin remains a preferred choice for customers, as reflected in
our record average monthly transaction user count and the addition of 1,382 net new stores. In line with our commitment to invest in a
high-quality supply chain and boost efficiency, we also broke ground in August on our new state-of-the-art Innovation and Production Center
in Qingdao, a strategically important economic hub in China. Looking forward, we are focused on continuing to expand our market share
by offering innovative, high-quality products, enhancing brand recognition, and expanding our footprint.”
CHANGES
TO BOARD OF DIRECTORS (THE “BOARD”)
Mr. Gary (Shaoqiang) Liu, a director of the Company, has resigned from
his positions on the Board for personal reasons. Mr. Guiyi Chen has been appointed as a new director and a member of the Compensation
Committee.
“I am grateful to Mr. Gary Liu for his valuable contributions
during his tenure and wish him all the best in his future endeavors,” said Dr. Jinyi Guo, Chairman and Chief Executive Officer of
Luckin Coffee. “I am also pleased to welcome Mr. Guiyi Chen to our Board and look forward to collaborating with him as we pursue
our mission and deliver sustainable, long-term value to our shareholders.”
Mr. Guiyi Chen brings extensive experience in law, banking, investment,
and management, with expertise in both domestic and international capital markets. He is currently a managing director at Centurium Capital
Management (HK) Ltd (“Centurium Capital”). Prior to joining Centurium Capital, Mr. Chen held senior roles at Jingtian &
Gongcheng LLP, W&G Investment Management Co., Ltd., and Loeb & Loeb LLP. Mr. Chen holds a bachelor’s degree in legal studies
from the China Youth University of Political Science and a master’s degree in law from the University of Groningen, Netherlands.
THIRD
QUARTER 2024 FINANCIAL RESULTS
Total net revenues
were RMB10,180.8 million (US$1,452.1 million) in the third quarter of 2024, representing an increase of 41.4% from RMB7,200.0 million
in the same quarter of 2023. Driven by the increase in the number of products sold, stores in operation and monthly transacting customers,
our net revenues has shown strong increase despite the decrease in average selling price of the Company’s products.
| · | Revenues
from product sales
were RMB7,839.5 million (US$1,118.2 million) in the third quarter of 2024, representing an
increase of 46.3% from RMB5,359.3 million in the same quarter of 2023. |
| · | Net
revenues from freshly brewed drinks were RMB7,210.8
million (US$1,028.5 million), representing 70.8% of total net revenues in the third quarter
of 2024, compared to RMB4,869.7 million, representing 67.6% of total net revenues, in the
same quarter of 2023. |
| · | Net
revenues from other products were RMB476.9 million (US$68.0
million), representing 4.7% of total net revenues in the third quarter of 2024, compared
to RMB345.3 million, representing 4.8% of total net revenues, in the same quarter of 2023. |
| · | Net
revenues from others were RMB151.8 million (US$21.6 million),
representing 1.5% of total net revenues in the third quarter of 2024, compared to RMB144.4
million, representing 2.0% of total net revenues, in the same quarter of 2023. |
| · | Revenues
from partnership stores were RMB2,341.3 million (US$333.9 million), representing 23.0%
of total net revenues in the third quarter of 2024, which represents an increase of 27.2%
compared to RMB1,840.8 million, representing 25.6% of total net revenues, in the same quarter
of 2023. For the third quarter of 2024, revenues from partnership stores included sales of
materials of RMB1,651.7 million (US$235.6 million), profit sharing of RMB293.4 million (US$41.8
million), delivery service of RMB230.4 million (US$32.9 million), sales of equipment of RMB147.1
million (US$21.0 million), and other services of RMB18.8 million (US$2.7 million). |
Total
operating expenses were RMB8,623.3 million (US$1,229.9
million) in the third quarter of 2024, representing an increase of 38.2% from RMB6,238.3 million in the same quarter of 2023. The increase
in total operating expenses was predominantly the result of the Company’s business expansion. Meanwhile, operating expenses as a
percentage of net revenues was 84.7% in the third quarter of 2024, slightly lower than 86.6% in the same quarter of 2023, mainly due to
the decrease in cost of materials as a percentage of net revenues resulting from the changes in product matrix provided to consumers in
the third quarter.
| · | Cost
of materials were RMB3,955.4 million (US$564.2 million)
in the third quarter of 2024, representing an increase of 24.9% from RMB3,166.6 million in
the same quarter of 2023, mainly due to the increase in the number of products sold and the
increase in sales of materials to partnership stores. |
| · | Store
rental and other operating costs were RMB2,284.9
million (US$325.9 million) in the third quarter of 2024, representing an increase of 60.3%
from RMB1,425.5 million in the same quarter of 2023, mainly due to the increase in labor
costs, store rental as well as utilities and other store operating costs as a result of the
increased number of stores and items sold in the third quarter of 2024 compared to the same
period last year. |
| · | Depreciation
and amortization expenses were RMB309.7 million
(US$44.2 million) in the third quarter of 2024, representing an increase of 93.5% from RMB160.1
million in the same quarter of 2023, mainly due to the increase in amortization of leasehold
improvements for the stores and the increase in depreciation expenses of additional equipment
put into use in new stores in the third quarter of 2024. |
| · | Delivery
expenses were RMB927.7 million (US$132.3 million) in the third quarter of 2024, representing
an increase of 57.9% from RMB587.5 million in the same quarter of 2023, mainly due to the
increase in the number of delivery orders. |
| · | Sales
and marketing expenses were RMB589.0 million (US$84.0 million) in the third quarter of
2024, representing an increase of 53.2% from RMB384.4 million in the same quarter of 2023,
mainly driven by the increase in (i) advertising and other promotion expenses as the
Company continued to make strategic investments in its branding through various channels,
and (ii) commissions to third-party delivery platforms. Sales and marketing expenses
amounted to 5.8% of total net revenues in the third quarter of 2024, compared to 5.3% of
total net revenues in the same quarter of 2023. |
| · | General
and administrative expenses were RMB636.6 million
(US$90.8 million) in the third quarter of 2024, representing an increase of 32.3% from RMB481.3
million in the same quarter of 2023. The increase in general and administrative expenses
was mainly driven by the increase in (i) payroll costs for general and administrative staff, (ii) research
and development expenses, (iii) share-based compensation for restricted share units
and options issued to management and employees, and (iv) expenditures for office supplies.
General and administrative expenses amounted to 6.3% of total net revenues in the third quarter
of 2024, compared to 6.7% of total net revenues in the same quarter of 2023. |
| · | Store
preopening and other expenses were RMB13.5 million
(US$1.9 million) in the third quarter of 2024, representing a decrease of 55.2% from RMB30.1
million in the same quarter of 2023, mainly due to fewer stores preparing to be opened in
the third quarter of 2024 compared to the same quarter of 2023. Store preopening and other
expenses amounted to 0.1% of total net revenues in the third quarter of 2024, compared to
0.4% of total net revenues in the same quarter of 2023. |
| · | Losses and expenses related to Fabricated Transactions and
Restructuring were negative RMB102.5 million (US$14.6 million)
in the third quarter of 2024, compared to RMB3.0 million in the same quarter of 2023, primarily because the Company became entitled
to receive excess layers compensation of US$15.0 million (approximately RMB105.2 million) under its Directors & Officers
Liability and Company Reimbursement Insurance (the “D&O Insurance”), following the receipt of a base layer
compensation. Losses and expenses related to Fabricated Transactions and Restructuring amounted to negative 1.0% of total net
revenues in the third quarter of 2024, compared to 0.0% of total net revenues in the same quarter of 2023. |
| · | Store
level operating profit margin - self-operated stores was 23.3% in the third quarter of
2024, compared to 23.1% in the same quarter of 2023. |
GAAP
operating income
was RMB1,557.5 million (US$222.1 million) in the third quarter of 2024, representing a GAAP
operating margin of 15.3%, compared to RMB961.7 million, or a GAAP operating
margin of 13.4%, in the same quarter of 2023. Non-GAAP operating income was RMB1,655.6
million (US$236.1 million) in the third quarter of 2024, representing a non-GAAP operating
margin of 16.3%, compared to RMB1,025.5 million, or a non-GAAP operating margin
of 14.2%, in the same quarter of 2023. For more information on the Company’s non-GAAP
financial measures, please see the section “Use of Non-GAAP Financial Measures”
and the table captioned “Reconciliation of Non-GAAP Measures to the Most Directly Comparable
GAAP Measures” set forth at the end of this press release.
Income
tax expenses was RMB352.7 million (US$50.3 million) in the third quarter of 2024, compared to
income tax benefit of RMB82.6 million in the same quarter of 2023. In the third quarter of 2023, as a certain number of the Company’s
operation entities have turned cumulative profits from cumulative losses, in accordance to relevant accounting standards, the Company
re-evaluated the realization of deferred tax assets given the largely reduced uncertainty of the Company’s business performance.
As a result, a certain amount of the valuation allowance against the deferred tax assets was released. Excluding the release of
valuation allowance against the deferred tax assets, income tax expense was approximately RMB169.5 million in the third quarter of 2023.
Income tax expenses increased by RMB183.2 million in the third quarter when compared to the income tax expenses of RMB169.5 million in
the same period of 2023, which was mainly due to the increased profits earned in the third quarter.
Net income
was RMB1,302.6 million (US$185.8 million) in the third quarter of 2024, representing a net margin of 12.8%, compared to net income
of RMB988.0 million, or a net margin of 13.7%, in the same quarter of 2023. Non-GAAP net income was RMB1,400.8 million
(US$199.8 million) in the third quarter of 2024, representing a non-GAAP net margin of 13.8%, compared to RMB1,144.0 million, or a
non-GAAP net margin of 15.9%, in the same quarter of 2023.
Basic
and diluted net income per ADS was RMB4.08 (US$0.56) and RMB4.08 (US$0.56) in the third quarter
of 2024, respectively, compared to basic and diluted net income per ADS of RMB3.12 and RMB3.12 in the same quarter of 2023, respectively.
Non-GAAP
basic and diluted net income per ADS was RMB4.40 (US$0.64) and RMB4.40 (US$0.64) in the third
quarter of 2024, respectively, compared to non-GAAP basic and diluted net income of RMB3.60 and RMB3.60 in the same quarter of 2023,
respectively.
Net
cash provided by operating activities was RMB1,316.1 million (US$187.7 million) in the third
quarter of 2024, compared to net cash provided by operating activities of RMB1,310.1 million in the same quarter of 2023.
Cash
and cash equivalents, restricted cash, term deposits and short-term investments were RMB4,753.2
million (US$678.0 million) as of September 30, 2024, compared to RMB3,752.7 million as of December 31, 2023. The increase was
primarily attributable to the cash inflow generated from the Company’s operations.
KEY OPERATING DATA
| | |
For
the three months ended or as of | |
| | |
Mar 31, | | |
Jun 30, | | |
Sep 30, | | |
Dec 31, | | |
Mar 31, | | |
Jun 30, | | |
Sep 30, | |
| | |
2023 | | |
2023 | | |
2023 | | |
2023 | | |
2024 | | |
2024 | | |
2024 | |
| Total stores | |
| 9,351 | | |
| 10,836 | | |
| 13,273 | | |
| 16,248 | | |
| 18,590 | | |
| 19,961 | | |
| 21,343 | |
| Self-operated stores | |
| 6,310 | | |
| 7,188 | | |
| 8,807 | | |
| 10,628 | | |
| 12,199 | | |
| 13,056 | | |
| 13,936 | |
| Partnership stores | |
| 3,041 | | |
| 3,648 | | |
| 4,466 | | |
| 5,620 | | |
| 6,391 | | |
| 6,905 | | |
| 7,407 | |
| Same-store sales growth
for self-operated stores | |
| 29.6 | % | |
| 20.8 | % | |
| 19.9 | % | |
| 13.5 | % | |
| (20.3 | )% | |
| (20.9 | )% | |
| (13.1 | )% |
| Average monthly transacting
customers (in thousands) | |
| 29,489 | | |
| 43,070 | | |
| 58,477 | | |
| 62,438 | | |
| 59,914 | | |
| 69,689 | | |
| 79,846 | |
KEY DEFINITIONS
| · | Total
net revenues include revenues from product sales and revenues from partnership stores. |
| · | Revenues
from product sales mainly include net revenue from the sales of freshly brewed and non-freshly
brewed items through self-operating stores, unmanned machines, e-commerce and revenue from
delivery for self-operated stores. |
| · | Revenues
from self-operated stores include net revenue from the sales of freshly brewed and non-freshly
brewed items through self-operating stores, and delivery fees derived from self-operated
stores paid by the Company’s customers. Before the first quarter of 2023, revenues
from self-operated stores only included net revenue from the sales of freshly brewed and
non-freshly brewed items through self-operating stores, and beginning from the first quarter
of 2023, we added delivery fees derived from self-operated stores paid by the Company’s
customers to this definition. |
| · | Revenues
from partnership stores include net revenue from
the sales of materials, equipment, and other services including delivery and pre-opening
services provided to partnership stores and profit sharing from partnership stores. |
| · | Same-store
sales growth for self-operated stores. Defined as the growth rate of total revenue from
self-operated stores that (i) were in operation at the beginning of the comparable period
and were not closed before the end of the current period and (ii) maintained an average
of at least 15 operating days per month over both the current and comparable periods. |
| · | Store
level operating profit - self-operated stores. Calculated by deducting cost for self-operated
stores including cost of direct materials (including wastage in stores), cost of delivery
packaging materials, storage and logistics expenses, commissions to third-party delivery
platforms related to revenues from self-operated stores, store depreciation expense (including
decoration loss for store closure), store rental and other operating costs, delivery expense,
transaction fees, store preopening and other expenses from the Company’s self-operated
store revenues. Before the first quarter of 2023, commissions to third-party delivery platforms
related to revenues from self-operated stores was not deducted when calculating this term. |
| · | Store
level operating profit margin - self-operated stores. Calculated by dividing store level
operating profit by total revenues from self-operated stores. |
| · | Total
number of stores. The number of stores open at the end of the period, excluding unmanned
machines. |
| · | Net
new store openings. The number of gross new stores opened during the period minus the
number of stores closed during the period. |
| · | Average
monthly transacting customers. The total of each month’s number of transacting
customers divided by the number of months during the period (includes those of partnership
stores and those only paid with free-coupons). |
| · | Non-GAAP
operating income. Calculated by operating income excluding share-based compensation expenses. |
| · | Non-GAAP
net income. Calculated by net income excluding recurring item of share-based compensation
expenses and non-recurring item of provision for equity litigants. |
| · | Non-GAAP
net income attributable to the Company’s ordinary shareholders. Calculated by adjusting
net income attributable to the Company’s ordinary shareholders excluding recurring
item of share-based compensation expenses and non-recurring item of provision
for equity litigants. |
| · | Non-GAAP
basic and diluted net income per shares. Calculated as non-GAAP net income attributable
to the Company’s ordinary shareholders divided by weighted average number of basic
and diluted share. |
| · | Non-GAAP
basic and diluted net income per ADSs. Calculated as non-GAAP net income attributable
to the Company’s ordinary shareholders divided by weighted average number of basic
and diluted ADS. |
USE OF NON-GAAP FINANCIAL MEASURES
In
evaluating the business, the Company considers and uses non-GAAP operating income/(loss) and non-GAAP
net income/(loss), each a non-GAAP financial measure, in reviewing and assessing the Company’s operating performance. 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 Generally Accepted Accounting Principles in the United States (“U.S. GAAP”
or “GAAP”). The Company presents these non-GAAP financial measures because they are used by the Company’s management
to evaluate operating performance and formulate business plans. The Company believes that the non-GAAP financial measures help identify
underlying trends in the Company’s business, provide further information about the Company’s results of operations and enhance
the overall understanding of the Company’s past performance and future prospects.
The non-GAAP financial measures are
not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical
tools. The Company’s non-GAAP financial measures do not reflect all items of income and expense that affect the Company’s
operations and do not represent the residual cash flow available for discretionary expenditures. Furthermore, these non-GAAP measures
may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be
limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance
measure, all of which should be considered when evaluating the Company’s performance. The Company encourages investors and others
to review the Company’s financial information in its entirety and not rely on a single financial measure.
The
Company defines non-GAAP operating income/(loss) as operating income/(loss) excluding share-based
compensation expenses, non-GAAP net income/(loss) as net income/(loss) excluding recurring item of share-based compensation expenses
and non-recurring item of provision for equity litigants, and non-GAAP net income/(loss) attributable to the Company’s ordinary
shareholders as net income/(loss) attributable to the Company’s ordinary shareholders excluding recurring item of share-based compensation
expenses and non-recurring item of provision for equity litigants.
For more information on the non-GAAP
financial measures, please see the table captioned “Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measures”
set forth at the end of this earnings release.
EXCHANGE RATE INFORMATION
This
earnings release contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the
convenience of the reader. Unless otherwise noted, all translations from RMB to US$ were made at the rate of RMB7.0111
to US$1.00, the exchange rate on September 27, 2024 set forth in the H.10 statistical release of the Federal Reserve Board. The
Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular
rate or at all.
CONFERENCE CALL
The
Company will host a conference call today, on Wednesday, October 30, 2024, at 8:00 am Eastern
Time (or Wednesday, October 30, 2024, at 8:00 pm Beijing Time) to discuss the financial results.
Participants may access the call by
dialing the following numbers:
| United States Toll
Free: |
+1-888-317-6003 |
| International: |
+1-412-317-6061 |
| Mainland China Toll Free: |
400-120-6115 |
| Hong Kong Toll Free: |
800-963-976 |
| Conference ID: |
5935029 |
The
replay will be accessible through November 6, 2024, by dialing the following numbers:
| United States Toll
Free: |
+1-877-344-7529 |
| International: |
+1-412-317-0088 |
| Access Code: |
3696636 |
A
live and archived webcast of the conference call will also be available at the Company's investor relations website at investor.lkcoffee.com.
SAFE HARBOR STATEMENTS
This earnings release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the “safe
harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology
such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,”
“believes,” “estimates,” “potential,” “continue,” “ongoing,” “targets,”
“guidance” and similar statements. Luckin Coffee may also make written or oral forward-looking statements in its periodic
reports or current reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders,
in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any
statements that are not historical facts, including statements about Luckin Coffee’s beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ
materially from those contained in any forward-looking statement, including but not limited to the following: the expense, timing and
outcome of existing or future legal and governmental proceedings or investigations in connection with Luckin Coffee; the outcome and effect
of the restructuring of Luckin Coffee’s financial obligations; Luckin Coffee’s growth strategies, including its international
expansion plans; its future business development, results of operations and financial condition; the effect of the non-reliance identified
in, and the resultant restatement of, certain of Luckin Coffee’s previously issued financial results; the effectiveness of its internal
control; its ability to retain and attract its customers; its ability to maintain and enhance the recognition and reputation of its brand;
its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with its
suppliers and business partners; trends and competition in the coffee industry or the food and beverage sector in general; changes in
its revenues and certain cost or expense items; the expected growth of China’s coffee industry or China’s food and beverage
sector in general; governmental policies and regulations relating to Luckin Coffee’s industry; and general economic and business
conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and
other risks, uncertainties or factors is included in Luckin Coffee’s filings with the SEC. All information provided in this press
release and in the attachments is as of the date of this press release, and Luckin Coffee undertakes no obligation to update any forward-looking
statement, except as required under applicable law.
STATEMENT REGARDING PRELIMINARY UNAUDITED
FINANCIAL INFORMATION
The unaudited financial information
set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements
may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences
from this preliminary unaudited financial information.
ABOUT LUCKIN COFFEE INC.
Luckin Coffee Inc. (OTC: LKNCY) has
pioneered a technology-driven retail network to provide coffee and other products of high quality, high convenience and high affordability
to customers. Empowered by proprietary technologies, Luckin Coffee pursues its mission to build a world-class coffee brand and become
a part of everyone’s daily life. Luckin Coffee was founded in 2017 and is based in China. For more information, please visit investor.lkcoffee.com.
INVESTOR AND MEDIA CONTACTS
Investor Relations:
Luckin Coffee Inc. IR
Email: ir@lkcoffee.com
Bill Zima / Michael Bowen
ICR, Inc.
Phone: 646 880 9039
Media Relations:
Luckin Coffee Inc. PR
Email: pr@lkcoffee.com
Ed Trissel / Spencer Hoffman
Joele Frank, Wilkinson Brimmer Katcher
Phone: 212 355 4449
LUCKIN COFFEE
INC.
CONSOLIDATED
BALANCE SHEET AS OF DECEMBER 31, 2023
AND
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 2024
(Amounts in thousands
of RMB and US$, except for number of shares)
| | |
As
of | |
| | |
December 31,
2023 | | |
September 30,
2024
(Unaudited) | |
| | |
RMB | | |
RMB | | |
US$ | |
| ASSETS | |
| | | |
| | | |
| | |
| Current assets: | |
| | | |
| | | |
| | |
| Cash and cash equivalents | |
| 2,925,709 | | |
| 3,802,087 | | |
| 542,295 | |
| Restricted cash | |
| 66,080 | | |
| 5,571 | | |
| 795 | |
| Term deposit- current | |
| 464,019 | | |
| 639,412 | | |
| 91,200 | |
| Short-term investment | |
| 100,000 | | |
| 116,000 | | |
| 16,545 | |
| Accounts receivable, net | |
| 80,665 | | |
| 156,401 | | |
| 22,308 | |
| Receivables from online payment
platforms | |
| 214,163 | | |
| 381,416 | | |
| 54,402 | |
| Inventories, net | |
| 2,204,000 | | |
| 3,118,617 | | |
| 444,811 | |
| Prepaid
expenses and other current assets, net | |
| 1,544,918 | | |
| 1,871,911 | | |
| 266,992 | |
| Total
current assets | |
| 7,599,554 | | |
| 10,091,415 | | |
| 1,439,348 | |
| | |
| | | |
| | | |
| | |
| Non-current assets: | |
| | | |
| | | |
| | |
| Property and equipment, net | |
| 4,169,141 | | |
| 4,861,418 | | |
| 693,389 | |
| Restricted cash | |
| 46,854 | | |
| 40,134 | | |
| 5,724 | |
| Term deposit-non current | |
| 150,000 | | |
| 150,000 | | |
| 21,395 | |
| Other non-current assets, net | |
| 789,492 | | |
| 934,700 | | |
| 133,317 | |
| Deferred tax assets, net | |
| 350,082 | | |
| 254,542 | | |
| 36,306 | |
| Operating
lease, right-of-use assets | |
| 5,186,855 | | |
| 5,761,557 | | |
| 821,776 | |
| Total
non-current assets | |
| 10,692,424 | | |
| 12,002,351 | | |
| 1,711,907 | |
| TOTAL
ASSETS | |
| 18,291,978 | | |
| 22,093,766 | | |
| 3,151,255 | |
| | |
| | | |
| | | |
| | |
| LIABILITIES, MEZZANINE
EQUITY AND SHAREHOLDERS’ EQUITY | |
| | | |
| | | |
| | |
| Current liabilities | |
| | | |
| | | |
| | |
| Short-term bank borrowing | |
| — | | |
| 300,000 | | |
| 42,789 | |
| Accounts payable | |
| 814,655 | | |
| 862,805 | | |
| 123,063 | |
| Accrued expenses and other liabilities | |
| 2,556,977 | | |
| 3,183,424 | | |
| 454,055 | |
| Deferred revenues | |
| 123,422 | | |
| 108,736 | | |
| 15,509 | |
| Payable for equity litigants
settlement | |
| 116,314 | | |
| 114,860 | | |
| 16,383 | |
| Operating
lease liabilities-current | |
| 1,851,310 | | |
| 2,218,176 | | |
| 316,381 | |
| Total
current liabilities | |
| 5,462,678 | | |
| 6,788,001 | | |
| 968,180 | |
| | |
| | | |
| | | |
| | |
| Non-current liabilities: | |
| | | |
| | | |
| | |
| Operating
lease liabilities-non current | |
| 3,114,855 | | |
| 3,294,382 | | |
| 469,881 | |
| Total
non-current liabilities | |
| 3,114,855 | | |
| 3,294,382 | | |
| 469,881 | |
| Total
liabilities | |
| 8,577,533 | | |
| 10,082,383 | | |
| 1,438,061 | |
| | |
| | | |
| | | |
| | |
| Commitments and contingencies | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | |
| Mezzanine equity | |
| | | |
| | | |
| | |
| Senior Preferred Shares | |
| 1,578,040 | | |
| 1,514,660 | | |
| 216,037 | |
| | |
| | | |
| | | |
| | |
| Shareholders’ equity: | |
| | | |
| | | |
| | |
| Class A Ordinary shares | |
| 23 | | |
| 23 | | |
| 3 | |
| Class B Ordinary shares | |
| 2 | | |
| 2 | | |
| — | |
| Additional paid-in capital | |
| 16,276,991 | | |
| 16,608,582 | | |
| 2,368,898 | |
| Statutory reserves | |
| 168,204 | | |
| 167,868 | | |
| 23,943 | |
| Accumulated deficits | |
| (8,705,759 | ) | |
| (6,614,853 | ) | |
| (943,483 | ) |
| Accumulated other comprehensive
income | |
| 396,944 | | |
| 335,101 | | |
| 47,796 | |
| Total
Company’s ordinary shareholders’ equity | |
| 8,136,405 | | |
| 10,496,723 | | |
| 1,497,157 | |
| TOTAL
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY | |
| 18,291,978 | | |
| 22,093,766 | | |
| 3,151,255 | |
LUCKIN COFFEE
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE
INCOME
(Amounts in thousands
of RMB and US$, except for number of shares and per share data)
| | |
For the three months ended September 30, | | |
For the nine months ended September 30, | |
| | |
2023 | | |
2024 | | |
2023 | | |
2024 | |
| | |
RMB | | |
RMB | | |
US$ | | |
RMB | | |
RMB | | |
US$ | |
| Net revenues: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Revenues from product
sales | |
| 5,359,262 | | |
| 7,839,479 | | |
| 1,118,152 | | |
| 13,376,169 | | |
| 19,162,032 | | |
| 2,733,099 | |
| Revenues from partnership stores | |
| 1,840,777 | | |
| 2,341,287 | | |
| 333,940 | | |
| 4,462,026 | | |
| 5,699,505 | | |
| 812,926 | |
| Total net revenues | |
| 7,200,039 | | |
| 10,180,766 | | |
| 1,452,092 | | |
| 17,838,195 | | |
| 24,861,537 | | |
| 3,546,025 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Cost of materials | |
| (3,166,570 | ) | |
| (3,955,439 | ) | |
| (564,168 | ) | |
| (7,382,729 | ) | |
| (10,268,106 | ) | |
| (1,464,550 | ) |
| Store rental and other operating
costs | |
| (1,425,482 | ) | |
| (2,284,889 | ) | |
| (325,896 | ) | |
| (3,465,513 | ) | |
| (6,168,379 | ) | |
| (879,802 | ) |
| Depreciation and amortization
expenses | |
| (160,052 | ) | |
| (309,704 | ) | |
| (44,173 | ) | |
| (396,256 | ) | |
| (858,215 | ) | |
| (122,408 | ) |
| Delivery expenses | |
| (587,455 | ) | |
| (927,693 | ) | |
| (132,318 | ) | |
| (1,543,336 | ) | |
| (1,982,406 | ) | |
| (282,752 | ) |
| Sales and marketing expenses | |
| (384,401 | ) | |
| (588,987 | ) | |
| (84,008 | ) | |
| (887,410 | ) | |
| (1,347,412 | ) | |
| (192,183 | ) |
| General and administrative expenses | |
| (481,281 | ) | |
| (636,645 | ) | |
| (90,805 | ) | |
| (1,267,654 | ) | |
| (1,782,892 | ) | |
| (254,296 | ) |
| Store preopening and other expenses | |
| (30,050 | ) | |
| (13,466 | ) | |
| (1,921 | ) | |
| (64,223 | ) | |
| (55,976 | ) | |
| (7,984 | ) |
| Impairment loss of long-lived
assets | |
| — | | |
| (8,925 | ) | |
| (1,273 | ) | |
| (5,229 | ) | |
| (8,925 | ) | |
| (1,273 | ) |
| Losses and expenses related
to Fabricated Transactions and Restructuring | |
| (3,024 | ) | |
| 102,454 | | |
| 14,613 | | |
| (12,940 | ) | |
| 153,821 | | |
| 21,940 | |
| Total operating expenses | |
| (6,238,315 | ) | |
| (8,623,294 | ) | |
| (1,229,949 | ) | |
| (15,025,290 | ) | |
| (22,318,490 | ) | |
| (3,183,308 | ) |
| Operating income | |
| 961,724 | | |
| 1,557,472 | | |
| 222,143 | | |
| 2,812,905 | | |
| 2,543,047 | | |
| 362,717 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Interest and investment income | |
| 31,509 | | |
| 25,153 | | |
| 3,588 | | |
| 77,324 | | |
| 54,738 | | |
| 7,807 | |
| Interest and financing expenses | |
| — | | |
| (1,918 | ) | |
| (274 | ) | |
| — | | |
| (2,007 | ) | |
| (286 | ) |
| Foreign exchange gain/(loss),
net | |
| 792 | | |
| 68,090 | | |
| 9,712 | | |
| (121 | ) | |
| 38,882 | | |
| 5,546 | |
| Other income, net | |
| 3,603 | | |
| 6,578 | | |
| 938 | | |
| 44,309 | | |
| 73,956 | | |
| 10,548 | |
| Provision for equity litigants | |
| (92,192 | ) | |
| — | | |
| — | | |
| (92,192 | ) | |
| — | | |
| — | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income before income
taxes | |
| 905,436 | | |
| 1,655,375 | | |
| 236,107 | | |
| 2,842,225 | | |
| 2,708,616 | | |
| 386,332 | |
| Income tax (expense)/benefit | |
| 82,575 | | |
| (352,734 | ) | |
| (50,311 | ) | |
| (290,693 | ) | |
| (618,046 | ) | |
| (88,153 | ) |
| Net income | |
| 988,011 | | |
| 1,302,641 | | |
| 185,796 | | |
| 2,551,532 | | |
| 2,090,570 | | |
| 298,179 | |
| Net income attributable
to the Company’s ordinary shareholders | |
| 988,011 | | |
| 1,302,641 | | |
| 185,796 | | |
| 2,551,532 | | |
| 2,090,570 | | |
| 298,179 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income per share: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 0.39 | | |
| 0.51 | | |
| 0.07 | | |
| 1.01 | | |
| 0.82 | | |
| 0.12 | |
| Diluted | |
| 0.39 | | |
| 0.51 | | |
| 0.07 | | |
| 1.00 | | |
| 0.82 | | |
| 0.12 | |
| Net income per ADS: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic* | |
| 3.12 | | |
| 4.08 | | |
| 0.56 | | |
| 8.08 | | |
| 6.56 | | |
| 0.96 | |
| Diluted* | |
| 3.12 | | |
| 4.08 | | |
| 0.56 | | |
| 8.00 | | |
| 6.56 | | |
| 0.96 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Weighted average shares
outstanding used in calculating basic and diluted income per share: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 2,532,072,783 | | |
| 2,545,551,167 | | |
| 2,545,551,167 | | |
| 2,532,072,783 | | |
| 2,545,551,167 | | |
| 2,545,551,167 | |
| Diluted | |
| 2,542,324,870 | | |
| 2,549,360,432 | | |
| 2,549,360,432 | | |
| 2,542,795,351 | | |
| 2,548,436,166 | | |
| 2,548,436,166 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income | |
| 988,011 | | |
| 1,302,641 | | |
| 185,796 | | |
| 2,551,532 | | |
| 2,090,570 | | |
| 298,179 | |
| Other comprehensive loss,
net of tax of nil: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Foreign currency translation
difference, net of tax of nil | |
| (239 | ) | |
| (90,996 | ) | |
| (12,979 | ) | |
| 2,406 | | |
| (61,843 | ) | |
| (8,821 | ) |
| Total comprehensive income | |
| 987,772 | | |
| 1,211,645 | | |
| 172,817 | | |
| 2,553,938 | | |
| 2,028,727 | | |
| 289,358 | |
| Total comprehensive income
attributable to ordinary shareholders | |
| 987,772 | | |
| 1,211,645 | | |
| 172,817 | | |
| 2,553,938 | | |
| 2,028,727 | | |
| 289,358 | |
*
Each ADS represents eight Class A Ordinary Shares. The per ADS indicators are based on rounded
results of corresponding per share indicators, which could have a rounding difference of absolute amount for not more than 0.04 per ADS.
LUCKIN COFFEE
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands
of RMB and US$)
| | |
For the three months ended September 30, | | |
For the nine months ended September 30, | |
| | |
2023 | | |
2024 | | |
2023 | | |
2024 | |
| | |
RMB | | |
RMB | | |
US$ | | |
RMB | | |
RMB | | |
US$ | |
| Net cash provided
by operating activities | |
| 1,310,128 | | |
| 1,316,141 | | |
| 187,722 | | |
| 3,827,171 | | |
| 2,600,897 | | |
| 370,969 | |
| Net cash used in investing activities | |
| (1,880,916 | ) | |
| (988,308 | ) | |
| (140,963 | ) | |
| (3,271,026 | ) | |
| (2,097,443 | ) | |
| (299,161 | ) |
| Net cash provided by financing
activities | |
| — | | |
| — | | |
| — | | |
| — | | |
| 300,000 | | |
| 42,789 | |
| Effect of foreign exchange rate
changes on cash and cash equivalents and restricted cash | |
| (1,138 | ) | |
| 1,642 | | |
| 234 | | |
| 6,907 | | |
| 5,695 | | |
| 812 | |
| Net increase/(decrease) in cash
and cash equivalents and restricted cash | |
| (571,926 | ) | |
| 329,475 | | |
| 46,993 | | |
| 563,052 | | |
| 809,149 | | |
| 115,409 | |
| Cash and cash equivalents
and restricted cash at beginning of period | |
| 4,712,897 | | |
| 3,518,317 | | |
| 501,821 | | |
| 3,577,919 | | |
| 3,038,643 | | |
| 433,405 | |
| Cash and cash equivalents
and restricted cash at end of period | |
| 4,140,971 | | |
| 3,847,792 | | |
| 548,814 | | |
| 4,140,971 | | |
| 3,847,792 | | |
| 548,814 | |
LUCKIN COFFEE
INC.
RECONCILIATION
OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP
MEASURES
(Unaudited, amounts
in thousands of RMB and US$, except for number of shares and per share data)
| | |
For the three months ended September 30, | | |
For the nine months ended September 30, | |
| | |
2023 | | |
2024 | | |
2023 | | |
2024 | |
| | |
RMB | | |
RMB | | |
US$ | | |
RMB | | |
RMB | | |
US$ | |
| A.
Non-GAAP operating income | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Operating income | |
| 961,724 | | |
| 1,557,472 | | |
| 222,144 | | |
| 2,812,905 | | |
| 2,543,047 | | |
| 362,717 | |
| Adjusted for: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Share-based
compensation expenses | |
| 63,759 | | |
| 98,172 | | |
| 14,002 | | |
| 179,311 | | |
| 268,188 | | |
| 38,252 | |
| Non-GAAP
operating income | |
| 1,025,483 | | |
| 1,655,644 | | |
| 236,146 | | |
| 2,992,216 | | |
| 2,811,235 | | |
| 400,969 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| B.
Non-GAAP net income | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income | |
| 988,011 | | |
| 1,302,641 | | |
| 185,797 | | |
| 2,551,532 | | |
| 2,090,570 | | |
| 298,180 | |
| Adjusted for: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Share-based compensation expenses | |
| 63,759 | | |
| 98,172 | | |
| 14,002 | | |
| 179,311 | | |
| 268,188 | | |
| 38,252 | |
| Provision
for equity litigants | |
| 92,192 | | |
| — | | |
| — | | |
| 92,192 | | |
| — | | |
| — | |
| Non-GAAP
net income | |
| 1,143,962 | | |
| 1,400,813 | | |
| 199,799 | | |
| 2,823,035 | | |
| 2,358,758 | | |
| 336,432 | |
| Non-GAAP
net income attributable to the Company’s ordinary shareholders | |
| 1,143,962 | | |
| 1,400,813 | | |
| 199,799 | | |
| 2,823,035 | | |
| 2,358,758 | | |
| 336,432 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| C.
Non-GAAP net income per share | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Weighted average shares
outstanding used in calculating basic and diluted income per share: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 2,532,072,783 | | |
| 2,545,551,167 | | |
| 2,545,551,167 | | |
| 2,532,072,783 | | |
| 2,545,551,167 | | |
| 2,545,551,167 | |
| Diluted | |
| 2,542,324,870 | | |
| 2,549,360,432 | | |
| 2,549,360,432 | | |
| 2,542,795,351 | | |
| 2,548,436,166 | | |
| 2,548,436,166 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Non-GAAP net income per share: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 0.45 | | |
| 0.55 | | |
| 0.08 | | |
| 1.11 | | |
| 0.93 | | |
| 0.13 | |
| Diluted | |
| 0.45 | | |
| 0.55 | | |
| 0.08 | | |
| 1.11 | | |
| 0.93 | | |
| 0.13 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Non-GAAP net income per
ADS: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic* | |
| 3.60 | | |
| 4.40 | | |
| 0.64 | | |
| 8.88 | | |
| 7.44 | | |
| 1.04 | |
| Diluted* | |
| 3.60 | | |
| 4.40 | | |
| 0.64 | | |
| 8.88 | | |
| 7.44 | | |
| 1.04 | |
*
Each ADS represents eight Class A Ordinary Shares. The per ADS indicators are based on rounded
results of corresponding per share indicators, which could have a rounding difference of absolute amount for not more than 0.04 per ADS.
Luckin Coffee (PK) (USOTC:LKNCY)
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