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 May 2023
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 annualreports
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-Kin paper as
permitted by Regulation S-T Rule 101(b)(1):
..
Indicate by check mark if the registrant is submitting the Form 6-Kin paper as
permitted by Regulation S-T Rule 101(b)(7):
..
SIGNATURES
Pursuant to the requirements of the SecuritiesExchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Luckin Coffee Inc.
Date: May 1, 2023 By: /s/ Jing An
Name: Jing An
Title: Chief Financial Officer
2
EXHIBIT INDEX
Exhibit No. Description
99.1 Earnings Release
3
Exhibit 99.1
Luckin Coffee Inc. Announces First Quarter 2023Financial Results
First Quarter Net Revenues Increased 84.5%
Improved Profitability Profile with GAAP OperatingIncome Margin of 15.3%
More than 1,100 Net New Stores Openings; Expandedto More than 9,300 Stores
Started International Expansion with Launchof Stores in Singapore
BEIJING, May 1, 2023 (GLOBE NEWSWIRE)
- Luckin CoffeeInc. ("Luckin Coffee" or the "Company") (OTC: LKNCY) today
announced its unaudited financial results for the threemonths ended March 31,
2023.
FIRST QUARTER 2023 HIGHLIGHTS
1
. Total net revenues
in the first quarter were RMB4,436.7 million (US$646.0million), representing
an increase of 84.5% from RMB2,404.6 million in the same quarter of 2022.
. Net new store openings
during the first quarter was 1,137, includingtwo new store openings in Singapore,
resulting in a quarter-over-quarter store unit growth of 13.8% from the number of
stores at the endof the fourth quarter of 2022, ending the first quarter with 9,351
stores which include 6,310 self-operated stores and 3,041 partnershipstores.
. Average monthly transacting customers
in the first quarter was 29.5million, representing an increase of 84.6% from 16.0 million in the same quarter of 2022.
. Revenues from self-operated stores
2
in the first quarterwere RMB3,140.4 million (US$457.3 million), representing
an increase of 74.9% from RMB1,795.0 million in the same quarter of 2022.
. Same-store sales growth for self-operated stores
in the first quarterwas 29.6%, compared to 41.6% in the same quarter of 2022.
. Store level operating profit
- self-operated stores
2
in the first quarter was RMB791.6 million (US$115.3 million) with store level operating profit margin of 25.2%,
compared to RMB332.9 millionwith store level operating profit margin of 18.5% in the same quarter of 2022.
. Revenues from partnership stores
in the first quarter were RMB1,135.4million (US$165.3 million), representing
an increase of 106.7% from RMB549.3 million in the same quarter of 2022.
. GAAP operating income
in the first quarter was RMB678.4 million (US$98.8
million), representing a GAAP operating income margin of
15.3%, compared to RMB16.1 million, or a GAAP operating
income margin of 0.7%, in the same quarter of 2022.
Non-GAAP operating income
in the first quarter, which adjusts for share-based compensation expenses, was RMB730.5
million (US$106.4 million), representing a non-GAAP operating income margin of 16.5%,
compared to RMB92.1 million, or a non-GAAP operating income margin of 3.8%, in the
same quarterof 2022, which illustrates a significant improvement of operating results.
1
Please refer to the section "KEY DEFINITIONS" on Page 4 for detailed
definitions on certain terms used.
2
Beginning from the first quarter of 2023, the definitionsof "revenues from
self-operated stores" and "store level operating profit - self-operated
stores" have been adjustedto better reflect the operating results of the
Company's self-operated stores. Comparative information for the first quarter
of2022 has also been adjusted to conform to the current period's presentation.
For detailed definitions, please refer to the section "KEY DEFINITIONS" on
Page 4.
1
COMPANY STATEMENT
"The Luckin Coffee team is delighted to report strong sales growthand
increased profitability in the first quarter of 2023," said Dr. Jinyi Guo,
Chairman and Chief Executive Officer of Luckin Coffee. "Our new, innovative
product offerings continue to resonate with customers, resulting in
significant growth in product revenue andmonthly transacting customers. We had
1,137 net new store openings in the first quarter, ensuring that we remain
best positioned to capturethe returning consumer demand. With more than 9,300
stores, we are proud to say that Luckin Coffee is China's largest coffee
chainbrand."
Dr. Guo continued, "We are excited to have launched two new storesin Singapore
in the first quarter, and we look forward to continued growth in Singapore.
The launch of our stores in Singapore representsan important first step in our
expansion into international markets and is the starting point of our
internationalization strategy. Byestablishing a presence in Singapore, we are
aiming to fine-tune our entire IT and operation system for this expansion, and
test our businessmodel in the overseas markets. Our goal is to make Luckin
Coffee's high-quality coffee accessible to consumers worldwide, by
leveragingour brand's professional, youthful, fashion, and healthy image and
our new retail coffee business model."
Dr. Guo concluded, "The Chinese coffee market is highly competitive,and we
welcome healthy competition and collaboration to expand the market for coffee
consumption. Our success indeveloping and improving our products and services,
delivering high-quality products and services to our customers, growing brand
awareness,and optimizing our supply chain and operational efficiency has
enabled us to differentiate ourselves in a highly competitive market. Weremain
committed to expanding our footprint and adapting to changing market
conditions and customer needs to maintain our competitiveedge while driving
long-term value and sustainable growth for our shareholders."
FIRST QUARTER 2023 FINANCIAL RESULTS
Total net revenues
were RMB4,436.7 million (US$646.0 million)in the first quarter of 2023,
representing an increase of 84.5% from RMB2,404.6 million in the same quarter
of 2022. Net revenues growthwas primarily driven by the increase in the number
of products sold, the increase in stores in operation and the increase in the
numberof monthly transacting customers.
. Revenues from product sales
were RMB3,301.3 million (US$480.7 million) in the first quarter of 2023, representing
an increaseof 77.9% from RMB1,855.3 million in the same quarter of 2022.
. Net revenues from freshly brewed drinks were RMB2,934.3 million (US$427.3 million), representing 66.1% of total net revenues
in thefirst quarter of 2023, compared to RMB1,652.6 million, or 68.8% of total net revenues, in the same quarter of 2022.
. Net revenues from other products were RMB244.6 million (US$35.6 million), representing 5.5% of total net revenues in
the first quarterof 2023, compared to RMB109.1 million, or 4.5% of total net revenues, in the same quarter of 2022.
. Net revenues from others were RMB122.4 million (US$17.8 million), representing 2.8% of total net revenues in the
first quarter of2023, compared to RMB93.6 million, or 3.9% of total net revenues, in the same quarter of 2022.
. Revenues from partnership stores
were RMB1,135.4 million (US$165.3 million) in the first quarter of 2023,
representing 25.6%of total net revenues, which is an increase of 106.7%
compared to RMB549.3 million, or 22.8% of total net revenues, in the same
quarterof 2022. For the first quarter of 2023, revenues from partnership
stores included sales of materials of RMB743.2 million (US$108.2 million),profit
sharing of RMB160.0 million (US$23.3 million), sales of equipment
of RMB123.3 million (US$18.0 million), delivery service of RMB100.6million
(US$14.6 million) and other services of RMB8.4 million (US$1.2 million).
Total operating expenses
were RMB3,758.4 million (US$547.3 million)in the first quarter of 2023,
representing an increase of 57.4% from RMB2,388.5 million in the same quarter
of 2022. The increase in totaloperating expenses was predominantly the result
of the Company's business expansion. Meanwhile, operating expenses as a
percentageof net revenues decreased to 84.7% in the first quarter of 2023 from
99.3% in the same quarter of 2022, due to increased economies ofscale and the
Company's technology-driven operations.
. Cost of materials
were RMB1,754.7 million (US$255.5 million) in the first quarter of 2023,
representing an increase of 78.5%from RMB983.2 million in the same quarter
of 2022, which was generally in line with the increase in the number of
products sold and theincrease in sales of materials to partnership stores.
. Store rental and other operating costs
were RMB891.7 million (US$129.8 million) in the first quarter of 2023, representingan increase of
52.2% from RMB586.0 million in the same quarter of 2022, mainly due to the increase in labor costs,
store rental as wellas utilities and other store operating costs as a result of the increased
number of stores and items sold in the first quarter of 2023compared to the same period last year.
2
. Depreciation and amortization expenses
were RMB108.5 million (US$15.8 million) in the first quarter of 2023, representing anincrease
of 13.3% from RMB95.7 million in the same quarter of 2022, mainly due to the increase
in amortization of leasehold improvementsfor the stores and the increase in depreciation
expenses of additional equipment put into use in new stores in the first quarter of 2023.
. Delivery expenses
were RMB421.7 million (US$61.4 million) in the first quarter of 2023, representing an increase of 70.9%
fromRMB246.7 million in the same quarter of 2022, mainly due to the increase in the number of delivery orders.
. Sales and marketing expenses
were RMB199.4 million (US$29.0 million) in the first quarter of 2023, representing an
increaseof 84.0% from RMB108.4 million in the same quarter of 2022, mainly driven by the
increase in (i) advertising expenses as the Company continuedto make strategic investments
in its branding through various channels, (ii) commissions to third-party delivery
platforms which is inline with the increase in the number of delivery orders and (iii)
subcontract service fees to support the Company's e-commerce business.Sales and marketing
expenses amounted to 4.5% of total net revenues in the first quarter of 2023, which was
generally stable when comparedto 4.5% of total net revenues in the same quarter of 2022.
. General and administrative expenses
were RMB360.8 million (US$52.5 million) in the first quarter of 2023, representing an
increaseof 11.7% from RMB323.0 million in the same quarter of 2022. The increase in
general and administrative expenses was mainly driven by theincrease in (i) payroll costs
for headquarter staff, (ii) tax surcharges, (iii) research and development expenses
and (iv) expendituresfor office supplies, offset by the decrease of share-based
compensation for restricted share units and options issued to management andemployees.
General and administrative expenses amounted to 8.1% of total net revenues in the first
quarter of 2023, compared to 13.3%of total net revenues in the same quarter of 2022.
. Store preopening and other expenses
were RMB15.7 million (US$2.3 million) in the first quarter of 2023, representing an increaseof 90.0% from
RMB8.3 million in the same quarter of 2022, mainly due to more stores being opened in the first quarter of
2023 comparedto the same quarter of 2022. Store preopening and other expenses amounted to 0.4% of total net
revenues in the first quarter of 2023,compared to 0.3% of total net revenues in the same quarter of 2022.
. Losses and expenses related to
Fabricated Transactionsand Restructuring
were RMB5.9 million (US$0.9 million) in the first quarter of 2023, representing a
decrease of 84.1% from RMB37.3million in the same quarter of 2022, as the Company had
successfully completed its provisional liquidation in March 2022 and substantiallyresolved
all outstanding litigations. The losses and expenses related to Fabricated Transactions
and Restructuring consisted primarilyof professional and legal fees for U.S.
securities litigations and other advisory service fees. Losses and expenses related to
FabricatedTransactions and Restructuring amounted to 0.1% of total net revenues in the
first quarter of 2023, compared to 1.6% of total net revenuesin the same quarter of 2022.
. Store level operating profit
margin - self-operated stores
was 25.2%in the first quarter of 2023, compared to 18.5% in the same quarter of 2022, primarily
due to the benefits of economies of scale fromthe increased number of products sold.
GAAP operating income
was RMB678.4 million (US$98.8 million)in the first quarter of 2023,
representing a GAAP operating income margin of 15.3%, compared to RMB16.1
million, or a GAAP operating incomemargin of 0.7%, in the same quarter of 2022.
Non-GAAP operating income
was RMB730.5 million (US$106.4 million) in the first quarterof 2023,
representing a non-GAAP operating income margin of 16.5%, compared to RMB92.1
million, or a non-GAAP operating income marginof 3.8%, in the same quarter of
2022. 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 DirectlyComparable
GAAP Measures" set forth at the end of this press release.
Net income
was RMB564.8 million (US$82.2 million) in the firstquarter of 2023, compared
to RMB19.8 million in the same quarter of 2022.
Non-GAAP net income
was RMB616.9 million (US$89.8 million)in the first quarter of 2023,
representing a non-GAAP net income margin of 13.9%, compared to RMB99.1
million, or a non-GAAP net incomemargin of 4.1%, in the same quarter of 2022.
Basic and diluted net income per ADS
was RMB1.76 (US$0.24) andRMB1.76 (US$0.24) in the first quarter of 2023,
respectively, compared to basic and diluted net income per ADS was RMB0.08 and
RMB0.08in the same quarter of 2022, respectively.
Non-GAAP basic and diluted net income per ADS
was RMB1.92 (US$0.24)and RMB1.92 (US$0.24) in the first quarter of 2023,
respectively, compared to basic and diluted net income of RMB0.32 and RMB0.32
in thesame quarter of 2022, respectively.
Net cash provided by operating activities
was RMB1,072.6 million(US$156.2 million) in the first quarter of 2023,
compared to RMB107.7 million in net cash provided by the same quarter of 2022.
Cash and cash equivalents, restricted cash and short-term investments
were RMB4,386.0 million (US$638.7 million) as of March 31, 2023, compared to
RMB3,577.9 million as of December 31, 2022. The increasewas primarily
attributable to operational cash generation.
3
KEY OPERATING DATA
For the three months
ended or as of
Sep Dec Mar Jun Sep Dec Mar
30, 31, 31, 30, 30, 31, 31,
2021 2021 2022 2022 2022 2022 2023
Total 5,671 6,024 6,580 7,195 7,846 8,214 9,351
stores
Self-operated 4,206 4,397 4,675 4,968 5,373 5,652 6,310
stores
Partnership 1,465 1,627 1,905 2,227 2,473 2,562 3,041
stores
Same-store sales growth 75.8 % 43.6 % 41.6 % 41.2 % 19.4 % 9.2 % 29.6 %
for self-operated stores
Average monthly transacting 14,722 16,229 15,975 20,712 25,103 24,559 29,489
customers (in thousands)
KEY DEFINITIONS
. Total net revenues
include revenues from product sales and revenuesfrom partnership stores.
. Revenues from product sales
include net revenue from the sales offreshly brewed and non-freshly brewed items through self-operating
stores, unmanned machines, e-commerce and revenue from delivery forself-operated stores.
. Revenues from self-operated stores
include net revenue from the salesof freshly brewed and non-freshly brewed items through self-operating stores, and
delivery fees derived from self-operated stores paidby the Company's customers. Before the first quarter of 2023, the
definition of revenues from self-operated stores did not includedelivery fees derived from self-operated stores paid
by the Company's customers. Comparative figures from previous periods presentedwere also adjusted to be consistent.
. Revenues from partnership stores
include net revenue from the sales of materials, equipment, and other services including deliveryand
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 thathas
been in operation as at the beginning of the comparable period and was not closed
before the current period ending with the numberof average operating days over
15 per month over both the current period and last year's comparable period.
. 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 deliverypackaging materials, storage and logistics expenses,
commissions to third-party delivery platforms related to revenues from self-operatedstores, 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 Comnpany's
self-operated store revenues. Before the first quarterof 2023, commissions to third-party delivery
platforms related to revenues from self-operated stores were not deducted when calculatingthis
term. Comparative figures from previous periods presented were also adjusted to be consistent.
. Store level operating profit margin - self-operated stores.
Calculated by dividing store level operating profit by total revenuesfrom 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 theperiod.
. Average monthly transacting customers
. The total of each month's number of transacting customers divided by the numberof 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-recurringitem of provision for equity litigants.
. Non-GAAP net income attributable to
the Company's ordinary shareholders.
Calculated by adjusting net income attributableto the Company's ordinary shareholders excluding recurring
item of share-based compensation expenses and non-recurring item of provisionfor equity litigants.
. Non-GAAP basic and diluted
net income per shares.
Calculated as non-GAAP net income attributable to the Company's
ordinaryshareholders 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
ordinaryshareholders divided by weighted average number of basic and diluted ADS.
4
USE OF NON-GAAP FINANCIAL MEASURES
In evaluating the business, the Company considers and uses non-GAAPoperating
income and non-GAAP net income, each a non-GAAP financial measure, in
reviewing and assessing the Company's operatingperformance. The presentation
of these non-GAAP financial measures is not intended to be considered in
isolation or as a substitute forthe financial information prepared and
presented in accordance with U.S. GAAP. The Company presents these non-GAAP
financial measuresbecause they are used by the Company's management to
evaluate operating performance and formulate business plans. The Company
believesthat the non-GAAP financial measures help identify underlying trends
in the Company's business, provide further information aboutthe 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 andare not
presented in accordance with U.S. GAAP. The non-GAAP financial measures have
limitations as analytical tools. The Company'snon-GAAP financial measures do
not reflect all items of income and expense that affect the Company's
operations and do not representthe residual cash flow available for
discretionary expenditures. Furthermore, these non-GAAP measures may differ
from the non-GAAP informationused by other companies, including peer
companies, and therefore their comparability may be limited. The Company
compensates for theselimitations by reconciling the non-GAAP financial
measures to the nearest U.S. GAAP performance measure, all of which should be
consideredwhen evaluating the Company's performance. The Company encourages
investors and others to review the Company's financial informationin its
entirety and not rely on a single financial measure.
The Company defines non-GAAP operating income as operating income
excludingshare-based compensation expenses, non-GAAP net income as net income
excluding recurring item of share-based compensation expenses andnon-recurring
item of provision for equity litigants, and non-GAAP net income attributable
to the Company's ordinary shareholdersas net income attributable to the
Company's ordinary shareholders excluding recurring item of share-based
compensation expensesand non-recurring item of provision for equity litigants.
For more information on the non-GAAP financial measures, please seethe table
captioned "Reconciliation of Non-GAAP Measures to the Most Directly Comparable
GAAP Measures" set forth at the endof this earnings release.
EXCHANGE RATE INFORMATION
This earnings release contains translations of certain RMB amountsinto U.S.
dollars ("US$") at specified rates solely for the convenience of the reader.
Unless otherwise noted, all translationsfrom RMB to US$ were made at the rate
of RMB6.8676 to US$1.00, the exchange rate on March 31, 2023 set forth in the
H.10 statistical releaseof the Federal Reserve Board. The Company makes no
representation that the RMB or US$ amounts referred could be converted into
US$ orRMB, as the case may be, at any particular rate or at all.
CONFERENCE CALL
The Company will host a conference call today, on Monday, May 1, 2023,at 8:00
am Eastern Time (or Monday, May 1, 2023, 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: 1374267
As previously announced, all shareholders are able to submit questionsto
Luckin Coffee management by visiting
https://event.choruscall.com/mediaframe/webcast.html?webcastid=ndO0ujkZ
. After registration,there will be an "Ask a Question" section on the bottom
of the screen. Management will answer a selection of questions fromthe
submission list during the conference call. The Q&A platform will remain open
until the conclusion of the earnings call.
The replay will be accessible through May 8, 2023, by dialingthe following
numbers:
United States Toll Free: +1-877-344-7529
International: +1-412-317-0088
Access Code: 5144298
A live and archived webcast of the conference call will also be availableat
the Company's investor relations website at
investor.lkcoffee.com
.
5
SAFE HARBOR STATEMENTS
This earnings release contains forward-looking statements within themeaning of
Section 21E of the Securities Exchange Act of 1934, as amended. These
forward-looking statements are made under the "safeharbor" provisions of the
U.S. Private Securities Litigation Reform Act of 1995. These statements can be
identified by terminologysuch 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 periodicreports to
the U.S. Securities and Exchange Commission (the "SEC"), in its annual report
to shareholders, in press releasesand other written materials and in oral
statements made by its officers, directors or employees to third parties. Any
statements thatare not historical facts, including statements about Luckin
Coffee's beliefs and expectations, are forward-looking statements.
Forward-lookingstatements involve inherent risks and uncertainties. A number
of factors could cause actual results to differ materially from those
containedin any forward-looking statement, including but not limited to the
following: the expense, timing and outcome of existing or future legaland
governmental proceedings or investigations in connection with Luckin Coffee;
the outcome and effect of the restructuring of LuckinCoffee's financial
obligations; Luckin Coffee's growth strategies; its future business
development, results of operationsand financial condition; the effect of the
non-reliance identified in, and the resultant restatement of, certain of
Luckin Coffee'spreviously issued financial results; the effectiveness of its
internal control; its ability to retain and attract its customers; its
abilityto maintain and enhance the recognition and reputation of its brand;
its ability to maintain and improve quality control policies andmeasures; its
ability to establish and maintain relationships with its suppliers and
business partners; trends and competition in China'scoffee industry or China's
food and beverage sector in general; changes in its revenues and certain cost
or expense items; the expectedgrowth of China's coffee industry or China's
food and beverage sector in general; Chinese governmental policies and
regulationsrelating to Luckin Coffee's industry; and general economic and
business conditions globally and in China and assumptions underlyingor related
to any of the foregoing. Further information regarding these and other risks,
uncertainties or factors is included in LuckinCoffee's filings with the SEC.
All information provided in this press release and in the attachments is as of
the date of this pressrelease, 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 releaseis
preliminary and subject to potential adjustments. Adjustments to the
consolidated financial statements may be identified when auditwork has been
performed for the Company's year-end audit, which could result in significant
differences from this preliminary unauditedfinancial information.
ABOUT LUCKIN COFFEE INC.
Luckin Coffee Inc. (OTC: LKNCY) has pioneered a technology-drivenretail
network to provide coffee and other products of high quality, high convenience
and high affordability to customers. Empowered byproprietary technologies,
Luckin Coffee pursues its mission to build a world-class coffee brand and
become a part of everyone'sdaily 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 / Fitzhugh Taylor
ICR, Inc.
Phone: 646 880 9039
Media Relations:
Luckin Coffee Inc. PR
Email: pr@lkcoffee.com
Ed Trissel / Jack Kelleher
Joele Frank, Wilkinson Brimmer Katcher
Phone: 212 355 4449
6
LUCKIN COFFEE INC.
CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31,2022
AND UNAUDITED CONDENSED CONSOLIDATED BALANCESHEET AS OF MARCH 31, 2023
(Amounts in thousands of RMB and US$, exceptfor number of shares)
As of
December 31, March 31, 2023
2022 (Unaudited)
RMB RMB US$
ASSETS
Current assets:
Cash and cash equivalents 3,534,304 4,091,922 595,830
Restricted cash 7,860 1,990 290
Short-term investment - 250,000 36,403
Accounts receivable, net 58,782 67,854 9,880
Receivables from online payment platforms 151,922 175,884 25,611
Inventories, net 1,206,467 1,354,761 197,268
Prepaid expenses and other current assets, net 1,077,719 1,066,106 155,236
Total current assets 6,037,054 7,008,517 1,020,518
Non-current assets:
Property and equipment, net 1,867,378 2,040,421 297,108
Restricted cash 35,755 42,107 6,131
Other non-current assets, net 327,744 366,567 53,376
Deferred tax assets, net 208,469 186,892 27,214
Operating lease, right-of-use assets 2,003,997 2,247,689 327,289
Total non-current assets 4,443,343 4,883,676 711,118
TOTAL ASSETS 10,480,397 11,892,193 1,731,636
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable 441,376 672,407 97,910
Accrued expenses and other liabilities 1,375,425 1,714,570 249,661
Deferred revenues 97,366 101,591 14,793
Payable for equity litigants settlement 33,796 25,753 3,750
Operating lease liabilities-current 880,873 963,905 140,355
Total current liabilities 2,828,836 3,478,226 506,469
Non-current liabilities:
Operating lease liabilities-non current 1,024,274 1,170,030 170,370
Total non-current liabilities 1,024,274 1,170,030 170,370
Total liabilities 3,853,110 4,648,256 676,839
Commitments and contingencies
Mezzanine equity
Senior Preferred Shares 1,578,040 1,578,040 229,780
Shareholders' equity:
Class A Ordinary shares 23 23 3
Class B Ordinary shares 2 2 0
Additional paid-in capital 16,037,406 16,089,572 2,342,823
Statutory reserves 35,657 35,657 5,192
Accumulated deficits (11,421,145 ) (10,856,328 ) (1,580,804 )
Accumulated other comprehensive income 397,304 396,971 57,803
Total Company's ordinary shareholders' equity 5,049,247 5,665,897 825,017
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY 10,480,397 11,892,193 1,731,636
7
LUCKIN COFFEE INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTSOF OPERATIONS AND
COMPREHENSIVE INCOME
(Amounts in thousands of RMB and US$, exceptfor number of shares and per share
data)
For the three months
ended March 31,
2022 2023
RMB RMB US$
Net
revenues:
Revenues from 1,855,297 3,301,311 480,708
product sales
Revenues from 549,301 1,135,416 165,329
partnership stores
Total net 2,404,598 4,436,727 646,037
revenues
Cost of (983,151 ) (1,754,654 ) (255,497 )
materials
Store rental and other (585,969 ) (891,661 ) (129,836 )
operating costs
Depreciation and (95,710 ) (108,456 ) (15,792 )
amortization expenses
Delivery (246,726 ) (421,734 ) (61,409 )
expenses
Sales and marketing (108,407 ) (199,421 ) (29,038 )
expenses
General and (322,995 ) (360,830 ) (52,541 )
administrative expenses
Store preopening (8,251 ) (15,676 ) (2,283 )
and other expenses
Losses and expenses related to Fabricated (37,327 ) (5,930 ) (863 )
Transactions and Restructuring
Total operating (2,388,536 ) (3,758,362 ) (547,259 )
expenses
Operating 16,062 678,365 98,778
income
Interest and 19,446 20,111 2,928
investment income
Interest and (6,859 ) - -
financing expenses
Foreign exchange 9,789 (540 ) (79 )
gain/(loss), net
Other 22,195 14,431 2,101
income, net
Provision for (3,172 ) - -
equity litigants
Net income before 57,461 712,367 103,728
income taxes
Income tax (37,626 ) (147,550 ) (21,485 )
expense
Net income 19,835 564,817 82,243
Net income attributable to the 19,835 564,817 82,243
Company's ordinary shareholders
Net income
per share:
Basic 0.01 0.22 0.03
Diluted 0.01 0.22 0.03
Net income
per ADS:
Basic* 0.08 1.76 0.24
Diluted* 0.08 1.76 0.24
Weighted average shares outstanding used in
calculating basic and diluted income per share:
Basic 2,453,828,777 2,532,072,783 2,532,072,783
Diluted 2,504,438,483 2,534,992,183 2,534,992,183
Net income 19,835 564,817 82,243
Other comprehensive loss,
net of tax of nil:
Foreign currency translation (3,873 ) (333 ) (48 )
difference, net of tax of nil
Total comprehensive 15,962 564,484 82,195
income
Total comprehensive income 15,962 564,484 82,195
attributable to ordinary shareholders
* Each ADS represents eight Class A Ordinary Shares. The per ADS indicatorsare
based on rounded results of corresponding per share indicators, which could
have a rounding difference of absolute amount for notmore than 0.04 per ADS.
8
LUCKIN COFFEE INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTSOF CASH FLOWS
(Amounts in thousands of RMB and US$)
For the three months ended March 31,
2022 2023
RMB RMB US$
Net cash provided by operating activities 107,711 1,072,633 156,188
Net cash used in investing activities (70,178 ) (513,180 ) (74,725 )
Net cash used in financing activities (1,559,559 ) - -
Effect of foreign exchange rate changes on cash and cash equivalents (11,852 ) (1,353 ) (197 )
Net (decrease)/ increase in cash and cash equivalents and restricted cash (1,533,878 ) 558,100 81,266
Cash and cash equivalents and restricted cash at beginning of period 6,555,274 3,577,919 520,985
Cash and cash equivalents and restricted cash at end of period 5,021,396 4,136,019 602,251
9
LUCKIN COFFEE INC.
RECONCILIATION OF NON-GAAP MEASURES TO THE MOSTDIRECTLY COMPARABLE GAAP
MEASURES
(Unaudited, amounts in thousands of RMB andUS$, except for number of shares
and per share data)
For the three months
ended March 31,
2022 2023
RMB RMB US$
A. Non-GAAP
operating income
Operating 16,062 678,365 98,778
income
Adjusted for: Share-based 76,086 52,104 7,587
compensation expenses
Non-GAAP 92,148 730,469 106,365
operating income
B. Non-GAAP
net income
Net income 19,835 564,817 82,243
Adjusted
for:
Share-based 76,086 52,104 7,587
compensation expenses
Provision for 3,172 - -
equity litigants
Non-GAAP 99,093 616,921 89,830
net income
C. Non-GAAP net
income per share
Weighted average shares outstanding used in
calculating basic and diluted income per share:
Basic 2,453,828,777 2,532,072,783 2,532,072,783
Diluted 2,504,438,483 2,534,992,183 2,534,992,183
Non-GAAP net
income per share:
Basic 0.04 0.24 0.03
Diluted 0.04 0.24 0.03
Non-GAAP net
income per ADS:
Basic* 0.32 1.92 0.24
Diluted* 0.32 1.92 0.24
* Each ADS represents eight Class A Ordinary Shares. The per ADS indicatorsare
based on rounded results of corresponding per share indicators, which could
have a rounding difference of absolute amount for notmore than 0.04 per ADS.
10
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