The Science and Technology Innovation Board Daily reported on October 31st (Reporter Xu Cihao) that Luckin Coffee released its financial report for the third quarter of the fiscal year 2024 last night (30th).

The financial report shows that in the three months ending on September 30, 2024, Luckin Coffee's total revenue increased by 41.4% year-on-year to 10.18 billion yuan, and net income increased by 31.8% year-on-year to 1.3 billion yuan. By the end of the third quarter, its number of stores had reached 21,343.

It is worth noting that there are recent market rumors that Luckin Coffee will enter the US market as early as next year and is currently completing preparations for supply chain and technical adjustments.

"We are also actively exploring opportunities in the USA and other markets. Considering the maturity and fierce competition in the US market, we will make cautious decisions when implementing our market expansion strategy." Guo Jinyi responded during last night's analyst earnings conference call.

Furthermore, regarding the timetable for Luckin Coffee's return to the international capital markets, Guo Jinyi stated that the current primary focus is still on implementing the company's business strategy. "In a complex market and regulatory environment, the company currently does not have a clear timetable for returning to the main board or resuming listing status."

As of the time of drafting, Luckin Coffee surged by 10.42%, closing at $26.5 with a total market value of $7.442 billion.

Single-quarter revenue exceeds one billion for the first time, with 21,343 stores.

According to the financial report, in the third quarter of 2024, Luckin Coffee's net income was 10.181 billion yuan, an increase of 41.4% compared to 7.2 billion yuan in the same period last year.

As of the end of the third quarter, Luckin Coffee's cumulative trading users exceeded 0.3 billion, with monthly average trading users increasing by over tens of millions to reach 79.85 million, setting a new historical high.

During the reporting period, Luckin Coffee opened a net total of 1382 new stores, with a total store count increasing by 6.9% compared to the previous quarter to reach a scale of 21,343 stores by the end of the quarter. Among them, there are 13,936 company-operated stores and 7,407 joint venture stores.

The revenue from company-operated stores was 7.5014 billion yuan (1.0699 billion US dollars), an increase of 45.9% compared to 5.141 billion yuan in the same period of 2023. The operating profit was 1.7456 billion yuan (0.249 billion US dollars), with a profit margin of 23.3%, compared to 1.1854 billion yuan in the same period of 2023, and an operating profit margin at store level of 23.1%.

However, Luckin Coffee witnessed a decline in same-store sales growth rate for company-operated stores. During the reporting period, the same-store sales growth rate was -13.1%, significantly lower than the 19.9% in the same period last year.

In response to this, Luckin Coffee's CFO calmly stated at the earnings conference that this was mainly due to the rapid expansion of the company's store network and the introduction of the 9.9 yuan promotion.

Previously, due to price wars in the coffee industry, Luckin Coffee incurred a loss of 82.3 million yuan in the first quarter of this year, ending the profit streak of the previous six quarters.

To address this challenge, Luckin Coffee subsequently reduced the intensity of the "9.9 yuan" promotions, and returned to profitability in the second quarter. However, in the second and third quarters of this year, the company's net margin was 10.4% and 12.8% respectively, still lower than 16.1% and 13.7% in the same period last year. This indicates that while Luckin Coffee has partially recovered in profitability, it has not fully reached the previous level.

As the company enters a more stable and sustainable growth phase, Luckin Coffee will continue to closely monitor key indicators such as same-store sales to assess market performance. At the same time, the company will actively seek opportunities for product innovation and enhance overall competitiveness to ensure stable and sustainable growth.

Singapore is still operating at a loss and will continue to focus on the domestic market.

It is worth mentioning that Luckin also disclosed the overseas development situation.

In April last year, Luckin's first overseas store landed in Singapore. Currently, Singapore has been in operation for a year and a half, and although the overall business has not yet achieved profitability, the amount of losses has narrowed significantly. Luckin's financial report revealed that in the third quarter of 2024, 8 new stores were added in Singapore, bringing the total number of stores to 45 by the end of the quarter.

In the financial report, Luckin mentioned that it recognizes the importance of the international market and has been actively expanding. Due to the different regions covered by the international market, each region requires long-term investment to achieve substantial economic returns. Recognizing Singapore's strategic position in the Southeast Asian region, the company strategically chose Singapore as the starting point for developing international markets.

Guo Jin Yi candidly admitted at the earnings conference that based on the early exploration in Singapore, despite certain financial losses, it has accumulated valuable experience for Luckin and recognized the complexity of overseas business.

Regarding the concerns of investors about Luckin's overseas expansion, Guo Jin Yi stated that Luckin will continue to focus on the domestic market to obtain the maximum benefits from the rapid development of the domestic coffee industry.

"From a global perspective, the Chinese market has a large customer base, strong purchasing power, and vast market space." Guo Jin Yi believes that in recent years, the domestic coffee consumption market in China has become increasingly mature, the market potential is continuously expanding, the ceiling of the Chinese coffee industry is still rising, and he firmly believes that China will eventually become the world's largest coffee consumption market. "Faced with this historic opportunity, we will focus on the domestic market, deepen the layout of the store network, consolidate and expand Luckin's leading position in the industry to obtain the maximum benefits from the rapid development of the Chinese coffee industry."

In addition, in Guo Jinyi's opinion, luckin coffee's overseas business is still in the initial exploration and investment stage, requiring increased investment in aspects such as stores, online presence, supply chain, brand building, etc., striving to form core competitiveness in terms of cost structure and customer experience.