Summary of Luckin Coffee's Q3 2024 Earnings Call Company Overview - **Company**: Luckin Coffee - **Quarter**: Q3 2024 Key Financial Highlights - **Total Net Revenue**: RMB 10.81 billion, a year-over-year increase of 41.4% [4] - **Operating Profit**: RMB 1.56 billion, with an operating margin of 15.3% [4] - **Net Profit**: RMB 1.3 billion, reflecting a net margin of 12.8% [4][5] - **Self-Operated Store Profit**: RMB 1.75 billion, with a profit margin of 23.3% [4][5] - **Total Number of Stores**: 21,298, including 13,891 self-operated and 7,407 partnership stores [5][6] - **Cumulative Transaction Customers**: Exceeded 300 million, with an average monthly transaction customer count of 79.85 million [5][8] Business Performance and Strategy - **Growth Momentum**: Continued growth momentum from Q2 2024, with both revenue and profit reaching new heights [4][5] - **Market Expansion**: Focus on deepening domestic store layout and expanding market share to consolidate leading advantages [3][4] - **Product Innovation**: Launched 28 new limited-time beverages and multiple food items, enhancing product offerings [7][8] - **Supply Chain Investment**: Increased investment in supply chain to ensure stable supply for over 20,000 stores [8][10] International Market Insights - **International Expansion**: Continued investment in Singapore with 8 new stores, totaling 45 stores, despite not yet achieving profitability [5][6][28] - **Future Plans**: Exploring opportunities in the U.S. and other markets, with a cautious approach due to market maturity and competition [28][30] - **Learning from International Operations**: Gained valuable experience from operations in Singapore, which will inform future international strategies [28][29] Sustainability and Social Responsibility - **Sustainable Development**: Commitment to sustainable practices in sourcing and production, including training for local coffee farmers [10][12] - **Community Engagement**: Initiatives to support local communities and improve the ecological environment in coffee-producing regions [10][12] Challenges and Outlook - **Market Competition**: Facing heightened competition in the coffee market, which has impacted same-store sales growth (SSG) [23] - **Future Expectations**: Anticipation of improved SSG metrics as the company stabilizes its growth pace and refines its strategies [23] - **Focus on Long-Term Value**: Commitment to optimizing cost structure and enhancing operational efficiency to create sustainable value for stakeholders [21][30] Conclusion - **Management's Commitment**: Management expressed gratitude to employees, customers, and investors, emphasizing the company's focus on growth, innovation, and sustainability [20][30] - **Future Communication**: Plans to provide regular business updates and maintain open communication with stakeholders [30]

Financial Data and Key Metrics - Total net revenue for Q3 2024 reached RMB10.80 billion, a 41.4% year-over-year increase [9] - Operating profit was RMB1.56 billion with an operating margin of 15.3% [9] - Net profit was RMB1.3 billion, reflecting a net margin of 12.8% [9] - Self-operated store operating profit was RMB1.75 billion with a margin of 23.3% [9] - Monthly average transacting customers reached 79.85 million, a new high [10] Business Line Performance - Revenues from product sales totaled RMB7.8 billion, a 46.3% year-over-year increase [25] - Revenues from freshly brewed drinks, the core product category, reached RMB7.2 billion [25] - Revenues from self-operated stores totaled RMB7.5 billion, a 45.9% year-over-year increase [26] - Revenues from partnership stores amounted to RMB2.3 billion, a 27.2% year-over-year increase [26] Market Performance - In Mainland China, the company added 1,374 net new stores, bringing the total to 21,298 stores (13,891 self-operated and 7,407 partnership stores) [10] - In Singapore, the company added 8 new stores, bringing the total to 45 stores [11] - Net revenues from the Singapore market amounted to RMB91.4 million, with costs and expenses totaling RMB167.7 million [27] Strategy and Industry Competition - The company plans to deepen its domestic store layout, increase density in top-tier cities, and extend into lower-tier cities [10] - Internationally, the company will continue steady expansion in Singapore and explore innovative organizational models for international business [11] - The company is committed to sustainable development, enhancing supply chain integration, and increasing investment in premium coffee bean regions [16][17][18] Management Commentary on Environment and Outlook - The company achieved solid growth despite a complex market environment, driven by its unique business model, expanding scale advantage, and product innovations [6] - The company aims to consolidate its leading edge in the domestic market and promote the sustainable development of China's coffee market [7] - The company is optimistic about the rapid development of China's coffee market and believes it will become the world's largest coffee consumption market [48] Other Important Information - The company launched 28 new freshly brewed beverages and several light food products in Q3, including the popular light Jasmine milk tea and Little Butter series [12][13][14] - The company broke ground on a new innovation and production center in Qingdao, which will form a roasting supply network with an annual capacity of 100,000 metric tons [15][16] - The company entered into agreements to purchase approximately 120,000 metric tons of coffee beans from Brazil over the next two years [17] Q&A Session Question: Same-store sales growth (SSG) fluctuations and future outlook - The company attributes SSG fluctuations to rapid store expansion and promotional activities, with self-operated store SSG at -13.1% in Q3 [43] - The company expects SSG to improve as the pace of expansion moderates and price gaps reduce [43] - SSG will remain a key metric for strategic decision-making and store opening strategies [44] Question: Overseas expansion and global capital market strategy - The company views overseas expansion as a long-term goal, with initial focus on Singapore and careful consideration of the U.S. market [47][50][51] - The company acknowledges the challenges of international markets and emphasizes the need for patience and continuous investment [50] - There is no definitive timetable for relisting in U.S. capital markets, with the primary focus remaining on business execution [52]

Revenue Growth - Total net revenues in Q3 2024 were RMB10,180.8 million (US$1,452.1 million), a 41.4% increase from RMB7,200.0 million in Q3 2023[2] - Revenues from self-operated stores in Q3 2024 were RMB7,501.4 million (US$1,069.9 million), a 45.9% increase from RMB5,141.0 million in Q3 2023[3] - Revenues from partnership stores in Q3 2024 were RMB2,341.3 million (US$333.9 million), a 27.2% increase from RMB1,840.8 million in Q3 2023[4] - Net revenues from freshly brewed drinks in Q3 2024 were RMB7,210.8 million (US$1,028.5 million), representing 70.8% of total net revenues, compared to 67.6% in Q3 2023[13] - Total net revenues for the three months ended September 30, 2024, reached RMB 10,180,766 (US$ 1,452,092), a significant increase from RMB 7,200,039 in the same period of 2023[55] - Revenues from product sales for the three months ended September 30, 2024, were RMB 7,839,479 (US$ 1,118,152), compared to RMB 5,359,262 in the same period of 2023[55] Customer Metrics - Average monthly transacting customers in Q3 2024 reached 79.8 million, a 36.5% increase from 58.5 million in Q3 2023[3] - Average monthly transacting customers reached 79,846 thousand in September 2024, up from 29,489 thousand in March 2023[30] Store Performance - Same-store sales growth for self-operated stores in Q3 2024 was negative 13.1%, compared to positive 19.9% in Q3 2023[3] - Store level operating profit margin for self-operated stores in Q3 2024 was 23.3%, compared to 23.1% in Q3 2023[24] - Net new store openings in Q3 2024 were 1,382, resulting in a total of 21,343 stores, including 13,936 self-operated stores and 7,407 partnership stores[2] - Total stores increased to 21,343 as of September 30, 2024, from 9,351 as of March 31, 2023[30] - Self-operated stores increased to 13,936 as of September 30, 2024, from 6,310 as of March 31, 2023[30] - Same-store sales growth for self-operated stores was -13.1% in September 2024, compared to 29.6% in March 2023[30] Profitability and Margins - GAAP operating income in Q3 2024 was RMB1,557.5 million (US$222.1 million), with a GAAP operating margin of 15.3%, compared to RMB961.7 million and a 13.4% margin in Q3 2023[25] - Net income in Q3 2024 was RMB1,302.6 million (US$185.8 million), with a net margin of 12.8%, compared to RMB988.0 million and a net margin of 13.7% in Q3 2023[27] - Non-GAAP net income in Q3 2024 was RMB1,400.8 million (US$199.8 million), with a non-GAAP net margin of 13.8%, compared to RMB1,144.0 million and a non-GAAP net margin of 15.9% in Q3 2023[27] - Net income for the three months ended September 30, 2024, was RMB 1,302,641 (US$ 185,796), compared to RMB 988,011 in the same period of 2023[55] - Operating income for the three months ended September 30, 2024, was RMB 1,557,472 (US$ 222,143), up from RMB 961,724 in the same period of 2023[55] - Total comprehensive income for the three months ended September 30, 2024, was RMB 1,211,645 (US$ 172,817), compared to RMB 987,772 in the same period of 2023[56] - Non-GAAP operating income for the nine months ended September 30, 2024, was RMB 2,811,235 thousand (USD 400,969 thousand), an increase from RMB 2,992,216 thousand in the same period in 2023[58] - Non-GAAP net income for the nine months ended September 30, 2024, was RMB 2,358,758 thousand (USD 336,432 thousand), a decrease from RMB 2,823,035 thousand in the same period in 2023[58] Earnings Per Share - Basic and diluted net income per ADS in Q3 2024 was RMB4.08 (US$0.56), compared to RMB3.12 in Q3 2023[28] - Non-GAAP basic and diluted net income per ADS in Q3 2024 was RMB4.40 (US$0.64), compared to RMB3.60 in Q3 2023[28] - Net income per diluted ADS for the three months ended September 30, 2024, was US$ 0.56, compared to US$ 0.07 in the same period of 2023[55] - Non-GAAP net income per share (basic) for the nine months ended September 30, 2024, was RMB 0.93 (USD 0.13), a decrease from RMB 1.11 in the same period in 2023[59] - Non-GAAP net income per ADS (basic) for the nine months ended September 30, 2024, was RMB 7.44 (USD 1.04), a decrease from RMB 8.88 in the same period in 2023[59] Cash Flow and Financial Position - Net cash provided by operating activities in Q3 2024 was RMB1,316.1 million (US$187.7 million), compared to RMB1,310.1 million in Q3 2023[29] - Cash and cash equivalents, restricted cash, term deposits, and short-term investments were RMB4,753.2 million (US$678.0 million) as of September 30, 2024, compared to RMB3,752.7 million as of December 31, 2023[30] - Cash and cash equivalents as of September 30, 2024, stood at RMB 3,802,087 (US$ 542,295), up from RMB 2,925,709 at the end of 2023[53] - Net cash provided by operating activities for the nine months ended September 30, 2024, was RMB 2,600,897 thousand (USD 370,969 thousand), a decrease from RMB 3,827,171 thousand in the same period in 2023[57] - Net cash used in investing activities for the nine months ended September 30, 2024, was RMB 2,097,443 thousand (USD 299,161 thousand), a decrease from RMB 3,271,026 thousand in the same period in 2023[57] - Net cash provided by financing activities for the nine months ended September 30, 2024, was RMB 300,000 thousand (USD 42,789 thousand), compared to no financing activities in the same period in 2023[57] - Cash and cash equivalents and restricted cash at the end of the period for the nine months ended September 30, 2024, was RMB 3,847,792 thousand (USD 548,814 thousand), an increase from RMB 4,140,971 thousand at the end of the same period in 2023[57] Operating Expenses - Total operating expenses in Q3 2024 were RMB8,623.3 million (US$1,229.9 million), a 38.2% increase from RMB6,238.3 million in Q3 2023[16] - Total operating expenses for the three months ended September 30, 2024, were RMB 8,623,294 (US$ 1,229,949), up from RMB 6,238,315 in the same period of 2023[55] Assets and Liabilities - Total assets as of September 30, 2024, amounted to RMB 22,093,766 (US$ 3,151,255), up from RMB 18,291,978 at the end of 2023[53] - Total liabilities as of September 30, 2024, were RMB 10,082,383 (US$ 1,438,061), compared to RMB 8,577,533 at the end of 2023[51] Share-Based Compensation and Shares Outstanding - Share-based compensation expenses for the nine months ended September 30, 2024, were RMB 268,188 thousand (USD 38,252 thousand), an increase from RMB 179,311 thousand in the same period in 2023[58] - Weighted average shares outstanding used in calculating basic and diluted income per share for the nine months ended September 30, 2024, were 2,545,551,167, an increase from 2,532,072,783 in the same period in 2023[58]

瑞幸开到了香港尖沙咀，明年可能去纽约。 尖沙咀美丽华广场一楼，瑞幸咖啡（LKNCY）的商铺围挡已经铺上，显示 "即将开业"，隔壁便是 星巴克（SBUX.O）。上个月瑞幸发布香港门店招聘广告，店长月薪 1.8 万至 3 万港元，咖啡师月 薪 1.6 万至 2 万港元。与此同时，有报道指瑞幸考虑明年在美国纽约等有大量内地学生和游客的美 国城市开店。 苹果半年内从印度出口价值 60 亿美元的 iPhone。 今年 4 到 9 月，苹果（AAPL.O）印度产 iPhone 出口额增长三分之一，达到近 60 亿美元（出厂价 值）。这些 iPhone 出自富士康、和硕以及本土公司塔塔电子。其中富士康产量占一半。 顺丰单均收入下滑，毛利率上升。 三季度顺丰（002352.SZ）收入增长 12% 至 725 亿元，其中快递收入 508 亿元，增长 7.6%；单均 收入同比下降 6.1%，至 15.82 元。供应链服务收入增长近三成、达到 196 亿元。当期毛利同比增 长 32.3%，达到 102 亿元、毛利率同比上升 2.2 个百分点，达到 14.1%。两大快递公司面对同样的 挑战：电商销售放缓、快递价格战以及油价回升情况下 ...

上午咖啡下午茶。 随着门店数量迈入 20000 家，瑞幸开始顺手做起了茶饮。 随着门店的迅速扩张，瑞幸月均交易用户数和业绩纷纷创下了新高。 8 月 11 日，瑞幸官宣刘亦菲为瑞幸咖啡全球品牌代言人及茶饮首席推荐官；而早在一周前，瑞幸推出了 "轻轻茉莉·轻乳茶" 新品。 至今，这款轻乳茶产品首周销量已经突破 1100 万杯。 从创立到 10000 家门店，瑞幸花了五年半。而再多 10000 家门店，瑞幸仅用了 13 个月。瑞幸的增长似乎 还看不到尽头。 在刚刚过去的第二季度，瑞幸的月均交易用户数达到了 6969 万，营收则创下了 84 亿元。其中，瑞幸产品 总售卖数突破 7.5 亿件，本季度新品销量占到了国内总杯量的 24%，也就是每卖出 4 杯瑞幸，就有 1 杯是 本季新品。 靠着更快的上新速度、更丰富多元的风味咖啡和更广泛年轻的用户群体，一个更轻快、也更全能的瑞幸， 在过去几年里以意想不到的速度攻城略地。 这一次，瑞幸把目光放在了茶饮上，试图覆盖更广泛的消费场景。"瑞幸经验"，或许将再一次被验证。 并不意外的跨界 "上午咖啡下午茶"，作为国内咖啡的头部品牌，瑞幸牢牢占据着上午咖啡的消费场景，通过高频打低频的 ...

Financial Data and Key Metrics - The company's daily sales volume in the first half of 2024 was 450-470 cups, with off-season sales dropping to 300-320 cups, showing a significant decline compared to previous years but still maintaining profitability at around 300 cups [1] - The company expects to return to profitability in Q2 2024, driven by seasonal factors and cost optimization, with a focus on achieving profitability to meet future IPO requirements [1][10] Business Line Data and Key Metrics - The company is rapidly expanding its store network, with the number of stores exceeding 20,000 and expected to reach 24,000 by the end of 2024, adding 4,000 new stores primarily to counter competition from Cotti Coffee [1][9] - The company is shifting its store locations towards high-traffic areas such as streets and shopping malls, with a high customer retention rate of 90% but slowing new customer growth [1] Market Data and Key Metrics - In the Northeast region, including cities like Dalian, Shenyang, and Changchun, the company has a strong presence with a mix of self-operated and franchised stores, with plans to further expand in these areas [15] - The company's store density in certain cities like Dalian is already high, with 5-6 stores within a 3-kilometer radius in main commercial areas, indicating limited room for further expansion [15] Company Strategy and Industry Competition - The company is focusing on rapid store expansion to counter competition from Cotti Coffee, with a strategic shift towards high-traffic locations and a mix of self-operated and franchised stores [1][9] - The company is preparing for a potential IPO within the next three years, which requires a focus on profitability and store network optimization [1][29] Management Commentary on Operating Environment and Future Outlook - Management attributes the Q1 2024 loss to rapid store expansion, with high initial costs for new stores impacting profitability, but expects a return to profitability in Q2 due to seasonal factors and cost optimization [7][10] - The company is optimistic about future growth, with plans to continue expanding its store network and improving operational efficiency to meet IPO requirements [1][29] Other Important Information - The company's pricing strategy includes offering promotions like the 9.9 RMB coffee to attract new customers, with a focus on balancing customer acquisition and profitability [21][22] - The company's gross margin for self-operated stores is estimated to be around 30-40%, with profitability varying by store location and sales volume [23] Summary of Q&A Session Q: What is the company's strategy for store expansion in 2024? - The company plans to add 4,000 new stores by the end of 2024, focusing on high-traffic areas and a mix of self-operated and franchised stores to counter competition from Cotti Coffee [1][9] Q: How does the company plan to return to profitability in Q2 2024? - The company expects seasonal factors and cost optimization to drive profitability in Q2, with a focus on improving operational efficiency and store performance [10] Q: What is the company's outlook on competition with Cotti Coffee? - The company believes it has a stronger market position compared to Cotti Coffee, with a focus on maintaining store quality and customer retention to stay ahead in the competitive landscape [28] Q: What are the company's plans for future growth and IPO? - The company is preparing for a potential IPO within the next three years, with a focus on achieving profitability and optimizing its store network to meet IPO requirements [1][29]

"我觉得要采取守势，不能再攻了。" 张勇在 0731 中国餐饮创始人大会上说。他演讲主题是 "品牌如何贵 气"。他说对品牌来说，重要的不是店多少、营业额或者利润高低，最关键是品牌是否归零。说这话的 时候，张勇他上身西装，下身西短 —— 因为 "生意不好"。 新荣记张勇：把死看明白了，现在很珍惜生 新荣记张勇：把死看明白了，现在很珍惜生 当一个趋势来临时，不同的人会有不同的应对方式。对新荣记创始人张勇来说，变化发生在去年 7 月。 Temu、Shein 美国广告战刹车 星巴克同店销售 -14%、瑞幸连续利润下滑 "红牛" 争夺战，中国和泰国红牛继续各执一词 芯片股怎么又大涨了？ 关注《晚点财经》并设为星标，第一时间获取每日商业精华。 张勇说自己属于打 "退休报告的人"，也有心把餐厅交给孩子接班，但大儿子更爱咖啡、小儿子 "还在拆 盲盒"。在讲了些对传承的看法后，张勇说 "我嘴上说得好，其实没做好，但我觉得这是一定要去做 的。" 但无论张勇以什么方式、找谁接班， 用他之前对我们讲的来总结 ，大概还是 "我们这种人死了之后灵魂 也在厨房"。而在他 7 月 31 日的演讲里，他也提到了生、死，不过是关于新荣记的。 以 ...

July 30, 2024 Earnings Presentation 2 This presentation contains forward-looking statements within the meaning of Section 21E of the U.S. 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," "target ...

Financial Data and Key Metrics - Net profit was RMB871 million with a net profit margin of 10.4% [1] - Self-operated store operating profit was RMB1.35 billion with a margin of 21.5% [1] - Total net revenues reached RMB8.4 billion, a 35.5% YoY increase from RMB6.2 billion in Q2 2023 [4] - Operating income was RMB1.05 billion with an operating margin of 12.5% [11] - Net profit margin surged to 10.4% from -1.3% in the previous quarter [17] - Cash and cash equivalents, restricted cash, term deposits, and short-term investments totaled RMB3.8 billion as of June 30, 2024 [32] Business Line Data and Key Metrics - Revenues from product sales were RMB6.6 billion, up 39% YoY [16] - Net revenues from freshly brewed drinks were RMB6 billion, accounting for 71.6% of total net revenues [16] - Revenues from self-operated stores surged to RMB6.3 billion, a 39.6% YoY increase [16] - Revenues from partnership stores amounted to RMB1.9 billion, a 24.5% YoY increase [16] - Total sales surpassed 750 million items in Q2, with 25 new freshly brewed beverages launched domestically [33] Market Data and Key Metrics - The company added 1,371 net new stores in Q2, bringing the total to 19,924 stores in China [24] - Average monthly transacting customers reached 69.7 million, a 61.8% YoY increase [26] - The company opened stores in more than 10 new cities, covering over 330 cities across China and one overseas market [26] - The number of stores in Singapore reached 37 this quarter [30] Company Strategy and Industry Competition - The company will focus on expanding its store network, enhancing its supply chain, and fortifying its digital prowess to solidify its market-leading position [19] - Luckin Coffee will continue to invest in sustainable development and advance research in coffee health [7] - The company plans to accelerate expansion into low-tier city markets through its partnership model [12] - Luckin Coffee remains committed to sourcing premium coffee beans from top-quality regions globally [3] Management Commentary on Operating Environment and Future Outlook - The company demonstrated strong resilience in a volatile market environment and achieved rapid revenue growth [10] - Management highlighted the importance of proactive adjustments and effective utilization of the business model for positive results [21] - The company aims to maintain strong revenue and profit levels by launching summer-friendly products and ramping up marketing efforts [33] - Luckin Coffee is focused on delivering long-term value to customers, shareholders, and stakeholders while pursuing sustainable practices [40] Other Important Information - The company opened its 20,000th store on July 18, designed and built in accordance with LEED Platinum standards [14] - Luckin Coffee entered into agreements to purchase approximately 120,000 metric tons of coffee beans from Brazil over the next two years [25] - The company launched a campaign called "Luckin Coffee Fit and Ice Summer" to combine health attributes with its products [13] Q&A Session Summary Question: What were the main drivers behind Luckin's rebound in performance in Q2? Will this profit margin be sustainable? - The rebound was driven by favorable weather conditions, proactive adjustments, and effective utilization of the business model [21] - The company aims to maintain strong revenue and profit levels by focusing on product innovation and marketing efforts [33] Question: Will the company make further adjustments to its store opening strategy? - The company will uphold its store opening standards to ensure quality and achieve healthy, sustainable growth [34] - Luckin Coffee will continue to expand its store network while focusing on market share and customer appreciation strategies [34]

Exhibit 99.1 Profitability Improved From Last Quarter with GAAP Operating Margin of 12.5% · Net new store openings during the second quarter was 1,371, including five new store openings in Singapore, resulting in a quarter-over-quarter store unit growth of 7.4% from the number of stores at the end of the first quarter of 2024, ending the second quarter with 19,961 stores which include 13,056 self-operated stores and 6,905 partnership stores. · Revenues from self-operated stores in the second quarter were RM ...