Luckin Coffee(LKNCY) - 2024 Q1 - Quarterly Report

Financial Performance - Total net revenues in Q4 2023 were RMB7,065.0 million (US$995.1 million), an increase of 91.2$3,507.5 million), representing an increase of 87.3% from RMB13,293.0 million in fiscal year 2022[7]. - Net income for Q4 2023 was RMB296.4 million (US$41.7 million), with a net income margin of 4.2$50.2 million), representing a non-GAAP net income margin of 5.0%, up from RMB166.9 million (4.5%) in Q4 2022[15]. - Net income for the year ended December 31, 2023, was RMB 2,847,933, compared to RMB 488,246 for the year ended December 31, 2022, representing a significant increase[38]. - The total comprehensive income attributable to ordinary shareholders for the year ended December 31, 2023, was RMB 2,847,573 thousand, compared to RMB 488,246 thousand in 2022, indicating a substantial increase[39]. Customer Growth - Average monthly transacting customers in Q4 2023 reached 62.4 million, a 154.2% increase from 24.6 million in Q4 2022[4]. - Average monthly transacting customers reached 62,438 in Q4 2023, compared to 24,559 in Q4 2022, indicating strong customer growth[20]. Store Expansion - Net new store openings in fiscal year 2023 were 8,034, resulting in a year-over-year store unit growth of 97.8%[7]. - Total stores increased to 16,248 as of December 31, 2023, up from 8,214 a year earlier, reflecting significant expansion[20]. Revenue Sources - Revenues from self-operated stores in Q4 2023 were RMB5,103.4 million (US$718.8 million), an increase of 89.2$248.4 million), an increase of 109.1% from RMB843.4 million in Q4 2022[11]. - Revenues from product sales in Q4 2023 were RMB 5,301,221, up 85.8% from RMB 2,851,660 in Q4 2022[38]. Operating Income and Expenses - GAAP operating income in Q4 2023 was RMB212.7 million (US$30.0 million), with a GAAP operating income margin of 3.0$559.9 million), with a margin of 22.2%[7]. - Store level operating profit margin for self-operated stores decreased to 13.5% in Q4 2023 from 21.6% in Q4 2022, attributed to lower average selling prices[14]. - Delivery expenses rose to RMB467.4 million (US$65.8 million) in Q4 2023, a 23.3$56.2 million) in Q4 2023, a 130.2% increase from RMB173.4 million in Q4 2022, reflecting strategic branding investments[14]. - General and administrative expenses were RMB562.0 million (US$79.2 million) in Q4 2023, up 36.6$528.6 million), an increase from RMB3,577.9 million a year earlier, driven by higher operating profits[18]. - Net cash used in operating activities was RMB926.7 million (US$130.5 million) in Q4 2023, a significant decline from net cash provided of RMB48.3 million in Q4 2022, mainly due to increased raw material purchases[17]. - Cash and cash equivalents as of December 31, 2023, were RMB 3,534,304, an increase from RMB 2,925,709 as of December 31, 2022[36]. - Total assets decreased to RMB 10,480,397 as of December 31, 2023, from RMB 18,291,978 as of December 31, 2022[36]. - Total liabilities decreased to RMB 3,853,110 as of December 31, 2023, from RMB 8,577,533 as of December 31, 2022[36]. Strategic Initiatives - The company launched more than 100 SKUs in 2023 to cater to diverse customer needs[6]. - The company plans to continue expanding its technology-driven retail network to enhance customer experience and brand recognition[33]. - Luckin Coffee aims to maintain its growth strategies in the competitive coffee industry, focusing on quality control and customer retention[33]. - The company is committed to ongoing product innovation and market expansion to solidify its position in the food and beverage sector[33].