Luckin Coffee(LKNCY) - 2022 Q1 - Quarterly Report

Financial Performance - Total net revenues in Q4 2021 were RMB2,432.7 million (US$381.7 million), an increase of 80.7% from RMB1,345.9 million in Q4 2020[4] - Total net revenues for fiscal year 2021 were RMB7,965.3 million (US$1,249.9 million), a 97.5% increase from RMB4,033.4 million in fiscal year 2020[6] - Revenues from self-operated stores in Q4 2021 were RMB1,837.2 million (US$288.3 million), up 61.0% from RMB1,141.1 million in Q4 2020[6] - Revenues from partnership stores in Q4 2021 were RMB448.8 million (US$70.4 million), representing a 248.4% increase from RMB128.8 million in Q4 2020[9] - Revenues from product sales for the three months ended December 31, 2021, were RMB1,983,827, up 63.0% from RMB1,217,062 in the same period of 2020[34] - The company reported a net income of RMB921,326 for the three months ended December 31, 2021, compared to a net loss of RMB2,336,574 in the same period of 2020[34] - The company reported a total comprehensive income of RMB973,429 for the three months ended December 31, 2021, compared to a total comprehensive loss of RMB2,211,108 in the same period of 2020[35] Customer Metrics - Average monthly transacting customers in Q4 2021 reached 16.2 million, a 67.1% increase from 9.7 million in Q4 2020[4] - Average monthly transacting customers reached 16,229 thousand in Q4 2021, up from 9,712 thousand in Q4 2020[18] Store Operations - The company opened 353 net new stores in Q4 2021, resulting in a total of 6,024 stores, including 4,397 self-operated and 1,627 partnership stores[4] - Total stores increased to 6,024 as of December 31, 2021, up from 4,803 at the end of 2020[18] - Same-store sales growth for self-operated stores in Q4 2021 was 43.6%, compared to 9.2% in Q4 2020[6] - Same-store sales growth for self-operated stores was 43.6% in Q4 2021, following 75.8% in Q3 2021 and 94.5% in Q2 2021[18] Financial Health - Cash and cash equivalents as of December 31, 2021, were RMB6,555.3 million (US$1,028.7 million), up from RMB5,189.0 million as of December 31, 2020[16] - Cash and cash equivalents increased to RMB6,477,636 as of December 31, 2021, from RMB4,806,023 as of December 31, 2020, representing a growth of 34.7%[32] - The company's total assets grew to RMB12,312,490 as of December 31, 2021, up from RMB9,322,399 in 2020, marking an increase of 32.5%[33] - The company’s accumulated deficits decreased to RMB11,768,626 as of December 31, 2021, from RMB12,452,882 in 2020, indicating an improvement in financial health[32] Operating Loss and Expenses - The company reported a GAAP operating loss of RMB120.8 million (US$19.0 million) in Q4 2021, significantly improved from a loss of RMB488.9 million in Q4 2020[12] - Operating loss for the year ended December 31, 2021, was RMB539,054, a significant reduction from an operating loss of RMB2,587,268 in 2020[34] - Luckin Coffee's non-GAAP operating loss for the year ended December 31, 2021, was RMB236,320 thousand (US$37,085), a substantial reduction from a non-GAAP operating loss of RMB2,493,772 thousand in 2020[38] - Losses and expenses related to Fabricated Transactions and Restructuring were RMB109.4 million (US$17.2 million) in Q4 2021, a 21.8% increase from RMB89.8 million in Q4 2020[17] Cash Flow - For the three months ended December 31, 2021, Luckin Coffee reported a net cash provided by operating activities of RMB123,447 thousand (US$19,372), a significant improvement compared to a net cash used of RMB131,892 thousand in the same period of 2020[36] - The company achieved a net cash provided by financing activities of RMB1,514,660 thousand (US$237,683) for the three months ended December 31, 2021, compared to no financing activities in the same period of 2020[36] - The company experienced a net increase in cash and cash equivalents of RMB1,443,656 thousand (US$226,541) for the three months ended December 31, 2021, compared to a net decrease of RMB205,110 thousand in the same period of 2020[36] Shareholder Information - The weighted average shares outstanding for basic loss per share increased to 2,025,936,330 in 2021 from 2,025,174,797 in 2020[35] - The weighted average shares outstanding used in calculating basic and diluted income per share increased to 2,215,544,209 for the three months ended December 31, 2021, from 2,067,706,003 in the same period of 2020[39] - Luckin Coffee's basic and diluted non-GAAP net income per share for the three months ended December 31, 2021, was US$0.01, a decrease from US$0.10 in the same period of 2020[39] Strategic Initiatives - The company aims to enhance its brand recognition and maintain quality control as part of its growth strategy in the competitive coffee industry[27]