Luckin Coffee(US:LKNCY) Sou Hu Cai Jing·2025-04-29 12:02Core Viewpoint - Luckin Coffee reported strong performance in Q1 2025, with total net revenue reaching 8.865 billion RMB, a year-on-year increase of 41.2%, and GMV hitting 10.354 billion RMB, indicating significant growth and market leadership in the coffee industry [1]. Financial Performance - In Q1 2025, the company achieved a GAAP operating profit of 737 million RMB, with an operating margin of 8.3% [1]. - The number of stores increased to 24,097, with a net addition of 1,757 stores in the quarter, reflecting a 7.9% quarter-on-quarter growth [1]. Market Expansion - The company’s market penetration is steadily improving, with a same-store sales growth rate of 8.1% [1]. - In the Chinese market, 1,743 new stores were added, bringing the total to 24,032, while the international market saw a net increase of 14 stores, totaling 65 [1]. Product Development - The "Freshly Brewed Light Jasmine" launched in March achieved a single-day sales record of 1.67 million cups, contributing to the overall product success [3]. - The iconic "Coconut Latte" has sold a cumulative total of 1.3 billion cups since its launch [3]. Customer Engagement - The average monthly active customer count reached 74.27 million, a 24% year-on-year increase, with a total of approximately 355 million cumulative customers by the end of Q1 [3]. - The company plans to maintain competitive pricing strategies and continue promoting high-quality products to enhance customer loyalty [3]. ESG Initiatives - Luckin Coffee is committed to sustainable development, having received the highest LEED ID+C Platinum certification for its flagship store in Beijing, becoming the first Chinese coffee brand to achieve this [4]. - The company is actively participating in environmental initiatives, including the "Earth Hour" campaign, to promote sustainable living among consumers [4]. Strategic Outlook - The CEO emphasized the focus on maintaining product quality and competitive pricing to capture growth opportunities in the expanding Chinese coffee market [4].