Luckin Coffee(US:LKNCY) 3 6 Ke·2025-08-06 07:50Core Viewpoint - Luckin Coffee has achieved its best-ever quarterly performance in Q2, driven by the external momentum from the food delivery battle and its own quick response to industry opportunities. However, the sustainability of this growth remains uncertain as the competitive landscape shifts [1][2][15]. Financial Performance - In Q2, Luckin Coffee reported total revenues of RMB 12.4 billion, marking a 47.1% year-over-year increase, which is the highest growth rate since 2024 [3][4]. - The company's GAAP operating income reached RMB 1.7 billion, a 61.8% increase year-over-year, with an operating margin of 13.8% [5]. - Net profit for Q2 was RMB 1.251 billion, up 43.6% year-over-year, with a net profit margin of 10.1% [5]. Operational Metrics - The average monthly transacting customers reached 91.7 million, a 31.6% increase year-over-year [3][11]. - Self-operated store revenue was RMB 9.136 billion, a 45.6% increase year-over-year, with a store-level operating profit of RMB 1.922 billion, up 42.3% [5][6]. - The number of self-operated stores increased by 2,109 in Q2, bringing the total to 26,206 stores globally [6][17]. Market Dynamics - The food delivery battle significantly benefited Luckin Coffee, with delivery orders accounting for over 30% of total orders in Q2, up from 17% previously [9][11]. - Delivery fees increased by 175% year-over-year to RMB 1.7 billion, reflecting the surge in order volume [11][12]. - The CEO acknowledged that the external environment created by delivery platform subsidies has positively impacted user engagement and growth metrics [12][13]. Competitive Landscape - Despite the strong performance, the external momentum from the food delivery battle is expected to wane, as regulatory scrutiny has increased and competition among delivery platforms has intensified [19][21]. - Luckin Coffee's rapid expansion strategy, including opening over 2,000 new stores in Q2, is seen as a gamble on sustaining user engagement and revenue growth [17][18]. - The company faces increasing competition from both domestic players and international giants like Starbucks, particularly as it expands into the U.S. market [22][24].