Luckin Coffee(US:LKNCY) Chang Jiang Shang Bao·2025-11-16 23:37Core Viewpoint - Luckin Coffee is actively pursuing a return to the U.S. capital market after five years since its delisting due to a financial fraud scandal, with a focus on rebuilding credibility and expanding globally [1][3][6]. Group 1: Company Background and History - Luckin Coffee was founded in 2017 and went public on NASDAQ in May 2019 [3]. - The company faced a major financial scandal in 2020, admitting to fraudulent transactions amounting to 2.2 billion yuan, leading to an 80% drop in stock price and subsequent delisting from the U.S. stock market [4][10]. - After the scandal, a new management team led by Guo Jinyi took over, and the company underwent significant restructuring and debt resolution [4][7]. Group 2: Financial Performance - In 2020, Luckin Coffee reported a revenue of 4.033 billion yuan with a net loss of 5.589 billion yuan [10]. - From 2021 to 2024, the company’s revenues increased from 7.965 billion yuan to 34.475 billion yuan, with net profits rising from 686 million yuan to 2.932 billion yuan [10]. - In the first half of 2025, the company achieved revenues of 21.224 billion yuan and a net profit of 1.776 billion yuan, marking a year-on-year growth of 44.57% and 125.35% respectively [10][11]. Group 3: Market Position and Expansion - As of June 2025, Luckin Coffee operated approximately 26,200 stores globally, with a net increase of 2,109 stores in the second quarter alone [11]. - The company has become a leading player in the Chinese coffee market, with more stores than Starbucks, which has about half the revenue of Luckin Coffee in China [11][12]. - Luckin Coffee aims to leverage its return to the U.S. market to enhance its global expansion efforts, currently having 89 overseas stores, primarily in Singapore and Malaysia [6][11]. Group 4: Strategic Considerations for U.S. Market Return - Analysts suggest three main reasons for Luckin Coffee's desire to return to the U.S. market: capital needs due to low liquidity and valuation in the OTC market, the need to rebuild credibility, and the necessity for global expansion [6][13]. - The company is currently focused on executing its business strategy and development, with no specific timeline for its return to the main board of the U.S. market [3][6].