Luckin Coffee(US:LKNCY) 3 6 Ke·2025-11-18 00:17Core Viewpoint - The company reported strong revenue growth in Q3, driven by an expanding store network and increased consumer demand in the coffee market, with a total net revenue of RMB 15.287 billion, a year-on-year increase of 50.2% [1][12]. Financial Performance - Total net revenue for Q3 reached RMB 15.287 billion, up 50.2% year-on-year [12]. - GAAP operating profit was RMB 1.777 billion, reflecting a 12.9% increase [12]. - Same-store sales grew by 14.4%, a significant improvement from a decline of 13.1% in the same period last year [1]. - The company achieved a monthly average of over 100 million transacting customers, with a total of 420 million customers by the end of Q3 [12]. Store Expansion - The company opened 3,008 new stores in Q3, bringing the total number of stores to 29,214 [3][12]. - In China, 2,979 new stores were added, with a total of 29,096 stores, including over 10,287 franchise stores [3][6]. - The international market saw a net addition of 29 stores, totaling 118, with significant growth in Singapore and the U.S. [6][8]. Market Strategy - The company is focusing on expanding its store network to enhance delivery capabilities and meet growing consumer demand, particularly in high-tier cities and lower-tier markets [3][6]. - The CEO emphasized the importance of maintaining a strong digital operation and understanding customer preferences to drive long-term growth [17]. Competitive Landscape - The coffee industry in China is experiencing rapid growth, driven by increased consumer demand and significant subsidies from delivery platforms [9][11]. - The CEO noted that while the rise in delivery orders has impacted profit margins, it is a temporary phase in the industry's development [9][11]. Future Outlook - The company anticipates challenges in same-store growth due to fluctuating market conditions and high international coffee bean prices [17]. - The focus will remain on long-term strategic development, product innovation, and enhancing customer service to capture market opportunities [17].