Luckin Coffee(US:LKNCY) Guo Ji Jin Rong Bao·2025-11-18 14:43Core Viewpoint - Luckin Coffee reported its Q3 2025 financial results, highlighting a record revenue growth driven by delivery subsidies, but facing profit erosion leading to a situation of revenue growth without profit increase [1][2]. Group 1: Financial Performance - In Q3 2025, Luckin Coffee achieved revenue of RMB 15.29 billion, a year-on-year increase of 50.2%, while net profit was RMB 1.28 billion, down 2.74% year-on-year [1]. - The net profit margin decreased from 12.91% in the same period last year to 8.26%, marking the lowest profit level for the company since Q3 2022 [1]. - The company's Gross Merchandise Value (GMV) grew by 48.1% to RMB 17.32 billion, with an average monthly customer count reaching 112 million, up 40.6% year-on-year [2]. Group 2: Cost Structure and Profitability - Delivery expenses surged to RMB 2.89 billion in Q3, a staggering increase of 211.4% year-on-year, accounting for 18.9% of total revenue, up from 9% the previous year [3]. - Despite a nearly RMB 3 billion increase in revenue from the previous quarter, profits remained nearly flat, indicating that the surge in delivery orders significantly impacted the company's cost structure [3]. Group 3: Strategic Developments - The company is accelerating partnerships with delivery platforms, which has increased the proportion of traffic and customers from third-party platforms [2]. - CEO Guo Jinyi indicated that the intensity of platform subsidies is beginning to decrease, suggesting future subsidy forms will be more refined [6]. - Luckin Coffee is also focusing on expanding its international presence, with a total of 118 overseas stores by the end of Q3, including 68 in Singapore and 5 in the United States [9][10]. Group 4: Leadership and Market Position - The company underwent significant leadership changes, with Guo Jinyi transitioning to CEO and Li Hui becoming the new chairman, emphasizing the importance of this phase for the company's development [8]. - The company is considering a return to the NASDAQ, although no specific timeline has been established [11].