Luckin Coffee(US:LKNCY) 2 1 Shi Ji Jing Ji Bao Dao·2025-11-20 02:05Core Insights - Luckin Coffee's revenue increased by 50.2% year-on-year to RMB 15.287 billion in Q3 2025, while net profit attributable to shareholders decreased by 2.7% to RMB 1.278 billion, primarily due to the impact of the delivery battle [1][6]. Financial Performance - Total net revenues reached RMB 15.3 billion, with a year-on-year increase of 50.2% [2]. - The company's gross merchandise volume (GMV) grew by 48.1% year-on-year to RMB 17.3 billion [2]. - Average monthly transacting customers increased by 40.6% year-on-year to 112.3 million [2]. - Store-level operating profit rose by 10.2% to RMB 1.941 billion, with a store-level operating margin of 17.5% [2]. - GAAP operating income increased by 12.9% to RMB 1.777 billion [2]. Store Expansion - In Q3, Luckin Coffee added 3,008 new stores, reaching a total of 29,214 stores, marking an 11.5% quarter-on-quarter growth [3]. - The number of self-operated stores is 18,882, while franchise stores account for 10,332 [3]. Cost Structure - The proportion of raw material costs to total net revenue decreased from 39% in 2024 to 36% in 2025, despite a 41% year-on-year increase in absolute value to RMB 5.5 billion [3][4]. - Rent and other operating costs as a percentage of total net revenue fell from 22% to 20%, with absolute costs rising by 36% to RMB 3.1 billion [4]. - Sales and marketing expenses decreased from 6% to 5% of total net revenue, with absolute expenses growing by 28% to RMB 751 million [4]. - General and administrative expenses also decreased from 6% to 5% of total net revenue, with absolute expenses increasing by 25% to RMB 793 million [5]. Delivery Costs and Profitability - Delivery costs surged by 211.4% year-on-year to RMB 2.89 billion, accounting for 18.9% of total net revenue, which negatively impacted operating profit margin, reducing it to 11.6% [6]. - The increase in delivery costs is attributed to the competitive delivery battle, contrasting with Yum China, which reported a 7.8% increase in operating profit [6][8]. Market Dynamics - The coffee and tea beverage sector is characterized by high-frequency consumption, necessitating competitive pricing strategies to maintain market share [7]. - Luckin Coffee is exploring structural solutions, emphasizing in-store pickup as a primary consumption method, while delivery serves as a supplementary channel [9].