Luckin Coffee(US:LKNCY) 36氪·2025-11-20 00:15Core Viewpoint - Luckin Coffee's Q3 2025 financial report highlights a significant revenue increase driven by the delivery battle, but also reveals a decline in net profit due to rising delivery costs and pressure on profit margins [5][6][10]. Financial Performance - Luckin Coffee reported Q3 2025 revenue of 15.29 billion yuan, a year-on-year increase of 50.2%, while net profit was 1.28 billion yuan, a decrease of 1.9% [5]. - The company added over 3,000 new stores in the quarter, bringing the total to 29,214 globally [5]. Delivery Battle Impact - The delivery battle has stimulated sales, contributing to the highest revenue growth in the past seven quarters, but has also led to a significant drop in net profit margin, which fell from 13.7% in Q3 2021 to 8.4% in Q3 2025 [5][6]. - Delivery costs surged by 211.4% to 2.89 billion yuan, increasing its share of revenue from 9.1% to 18.9% [5]. Strategic Focus - CEO Guo Jinyi emphasized that delivery is a temporary supplement to the core business model, which relies on in-store pickup [6]. - The company plans to prioritize store growth and market share expansion, with a target of adding 6,092 new stores in 2024 [8][9]. Cost Structure and Profitability - Luckin's cost structure has improved, with raw material costs decreasing from 38.7% to 36.2% of revenue, and other operational costs also declining [9]. - However, the company faces ongoing pressure from high international coffee bean prices, which may impact profit margins in the future [9][10]. Market Positioning - The competitive landscape in the coffee market is intensifying, with Luckin aiming to establish itself as a comprehensive player by leveraging its scale and efficiency [10][11]. - The shift in consumer ordering habits due to the delivery battle is a concern, as it may affect the stability of in-store sales [7].