Core Insights - Luckin Coffee reported a significant increase in revenue for the first half of 2025, reaching RMB 21.224 billion (approximately USD 2.959 billion), compared to RMB 14.681 billion in the same period last year, marking a growth of 44.5% [1][2] - The company achieved an operating profit of RMB 2.437 billion (approximately USD 339.8 million) for the first half of 2025, up from RMB 985.575 million in the previous year, indicating a strong operational performance [2][8] - Net income for the first half of 2025 was RMB 1.776 billion (approximately USD 247.6 million), compared to RMB 787.929 million in the same period last year, reflecting a substantial increase [2][8] Financial Performance - For Q2 2025, total revenue was RMB 12.359 billion (approximately USD 1.723 billion), a 47.1% increase from RMB 8.402 billion in Q2 2024 [6][8] - Product sales revenue in Q2 2025 reached RMB 9.491 billion (approximately USD 1.323 billion), up 44.9% from RMB 6.552 billion in Q2 2024 [8][11] - Operating expenses for Q2 2025 totaled RMB 10.659 billion (approximately USD 1.486 billion), a 45% increase from RMB 7.352 billion in Q2 2024, primarily due to business expansion [18][19] Store Expansion and Operations - As of June 30, 2025, Luckin Coffee operated 26,206 stores, including 16,968 self-operated and 9,238 franchised stores, with a net addition of 2,109 stores in Q2 2025 [15][18] - Same-store sales for self-operated stores increased by 13.4% in Q2 2025, up from 8.1% in the previous quarter, indicating strong customer demand [11][21] - The company reported a monthly average of 91.7 million customers and a GMV of RMB 14.2 billion in Q2 2025 [15] Cost Management - Material costs in Q2 2025 were RMB 4.600 billion (approximately USD 641.4 million), a 36.6% increase from RMB 3.368 billion in Q2 2024, driven by higher sales volume [18][19] - Store rental and other operating costs rose to RMB 2.665 billion (approximately USD 371.6 million), a 30% increase from RMB 2.050 billion in Q2 2024 [18][19] - Delivery expenses surged by 175.1% to RMB 1.670 billion (approximately USD 232.8 million) in Q2 2025, reflecting increased logistics costs [18][19] Leadership Changes - In April 2025, Luckin Coffee announced a management change, with the chairman and CEO of Dazhong Capital replacing Guo Jinyi as chairman of Luckin Coffee [3] - This financial report marks the first under the new chairman, who previously exited the board during the financial scandal [5]

Core Viewpoint - Luckin Coffee reported strong financial results for the first half of 2025, with significant revenue and profit growth compared to the previous year [2][10][30]. Financial Performance - For the first half of 2025, Luckin Coffee's revenue reached RMB 212.24 billion (approximately USD 29.59 billion), up from RMB 146.81 billion in the same period last year, representing a year-on-year increase of 44.5% [2]. - In Q2 2025, the company generated revenue of RMB 123.59 billion (approximately USD 17.23 billion), a 47.1% increase from RMB 84 billion in Q2 2024 [10][30]. - The operating profit for Q2 2025 was RMB 17 billion (approximately USD 2.37 billion), a 61.8% increase from RMB 10.51 billion in Q2 2024, with an operating margin of 14% [25][30]. - Net income for Q2 2025 was RMB 12.51 billion (approximately USD 1.74 billion), up 43.6% from RMB 8.71 billion in Q2 2024, with a net profit margin of 10.1% [30][32]. Revenue Breakdown - Revenue from product sales in Q2 2025 was RMB 94.915 billion (approximately USD 13.23 billion), a 44.9% increase from RMB 65.524 billion in Q2 2024 [10][12]. - Revenue from partnership stores in Q2 2025 was RMB 28.673 billion (approximately USD 3.998 billion), reflecting a 55% year-on-year growth [15]. - The company reported that self-operated store revenue for Q2 2025 was RMB 91.362 billion (approximately USD 12.738 billion), a 45.6% increase from RMB 62.77 billion in Q2 2024 [13]. Cost and Expenses - Total operating expenses for Q2 2025 were RMB 106.587 billion (approximately USD 14.861 billion), a 45% increase from RMB 73.519 billion in Q2 2024 [21]. - Material costs for Q2 2025 were RMB 46 billion (approximately USD 6.414 billion), up 36.6% from RMB 33.682 billion in Q2 2024 [22]. - Delivery expenses surged by 175.1% to RMB 16.697 billion (approximately USD 2.328 billion) in Q2 2025 compared to RMB 6.069 billion in Q2 2024 [22]. Store Expansion - As of June 30, 2025, Luckin Coffee had a total of 26,206 stores, including 16,968 self-operated stores and 9,238 partnership stores, with a net addition of 2,109 stores in Q2 2025 [17][18]. - The same-store sales growth for self-operated stores was 13.4% in Q2 2025, up from 8.1% in the previous quarter [13][18]. Management Changes - In April 2025, Luckin Coffee announced a management change, with the chairman of Dazhong Capital replacing Guo Jinyi as chairman of Luckin Coffee [5].