company profile

Luckin Coffee is a chain coffee brand.

On 20 17, Qian left and opened Ruixing's first store in Beijing.

In 20 18, the number of Luckin Coffee stores reached 2000, and the headquarters was established in Xiamen in the same year.

20 19, LG Coffee was listed on NASDAQ. In the same year, the sub-brand deer tea was launched.

In 2020, Ruixing admitted financial fraud and delisted from Nasdaq. * In 2022, the number of Luckin Coffee stores exceeded 7,000, and it was selected in Hurun Report's 2022 China Unicorn List.

Commercial license plate

* In the first three quarters of 2022, the company achieved an operating income of 9.598 billion yuan, a year-on-year increase of 73.48%. The net profit of returning to the mother was 434 million yuan, a year-on-year increase of 226.57%.

* By business, the revenue from product sales business was 7.373 billion yuan, and the revenue from franchise business was 2.225 billion yuan. In the product sales business, the income of ready-made drinks such as coffee is 6.576 billion yuan, and the income of non-ready drinks is 456 million yuan, including the income of unmanned vending machines, e-commerce, distribution and other businesses of 346.5438 billion yuan.

Product introduction

As a coffee chain brand, the store situation of Luckin Coffee is the core data of the company. By September 2022, the company had 7,846 stores, including 5,373 direct stores and 2,473 franchise stores. The average monthly turnover of customers is 2765438+ 10,000.

Ruixing's income mainly comes from direct sales of products, which refer to various flavors of lattes, Rena ice and some baked light desserts, such as cheesecake and soft European buns. In the self-operated business, ready-made drinks such as coffee account for the highest proportion. The revenue in the first three quarters of 2022 was 6.576 billion yuan, up 58.89% year-on-year, accounting for 68.5 1% of the total revenue.

Another piece of income is franchise business, including selling materials, equipment and profit sharing to franchisees. In the first three quarters of 2022, the income of ingredients sold to franchisees was 65.438+42 billion yuan, the income of store equipment was 26.5438+40 billion yuan, and the profit share became 36.5438+60 billion yuan. The income from distribution service was 238.2 million yuan, and the last other service was 65.438+600 million yuan.

business model

Luckin Coffee went public quickly less than two years after its establishment, and naturally it has a unique business model.

In terms of marketing, most of Ruixun's products are priced at 16-25 yuan, giving customers coupons for a long time, almost selling one get one free or even selling one get two free, with a loss of 100 billion in four years. Therefore, a large number of stores were opened in a short time, and at the same time, the market was seized.

In terms of products, Arabica beans are used as raw materials, and coffee machines imported from Switzerland are introduced. In 20021year, the R&D team developed 1 13 new products. From 1 to September 2022, 92 new products adopted the "big latte strategy" at the same time. Popular products include "raw coconut latte" and "raw cheese latte", among which the sales of raw coconut latte exceeded 1 100 million yuan one year after its listing.

As for the factory, Ruixing officially put into operation the coffee baking base in 20021year, realizing fully automatic production from raw bean processing, baking, packaging and storage, with a total production capacity of 6,543,800 tons.

In the aspect of joining, the joining mode of "0 joining fee and step-by-step distribution" is adopted, and the income is obtained by raw materials and equipment without earning joining fee. When the monthly gross profit exceeds a certain amount, a part of the profit is drawn from it.

Core executives

Guo Jinyi: Born in 198 1, one of the co-founders of Luckin Coffee. In 2003, he graduated from Dalian Minzu University majoring in environmental engineering, and received his Ph.D. from Beijing Jiaotong University in 2009. He once worked in the Ministry of Transport and UCAR, served as the director of Luckin Coffee on 20 18, and served as the chairman and CEO of Luckin Coffee since 2020.

Lu: 1969 was born,199/kloc-0 graduated from University of Science and Technology Beijing, founded CAR Inc. in 2007, obtained Peking University MBA in 20 10, became the chairman of Luckin Coffee in 20 18 and 20 19. In 2020, he will step down as Luckin Coffee.

Qian: Born in 1976, graduated from wuhan textile University. Started a business with Lu in 2004. Later, he served as director and deputy general manager of UCAR. In 20 17, he left UCAR and founded Luckin Coffee. In 20 19, led Luckin Coffee to go public in the United States. He will step down as legal representative, general manager and executive director in 2020.

Ownership structure: * In April 2020, Luckin Coffee issued an announcement, admitting 2.2 billion yuan of false transactions. Ruixing withdrew from the market and suspended trading, and the store operated normally, and then entered the American powder list market. So the equity information in the figure below is the data in 2020.

Lejin Coffee Co., Ltd.: Lu: 25.75% Qian: 16.60% Huang: 10.46% AARON Li: 7. 1% Others: 40.09%.

financial target

* The company's revenue has continued to rise in recent years, mainly due to the continuous increase in the number of stores.

* The gross profit margin of the company continued to rise, mainly due to the increase in the price of a single cup, and the net interest rate of 202 1 returned to the mother.

* The company's debt ratio in the first three quarters of 2022 was 36.28%, which remained at a low level. At the same time, interest-bearing liabilities were cleared.

* The operating cash flow of the company was negative before the 20021fiscal year, and gradually returned to positive in the 20021fiscal year.

industry analysis

* The coffee industry in China is developing at a high speed. According to the data of USDA, China's coffee consumption increased from 97,700 tons in 2065,438+02/2065,438+03 to 234,000 tons in 2020/2026,5438+0, with a compound annual growth rate of 65,438+065,438+0.54%. It is estimated that in 2026. With the improvement of urbanization rate and the continuous growth of per capita disposable income, China's coffee industry will maintain rapid growth.

* In 2020, the freshly ground coffee market will develop rapidly. In the coffee market in China, instant coffee accounts for 52.4% and freshly ground coffee accounts for 36.5%, which is still relatively low in scale. With the improvement of residents' living standards and the increase of the number of freshly ground coffee shops, the freshly ground coffee market has increased from 28.4 billion yuan in 20 17 to 87.6 billion yuan in 20021year. The compound annual growth rate is 32.52%.

* Coffee has spawned other new formats.

* Cross-border coffee: As of September 2022, there were more than 320,000 coffee-related enterprises in China, with1.5,000 newly registered enterprises within one year. Well-known domestic coffee brands include Ruixing, Seesaw and Manden. At the same time, companies outside Huawei and Li Ning also crossed the coffee track.

* Chinese breakfast: In recent two years, the combination of "coffee+Chinese breakfast" has been popular all over the country. For example, Shanghai Joe Coffee introduced Chinese pastry+coffee.

* Bean-free coffee: Atomo Coffee, an agricultural technology company, claims to have developed the first artificial coffee without coffee beans. The factory can produce 65,438+0,000 cans per day.

development trends

* Products: In recent years, people's demand for health has become increasingly strong. In the future, fat reduction, nutrition and human affinity will become the three major tracks in the coffee market.

* Channels: The brand will pay attention to the development of business and sales channels, adopt a combination of online and offline methods, open up new retail channels, expand coffee use scenarios, and better meet the needs of consumers.

* Market: In recent years, 40% of people who buy coffee online are in third-and fourth-tier cities and below, much higher than those in first-tier cities. In the future, mainstream coffee brands will lay out a sinking market.

Knowledge refining

Latte: It's a drink, which is made by mixing espresso and milk. Famous lattes include Italian lattes, caramel lattes and so on. Generally, lattes contain more milk than coffee. The word latte means milk in Italian.

American coffee: it is a kind of drink, which is usually made from espresso and water. This kind of coffee is light and Ming Che, almost transparent, and has a high caffeine content.

Unmanned vending machine: It is a self-service vending machine. There are no salespeople, only intelligent machines. Customers can scan the code themselves to buy the goods they want. After the purchase is completed, the goods will automatically come out and the consumers will take them away directly.

Coffee bean: It is the raw material for making coffee and consists of two round seeds face to face. Broadly speaking, there are two kinds of coffee beans in the world, Arabica beans and Robusta beans. Coffee beans can be used to make cappuccino, American coffee, mocha coffee and so on.

Raw Coconut: Coconut milk is a kind of beverage, which consists of coconut juice and ground mature coconut meat. It has low protein and no fiber, and has a good effect of relieving summer heat, promoting fluid production and quenching thirst.

Arabica bean: It is an important commercial coffee, mainly produced in South America and Central America. Its fruiting period does not exceed three years, and it has high-quality aroma and sour taste.

Pink List Market: It is a part of American capital market, also known as art paper Stock Exchange and PS Market, which provides trading and circulation quotation services for those stocks that are no longer listed on American stock exchanges or do not meet the listing conditions.