Once lost 800 million yuan in September, his face didn't change his face! Now Lucky wants to mortgage the coffee machine for 45 million debt guarantee?

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"it burned more than one billion yuan." Qian Zhiya, founder and CEO of Ruixing, said lightly at the press conference in July 2018. In her opinion, this sensational figure is not worth mentioning. After all, in the last war of travel, she handled tens of billions of dollars. Such an experience is the key to attracting investors. "the online and offline fusion genes have been available since DAY1, which is the basis for Luckin Coffee's rapid and large-scale expansion."

In December 2018, the media exposed Luckin Coffee's business plan for round B financing: Luckin Coffee's cumulative sales income in the first nine months was 375 million yuan, gross profit was-433 million yuan (gross profit margin was-115.5%), and net loss was 857 million yuan. Luckin Coffee responded: what is certain is that the loss for the whole year will be much larger than this figure. It is an established strategy to quickly occupy the market through subsidies, and losses are in line with expectations.

Since then, there have been repeated rumors of "foreign media revelations" such as "coming to Hong Kong IPO", "coming to the United States IPO", "chairman's loan of US $200m" and so on, but in most cases the lucky side said that "the news is not true and does not comment." In response.

Today, however, some sharp-eyed media found that Luckin Coffee actually mortgaged the coffee machine to guarantee the debt.

According to Tian Yan Cha and other public data, Luckin Coffee (China) Co., Ltd. added a piece of chattel mortgage information on April 1. The mortgagee is Zhongguancun Science and Technology Leasing Co., Ltd., and the amount of secured creditor's rights is 45 million yuan. Ruixing's chattel collateral is coffee machine, milk box, powder warehouse, and the goods belong to many stores in Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu and so on.

Chattel Pledge Information of Luckin Coffee (China) in Qixinbao data

In July 2018, Luckin Coffee received round A financing of US $200m, valuing the company at US $1 billion. In December 2018, Luckin Coffee received round B financing of US $200m, valuing the company at US $2.2 billion. Luckin Coffee disclosed in an interview with the media at the end of last year that the company is rich in cash and has about 2 billion yuan in cash on its account.

"two ○ by the end of 2019, we will overtake Starbucks in an all-round way!"

Luckin Coffee, once haunted by bold words, vowing to crush Starbucks, is now mortgaging coffee machines, milk boxes and powder warehouses. Luckin Coffee, who once spent a billion yuan without changing his face, is still playing with a 50 million cash subsidy, is he really so short of that "mere" 45 million yuan?

Lucky responded to 45 million yuan of debt guarantee: in line with the idea of light assets operation.

Luckin Coffee responded quickly this time. Ruixing responded on April 2 that it was a regular equipment financial lease and was in line with Ruixing Light's big idea of asset operation. According to the data, Luckin Coffee (China) Co., Ltd. mortgaged its coffee machine, milk box and powder warehouse as collateral to Zhongguancun Science and Technology Leasing Co., Ltd., and the amount of guaranteed creditor's rights was 45 million yuan. Ruixing said that the application of innovative financial instruments such as equipment financial leasing can ensure that the value of our assets can be maximized.

According to reports, Luckin Coffee's mortgage behavior, namely financial leasing (financial lease), is the most common and basic non-bank financial form in the world at present, which is mostly found in heavy asset industries such as aviation and heavy machinery. The mode of operation is to take fixed assets that do not generate profits as collateral and lend liquidity to financial leasing companies, so as to maximize the value of their own funds and achieve faster development.

Data show that Lucky's chattel collateral this time are coffee machines, milk boxes, powder warehouses, and the goods belong to stores in Beijing, Shenzhen, Shanghai, Guangzhou and other places, which also stipulates that the debtor's debt performance period is from March 27, 2019 to March 31, 2020. Industry insiders said that the essence behind this information is that Luckin Coffee obtained 45 million yuan of liquidity through innovative financial instruments, highlighting his light asset operation ideas.

Industry insiders said that financial leasing has the advantages of high fund-raising efficiency and low financial risk, and is a commonly used financial tool for start-up entity companies. Through this financial lease, we can see that Luckin Coffee is trying various innovative forms to keep the company's light assets running, and this order is not common in the financial leasing business of the fast consumer industry. It also shows that leasing companies are optimistic about Luckin Coffee's brand, business credit and future development prospects.

According to the "Coffee Industry Market demand and Investment Analysis report" released by the prospective Industrial Research Institute, China's coffee consumption is growing at an annual rate of 15% 20%, while the global average coffee consumption growth rate is only 2%. At present, the annual per capita coffee consumption in North American and European countries is about 400 cups, while that in Japan is about 360 cups. China consumes less than 5 cups of coffee per person per year, but in first-tier cities such as Shanghai, Beijing and Guangzhou, per capita coffee consumption is 20 cups a year.

Judging from the data, there is still a lot of room for growth in China's coffee consumption market. Therefore, Luckin Coffee's rapid expansion of the rapid growth ceiling only comes from its own hidden dangers: increasing operating costs, low-price strategies that are difficult to maintain in the long run, the risk of user loss, and possible withdrawal of capital.

Different from the previous practice of Nestl é and Starbucks gradually cultivating the market, Luckin Coffee's Internet thinking is to quickly occupy the market and improve the quality in reverse. This is also the reason why Qian Zhiya, founder of Luckin Coffee, once said that "we should spend 1 billion yuan to educate China's coffee market and be prepared to lose money for a long time."

Indeed, judging from the past history of other regions, the coffee industry needs money to lay the groundwork and make the cake bigger first, so that the market and consumers can accept the products. After accepting it, various brands will compete for the cake again. Luckin Coffee's "crazy money burning" is not absolutely right or wrong, the key is how long Rui Xing can hold on and how much capital she has to insist on. Otherwise, Lucky is likely to be occupied by others in the later stage because of the lack of financing capacity.

Photo Source: Internet

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