How is Ruixing Coffee's business in 2019? Ruixing Coffee Releases Latest Financial Report 2019 Loss of Nearly 3.2 Billion Yuan

Luckin Coffee is on the right track.

Luckin Coffee issued a statement on the official Weibo on the evening of June 30 on the reissue of the 2019 annual financial report.

The full text of the statement is as follows:

On June 30th, Luckin Coffee (China) Co., Ltd. (hereinafter referred to as "the company") issued the audited annual financial report for 2019. This is another important milestone on the road to revitalization of the company after the storm in 2020. According to the disclosure requirements of the US Securities Regulatory Commission, the company will continue to actively fulfill its disclosure obligations, release its annual financial report for 2020 as soon as possible, and gradually return to the normal progress of financial disclosure.

Since taking office in May 2020, the current management of the company has worked hand in hand with all staff to strive for governance. On the one hand, we should face up to the historical responsibility and constantly improve the corporate governance; on the other hand, we should adhere to product and technological innovation and give back to the broad masses of consumers. By the end of June this year, the number of stores across the country had exceeded 5200, the total number of consumers had exceeded 75 million, and the monthly sales of the raw coconut series exceeded 10 million cups, setting a new record for sales of Lucky's new products.

Innovate the old and innovate and forge ahead. Lucky people will continue to work hard to make it easy for every customer to enjoy a cup of good coffee that is worth drinking.

At present, Luckin Coffee has reissued a re-audited annual report in 2019 on the official website.

Screenshot of Luckin Coffee's official website

In the 2019 annual financial report, the relevant profit data show that Luckin Coffee's net income was 3.025 billion yuan in 2019 and 840 million yuan in 2018, an increase of 260% over the same period last year, while the net loss was 3.16 billion yuan, an increase of 95.2% over the same period last year.

Luckin Coffee's total expenditure in 2019 was 6.237 billion yuan. according to this financial report, net revenue in 2019 was exaggerated by about 2.12 billion yuan, and costs and expenses were also exaggerated by 1.34 billion yuan.

Reviewing the news released on the official website of the Ministry of Finance in July 2020, the news pointed out that from April 2019 to the end of 2019, Luckin Coffee increased the transaction volume by 2.246 billion yuan (RMB, the same below) through the fictitious commodity coupon business. The falsely increased income was 2.119 billion yuan (accounting for 41.16% of the disclosed income of 5.15 billion yuan), the inflated cost was 1.211 billion yuan, and the inflated profit was 908 million yuan.

The data released on the Ministry of Finance's website basically corresponds to the statement of the reissued annual financial report in 2019.

Returning to this reissued 2019 financial report, we can see from the following specific aspects that the financial report data show:

On the raw materials

Luckin Coffee's raw material cost in 2019 was 1.623 billion yuan, an increase of 205% over the same period last year.

In terms of store rent and other operating costs

The cost of Luckin Coffee in 2019 was 1.597 billion yuan, an increase of 177% over the same period last year.

On depreciation and amortization costs

The cost in 2019 was 412 million yuan, an increase of 285% over the same period last year.

In terms of sales expenses

The cost in 2019 was 1.252 billion yuan, an increase of 68% over the same period last year.

Luckin Coffee profit data

In terms of store opening,

According to Luckin Coffee's latest announcement, Lucky had more than 5200 stores nationwide by the end of June this year, including nine Luckin Coffee stores in 2017, 2073 in 2018 and 4507 in 2019.

In terms of store type

Luckin Coffee's store form includes three categories: cache store, leisurely store and takeout store. Among these three categories of stores, the total number of "cache stores" accounts for the largest number.

Financial statistics show that from the first quarter of 2018 to the end of 2019, the number of Luckin Coffee cache stores increased from 83 to 4239, and the proportion of cache stores in the total number of stores increased from 28.6% at the beginning of the period to 94.1% at the end of 2019.

The number and proportion of Ruixing branch stores

In addition, Luckin Coffee officially spun off "Little Deer Tea" in September 2019, and Luckin Coffee's sub-brand Little Deer Tea was also opened and joined in the form of a "new retail partner". The related financial data show that by the end of 2019, Luckin Coffee has opened a total of 282 stores. By May 31, 2011, there were 5124 stores in China, including 949 self-owned stores and 1175 cooperative stores.

At the level of store management

Luckin Coffee's cumulative trading users in 2019 were 40.61 million and the average monthly trading users were 11.59 million. By the end of 2019, Luckin Coffee had sold 30.03 million cups of ready-made drinks per month, equivalent to the average monthly consumption of 2.59 cups per trader, compared with about 3 cups in the previous year. Product income represented by ready-made drinks is Luckin Coffee's main source of revenue contribution.

In the latest news released by Lucky, by the end of June 2021, Luckin Coffee's cumulative trading users had exceeded 75 million.

Business situation of Luckin Coffee stores

After Luckin Coffee reissued the audited annual financial report in 2019, it means that Luckin Coffee is on the right track.

But looking back on the whole fraud scandal, since Luckin Coffee was exposed to the financial scandal, Luckin Coffee's entire management has also undergone earth-shaking changes.

Luckin Coffee CEO Qian Zhiya and COO Liu Jian were forced to resign from the board of directors because of a financial scandal on May 12, 2020.

Guo Jinyi, assistant to Luckin Coffee Lu Zhengyao, was appointed as the new CEO and chairman on July 14, 2020.

Luckin Coffee announced the appointment of Marcum Bernstein&Pinchuk LLP, an independent accounting firm, as the independent auditor.

In April, Luckin Coffee received a new round of financing agreements of $250 million from two major shareholders, Dawei Capital and pleasure Capital.

After obtaining the settlement of regulators and the support of capital injection again, coupled with the end of the reissue of financial reports in 2019, Luckin Coffee officially said: next, in accordance with the disclosure requirements of the US Securities Regulatory Commission, the company will continue to actively fulfill its disclosure obligations. release the 2020 annual financial report as soon as possible, and gradually return to the normal progress of financial disclosure.

At this point, in fact, combined with the performance of Luckin Coffee in 2020 and the first half of 2021, we can find that Luckin Coffee is gradually back on the right track, but whether the road after Luckin Coffee is clear is still a question mark.

For more information about the development of Luckin Coffee, please see 👇 below:

Portal:

History of Luckin Coffee's Development in 2017\ 2018\ 2020

The Development of Luckin Coffee in the first half of 2021

* cover and picture of the article Source: Luckin Coffee official website

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