Luckin Coffee was born again in a desperate situation! Turn profits into profits for the first time! Luckin Coffee has 6580 stores across the country!

Luckin Coffee's former financial fraud has caused an uproar all over the world. Since then, Luckin Coffee has embarked on the road of turning over. During these four years, Luckin Coffee has experienced great ups and downs, and now Luckin Coffee has come back from the dead. The financial statements for the first quarter of fiscal year 2022 released on May 24th in New York showed that Ruixing made a profit for the first time.

According to the financial report, Lucky's net income in the first quarter of this year reached 2.4046 billion yuan, an increase of 89.5% compared with 1.2687 billion yuan in the same period in 2021.

It is worth noting that Luckin Coffee made an overall profit for the first time. According to the financial report, under the US Accounting Standards (GAAP), Lucky made an operating profit of 16.1 million yuan in the first quarter of this year, compared with a loss of 364 million yuan in the same period of fiscal 2021. Under non-American accounting standards (Non-GAAP), Lucky made an operating profit of 92.1 million yuan in the first quarter of this year, compared with a loss of 307.6 million yuan in the same period of fiscal 2021.

And Luckin Coffee's old rival, Starbucks, in the latest quarter of financial results, due to the repeated epidemic of COVID-19 and epidemic policy restrictions, Starbucks sales in China fell 23%. Luckin Coffee, on the other hand, does not seem to be affected by the COVID-19 epidemic, and the number of stores in China even exceeds that of Starbucks.

In the first quarter of 2022, Luckin Coffee added a net 556 stores, an increase of 9.2% from a month earlier. As of March 31, 2022, the number of Luckin Coffee stores has increased to 6580, including 4675 self-owned stores and 1905 joint venture stores, making it one of the largest coffee chain brands in China.

Of this total, revenue from self-operated stores was 1.7147 billion yuan, an increase of 66.2% over the same period last year, while revenue from associated stores was 549.3 million yuan, an increase of 239.3% over the same period last year. Guo Jinyi, chief executive of Luckin Coffee, said that in terms of past performance, revenue from proprietary stores was relatively weak in the first quarter due to a decline in purchases during the Spring Festival. However, from this quarter's results, proprietary stores have brought strong store profit margins.

Ruixing was founded in 2017 and listed on the Nasdaq stock market in just 18 months. Less than a year after listing, it was exposed that financial fraud had caused its share price to plunge by 80% and stopped trading several times during the day. Until April 12 this year, Luckin Coffee completed the financial debt restructuring and formally ended the bankruptcy protection proceedings as a debtor. Luckin Coffee has come out of many difficulties and is now heading for the light.

The frequent introduction of popular styles, Luckin Coffee's turnaround on the road as an important driving force, so that its success in turning the situation, its product research and development contribution. The new product "raw coconut latte" launched by Luckin Coffee in 2021 has become very popular. The drink of "coconut milk + coffee" has attracted the imitation of many coffee brands and even tea brands. Tims, Pacific, Xi Tea and other brands have launched raw coconut lattes. As of early April this year, Lucky's cumulative sales of raw coconut lattes had exceeded 100 million cups.

Also in April this year, Luckin Coffee joined hands with coconut tree and coconut milk to launch the "Coconut Cloud Latte". With its "earth to the extreme" outer packaging, it attracted many consumers to try something fresh and took photos on social platforms to share it, which successfully became a new popular style; signed EDG as its recommendation officer, and launched "Coconut Green Ice extract" back into fashion, but caused a wave of netizens' complaints. 0 sugar product "Orange Gold Bubble American" makes many netizens shout: like a scum man who has changed his mind.

Now that Ruixing has made a profit, let's wait and see how it develops in the future.

Photo Source: Internet

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