Luckin Coffee made a net profit of more than 500 million in the third quarter and was opened to join at the end of the year.

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Yesterday, Luckin Coffee released financial data for the third quarter of 2022, with total revenue up 65.7 per cent year-on-year to 3.895 billion yuan and net profit of 529 million yuan. The operating profit under American accounting standards (GAAP) is 585.3 million yuan, and the operating profit margin is 15.0%. The average number of monthly trading customers is 25.1 million, an increase of 70.5% over the same period last year.

In terms of stores, Luckin Coffee had 651 net new stores in the third quarter. By the end of the third quarter, the company had a total of 7846 stores, including 2473 associated stores and 5373 self-operated stores. Compared with the same period last year, the number of stores increased by 2175. Luckin Coffee had 5671 stores in the third quarter of 2021, including 1465 associated stores and 4206 self-owned stores.

In October 2017, luckin coffee opened its first store in Galaxy soho. Its headquarters, Luckin Coffee (China) Co., Ltd. was established in Xiamen in March 2018, with Guo Jinyi as its legal representative. Coffee shops have so far become the chain coffee brand with the largest number of coffee stores in China, far surpassing Starbucks' 1000 stores.

In the second quarter of this year, some media predicted that Ruixing was likely to surpass Starbucks China in revenue in the third quarter and hold the top spot in domestic coffee. For now, however, Starbucks has retained the first place for the time being. Starbucks China's results picked up in the third quarter, with net revenue of $696 million (4.968 billion yuan) still falling from a year earlier, but up 29% from a month earlier to 6021 stores.

It is understood that in the third quarter, Luckin Coffee's total operating expenses were 3.3094 billion yuan, an increase of 40.4 percent over the same period last year, of which sales and marketing expenses were 159.3 million yuan, an increase of 64.3 percent over the same period last year, mainly because Luckin Coffee continued to make strategic investment in his brand through various channels. So advertising expenses increased.

Luckin Coffee issued a message on August 22 this year, saying that partner recruitment has been suspended at this stage, and the opening time is subject to the official notice. At the same time, Luckin Coffee has not developed any sub-brands, and the information on the network about Luckin Coffee and his sub-brands joining or acting as agents is false.

But this time, Guo Jinyi, Ruixing's current chairman and CEO, said on the conference call that Luckin Coffee would open up the number of joint venture partners in a new round of sinking market in December.

In terms of the number of stores, the number of Ruixing stores in first-and second-tier cities is gradually approaching the ceiling. although this number has increased by nearly 1000 in the past three quarters, the growth rate has slowed to about 7%. This may also be the reason why Ruixing wants to reopen the number of joint venture partners in the sinking market.

In the Chinese market, the competition in the coffee market is still very fierce, the coffee track has attracted many entrepreneurs, the number of enterprises with cross-border layout of the track is rising, and cross-border enterprises come from various industries, except catering enterprises. China Railway, China Post, Huawei, Lulai and so on are among them, jointly boosting the popularity of the coffee track.

Recently, Canadian coffee chain Tims China also worked with e-commerce giant Alibaba Group to bring coffee products to millions of users of Alibaba's online market. Tims China, which is also controlled by tech giant Tencent, is growing its business rapidly and expects to open 2750 stores in China by 2026.

So far, Lucky's direct stores cover 60 cities and franchise stores cover more than 230 cities. If it is accompanied by the reopening of franchise stores, then a new round of growth may come.

Photo Source: Internet