Performance Express| Ruixing's third-quarter revenue increased by 105.6% year-on-year, Xiaolu Tea was recalled, and the "Special General Meeting of Shareholders" was held

Recently, Luckin Coffee released an unaudited third quarter financial report.

During the reporting period, Luckin's revenue reached 2,350.2 million yuan (US$364.7 million), an increase of 105.6% year-on-year. Among them, the revenue of directly operated stores was about 1.9341 billion yuan, an increase of 83.9% year-on-year; the revenue of franchised stores was 416.1 million yuan, an increase of 355.0% year-on-year.

Luckin said that the increase in revenue was mainly due to the increase in the average sales price of the company's products, and the number of monthly transaction customers, the number of self-operated stores and the number of product sales increased. From the perspective of operating costs, Luckin's sales and management expenses also rose, with costs of 363.9 million yuan, an increase of 116% year-on-year. Luckin's earnings report pointed out that the increase in sales and marketing expenses was mainly due to the increase in the number of delivery orders.

In terms of net loss, in the third quarter of this year, luckin coffee's net loss reached 23.5 million yuan, a sharp decrease of 98.6% from 1.7112 billion yuan in the same period last year. Non-GAAP net income was $54.6 million, compared to a net loss of $614.1 million for the same period in 2020.

In terms of the number of stores, as of September 30, 2021, the total number of stores of Luckin Coffee was 5671, the number of self-operated stores increased by 6.4% year-on-year to 4206, and the number of franchised stores increased by 66.7% to 1465.

In addition, it is worth noting that in August this year, the Xiaolu Tea direct sales store was recalled by Luckin. According to beijing business daily and other media reports, a Luckin coffee store in Beijing has added the words "MIX coffee X tea" at the front of the door, in addition to coffee products, the store also includes a series of xiaolu tea drinks.

In 2020, due to the financial fraud scandal, the shares pledged by Luckin Coffee's original shareholder Lu Zhengyao and other management involved in the fraud incident were entrusted by the Cayman Court to the designated liquidators for liquidation to repay the debts of multiple financial institutions.

Today, many media broke out that the "special shareholders' meeting" of Luckin Coffee has been held on December 11. The meeting deliberated a number of resolutions such as the "Shareholders' Equity Plan" and considered amending the Company's "Organizational Outline" and "Articles of Association". It is reported that most of the resolutions deliberated by the "special shareholders' meeting" are related to restricting the return of the company's "original fake management".

In September this year, it was reported that an investment company controlled by Wumart founder Zhang Wenzhong had tried to participate in the bond restructuring of Luckin Coffee, intending to package up the acquisition of debt from Lu Zhengyao creditor companies such as CICC, Barclays and Morgan Stanley, and put forward the demand to acquire the equity of Luckin Coffee, which is being subject to liquidation procedures.

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