Mounting a comeback, Luckin Coffee reports 33% net revenue increase in fiscal 2020

Luckin Coffee Inc., still in provisional liquidation), announced the this week that it had recently filed its annual report on form 20-F for the fiscal year ended Dec. 31, 2020, with the U.S. Securities and Exchange Commission.

In its filling, the Chinese coffee store and vending machine company reported net revenues of RMB4,033.4 million, or $618.1 million, an increase of 33.3%, compared with 2019. Luckin noted that the improvement was achieved despite the impact of COVID-19 in 2020 and primarily driven by the increased average selling price for Luckin Coffee’s high-quality products.

OTHER FY 2020 HIGHLIGHTS

• Operating expenses of RMB6,620.7 million ($1,014.7 million), which was in line with the Company’s business expansion plan and includes RMB475.3 million ($72.8 million) in losses and expenses related to the previously announced investigations and restructuring. Operating expenses as a percentage of net revenues decreased from 206.2% in 2019 to 164.1% in 2020, mainly driven by increased economies of scale.
• As of Dec. 31, 2020, the cumulative number of transacting customers was over 64.9 million, compared with 40.6 million as of Dec. 31, 2019.
• Average monthly total items sold in self-operated stores and unmanned coffee machines were approximately 26.2 million in 2020, compared with 24.2 million in 2019. Average monthly total items sold in self-operated stores and unmanned coffee machines reached approximately 31.6 million in the fourth quarter of 2020.
• As of Dec.31, 2020, Luckin Coffee had operated 3,929 self-operated stores in 56 cities in China and operated 874 partnership stores.

“Luckin Coffee continues to make progress on returning the company to normalized financial reporting,” said Dr. Jinyi Guo, Luckin's chairman and chief executive.

“In 2020, we delivered strong revenue growth and improvements in profitability," Guo added. "We have continued to expand and enhance our results of operation in 2021, and our team remains dedicated to delivering high quality products and services for our customers and executing on our strategic plan for the benefit of all stakeholders.”

The 2020 annual report, which contains Luckin Coffee’s audited consolidated financial statements prepared under U.S. GAAP as of and for the fiscal year ended December 31, 2020, can be accessed on the SEC’s website and on the company’s investor relations website at investor.luckincoffee.com.

In April 2020, Luckin revealed that it had inflated its 2019 sales revenue by up to $310 million. It resulted in the stock price crashing and several executives being fired. Trading was suspended and the company was delisted from Nasdaq on Jun. 29, 2020. The company filed for Chapter 15 bankruptcy earlier this year.