[Starbucks Killer?] Luckin Coffee to have 2,000 stores by end of year

[Stranagor]

 

[Viet]

View attachment 633826

https://finance.yahoo.com/news/luckin-fires-ceo-coo-probing-152456763.html
Luckin Coffee’s Recovery Just Got Tougher After Firing CEO


https://www.cnbc.com/2020/05/19/nas...ns-to-delist-the-stock-after-sales-fraud.html
Nasdaq tells Luckin Coffee of plans to delist the stock after sales fraud

Much same story with Wirecard

a big fraud

money and revenue are created on paper.

share price sinks from 200 euro to 0.

 

[TaiShang]

China’s Luckin Coffee Puts Scandal Behind It, Recruits Franchisees as Rivalry Boils Over

www.yicaiglobal.com

(Yicai Global) Jan. 19 – Chinese Starbucks contender Luckin Coffee has resumed recruiting franchisees in the wake of the epic financial fraud scandal that prompted its delisting from Nasdaq Stock Market as competition in the sector brews up a storm.

Prospective franchisees are eligible to apply if they are aged between 25 and 45, lack criminal or dishonest debtor records, and plan to open a coffee shop with a usable area of at least 30 square meters, according to a recruitment plan the Chinese coffee chain posted on its official WeChat account yesterday.

Ever more rivals have waded into China's no-frills coffee market of late. McDonald’s China will open 4,000-plus McCafé coffee stores in the country by 2023, it said in November. Canadian chain Tim Hortons, which entered the country in 2019 and in which tech titan Tencent Holdings invested, announced it was to open 1,500 stores in the country within 10 years at that time.

Internet coffee brand Coffee Box and China Petroleum & Chemical set up Easy Joy Coffee last month. Sinopec's huge network of convenience stores will position the JV to open 3,000 outlets within three years.

All future Luckin franchisees must lay out between CNY350,000 (USD54,000) to CNY370,000 (USD57,000) before their stores start operating. That sum includes CNY110,000 to CNY130,000 for decoration, about CNY190,000 on equipment, and CNY50,000 (USD7,710.4) as a deposit.

Luckin will waive all franchise fees and support marketing, it pledged. New outlets must be located in Guangdong, Hubei, Zhejiang and other 19 provinces or autonomous regions, and are barred from the first-tier cities of Beijing, Shanghai, Guangzhou, Shenzhen and Wuhan, the company said without explanation.

The company initiated its franchise business in 2019 but suspended it last year due to “the pandemic's impact.”

The coffee chain aims to own 4,800 to 6,900 direct-sales venues by 2023. Its store count had fallen to 3,898 from 4,507 as of Nov. 30, its most recent data show. Over 60 percent of existing stores were profitable by November and Luckin's management expects all to be this year.

Luckin was delisted from the Nasdaq on June 29 and fined by watchdogs in both China and the US after confessing to falsification of all financial data following its April IPO. It is still subject to future class-action suits by North American investors and other administrative penalties.

 

[TaiShang]

Luckin Coffee establishes new technology company with registered capital of $1.5 million - CnTechPost

Luckin Coffee, known as "China's Starbucks", has set up a new technology company in Hainan with a registered capital of RMB 10 million ($1.5 million).

cntechpost.com

Luckin Coffee, known as "China's Starbucks", has set up a new technology company in Hainan with a registered capital of RMB 10 million ($1.5 million).

The company's legal representative is Luckin Coffee chairman and CEO Guo Jinyi, and the business scope includes food business, food Internet sales, catering services, computer software, and hardware and auxiliary equipment wholesale, copyright agent, technical services, technology development, technology consulting, technology exchange, data provider Tianyancha's information shows.

Luckin Coffee plans to award up to 222,769,232 shares of Class A common stock to employees and directors, according to a recent filing with the US Securities and Exchange Commission.

On January 18, Luckin Coffee announced that it opened a retail partner recruitment program and accepted franchise applications.


Luckin Coffee does not charge a franchise fee for partners, although franchisees will be required to pay an upfront investment fee provided by Luckin Coffee in an amount between RMB 350,000 - RMB 370,000. This includes renovation costs of RMB 110,000 - RMB 130,000, production equipment of approximately RMB 190,000, and a deposit of RMB 50,000.


As of November 30, 2020, Luckin Coffee's stores in China are reduced from 4,507 to 3,898. By 2023, Luckin Coffee hopes to have between 4,800 and 6,900 self-operated stores.

Luckin Coffee's stock was delisted from the Nasdaq for falsifying financial and operational data.

On December 17 last year, the SEC said Luckin Coffee agreed to pay a $180 million fine in a settlement against the financial fraud charges.

Luckin Coffee shares traded on the US OTC market went up by 1.3 percent pre-market Wednesday.

 

[Stranagor]

Luckin Coffee shares up as much as 19% after announcing 33% revenue growth for 2020

Luckin Coffee, which trades on the US Pink Sheets market after delisting, rose more than 19 percent at one point Tuesday, as the company announced 33 percent revenue growth for 2020 and several important developments.

By the close of trading, Luckin Coffee's gains narrowed to 3.4 percent to $15.05. Since its delisting on June 29 last year, the company has accumulated a 990 percent gain in the Pink Sheets market. In the past year, it rose about 412 percent.

On Sept. 21, Luckin Coffee made three announcements, saying it formally filed its audited 2020 financial report with the US Securities and Exchange Commission, signed a $187.5 million letter of intent to settle with US class action litigants and formally filed a debt restructuring plan for convertible debt creditors with the Cayman court.

Its fiscal 2020 annual report showed that Luckin Coffee reported net revenue of 4.033 billion yuan ($618.1 million) in 2020, up 33.3 percent year-over-year, driven primarily by higher average selling prices for its products.


It has operating expenses of RMB 6.621 billion, compared with RMB 6.237 billion in 2019. The company said this was in line with its business expansion plans and included $475.3 million in losses and expenses related to the previously announced investigation and restructuring.

Its operating expenses as a percentage of net revenue decreased from 206.2 percent in 2019 to 164.1 percent in 2020, driven primarily by growth in economies of scale.

This resulted in Luckin Coffee's annual net loss under GAAP of $5.6 billion, compared to a net loss of $3.16 billion for the same period in 2019. Net loss attributable to common shareholders and angel shareholders was $5.589 billion, expanding by more than 50 percent from a loss of $3.713 billion in 2019.

As of December 31, 2020, Luckin Coffee had more than 64.9 million cumulative trading customers, compared to 40.6 million in the same period in 2019.

As of the end of last year, the company operated 3,929 self-operated stores and 874 partner stores in 56 cities across Chinese mainland. Self-operated stores and unmanned coffee machines sold a total of 31.6 million items per month on average in the fourth quarter of last year and about 26.2 million items per month on average for the whole of last year.

The company said it has formally filed a debt restructuring proposal to its convertible debt creditors in the Cayman court, involving $460 million of convertible senior notes due 2025 with an annual coupon of 0.75 percent, seeking the court's approval to hold a meeting of creditors to consider and approve the proposal.


The company also said it will settle the US securities class action and is working to enter into a formal settlement agreement to fully resolve all claims of investors who purchased the company's US ADSs between May 17, 2019 and July 15, 2020, in an amount based on a global settlement amount of $187.5 million, with a pro rata reduction of the settlement requirement based on valid opt-out notices received Amount.

On September 7, Luckin Coffee had stated that the overall restructuring plan was progressing in an orderly manner, with multiple milestones completed, and that it had released its audited 2019 annual financial report.

The announcement at that time showed that Luckin Coffee had achieved strong growth in both revenue and net profit, with overall operations gradually improving, thanks to an increase in the number of trading users and further diversification of its high value-added product portfolio.

As of June 30, 2021, the company's total number of stores reached 5,259, including 4,018 self-operated stores and 1,241 affiliated stores, with a cumulative total of more than 75 million consumers.

As of July 31 this year, the company's unrestricted cash and cash equivalents reached $775.8 million.

On May 17, 2019, Luckin Coffee went public on Nasdaq, raising $695 million.

On April 2, 2020, Luckin Coffee pleaded guilty to financial fraud allegations involving RMB 2.2 billion, and the company plunged 85 percent in pre-market trading.


It was asked to delist from Nasdaq on May 19, 2020, and its trading was officially suspended on June 29. The company was subsequently hit with a class action lawsuit by US investors, and in April 2021 a number of US investors sued Luckin Coffee in Shanghai and a formal case was filed.

Luckin Coffee shares up as much as 19% after announcing 33% revenue growth for 2020 - CnTechPost

Since its delisting on June 29 last year, the company has accumulated a 990 percent gain in the Pink Sheets market.

cntechpost.com

 

[Stranagor]

Luckin Coffee posts H1 net revenue of $492.9 million, up 106% year-on-year - CnTechPost

"This earnings announcement is an important milestone as it enables us to return to normalized financial reporting," said Luckin Coffee CEO.

cntechpost.com

 

[baqai]

let me put my flame suit on and say ... Starbucks is freaking over rated

 

[ILC]

let me put my flame suit on and say ... Starbucks is freaking over rated

Of course. Starbucks coffee is shiet. Not comparable to local Cracow coffee bars. I guess it's the same all over the world. The taste is miles behind real coffee cafes.

 

[Apollon]

I follow that to and try to avoid any chinese companies. Europeans should buy european.

 

[Leishangthem]

I brought more during the dip.It bled but worth it. Luckin was always supposed to be starbuck's sole rival,even if it was 1/10 as successful ,it was a great offer for me,and Luckin will likely do better than that.

 

[redtom]

Luckin started out as a fraud project. Its companies deliberately exclude all Chinese investment and focus on accepting American investment, then subsidize prices with large sums of money. In the early days, coffee was even free, or 40 cents. Luckin used money from American investors to buy Chinese coffee. So the Chinese joke that Luckin is a true patriotic enterprise.

Then, after Luckin took over the market, its controllers volunteered to expose the fraud. Let those investments lapse. Luckin, however, is turning a profit. It's the perfect use of capital.

 

[MH.Yang]

Luckin started out as a fraud project. Its companies deliberately exclude all Chinese investment and focus on accepting American investment, then subsidize prices with large sums of money. In the early days, coffee was even free, or 40 cents. Luckin used money from American investors to buy Chinese coffee. So the Chinese joke that Luckin is a true patriotic enterprise.

Then, after Luckin took over the market, its controllers volunteered to expose the fraud. Let those investments lapse. Luckin, however, is turning a profit. It's the perfect use of capital.

This is a Chinese company that deliberately avoids Chinese securities regulation and directly goes to the United States for listing. Americans should have been vigilant about it very early.

 

[mike2000 is back]

Is this not the fraud coffee company who got exposed just over a year or 2 ago?

 

[Hamartia Antidote]

let me put my flame suit on and say ... Starbucks is freaking over rated

So was Luckin..that was why it got in trouble for fraud