China: Luckin Coffee, 2Q financial deficit of 10 billion yen: deficit doubled year on year
Guangzhou
August 22, 2019
Coffee chain: Luckin Coffee
On August 14, we released the quarterly report for the second quarter of 2019 (April to June).
Operating profit and loss:
The deficit was 689,708,000 yuan (about 10.3 billion yen, 1 yuan = about 15 yen).
The deficit amount has increased approximately twice that of the same period last year.
Although the company’s business is expanding rapidly, it has been in deficit since its foundation in 2017.
Sales: 99.1 million yuan, about 7.5 times
Number of stores: 2,963, approximately 4.8 times
Cumulative number of customers: Approximately 7.9 times 22.8 million,
Average number of customers per month: about 5.2 times, 6.2 million
Causes of deficits:
A major factor in the deficit is free / discounted coupons.
The company has indicated that it will continue for the next 3-5 years (“Chinese Newspaper” January 4, 2019)
-JETRO
https://www.jetro.go.jp/biznews/2019/08/d8715066ace5872e.html