Luckin Coffee Greatly Reduces Operating Losses in Fiscal Year 2021

Chinese coffee chain Luckin Coffee released its audited financial statements for the 2021 fiscal year on Thursday. The report shows that the revenue of Luckin Coffee throughout the year was 7.965 billion yuan ($1.25 billion), a year-on-year increase of 97.5%.

During the period, the company’s operating losses were 539.1 million yuan, compared with 2.59 billion yuan in 2020. Non-GAAP operating losses were 236.3 million yuan, compared with 2,493.8 million yuan in 2020.

As of December 31, 2021, Luckin’s cash, cash equivalents and short-term investments held by the company were 6.5553 billion yuan, compared with 5.189 billion yuan as of December 31, 2020.

The document also shows that Centurium Capital is the major shareholder of Luckin Coffee and retains a 57.0% of total voting rights.

In 2021, Luckin Coffee opened 1,221 new stores, a year-on-year increase of 25.4%. By the end of 2021, the company had continued its expansion to 4,397 self-operated stores and 1,627 partnership stores in over 220 cities throughout China.

In fiscal year ended December 31, 2021, the monthly average of customers hit 13 million, a year-on-year increase of 55.2%. Luckin’s revenue derived from self-operated stores in the period was 6.1927 billion yuan, an increase of 78.3% compared with 3.4728 billion yuan in 2020.

It has been two years since Luckin Coffee emerged from financial data fraud accusations in April 2020. With the completion of the company’s restructuring of financial debt as of Monday, Luckin’s previous problems have been fully resolved and corporate governance has now returned to normal. On Thursday, the company also announced that BDO is taking over from Centurion ZD CPA & Co., the company’s previous independent registered public accounting firm.

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