Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

LATEST
WeRide to Test Fully Autonomous Vehicles in Guangzhou
Trending in China: Why Are Chinese Netizens Saying Kanye West Could be ‘China’s First’ U.S. President?
Trending in China: Will Weibo’s Fight Against Porn Have Other Unintended Side Effects
Tencent Leads $40 Million Investment in Online Art Educator
Alibaba Aims to Facilitate $1.4 Trillion in Sales Annually By 2024
Trending in China: Death of Giant Panda Cubs Sparks Concerns About Treatment of ‘National Treasure’
China CFO of Indian Oyo Quits to ‘Pursue Other Professional Opportunities’
Sequoia Capital Opens Its First Tech Incubation Center in Shanghai
Some 266 Foreign-Invested Firms Approved to Offer Telecom Services in China in First Half of 2020
Trending in China: Should Internet Celebrities Be Part of the School Curriculum?
Sequoia China Leads Nearly $100m Round in Storytelling App Kuaidian
Medical Robot Maker Finds Elixir in STAR Board’s Market Reforms
Trending in China: Outrage Ensues as Updated U.S. Student Visa Policies Force International Students into a Dilemma
Tencent’s PUBG Mobile Game Hits $3 Billion Milestone
Luckin Coffee Shareholders Vote to Remove Chairman, Bloomberg Reports
France Won’t Ban But Will Discourage Use of Huawei 5G Equipment, Official Says
Trending in China: ‘Lipstick King’ Li Jiaqi Settles in Shanghai, Prompting a Rethink of ‘Talent’
Tencent Plays in U.S. With California Game Studio Launch
Trending in China: Shenzhen Thinks Only Children Should Get Paid Leave to Look After Their Parents - Cue Heated Debate
German Drugmaker BI Launches Shanghai Center to Harness Chinese Expertise
Starbucks Challenger Luckin Reports Wider Loss on Soaring Costs

By Han Wei / Aug 15, 2019 04:05 AM / Business & Tech

Photo: VCG

Photo: VCG

China’s coffee-chain upstart Luckin Coffee Inc. posted a wider quarterly loss in its first earnings report since its initial public offering in May, reflecting surging costs of business expansion.

Luckin said Wednesday its net loss for the quarter ended June 30 reached 681.3 million yuan ($99.2 million), compared with a loss of 333 million yuan in the same period a year ago. Total revenue for the period rose 648.2% year-on-year to 909.1 million yuan, according to unaudited results published by Luckin.

Luckin’s Nasdaq-traded shares plunged 14.5% Wednesday morning to $20.99. The stock has gained about 44% from its IPO price.

Luckin opened 593 new stores in the second quarter, expanding the total to 2,963. The company said earlier it plans to open 4,500 stores in China by the end of 2019 — far more than Starbucks’ current total of more than 3,600 China stores.

The fast expansion has pushed up Luckin’s operating expenses to 1.6 billion yuan for the second quarter, an increase of 243.9% on yearly basis. Store-level operating loss dropped to 55.8 million yuan from 81.7 million yuan a year ago, according to the financial report.

Qian Zhiya, chief executive officer of Luckin, said the company is on track to reach store-level break-even during the third quarter of 2019, citing narrowing store operating losses, increased bargaining power, operating efficiency from technology, and higher store throughput.

Related: China’s Starbucks Challenger Eyes Middle Eastern Foray


Share this article
Open WeChat and scan the QR code