On the day of its birth, it has been the focus of the market, first with a burst of speed and a lightning-like market in the U. S.-share NASDAQ. But investors have responded positively to the company’s earnings in the most recent earnings season, but investors have responded positively to the company’s earnings. On November 15, the company’s share price jumped by 25.44%, a new high since the market, and has been calculated since the company’s release of the quarterly report on November 13, The three-day share price has increased by 42.36%, with a market value of $6.4 billion.
According to Luckin Coffee’s latest third-quarter report, the company recorded revenue of 1.542 billion yuan in the third quarter of this year, up 540.2 percent from a year earlier, with a net profit loss of 532 million yuan and an increase of 9.6 percent, but it was the smallest loss in the past four quarters. Affected by the news, Luckin Coffee shares rose 13.07 percent on Nov. 13, rose 0.37 percent on the 14th, and rose 25.44 percent again on the 15th, reaching an all-time high of $27.31 a share. By the close of the 15 th, Luckin Coffee shares were $27.02 per share, with a total market capitalization of nearly $6.5 billion.
As for the reasons for the loss, Ruixing blamed stores on entering the new city, breaking up deer tea into an independent brand, and so on. According to the third quarterly report, Ruixing’s marketing expenses reached 558 million yuan in the current quarter, up 148 percent from 225 million yuan in the same period last year. Judging from the specific customer data, Luckin Coffee participated in the trading customers reached 30.7 million in the first three quarters, an increase of 413.4 percent over the same period last year. Monthly average sales of 44.2 million pieces of goods, an increase of 470.1% over the same period last year. It is worth noting that Ruixing made a profit at the store level for the first time in the quarter-that is, excluding marketing costs, achieving 1.86. Operating profit of 100 million yuan, operating profit rate of 12.5%.
According to the first financial and financial, the founder of the lucky coffee, CEO Qian Zhiya is very satisfied with the company’s performance, she said, “With the rapid growth of the number of stores, the number of monthly and monthly sales, and the rapid growth of the monthly sales volume, our product net income is higher and higher, indicating that the efficiency and profitability of our store operations are significantly improved”. The industry has repeatedly referred to a statistics that the current per capita coffee consumption in the country is only 5-6 cups, which is far lower than that of the annual per capita annual coffee of 734 cups in Europe, and in the nearest Japan, South Korea, per capita consumption is about 300 cups per year. China is like Beijing and Shanghai Guangzhou and other super-first-line cities, the annual per capita coffee consumption is only 20 cups up and down, the market is still in the primary stage. It is predicted that China’s coffee market is expected to reach 30 billion yuan by 2020, up to the year 2025 or over 10,000 billion yuan. That is why, for the “to burn the money” of subsidies, Mr. Qian has repeatedly said that the company has not set a time-for-profit schedule and is ready for long-term losses, as the cultivation of the market is time-consuming. This also explains, to some extent, why the “loss” is a well-established strategy for Lucky.
To achieve high revenue growth, Ruixing’s non-coffee business can be said to contribute. From coffee to tea, juice, nuts, light food and other young consumers like tuyere categories, Luckin Coffee is basically covered. It is generally believed that light food is a category with higher profit margins than coffee. Although Luckin Coffee’s revenue from coffee products is growing rapidly, revenue from non-coffee products is growing even faster. According to the three-quarter report, Ruixing’s share of revenue from non-coffee products has risen to 44.9 percent, compared with 31 percent in the same period last year. In terms of revenue structure, from the fourth quarter of 2017 to the third in 2019 The quarterly, coffee-based now-on-the-ground drink has fallen from 86 per cent to 74 per cent in the total, and other products, which are light-based, have risen from 10 per cent to 23 percent.
It’s because of this sweet head, luck has been trying to expand its product boundaries. In addition to the early on-line coffee, light and desserts, in the first quarter of this quarter, Ricky declared a new tea-and-drink brand of small-deer tea and set up more than 20 subsidiaries throughout the country. At the same time, the nut product is also on line. In September, the company signed an agreement with Louis Dafu to develop the NFC fruit juice brand business, and then signed a cooperation framework agreement with Hears to develop the product. On the eve of this year’s two-year-old, Mr. Qian Zhiya, in the financial report of the quarter, said, ” The proportion of the former non-coffee making up the product’s income has reached 45%, of which the proportion of the small-deer tea has reached about 20%.
Starbucks has a total of 4125 stores in China as of September 30, according to the latest report from Starbucks. At the beginning of 2019, the company plans to increase the number of stores to 4,500 by the end of the year, making it more than Starbucks and becoming the biggest coffee chain in China. The goal may be true in terms of the current good shop speed. However, there is still a big gap between the two. On October 31, Starbucks released its fourth quarter of the fiscal year 2019. The data show that Starbucks’s fourth quarter’s revenue is $67.4 million, out of the expectations of Wall Street analysts . The operating profit increased by 13% to $10.83 billion on a year-on-year basis; the operating profit rate was 16.1%, compared with 15.2% in the same period last year. Net profit was $8.029 million, up from $758.8 million in the same period last year.