Luckin Coffee LKNCY

Luckin Coffee Inc. is one of the largest coffee networks in China operating a technology-driven new retail model that provides freshly brewed coffee, tea drinks, and other products. The company leverages mobile applications and a self-operated store network to deliver high-quality, convenient, and affordable beverages to customers. Its business model focuses on pick-up stores with limited seating, strategically located in high-demand areas such as office buildings, commercial zones, residential neighborhoods, and university campuses.

Luckin Coffee Inc. generates revenue primarily through the sale of freshly brewed coffee and tea drinks, pre-packaged food items, and retail products via its mobile apps and store network. The company offers a wide range of products including Americano, Latte, specialty coffee series such as the Fruity Americano and Coconut Milk Latte, and non-coffee beverages like the Light Milk Tea series. Revenue is derived from both self-operated and partnership stores, with sales conducted through in-store purchases, mobile app orders, and delivery services.

The company operates through the following segments:

• Self-operated stores: This segment includes company-owned locations that serve coffee, tea drinks, and food items directly to customers. As of December 31, 2025, Luckin Coffee Inc. operated 20,144 self-operated stores in China (including 38 in Hong Kong), 81 in Singapore, and nine in the United States. Of these, 20,056 were pick-up stores and 178 were relax stores, with pick-up stores accounting for 99.1% of the self-operated store portfolio.
• Partnership stores: This segment involves collaborations with selective partners who operate stores using Luckin Coffee’s brand, storefront design, logistics network, raw materials, and equipment, while adhering to the company’s quality control standards. As of December 31, 2025, the partnership store network totaled 10,814 locations across mainland China. Under this model, Luckin Coffee provides training, marketing materials, and supply chain support, and shares in profits only when stores reach a defined profitability threshold.
• Exclusive franchise model: This segment represents Luckin Coffee’s international expansion initiative, granting exclusive rights to local partners to develop and operate stores in overseas markets. In 2025, the company launched this model in Malaysia by awarding exclusive franchise rights to a local partner, resulting in 70 stores opened in the country as of December 31, 2025. This approach allows Luckin Coffee to leverage local market knowledge and operational capabilities for efficient entry and growth in new geographic regions.

Luckin Coffee Inc. holds a leading position in China’s coffee industry as one of the largest coffee networks by store count, with a disruptive technology-driven model that has driven mass-market coffee consumption. The company competes with traditional coffee shop operators and other retail beverage brands, differentiating itself through its mobile-first platform, high-frequency product innovation, strong supply chain, and value proposition of high quality, high convenience, and high affordability. Its brand recognition is reinforced by repeated awards, including eight consecutive Gold Medals in the IIAC International Coffee Tasting competition from 2018 to 2025.

Luckin Coffee Inc. serves a broad customer base consisting primarily of individual consumers in China, including office workers, students, and residents in urban and suburban areas. The company reported 451 million cumulative transacting customers as of December 31, 2025, with strong engagement through its mobile app and loyalty programs. Specific customer names are not disclosed in the filing, but the company serves individual consumers across diverse demographic segments seeking convenient and affordable coffee and beverage options.