Luckin Coffee (Beijing)(瑞幸咖啡(北京))

Fast facts
- Year Founded
- 2017
Source: Luckin Coffee Websiteinvestor.luckincoffee.com/
- HQ Location
- Xiamen, Fujian, China
- Publicly Traded?
- No
- Overseas Operations
- Yes
Luckin Coffee Inc. is a Cayman Islands holding company that conducts its operations and operate its business in China through its PRC subsidiaries and VIE. On July 22, 2019, Luckin Coffee and Kuwait Food Company Americana K.S.C.C. (“Americana Group”), the largest integrated food product company in the Middle East, announced that they have signed a Memorandum of Understanding under which the two companies plan to establish a joint venture to launch a new retail coffee business in the Greater Middle East and India.Source: Luckin Coffee 2020 Annual Reportinvestor.luckincoffee.co/static-files/7d6b36bc-1c8c-4df6-a74f-962f6e7489faSource: Luckin Coffee Press Release and Statementinvestor.luckincoffee.com/news-releases/news-release-details/luckin-coffee-and-americana-group-sign-strategic-cooperation/
- US Sanctions
- No
- Military Affiliation in China
- No
Revenue
2020Source: Luckin Coffee 2020 Annual Reportinvestor.luckincoffee.com/static-files/7d6b36bc-1c8c-4df6-a74f-962f6e7489fa
Valuation
Valuation is reported as enterprise value. It was last updated on November 12, 2021.Source: Yahoo Financefinance.yahoo.com/quote/LKNCY/key-statistics/
Employees
Source: Luckin Coffee 2020 Annual Reportinvestor.luckincoffee.com/static-files/7d6b36bc-1c8c-4df6-a74f-962f6e7489fa
Luckin Coffee is pioneering a technology-driven retail model to provide coffee and other products of high quality, high affordability, and high convenience to their customers. Their mobile app and presence on other third-party platforms cover the entire customer purchase process, offering customers a 100% cashier-less environment. This unique intersection of retail and technology allows Luckin to gain valuable insight into consumer spending habits and adjust accordingly.
In 2020, Luckin Coffee announced that 2019 sales figures had been inflated by approximately RMB 2.2 B (USD 310.0 M). This revelation resulted in the eventual delisting of Luckin on the NASDAQ as well as a series of fines from Chinese and American regulators. Additionally, Luckin has filed for Chapter 15 bankruptcy in New York, protecting the company from potential lawsuits while simultaneously reorganizing in China; Luckin has stated that the bankruptcy will not impact day-to-day operations.
Source: Luckin Coffee Websiteinvestor.luckincoffee.com/
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- Name
- Ownership
-
- Luckin Coffee (China)
Source: Tianyanchawww.tianyancha.com/company/3112185813
- 100%
- Luckin Coffee (China)
- Dr. Jinyi Guo, Chairman and Chief Executive Officer
- Wenbao Cao, Director and Senior Vice President
- Gang Wu, Director and Senior Vice President
- Yang Cha, Independent Director
- Wai Yuen Chong, Independent Director
- Feng Liu, Independent Director
- Sean Shao, Independent Director
- Reinout Hendrik Schakel, Chief Financial Officer and Chief Strategy Officer
- Fei Yang, Chief Growth Officer
- Shan Jiang, Senior Vice President
- Weiming Zhou, Senior Vice President
Source: Luckin Coffee 2020 Annual Reportinvestor.luckincoffee.com/static-files/7d6b36bc-1c8c-4df6-a74f-962f6e7489fa
Luckin Coffee Inc. is a Cayman Islands holding company that conducts its operations and operate its business in China through its PRC subsidiaries and VIE. On July 22, 2019, Luckin Coffee and Kuwait Food Company Americana K.S.C.C. (“Americana Group”), the largest integrated food product company in the Middle East, announced that they have signed a Memorandum of Understanding under which the two companies plan to establish a joint venture to launch a new retail coffee business in the Greater Middle East and India.
Source: Luckin Coffee 2020 Annual Reportinvestor.luckincoffee.co/static-files/7d6b36bc-1c8c-4df6-a74f-962f6e7489faSource: Luckin Coffee Press Release and Statementinvestor.luckincoffee.com/news-releases/news-release-details/luckin-coffee-and-americana-group-sign-strategic-cooperation/
Luckin Coffee (Beijing) Sanctions
While at this time it appears that this company is not the subject of any U.S. or other global sanctions, it is important to note that Chinese companies tend to have more opaque organizational structures than their Western peers. Chinese companies' affiliated brands, operating units, and overseas subsidiaries are not always obvious or even identifiable. Given this, a Chinese company may not be the subject of sanctions, but one of its subsidiaries may be, thus making it difficult to accurately ascertain a company's full sanctions status.
Luckin Coffee (Beijing) Reputational Disclosures
In April 2020, Luckin Coffee announced that it had lied about increased 2019 sales revenue by RMB 2.2 B (USD 343.4 M based on Novemebr 2, 2021 exchange rates). In response, the Board of Directors appointed a special committee to conduct an internal investigation. Fallout from this announcement included the firing of multiple executives as well as delisting notice being issued by NASDAQ. Luckin Coffee eventually paid the SEC a fine of USD 180.0 M to settle the matter. The following year, in February 2021, Luckin Coffee filed for Chapter 15 bankruptcy with the Southern District of New York and continues to undergo internal restructuring.