Domestic coffee brand Luckin Coffee (LKNCY:OTCMKTS) announced the completion of the restructuring of its financial indebtedness and emergence from the bankruptcy proceedings on April 11.
“Today marks a new beginning for Luckin Coffee,”said Dr. Jinyi Guo, Chairman and Chief Executive Officer of the Company. “Luckin Coffee utilized the Chapter 15 process to effectuate the restructuring of its financial indebtedness in the United States. As we have emerged from this process successfully with the support of our creditors, we are confident that Luckin Coffee is well positioned for long term growth and creation of stakeholder value.”
On the same day, Luckin Coffee jointly launched a new coconut-flavoured coffee with Coconut Palm Group Co., Ltd, one of China's leading beverage companies. The single-day sales reached 660,000 cups.
According to its annual financial report released on March 24, 2022, the total net revenues generated in the fiscal year 2021 topped CNY 7,965.3 million (USD 1,249.9 million), representing an increase of 97.5% from CNY 4,033.4 million in the fiscal year 2020. The non-GAAP operating loss in the fiscal year 2021 further narrowed to CNY 236.3 million (USD 37.1 million).
As of December 31, 2021, Luckin owned 6,024 brick-and-mortar stores, of which 4,397 were self-operated and 1,627 were partnership stores.
Founded in 2017, Luckin had positioned itself as a pioneer of a technology-driven new retail model, and it is also a homegrown challenger to the American coffee giant Starbucks Corp (SBUX:NASDAQ). Other top domestic competitors include SeeSaw Coffee, Coffee Box and Shanghai-based Manner Coffee.