Luckin Coffee is looking to diversify revenue streams and find new growth as according to the Q2 financial report the company's losses have swelled.

In the Q2 2019 financial results, Luckin's total net revenue for the quarter jumped to USD 126.7 million, an increase of 698.4% from the same period last year. Net loss widened to USD 99.2 million, double the loss a year ago.

UAE-China Economic Forum was held today in Beijing, it brought together over 500 high-ranking delegation and business leaders seeking cooperation opportunities. China's innovation companies like Didi and Luckin Coffee showed.

Luckin Coffee and Americana Group signed a strategy and cooperation agreement in Beijing. The two parties planned to jointly set up a joint venture to carry out new coffee retail business in the Greater Middle East and India.

By the end of 2021, the goal of Luckin Coffee is to have 10,000 chain stores in China.

The shares climbed to as high as USD 25.96, giving it a market value of almost USD 6 billion, before falling to USD 22 as of this writing -- a 31%increase on its IPO price.

Unlike traditional retail companies, Luckin gains profit from the efficiency of its store management efficiency as well as a more sophisticated middle-back end system.

Whether the USD 500 million expected to be raised from IPO will save Luckin before the company runs into a cash crunch remains uncertain, but we can at least find signs of improvement to its financial condition.