Luckin Coffee, Inc. Q4 FY2025 earnings call

2025 was a key year for Luckin Coffee's long - term development. From June 2025, monthly sales broke 100 million for five consecutive months. The whole year added over 1.1 billion new trading customers, with the annual total number of trading customers surpassing 4.5 billion. Year - round limited product sales increased by 39% to 4.1 billion cups. In terms of stores, by the fourth quarter, total store count reached 31,048, with 1,792 new stores added in China, including 20,544 self - operated stores and 10,744 partnership stores. In product innovation, launched the Brazil theme season products and non - coffee beverages accounted for over 20% of total cups sold in 2025. In ESG, opened the first accessible store in Hangzhou and was awarded the 2025 China Best ESG Employers.

In 2025, total net revenues increased by 43% to about 493 billion yuan. In the fourth quarter, total net revenue increased by 33% year - over - year to 12.8 billion yuan. Revenues from self - operated stores increased by 32% year - over - year to 9.5 billion yuan, with same - store sales growth of 1.2% for the quarter. Revenues from partnership stores increased by 39% year - over - year to 2.8 billion yuan, accounting for 22% of total net revenues. Net revenues from freshly brewed drinks were 9.2 billion yuan, representing about 72% of total net revenues. Net revenues from other products were 605 million yuan, or about 5% of total net revenues. Net revenues from others were 174 million yuan, or roughly 1% of total net revenues.

2026 will remain focused on scale expansion while maintaining flexibility to adapt to market changes. Will remain committed to steadily growing market share, strengthening industry - leading position, and unlocking long - term growth potential. Will maintain a disciplined yet agile development approach, focusing on key areas like stores, cups, and price levels to drive healthy business performance.

Food delivery platforms' subsidy strategies changed, which affected short - term performance. Order mix changes also brought short - term fluctuations in sales growth rate and profit.

Q: Jessie Xu from JP Morgan asked about the weaker - than - expected same - store sales performance in the fourth quarter and the outlook for 2026 including new store opening pace, same store sales trend and margins.

A: The first quarter same - store sales performance and profit were affected by seasonality, food delivery platforms' subsidy dynamics, and cup volume mix. For 2026, will maintain a disciplined yet agile development approach, focusing on key areas, relying on digitalized virtualization system for refined store opening strategy, focusing on customer demand for product innovation, maintaining competitive price levels and enhancing consumption experience.

Q: Becky Kai from Macquarie asked about the competition pattern in the industry and its impact on Luckin.

A: China's coffee industry is still in a relatively early stage of development with much room for growth. Increased participation in the market contributes to consumer education and market penetration. Luckin's competitiveness depends on brand perception, customer experience, emotional value, product development systems, door - to - door network coverage, supported by digital operating system and scale advantage. Lockin has built systematic competitive advantages across multiple dimensions, leveraged digital capabilities to connect with customers, focused on product innovation around coffee, has wide store coverage, and end - to - end digital capabilities are key differentiators.