Original title: LUCKN COFFEE DRC seems to be not far away from turning losses into profits.

Reporter |Zhao Xiaojuan

Edit |Kui Huifang

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On the evening of October 21, LUCKN COFFEE DRC released his unaudited financial report for the first half of 2021, with total net revenue of 3.1825 billion yuan ($492.9 million) during the period, an increase of 106.0% from 1.5445 billion yuan in the same period last year.The net loss was 211.4 million yuan ($32.7 million), a decrease of 86.4 percent compared with a net loss of 1.5552 billion yuan in the same period last year.

The financial report also disclosed that LUCKN COFFEE DRC's total operating expenditure in the first half of the year was 3.594 billion yuan (US $556.6 million), an increase of 13.0% from 3.1804 billion yuan in the same period last year. Among the operating expenses, material costs and store rent account for the majority, about 2.18 billion yuan; in addition, there are 150 million yuan due to losses related to previous data fraud and restructuring.As a result, Ruixing's total operating loss during the coffee period was 411.5 million yuan ($63.7 million), down from 1.6359 billion yuan in the same period last year.

As of the first half of this year, LUCKN COFFEE DRC had a total of 5259 stores, including 4018 self-operated stores and 1241 cooperative stores. The total number of stores increased by 258 compared with the same period last year. The average number of monthly trading customers was 10.5 million, an increase of 35.1% over the same period last year.

Guo Jinyi, chairman and CEO of LUCKN COFFEE DRC, said the financial report was an important milestone because it enabled Lucky to return to normal financial reporting. In particular, it is worth noting that the substantial increase in revenue is driven by the growth of average revenue per proprietary store.

From the 2020 meteorite latte to this year's raw coconut latte, to the most recent velvet latte, Ruixing has launched a number of out-of-circle products.LUCKN COFFEE DRC promotes his research and development items through fission marketing and continues to generate topics, according to his officialmicro-blogIt said that the monthly sales of raw coconut products exceeded 10 million cups in June this year, setting a new sales record for Lucky.

The single product continued to break out, bringing considerable beverage sales to LUCKN COFFEE DRC.In the first half of this year, net revenue from ready-made beverages was 2.4222 billion yuan ($375.1 million), accounting for 76.1% of the total net revenue in the first half of the year. In the same period last year, the net revenue of current beverages was 1.2481 billion yuan, accounting for 80.8% of the total net revenue.

At the same time, Lucky is actively signing up influential flow variety caf é s or sports stars to reshape the brand image. At the end of April this year, Rui Xing signed a contract with Li Luxiu, who became famous in the variety show "Creative Camp".LUCKN COFFEE DRC announced the signing of freestyle skiing world champion Gu Ailing (Eileen Gu) as the brand spokesperson.

The overall environment of sustained growth of China's coffee market also provides external conditions for LUCKN COFFEE DRC to turn around.

According to the "White Paper on China's freshly ground Coffee Industry" released by Deloitte, the coffee penetration rate in China's first-and second-tier cities has reached 67%, which is comparable to that of tea. First-and second-tier cities have developed the consumption frequency of coffee consumers has reached 300 cups per year, the level is close to the mature coffee market. It is estimated that China's coffee consumption will be 10.8 cups per person by 2023, and the market size will reach 180.6 billion yuan.

Be optimistic about the Chinese coffee market, foreign coffee brands such as Tims Coffee, Peets Coffee and Blue bottle Coffee have also accelerated their entry into the Chinese market since the first half of this year. And China's local coffee brands Manner, M stand have got a round of new financing within half a year, investors, there is no lack of byte jump, Tencent and other well-known companies.