Luckin Espresso Inc. Pronounces Fourth Quarter and Full Yr 2022 Monetary Outcomes

Greater than 2,100 Web New Retailer Openings in Fiscal Yr 2022; Ended 2022 with Greater than 8,200 Shops in China

Fiscal Yr 2022 Web Revenues Elevated 67%

Maintained Robust Profitability Profile Regardless of Vital Impression from COVID-19 Throughout Fourth Quarter of 2022

Continues to Advance ESG Initiatives and Sustainable Improvement Targets

BEIJING, March 02, 2023 (GLOBE NEWSWIRE) — Luckin Espresso Inc. (“Luckin Espresso” or the “Firm”) (OTC: LKNCY) right now introduced its unaudited monetary outcomes for the three months ended December 31, 2022 and financial yr 2022.

FOURTH QUARTER 2022 HIGHLIGHTS¹

• Whole internet revenues within the fourth quarter have been RMB3,695.0 million (US$535.7 million), representing a rise of 51.9% from RMB2,432.7 million in the identical quarter of 2021.
• Web new retailer openings within the fourth quarter was 368, leading to a quarter-over-quarter retailer unit development of 4.7% from the variety of shops on the finish of the third quarter of 2022, ending the fourth quarter with 8,214 shops which embrace 5,652 self-operated shops and a couple of,562 partnership shops.
• Common month-to-month transacting prospects within the fourth quarter have been 24.6 million, representing a rise of 51.3% from 16.2 million in the identical quarter of 2021.
• Revenues from self-operated shops within the fourth quarter have been RMB2,607.3 million (US$378.0 million), representing a rise of 41.9% from RMB1,837.2 million in the identical quarter of 2021.
• Similar-store gross sales development for self-operated shops within the fourth quarter was 9.2%, in comparison with 43.6% in the identical quarter of 2021.
• Retailer degree working revenue – self-operated shops within the fourth quarter was RMB614.5 million (US$89.1 million) with retailer degree working revenue margin of 23.6%, in comparison with RMB383.4 million with retailer degree working revenue margin of 20.9% in the identical quarter of 2021.
• Revenues from partnership shops within the fourth quarter have been RMB843.4 million (US$122.3 million), representing a rise of 87.9% from RMB448.8 million in the identical quarter of 2021.
• GAAP working earnings within the fourth quarter was RMB313.2 million (US$45.4 million), representing a GAAP working earnings margin of 8.5%, in comparison with a GAAP working lack of RMB120.8 million, or a GAAP working loss margin of 5.0%, in the identical quarter of 2021. Non-GAAP working earnings within the fourth quarter, which adjusts for share-based compensation bills, was RMB425.6 million (US$61.7 million), representing a non-GAAP working earnings margin of 11.5%, in comparison with a non-GAAP working lack of RMB23.6 million, or a non-GAAP working loss margin of 1.0%, in the identical quarter of 2021, which represents a big enchancment of working outcomes.

FISCAL YEAR 2022 HIGHLIGHTS

• Whole internet revenues in fiscal yr 2022 have been RMB13,293.0 million (US$1,927.3 million), representing a rise of 66.9% from RMB7,965.3 million in fiscal 2021.
• Web new retailer openings in fiscal yr 2022 was 2,190, leading to a year-over-year retailer unit development of 36.4% from the variety of shops on the finish of fiscal yr 2021, ending the interval with 8,214 shops which embrace 5,652 self-operated shops and a couple of,562 partnership shops.
• Common month-to-month transacting prospects in fiscal yr 2022 have been 21.6 million, representing a rise of 66.2% from 13.0 million in fiscal yr 2021.
• Revenues from self-operated shops in fiscal yr 2022 have been RMB9,414.5 million (US$1,365.0 million), representing a rise of 52.0% from RMB6,192.7 million in fiscal yr 2021.
• Similar-store gross sales development for self-operated shops in fiscal yr 2022 was 20.6%, in comparison with 69.3% in fiscal yr 2021.
• Retailer degree working revenue – self-operated shops in fiscal yr 2022 was RMB2,482.0 million (US$359.9 million) with retailer degree working revenue margin of 26.4%, in comparison with RMB1,252.8 million with retailer degree working revenue margin of 20.2% in fiscal yr 2021.
• Revenues from partnership shops in fiscal yr 2022 have been RMB3,069.3 million (US$445.0 million), representing a rise of 135.0% from RMB1,306.1 million in fiscal yr 2021.
• GAAP working earnings in fiscal yr 2022 was RMB1,156.2 million (US$167.6 million), representing a GAAP working earnings margin of 8.7%, in comparison with a GAAP working lack of RMB539.1 million, or a GAAP working loss margin of 6.8%, in fiscal yr 2021. Non-GAAP working earnings in fiscal yr 2022, which adjusts for share-based compensation bills, was RMB1,554.2 million (US$225.3 million), representing a non-GAAP working earnings margin of 11.7%, in comparison with a non-GAAP working lack of RMB236.3 million, or a non-GAAP working loss margin of three.0%, in fiscal yr 2021, which represents a big enchancment of working outcomes.

COMPANY STATEMENT

“We delivered one other yr of sturdy operational and monetary efficiency regardless of being materially impacted by COVID-19 within the fourth quarter of 2022,” stated Dr. Jinyi Guo, Chairman and Chief Govt Officer of Luckin Espresso. “We had greater than 2,100 internet new retailer openings in 2022, bringing our whole shops in China to greater than 8,200 and demonstrating our skill to successfully navigate a dynamic and evolving enterprise panorama and sustaining our main place within the Chinese language espresso market. Our group has continued to ship enhancements throughout key working and monetary metrics, and we’re happy to have achieved substantial income development in 2022 whereas additional bettering our profitability profile.”

Dr. Guo continued, “Below our long-term purpose of provide chain integration, we have been happy to interrupt floor on our second roastery in Kun Shan in December 2022, which can provide us with roasted espresso beans of constant high quality. We’re additionally proud to have launched our ESG initiative in November 2022, with the publication of our 2020-2022 Company Governance Report. This report underscores ongoing dedication to pursuing sustainable growth and development.”

Dr. Guo concluded, “I’m exceptionally happy with the dedication from everybody at Luckin Espresso and the continued effort and dedication that delivered a powerful efficiency in 2022. Heading into 2023, we’re inspired to see the current lifting of considerably all COVID-19 restrictions in China and the return of excessive ranges of shopper exercise. With these current developments and as we start to function at normalized ranges, we’re assured in our skill to proceed driving sustainable development and long-term worth for our shareholders.”

IMPACT OF COVID-19

The Chinese language markets and the Firm’s enterprise have been adversely affected by COVID-19. Particularly, the Firm was materially and adversely impacted by COVID-19 within the fourth quarter of 2022, with weak buyer demand and excessive numbers of each day non permanent retailer closures, reaching a peak of round 1,500 each day non permanent retailer closures.

Nonetheless, with the current lifting of considerably all COVID-19 restrictions in China, the variety of each day non permanent retailer closures as a result of COVID-19 have dropped to single digits since January 2023 and the Firm’s operations have principally returned to normalized ranges. Whereas uncertainties stay across the COVID-19 scenario in China, the Firm is optimistic that the unfavorable impacts on operations as a result of COVID-19 will proceed to reduce for the foreseeable future.

FOURTH QUARTER 2022 FINANCIAL RESULTS

Whole internet revenues have been RMB3,695.0 million (US$535.7 million) within the fourth quarter of 2022, representing a rise of 51.9% from RMB2,432.7 million in the identical quarter of 2021. Web revenues development was primarily pushed by the rise within the variety of merchandise offered, the rise in shops in operation and the rise within the variety of month-to-month transacting prospects.

• Revenues from product gross sales have been RMB2,851.7 million (US$413.5 million) within the fourth quarter of 2022, representing a rise of 43.7% from RMB1,983.8 million in the identical quarter of 2021.
  • Web revenues from freshly brewed drinks have been RMB2,503.5 million (US$363.0 million), representing 67.7% of whole internet revenues within the fourth quarter of 2022, in comparison with RMB1,771.1 million, or 72.7% of whole internet revenues, in the identical quarter of 2021.
  • Web revenues from different merchandise have been RMB231.1 million (US$33.5 million), representing 6.3% of whole internet revenues within the fourth quarter of 2022, in comparison with RMB111.6 million, or 4.6% of whole internet revenues, in the identical quarter of 2021.
  • Web revenues from others have been RMB117.1 million (US$17.0 million), representing 3.2% of whole internet revenues within the fourth quarter of 2022, in comparison with RMB101.2 million, or 4.2% of whole internet revenues, in the identical quarter of 2021.
• Revenues from partnership shops have been RMB843.4 million (US$122.3 million) within the fourth quarter of 2022, representing 22.8% of whole internet revenues, which is a rise of 87.9% in comparison with RMB448.8 million, or 18.5% of whole internet revenues, in the identical quarter of 2021. For the fourth quarter of 2022, revenues from partnership shops included gross sales of supplies of RMB569.7 million (US$82.6 million), revenue sharing of RMB111.7 million (US$16.2 million), gross sales of apparatus of RMB64.1 million (US$9.3 million), supply service of RMB91.7 million (US$13.3 million) and different companies of RMB6.2 million (US$0.9 million).

Whole working bills have been RMB3,381.8 million (US$490.3 million) within the fourth quarter of 2022, representing a rise of 32.4% from RMB2,553.4 million in the identical quarter of 2021. The rise in whole working bills was predominantly the results of the Firm’s enterprise enlargement. In the meantime, working bills as a proportion of internet revenues decreased to 91.5% within the fourth quarter of 2022 from 105.0% in the identical quarter of 2021, as a result of elevated economies of scale and the Firm’s technology-driven operations.

• Price of supplies have been RMB1,493.4 million (US$216.5 million) within the fourth quarter of 2022, representing a rise of 52.5% from RMB979.0 million in the identical quarter of 2021, usually according to the rise within the variety of merchandise offered and the rise in gross sales of supplies to partnership shops.
• Retailer rental and different working prices have been RMB811.1 million (US$117.6 million) within the fourth quarter of 2022, representing a rise of 28.1% from RMB633.4 million in the identical quarter of 2021, primarily because of the enhance in labor prices and retailer rental, in addition to utilities and different retailer working prices, on account of the elevated variety of shops and objects offered within the fourth quarter of 2022. Retailer rental and different working prices elevated proportionately lower than revenues on account of economies of scale.
• Depreciation and amortization bills have been RMB94.8 million (US$13.7 million) within the fourth quarter of 2022, representing a lower of 5.6% from RMB100.4 million in the identical quarter of 2021, primarily because of the reversal of depreciation bills for sure leasehold enhancements, which was partially offset by the rise of depreciation bills of further gear put into use in new shops within the fourth quarter of 2022.
• Supply bills have been RMB379.1 million (US$55.0 million) within the fourth quarter of 2022, representing a rise of 62.4% from RMB233.5 million in the identical quarter of 2021, primarily because of the enhance within the variety of supply orders.
• Gross sales and advertising bills have been RMB173.4 million (US$25.1 million) within the fourth quarter of 2022, representing a rise of 75.7% from RMB98.7 million in the identical quarter of 2021, primarily pushed by (i) a rise in promoting bills because the Firm continued to make strategic investments in its branding via varied channels, (ii) a rise in subcontract service charges to assist the Firm’s e-commerce enterprise and (iii) a rise in fee charges to third-party supply platforms which is according to the rise within the variety of supply orders. Gross sales and advertising bills amounted to 4.7% of whole internet revenues within the fourth quarter of 2022, in comparison with 4.1% of whole internet revenues in the identical quarter of 2021.
• Common and administrative bills have been RMB411.4 million (US$59.7 million) within the fourth quarter of 2022, representing a rise of 5.8% from RMB389.0 million in the identical quarter of 2021, primarily pushed by (i) a rise within the allowance supplied for present anticipated credit score loss after the Firm’s evaluation of its present monetary property, (ii) a rise in analysis and growth bills because the Firm additional strengthens its IT initiatives. The rise was partially offset by the lower {of professional} service charges. Common and administrative bills amounted to 11.1% of whole internet revenues within the fourth quarter of 2022, in comparison with 16.0% of whole internet revenues in the identical quarter of 2021.
• Retailer preopening and different bills have been RMB10.4 million (US$1.5 million) within the fourth quarter of 2022, representing a rise of 35.9% from RMB7.7 million in the identical quarter of 2021, primarily as a result of extra shops being opened within the fourth quarter of 2022 in comparison with the identical quarter of 2021. Retailer preopening and different bills amounted to 0.3% of whole internet revenues within the fourth quarter of 2022, which was in step with the identical quarter of 2021.
• Impairment lack of long-lived property have been nil within the fourth quarter of 2022, in comparison with RMB2.4 million in the identical quarter of 2021.
• Losses and bills associated to Fabricated Transactions and Restructuring have been RMB8.1 million (US$1.2 million) within the fourth quarter of 2022, representing a lower of 92.6% from RMB109.4 million in the identical quarter of 2021, because the Firm had efficiently accomplished its provisional liquidation in March 2022 and considerably resolved all excellent litigations. The losses and bills associated to Fabricated Transactions and Restructuring consisted primarily of skilled and authorized charges for U.S. securities litigations and different advisory service charges. Losses and bills associated to Fabricated Transactions and Restructuring amounted to 0.2% of whole internet revenues within the fourth quarter of 2022, in comparison with 4.5% of whole internet revenues in the identical quarter of 2021.
• Retailer degree working revenue margin – self-operated shops was 23.6% within the fourth quarter of 2022, in comparison with 20.9% in the identical quarter of 2021, primarily because of the advantages of economies of scale from the elevated variety of merchandise offered.

GAAP working earnings was RMB313.2 million (US$45.4 million) within the fourth quarter of 2022, representing a GAAP working earnings margin of 8.5%, in comparison with a GAAP working lack of RMB120.8 million, or a GAAP working loss margin of 5.0%, in the identical quarter of 2021. Non-GAAP working earnings was RMB425.6 million (US$61.7 million) within the fourth quarter of 2022, representing a non-GAAP working earnings margin of 11.5%, in comparison with a non-GAAP working lack of RMB23.6 million, or a non-GAAP working loss margin of 1.0%, in the identical quarter of 2021. For extra data on the Firm’s non-GAAP monetary measures, please see the part “Use of Non-GAAP Monetary Measures” and the desk captioned “Reconciliation of Non-GAAP Measures to the Most Instantly Comparable GAAP Measures” set forth on the finish of this earnings launch. 

Web earnings was RMB54.5 million (US$7.9 million) within the fourth quarter of 2022, in comparison with RMB921.3 million, which included a one-off noncash acquire of RMB1,146.5 million from the reversal of provision for SEC settlement, in the identical quarter of 2021. Non-GAAP internet earnings was RMB166.9 million (US$24.2 million) within the fourth quarter of 2022, representing a non-GAAP internet earnings margin of 4.5%, in comparison with RMB27.3 million or a non-GAAP internet earnings margin of 1.1%, in the identical quarter of 2021.

Primary and diluted internet earnings per ADS was RMB0.16 (US$0.00) and RMB0.16 (US$0.00) within the fourth quarter of 2022, respectively, in comparison with RMB3.44 and RMB3.36 in the identical quarter of 2021, respectively.

Non-GAAP fundamental and diluted internet earnings per ADS was RMB0.56 (US$0.08) and RMB0.56 (US$0.08) within the fourth quarter of 2022, respectively, in comparison with RMB0.08 and RMB0.08 in the identical quarter of 2021, respectively.

Web money generated from working actions was RMB48.3 million (US$7.0 million) within the fourth quarter of 2022, which included the settlement of payable litigants of US$18.3 million (RMB121.5 million). Excluding the fee to fairness litigants, internet money supplied by working actions was RMB169.8 million (US$24.6 million) within the fourth quarter of 2022, in comparison with internet money utilized by working actions of RMB14.4 million in the identical quarter of 2021.

Money and money equivalents and restricted money have been RMB3,577.9 million (US$518.8 million) as of December 31, 2022, in comparison with RMB6,555.3 million as of December 31, 2021. The lower was primarily attributable to the complete redemption of the Firm’s offshore notes following the restructuring of these notes on January 28, 2022, the settlement of payable to satisfy the Firm’s obligations below the federal class motion settlement and buy of property and gear, which was offset by operational money era and the proceeds from the issuance of senior most popular shares to Pleasure Capital on January 7, 2022.

KEY OPERATING DATA

KEY DEFINITIONS

• Whole internet revenues embrace revenues from product gross sales and revenues from partnership shops.
• Revenues from product gross sales embrace internet income from the gross sales of freshly brewed and non-freshly brewed objects via self-operated shops, unmanned machines, e-commerce and income from supply for self-operated shops.
• Revenues from self-operated shops embrace internet income from the gross sales of freshly brewed and non-freshly brewed objects via self-operated shops.
• Revenues from partnership shops embrace internet income from the gross sales of supplies, gear, and different companies together with supply and pre-opening companies supplied to partnership shops and revenue sharing from partnership shops.
• Similar-store gross sales development for self-operated shops. Outlined as development fee of whole income from self-operated shops that has been in operation as at first of comparable interval and was not closed earlier than present interval ending with the variety of common working days over 15 per thirty days over each present interval and final yr’s comparable interval.
• Retailer degree working revenue – self-operated shops. Calculated by deducting value for self-operated shops together with value of direct supplies (together with wastage in shops), value of supply packaging supplies, storage and logistics bills, retailer depreciation expense (together with ornament loss for retailer closure), retailer rental and different working prices, internet supply expense, transaction charges, retailer preopening and different bills from our self-operated retailer revenues.
• Retailer degree working revenue margin – self-operated shops. Calculated by dividing retailer degree working revenue by whole revenues from self-operated shops.
• Whole variety of shops. The variety of shops open on the ending of the interval, excluding unmanned machines.
• Web new retailer openings. The variety of gross new shops opened throughout the interval minus the variety of shops completely closed throughout the interval.
• Common month-to-month transacting prospects. The overall of every month’s variety of transacting prospects divided by the variety of months throughout the interval (consists of these of partnership shops and people solely paid with free-coupons).
• Non-GAAP working earnings/(loss). Calculated by working (loss)/earnings excluding share-based compensation bills.
• Non-GAAP internet earnings/(loss). Calculated by internet earnings/(loss) excluding recurring merchandise of share-based compensation bills and honest worth modifications of by-product asset bifurcated from Collection B Senior Secured Notes and non-recurring merchandise of provision for SEC settlement and fairness litigants and acquire from extinguishment of Collection B Senior Secured Notes.
• Non-GAAP internet earnings/(loss) attributable to the Firm’s atypical shareholders. Calculated by adjusting internet earnings/(loss) attributable to the Firm’s atypical shareholders excluding recurring merchandise of share-based compensation bills and honest worth modifications of by-product asset bifurcated from Collection B Senior Secured Notes and non-recurring merchandise of provision for SEC settlement and fairness litigants and acquire from extinguishment of Collection B Senior Secured Notes.
• Non-GAAP fundamental and diluted internet earnings/(loss) per shares. Calculated as non-GAAP internet earnings/(loss) attributable to the Firm’s atypical shareholders divided by weighted common variety of fundamental and diluted share.
• Non-GAAP fundamental and diluted internet earnings/(loss) per ADSs. Calculated as non-GAAP internet earnings/(loss) attributable to the Firm’s atypical shareholders divided by weighted common variety of fundamental and diluted ADS.

USE OF NON-GAAP FINANCIAL MEASURES

In evaluating the enterprise, the Firm considers and makes use of adjusted working (loss)/earnings and adjusted internet earnings/(loss), every a non-GAAP monetary measure, in reviewing and assessing the Firm’s working efficiency. The presentation of those non-GAAP monetary measures isn’t meant to be thought of in isolation or as an alternative choice to the monetary data ready and offered in accordance with U.S. GAAP. The Firm presents these non-GAAP monetary measures as a result of they’re utilized by the Firm’s administration to judge working efficiency and formulate enterprise plans. The Firm believes that the non-GAAP monetary measures assist establish underlying tendencies within the Firm’s enterprise, present additional details about the Firm’s outcomes of operations and improve the general understanding of the Firm’s previous efficiency and future prospects.

The non-GAAP monetary measures are usually not outlined below U.S. GAAP and are usually not offered in accordance with U.S. GAAP. The non-GAAP monetary measures have limitations as analytical instruments. The Firm’s non-GAAP monetary measures don’t mirror all objects of earnings and expense that have an effect on the Firm’s operations and don’t characterize the residual money circulation obtainable for discretionary expenditures. Moreover, these non-GAAP measures could differ from the non-GAAP data utilized by different corporations, together with peer corporations, and subsequently their comparability could also be restricted. The Firm compensates for these limitations by reconciling the non-GAAP monetary measures to the closest U.S. GAAP efficiency measure, all of which ought to be thought of when evaluating the Firm’s efficiency. The Firm encourages buyers and others to evaluate the Firm’s monetary data in its entirety and never depend on a single monetary measure.

The Firm defines non-GAAP working earnings/(loss) as working (loss)/earnings excluding share-based compensation bills, non-GAAP internet earnings/(loss) as internet earnings/(loss) excluding recurring merchandise of share-based compensation bills and honest worth modifications of by-product asset bifurcated from Collection B Senior Secured Notes and non-recurring merchandise of provision for SEC settlement and fairness litigants, and acquire from extinguishment of Collection B Senior Secured Notes, and non-GAAP internet earnings/(loss) attributable to the Firm’s atypical shareholders as internet earnings/(loss) attributable to the Firm’s atypical shareholders excluding recurring merchandise of share-based compensation bills and honest worth modifications of by-product asset bifurcated from Collection B Senior Secured Notes and non-recurring merchandise of provision for SEC settlement and fairness litigants, and acquire from extinguishment of Collection B Senior Secured Notes.

For extra data on the non-GAAP monetary measures, please see the desk captioned “Reconciliation of Non-GAAP Measures to the Most Instantly Comparable GAAP Measures” set forth on the finish of this earnings launch.

EXCHANGE RATE INFORMATION

This earnings launch comprises translations of sure RMB quantities into U.S. {dollars} (“US$”) at specified charges solely for the comfort of the reader. Except in any other case famous, all translations from RMB to US$ have been made on the fee of RMB6.8972 to US$1.00, the change fee on December 30, 2022 set forth within the H.10 statistical launch of the Federal Reserve Board. The Firm makes no illustration that the RMB or US$ quantities referred might be transformed into US$ or RMB, because the case could also be, at any explicit fee or in any respect.

CONFERENCE CALL

The Firm will maintain a convention name right now, on Thursday, March 2, 2023, at 8:00 am Jap Time (or Thursday, March 2, 2023, at 9:00 pm Beijing Time) to debate the monetary outcomes.

Members could entry the decision by dialing the next numbers:

As beforehand introduced, all shareholders are capable of submit inquiries to Luckin Espresso administration by visiting https://occasion.choruscall.com/mediaframe/webcast.html?webcastid=DgfeT6wl. After registration, there will likely be an “Ask a Query” part on the underside of the display. Administration will reply a choice of questions from the submission checklist throughout the convention name. The Q&A platform will stay open till the conclusion of the earnings name. 

The replay will likely be accessible via March 9, 2023, by dialing the next numbers:

A reside and archived webcast of the convention name may also be obtainable on the Firm’s investor relations web site at investor.lkcoffee.com.

SAFE HARBOR STATEMENTS

This earnings launch comprises forward-looking statements inside the that means of Part 21E of the Securities Trade Act of 1934, as amended. These forward-looking statements are made below the “protected harbor” provisions of the U.S. Personal Securities Litigation Reform Act of 1995. These statements will be recognized by terminology resembling “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “proceed,” “ongoing,” “targets,” “steering” and related statements. Luckin Espresso may additionally make written or oral forward-looking statements in its periodic experiences to the U.S. Securities and Trade Fee (the “SEC”), in its annual report back to shareholders, in press releases and different written supplies and in oral statements made by its officers, administrators or workers to 3rd events. Any statements that aren’t historic details, together with statements about Luckin Espresso’s beliefs and expectations, are forward-looking statements. Ahead-looking statements contain inherent dangers and uncertainties. A lot of components might trigger precise outcomes to vary materially from these contained in any forward-looking assertion, together with however not restricted to the next: the expense, timing and end result of present or future authorized and governmental proceedings or investigations in reference to Luckin Espresso; the result and impact of the restructuring of Luckin Espresso’s monetary obligations; Luckin Espresso’s development methods; its future enterprise growth, outcomes of operations and monetary situation; the impact of the non-reliance recognized in, and the resultant restatement of, sure of Luckin Espresso’s beforehand issued monetary outcomes; the effectiveness of its inner management; its skill to retain and appeal to its prospects; its skill to take care of and improve the popularity and fame of its model; its skill to take care of and enhance high quality management insurance policies and measures; its skill to ascertain and keep relationships with its suppliers and enterprise companions; tendencies and competitors in China’s espresso trade or China’s meals and beverage sector generally; modifications in its revenues and sure value or expense objects; the anticipated development of China’s espresso trade or China’s meals and beverage sector generally; Chinese language governmental insurance policies and laws regarding Luckin Espresso’s trade; the potential results of COVID-19; and normal financial and enterprise situations globally and in China and assumptions underlying or associated to any of the foregoing. Additional data relating to these and different dangers, uncertainties or components is included in Luckin Espresso’s filings with the SEC. All data supplied on this press launch and within the attachments is as of the date of this press launch, and Luckin Espresso undertakes no obligation to replace any forward-looking assertion, besides as required below relevant regulation.

STATEMENT REGARDING PRELIMINARY UNAUDITED FINANCIAL INFORMATION

The unaudited monetary data set out on this earnings launch is preliminary and topic to potential changes. Changes to the consolidated monetary statements could also be recognized when audit work has been carried out for the Firm’s year-end audit, which might lead to important variations from this preliminary unaudited monetary data. Accordingly, you shouldn’t place undue reliance upon these preliminary estimates. The preliminary unaudited monetary data included on this press launch has been ready by, and is the duty of, the Firm’s administration. The Firm’s auditor has not audited, reviewed, compiled or utilized agreed-upon procedures with respect to such preliminary monetary information. Accordingly, the Firm’s auditor doesn’t specific an opinion or every other type of assurance with respect thereto. Upon completion of the year-end audit, the Firm’s audited monetary outcomes could differ materially from its preliminary estimates.

ABOUT LUCKIN COFFEE INC.

Luckin Espresso Inc. (OTC: LKNCY) has pioneered a technology-driven retail community to supply espresso and different merchandise of top quality, excessive comfort and excessive affordability to prospects. Empowered by proprietary applied sciences, Luckin Espresso pursues its mission to construct a world-class espresso model and grow to be part of everybody’s each day life. Luckin Espresso was based in 2017 and is predicated in China. For extra data, please go to investor.lkcoffee.com.

INVESTOR AND MEDIA CONTACTS

Investor Relations:
Luckin Espresso Inc. IR
Electronic mail: ir@lkcoffee.com

Invoice Zima / Fitzhugh TaylorICR, Inc.
Cellphone: 646 880 9039

Media Relations:
Luckin Espresso Inc. PR
Electronic mail: pr@lkcoffee.com

Ed Trissel / Jack KelleherJoele Frank, Wilkinson Brimmer KatcherCellphone: 212 355 4449

_____________________
¹ Please discuss with the part “Key Definitions” for detailed definitions of sure phrases used.

* The per ADS indicators are primarily based on rounded outcomes of corresponding per atypical share indicators, which might have a rounding distinction of absolute quantity for no more than 0.04 per ADS.

* Variations within the definition of Non-GAAP indicators between this earnings launch and the 2021 Non-GAAP indicators are contributable to the objects that occurred past the reporting durations of this earnings launch, together with the reversal for SEC settlement. Ranging from the third quarter of 2021, impairment lack of long-lived property was as a result of regular operation, fairly than sudden occasions resembling retailer closures brought on by the COVID-19 pandemic, and subsequently, faraway from Non-GAAP adjustment objects.

** The per ADS indicators are primarily based on rounded outcomes of corresponding per atypical share indicators, which might have a rounding distinction of absolute quantity for no more than 0.04 per ADS.

Supply: Luckin Espresso Inc.

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