Luckin Coffee Promotes Restructuring Plan, Several Phased Goals Already Completed
Luckin Coffee Inc. released the third report of the Joint Provisional Liquidators to the Grand Court of the Cayman Islands on Tuesday night, showing that the overall restructuring plan of the company is progressing in an orderly manner and has achieved several phased goals.
The company says that it has fulfilled its disclosure obligations, and has released the audited annual financial report for 2019. The company will release the annual financial report for 2020 as soon as possible.
According to the report, Luckin Coffee has signed the Restructuring Support Agreement (RSA) with the holders of convertible bonds, obtained a new round of financing from the shareholders of the company, and completed the approval procedures raised by Chinese regulators to meet the necessary restructuring conditions by reducing the amount of registered capital.
At the same time, the report shows that the Joint Provisional Liquidators and Luckin Coffee are actively communicating with overseas litigants who are representing investors who previously had held and currently hold American Depositary Receipts (ADRs) to reach a settlement.
According to the report, partly due to the further addition of value-added products, Luckin Coffee’s revenue and net profit both saw strong growth while the company’s overall operations improved.
The total number of Luckin Coffee stores reached 5,259 as of June 30, 2021, including 4,018 self-operated stores and 1,241 joint-operated stores, with the total number of accumulated customers exceeding 75 million. The newly launched raw coconut series products alone sold more than 10 million orders in June.
As of July 31, 2021, the unrestricted cash and cash equivalents of Luckin Coffee reached $775.8 million.
In the future, Luckin Coffee will continue to push forward the restructuring plan and will aim for sustained and steady business growth.
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According to the audited 2019 annual financial report reissued by Luckin Coffee on the evening of June 30 this year, the company’s operating income in 2019 was 3.025 billion yuan ($468 million), a year-on-year increase of 260%. The company’s net loss during the period was 3.161 billion yuan, up 95% year-on-year.