After Financial Fraud, Luckin Reportedly Achieves Positive Cash Flow Per Store in July
Luckin Coffee Inc. reportedly achieved positive cash flow per store in July, except for roughly 300 stores located at universities that have been closed due to the COVID-19 pandemic.
Based on the current operating conditions, the company said it expected to achieve overall profitability in 2021.
SEE ALSO: Luckin Again Announces New Personnel Adjustments, Appoints New Director of the Board
The financial fraud hasn’t had major impacts on Luckin’s entity operations, according to China Science and Technology News. Instead, the pandemic and related factors caused the company’s most losses. Thanks to the recovery of economic activities and consumption, Luckin is gradually recovering.
After personnel adjustments following an internal investigation into the fraud, the company has shifted its market strategies from rapid expansions to refined operations. Luckin said the new plan had worked well in the last three months where its customer satisfaction rate reached 99.89% in the first half of this year. The company said its main management goal for the second half of 2020 is to “maintain stable operations and continue to provide consumers with high-quality products and services.”
Though Luckin has closed multiple stores this year, it also opened several new stores. It opened its eighth themed store “Fugu Dolphin Guard” in Wuhan in June.
As Luckin has reopened 90% of its stores nationwide, the company’s daily cash income is now around 13 million yuan, National Business Daily reported.
According to a third-party market testing agency, Luckin’s WeChat service account has more than 20 million followers and its app has roughly 50 million users.