Q3 2025 Luckin Coffee Inc Earnings Call

November 17, 2025

Operator: Ladies and gentlemen, welcome to Luckin Coffee's Q3 2025 Earnings Conference Call. All participants will be in listen-only mode during management's prepared remarks. There will be a question-and-answer session to follow. Please be advised that today's call is being recorded. Now I'd like to turn the call over to Ms. Nancy Song, Head of Investor Relations for Luckin Coffee. Nancy, please go ahead.

Speaker #1: Ladies and

Speaker #1: Gentlemen, welcome to Luckin Coffee's third quarter 2025 earnings conference call. All participants will be in listen-only mode during management's prepared remarks, and there will be a question-and-answer session to follow.

Speaker #1: Please be advised that today's call is being recorded. Now, I'd like to turn the call over to Ms. Nancy Song, Head of Investor Relations for Luckin Coffee.

Speaker #1: Nancy, please go ahead.

Nancy Song: Thank you, and hello, everyone. Welcome to Luckin Coffee's Q3 2025 Earnings Conference Call. We announced our financial results earlier today before the US market opened. The earnings release is now available on our IR website and via Newswire services. Today, you will hear from Dr. Guo Jingyi, Co-founder and CEO of Luckin Coffee, who will share a strategic overview of our business. Following that, Ms. An Jing, our CFO, will discuss our financial results in greater detail. Afterwards, we'll open up the call for questions. During today's call, we will be making some forward-looking statements regarding future events and expectations. Any statements that are not historical facts, including but not limited to statements about our beliefs and expectations, are forward-looking statements. These statements involve inherent risks and uncertainties.

Speaker #2: Thank you. And hello, everyone. Welcome to Luckin Coffee's third quarter 2025 earnings conference call. We announced our financial results earlier today. Before the U.S.

Speaker #2: Market opened, and the earnings release is now available across our website and via newswire services. Today, you will hear from Dr. Guo Jingyi, co-founder and CEO of Luckin Coffee, who will share a strategic overview of our business.

Speaker #2: Following that, Ms. Anjing, our CFO, will discuss our financial results in greater detail. Afterwards, we will open up the call for questions. During today's call, we will be making some forward-looking statements regarding future events and expectations.

Speaker #2: Any statements that are not historical facts, including but not limited to statements about our beliefs and expectations, are forward-looking statements. These statements involve inherent risks and uncertainties.

Speaker #2: Further information regarding these and other risks is included in our filings with the SEC. In addition, for the negative matters discussed today, the reconciliation information in our earnings press release related to those matters can be found.

Nancy Song: Further information regarding these and other risks is included in our filings with the SEC. In addition, for non-GAAP measures discussed today, the reconciliation information related to those measures can be found in our earnings press release. During today's call, Dr. Guo will speak in Chinese and his comments will be translated into English. I'd like to turn the call over to Dr. Guo Jinyi, Co-founder and CEO of Luckin Coffee. Dr. Guo, please go ahead.

Speaker #2: During today's call, Dr. Guo will speak in Chinese, and his comments will be translated into English. Now, I'd like to turn the call over to Dr. Guo Jingyi, co-founder and CEO of Luckin Coffee.

Speaker #2: Dr. Guo, please go ahead.

Speaker #1: 大家好，欢迎参加今天的业绩沟通会。感谢各位对瑞幸咖啡的持续关注和支持。

Jinyi Guo: 大家好，欢迎参加今天的业绩沟通会。感谢各位对瑞幸咖啡的持续关注和支持。

Jinyi Guo: [Foreign language]

Speaker #2: Hello, everyone. Welcome to today's earnings conference call. Thank you for your continuous interest in and support of Luckin Coffee. In the third quarter,

Nancy Song: Hello everyone. Welcome to today's Earnings Conference Call. Thank you for your continuous interest in and support of Luckin Coffee.

[Translator]: Hello everyone. Welcome to today's Earnings Conference Call. Thank you for your continuous interest in and support of Luckin Coffee.

Speaker #1: 三季度在限制饮品行业快速扩容的市场机遇下，我们聚焦规模增长的核心战略，持续产生积极成效。收入增长延续强劲势头，同比增速50%，达到约153亿元。自营同店销售增长率进一步提速，达到14.4%。期间，随着外卖平台补贴深化，微量结构继续阶段性向外卖迁移，遇到了阶段性的挑战。但我们仍然保持了健康的盈利表现，实现营业利润约18亿元。

Jinyi Guo: 三季度，在现制饮品行业快速扩容的市场机遇下，我们聚焦规模增长的核心战略持续产生积极成效，收入增长延续强劲势头，同比增速百分之五十，达到约一百五十三亿元。对应同店销售增长率进一步提速，达到百分之十四点四。期间，随着外卖平台补贴深化，杯量结构继续阶段性向外卖迁移，遇到了阶段性的挑战，但我们仍然保持了健康的盈利表现，实现营业利润约十八亿元。

Jinyi Guo: [Foreign language]

Nancy Song: In Q3, our scale-driven strategy continued to yield strong results as we capitalized on the rapid expansion of China's freshly brewed beverage market. Our revenue continued a solid momentum, increasing by 50% year-over-year to around RMB 13.3 billion, while same-store sales growth in our self-operated stores further improved to 14.4%. During the quarter, as food delivery platforms intensified their subsidy campaigns, we saw the shift in volume share to both delivery continued at the current stage. Despite this temporary challenge, we maintain healthy profitability, achieving an operating profit of around RMB 1.8 billion.

[Translator]: In Q3, our scale-driven strategy continued to yield strong results as we capitalized on the rapid expansion of China's freshly brewed beverage market. Our revenue continued a solid momentum, increasing by 50% year-over-year to around RMB 13.3 billion, while same-store sales growth in our self-operated stores further improved to 14.4%. During the quarter, as food delivery platforms intensified their subsidy campaigns, we saw the shift in volume share to both delivery continued at the current stage. Despite this temporary challenge, we maintain healthy profitability, achieving an operating profit of around RMB 1.8 billion.

Speaker #2: In this quarter, our skill-driven strategy continued to yield strong results. As we capitalized on the rapid expansion of China's freshly brewed beverage market, our revenue continued its solid momentum, increasing by 50% year-over-year to around RMB 15.3 billion, while same-store sales growth in our self-operated stores further improved to 14.4%.

Speaker #2: During the quarter, as food delivery platforms intensified their subsidy campaigns, we saw the shift in volume share to both delivery continued at the current stage.

Speaker #2: Despite this contemporary challenge, we maintained healthy profitability, achieving an operating profit of around RMB 1.8 billion.

Speaker #1: 更重要的是，面对中国咖啡行业持续增长的消费需求，我们加速门店交付覆盖，主动抢占市场空间。面向未来布局长期发展。截至三季度末，门店总数已超2.9万家，有效承接了强劲增长的市场需求。这不仅带来超4,200万的新增交易客户，创下了历史新高，更有力支撑了平台月均交易客户总规模破亿的里程碑式发展。恰恰得益于供需两端的规模化增长，瑞幸的竞争优势持续扩大，市场份额进一步提升，为我们的长期可持续发展打下了更坚实的基础。

Jinyi Guo: 更重要的是，面对中国咖啡行业持续增长的消费需求，我们加速门店交付覆盖，主动抢占市场空间，面向未来布局长期发展。截至三季度末，门店总数已超两点九万家，有效承接了强劲增长的市场需求。这不仅带来超四千两百万的新增交易客户，创下了历史新高，更有力支撑了平台月均交易客户总规模破亿的里程碑式发展。恰恰得益于供需两端的规模化增长，瑞幸的竞争优势持续扩大，市场份额进一步提升，为我们的长期可持续发展打下了更坚实的基础。

Jinyi Guo: [Foreign language]

Nancy Song: More importantly, in response to the rising demand in China's coffee market, we accelerated our network expansion to strengthen store coverage and proactively secure white space locations for future growth. As of the Q3 end, our total store count surpassed 29,000, enabling us to effectively meet robust consumer demand. Our scale advantage drove record high new customer acquisition of 42 million, supporting a milestone achievement of over 100 million average monthly transaction customers. This scaled growth across both the store print and the customer base has expanded Luckin's competitive edge and market share, placing us on a stronger footing for long term sustainable growth.

[Translator]: More importantly, in response to the rising demand in China's coffee market, we accelerated our network expansion to strengthen store coverage and proactively secure white space locations for future growth. As of the Q3 end, our total store count surpassed 29,000, enabling us to effectively meet robust consumer demand. Our scale advantage drove record high new customer acquisition of 42 million, supporting a milestone achievement of over 100 million average monthly transaction customers. This scaled growth across both the store print and the customer base has expanded Luckin's competitive edge and market share, placing us on a stronger footing for long term sustainable growth.

Speaker #2: demand in China's coffee importantly, in response to the rising market, we accelerated our network expansion to strengthen store coverage. And proactively secure white-based locations for future growth.

Speaker #2: As of the fourth quarter end, our total store count surpassed 29,000, enabling us to effectively meet robust consumer demand. Our skill advantage drove record-high new customer acquisition of 42 million.

Speaker #2: Supporting a milestone achievement of over 100 million average monthly transaction customers. This scaled growth across both storefront and customer base has expanded Luckin's competitive edge and market share.

Speaker #2: Placing us on a stronger footing for long-term sustainable growth.

Jinyi Guo: 接下来我将详细介绍公司的运营进展. 稍后 CFO 安静会和大家分享财务数据. 本季度, 基于瑞幸强大的数字化能力, 我们继续强化人, 货, 场三个方面全面联动的核心竞争力, 加速业务规模扩张, 夯实市场领导地位.

Jinyi Guo: [Foreign language]

Speaker #2: ?????????????????????CFO ??????????????????????????????????????????????????????????????????????????Now, I will share an update on our operations, and our CFO Anjing will present the financials later. This quarter, powered by Luckin's strong digital capabilities, we continued to enhance our core strengths across people, products, and places.

Nancy Song: I will now share an update on our operations and our CFO An Jing will present the financials later. This quarter, powered by Luckin's strong digital capabilities, we continue to enhance our core strength across people, products, and places, scaling our business at a faster pace and strengthening our market leadership.

[Translator]: I will now share an update on our operations and our CFO An Jing will present the financials later. This quarter, powered by Luckin's strong digital capabilities, we continue to enhance our core strength across people, products, and places, scaling our business at a faster pace and strengthening our market leadership.

Speaker #2: Scaling our business, strengthening our market at a faster pace, and leadership.

Speaker #1: 在门店方面，我们保持行业领先的开店速度，继续加快高线城市优质点位的布局和拓展下沉市场的节奏，持续扩大门店网络规模。截至三季度末，瑞幸门店总数达到29,214家，规模继续领跑中国咖啡市场，客户覆盖和交付优势持续扩大。

Jinyi Guo: 在门店方面，我们保持行业领先的开店速度，继续加快高线城市优质点位的布局和拓展下沉市场的节奏，持续扩大门店网络规模. 截至 Q3 末，瑞幸门店总数达到 29,214 家，规模继续领跑中国咖啡市场，客户覆盖和交付优势持续扩大.

Jinyi Guo: [Foreign langauge]

Nancy Song: On the store front, we maintain industry-leading store growth, continuing on to strengthen our presence across high-quality locations in high-tier cities while penetrating lower-tier markets. As a result, our store network continue to expand rapidly. By the end of Q3, Luckin's total store count reached 29,214, maintaining leadership in China's coffee market with growing customer reach and enhanced fulfillment capabilities.

[Translator]: On the store front, we maintain industry-leading store growth, continuing on to strengthen our presence across high-quality locations in high-tier cities while penetrating lower-tier markets. As a result, our store network continue to expand rapidly. By the end of Q3, Luckin's total store count reached 29,214, maintaining leadership in China's coffee market with growing customer reach and enhanced fulfillment capabilities.

Speaker #2: On the storefront, we maintain an industry-leading presence, continuing to strengthen our footprint across high-quality locations in high-tier cities while penetrating lower-tier markets. As a result, our store network continues to expand rapidly. By the end of the third quarter, Luckin's total store count reached 29,214, maintaining leadership in China's coffee market with growing customer reach and enhanced fulfillment capabilities.

Speaker #1: 具体来看，中国市场竞争2,979家门店，门店总数达到29,096家，其中自营18,809家，联营门店数也正式破万，达到10,287家。在当前的市场环境下，随着咖啡饮用习惯持续被培养，客户需求被不断激发和强劲增长，中国市场依然存在广阔的成长空间。依托瑞幸强大的品牌力和数字化选址能力，我们能够系统地、快速地了解客户需求，最大程度地贴近客户，持续精准高效地开出优质门店。未来一段时间，我们会持续保持有竞争力的扩张速度，充分把握中国咖啡市场的时代红利。

Jinyi Guo: 具体来看，中国市场净增两千九百七十九家门店，门店总数达到两万零 -- 两万九千零九十六家，其中自营一万八千八百零九家，联营门店数也正式破万，达到一万零两百八十七家。在当前的市场环境下，随着咖啡饮用习惯持续被培养，客户需求被不断激发和强劲增长，中国市场依然存在广阔的成长空间。依靠瑞幸强大的品牌力和数字化选址能力，我们能够系统地快速地了解客户需求，最大程度地贴近客户，持续精准高效地开出优质门店。未来一段时间，我们会持续保持有竞争力的扩张速度，充分把握中国咖啡市场的时代红利。

Jinyi Guo: [Foreign language]

Speaker #2: Domestically, we achieved 2,979 net openings, bringing our total store count in China to 29,096, including 18,089 self-operated stores and 10,287 partnership stores. We have now surpassed the 10,000-store milestone as well.

Nancy Song: Domestically, we achieved 2,979 net openings, bringing our total store count in China to 29,096, including 18,890 self-operated stores and 10,287 partnership stores, which has now surpassed the 10,000 store milestone as well. As coffee drinking habits continue to take hold and consumer demand grows strongly, China's coffee market still offers much room for growth. Leveraging Luckin's strong brand influence and data-driven site selection capabilities, we can systematically and swiftly identify customer demand, enabling us to open high-quality stores efficiently and in convenient locations that closely align with customer demand. In the foreseeable future, we will maintain a competitive pace of expansion to fully capture the structural opportunities in China's coffee market.

[Translator]: Domestically, we achieved 2,979 net openings, bringing our total store count in China to 29,096, including 18,890 self-operated stores and 10,287 partnership stores, which has now surpassed the 10,000 store milestone as well. As coffee drinking habits continue to take hold and consumer demand grows strongly, China's coffee market still offers much room for growth. Leveraging Luckin's strong brand influence and data-driven site selection capabilities, we can systematically and swiftly identify customer demand, enabling us to open high-quality stores efficiently and in convenient locations that closely align with customer demand. In the foreseeable future, we will maintain a competitive pace of expansion to fully capture the structural opportunities in China's coffee market.

Speaker #2: As coffee drinking habits continue to take hold and consumer demand grows strongly, China's coffee market still offers much room for growth. Leveraging Luckin's strong brand influence and data-driven site selection capabilities, we can systematically and swiftly identify customer demand, enabling us to open high-quality stores efficiently and in convenient locations that closely align with customer demand.

Speaker #2: In the foreseeable future, we will maintain a competitive pace of expansion to fully capture the structural opportunities in China's coffee market.

Speaker #1: 国际市场方面，我们继续保持稳健发展的节奏。本季度竞争29家门店，门店总数达到118家。其中包括新加坡自营门店68家，美国自营门店5家，马来西亚加盟门店45家。新加坡作为我们海外拓展的起点，业务表现持续提升，目前已初步形成较为成熟高效的本地化运营体系，初步验证了瑞幸数字化商业模式在多元市场环境中的适配性和可复制性，也为我们进一步辐射亚太地区树立了标杆示范。另一方面，美国市场目前仍在早期探索阶段，业务各方面表现符合我们的预期判断。美国消费者的反馈总体积极正面。我们将继续稳扎稳打，积累对当地用户的理解，持续打磨提升本地化运营能力，布局长期的规模化发展。

Jinyi Guo: 国际市场方面，我们继续保持稳健发展的节奏，本季度净增二十九家门店，门店总数达到一百一十八家，其中包括新加坡自营门店六十八家，美国自营门店五家，马来西亚加盟门店四十五家。新加坡作为我们海外拓展的起点，业务表现持续提升，目前已初步形成较为成熟高效的本地化运营体系，初步验证了瑞幸数字化商业模式在多元市场环境中的适配性和可复制性，也为我们进一步辐射亚太地区树立了标杆示范。另一方面，美国市场目前仍在早期探索阶段，业务各方面表现符合我们的预期判断。美国消费者的反馈总体积极正面。我们将继续稳扎稳打，积累对当地用户的理解，持续打磨提升本地化运营能力，布局长期的规模化发展。

Jinyi Guo: [Foreign language]

Nancy Song: Internationally, we had 29 net openings this quarter, bringing our total overseas store count to 118, including 68 self-operated stores in Singapore, five self-operated stores in the US, and 45 franchise stores in Malaysia. As our first overseas market, Singapore has been steadily improving its performance and initially built a mature and efficient localized operating infrastructure. This has demonstrated the early signs that our digital business model is adaptable and replicable across diverse markets and set an impactful benchmark for our future expansion across the Asia Pacific region. Meanwhile, our US business remains in the early stages of exploration, with performance across various areas broadly in line with our expectations and overall consumer feedback being positive.

[Translator]: Internationally, we had 29 net openings this quarter, bringing our total overseas store count to 118, including 68 self-operated stores in Singapore, five self-operated stores in the US, and 45 franchise stores in Malaysia. As our first overseas market, Singapore has been steadily improving its performance and initially built a mature and efficient localized operating infrastructure. This has demonstrated the early signs that our digital business model is adaptable and replicable across diverse markets and set an impactful benchmark for our future expansion across the Asia Pacific region. Meanwhile, our US business remains in the early stages of exploration, with performance across various areas broadly in line with our expectations and overall consumer feedback being positive.

Speaker #2: 29 net openings this quarter internationally, bringing our total overseas store count to 118, including 68 self-operated stores in Singapore, 5 self-operated stores in the U.S., and 45 franchise stores in Malaysia.

Speaker #2: As our first overseas market, Singapore has been steadily improving its performance and initially built a mature and efficient localized operating infrastructure. This has demonstrated early signs that our digital business model is adaptable and replicable across diverse markets.

Speaker #2: And set an impactful benchmark for our future expansion across the Asia-Pacific region. Meanwhile, our U.S. business remains in the early stages of exploration, with performance across various areas broadly in line with our expectations.

Speaker #2: And overall consumer feedback has been positive. We will continue to take a disciplined and steady approach, accumulating local market insights and enhancing our localized operational capabilities to lay the foundation for long-term scalable growth.

Nancy Song: We will continue to take a disciplined and steady approach, accumulating local market insights and enhancing our localized operational capabilities to lay the foundation for longer, long-term sustainable growth.

[Translator]: We will continue to take a disciplined and steady approach, accumulating local market insights and enhancing our localized operational capabilities to lay the foundation for longer, long-term sustainable growth.

Speaker #1: 在产品方面，三季度我们共上新近30款限制饮品和多款轻食，持续引领咖啡产品的创新和流行趋势，并于夏季推出多款非咖选择，进一步丰富客户的消费体验。9月，我们携手老朋友汤唯，开启了"就喝原产地"的系列活动。不仅以高品质、在地化的原材料传递健康生活方式，也进一步强化瑞幸要喝就喝原产地的品牌心智。例如，我们选材福建关西蜜柚，上新关西蜜柚拿铁，严选新疆阿克苏苹果，升级回归人气产品苹果c美式。全新推出了阿克苏苹果拿铁，这些产品既扩充了我们风味咖啡的产品组合，也获得了积极的客户反馈。此外，我们的小黄油系列在上市一周年之际，累计销量突破2亿杯。充分体现了我们在产品创新、引领品类趋势发展方面的实力，持续巩固瑞幸品牌的市场领导地位。非咖啡方面，依托瑞幸在生椰原产地的优势，我们新增杨枝甘露这一主流系列产品，11假期销量超过1,200万杯，再次展现了瑞幸产品强大的客户基础和市场号召力。

Jinyi Guo: 在产品方面，三季度我们共上新近三十款现制饮品和多款轻食，持续引领咖啡产品的创新和流行趋势，并于夏季推出多款非咖选择，进一步丰富客户的消费体验。九月，我们携手老朋友汤唯开启了 “ 就喝原产地 ” 的系列活动，不仅以高品质在地化的原材料传递健康生活方式，也进一步强化瑞幸要喝就喝原产地的品牌心智。例如，我们选材福建关西蜜柚，上新关西蜜柚拿铁。严选新疆阿克苏苹果，升级回归人气产品苹果 C 美式，全新推出了阿克苏，阿克苏苹果拿铁。这些产品既扩充了我们風味咖啡的产品组合，也获得了积极的客户反馈。此外，我们的小黄游系列在上市一周年之际，累计销量突破两亿杯，充分体现了我们在产品创新引领品类趋势发展方面的实力，持续巩固瑞幸品牌的市场领导地位。非咖啡方面，依托瑞幸在生椰原产地的优势，我们新增杨枝甘露这一主流系列产品，十一假期销量超过一千两百万杯，再次展现了瑞幸产品强大的客户基础和市场号召力。

Jinyi Guo: [Foreign language]

Speaker #2: On the product

Nancy Song: On the product front, we launched nearly 30 new freshly brewed beverages and several snack items in Q3, continuously driving coffee innovation and shaping market trends. We also diversified our summer lineup with a wider selection of non-coffee options to enrich customer experience. In September, we partnered with our longtime brand ambassador Tang Wei to launch Luckin's Drink from Origin campaign, promoting a healthy lifestyle through high quality, locally sourced ingredients, and reinforcing our brand concept from the origin to you. For example, we launched Guangxi Honey Pomelo Latte, featuring famous Guangxi Honey Pomelo from Guangxi Province. We also selected Aksu apples from Xinjiang to upgrade our popular Apple C Americano and to launch our new Akesu Apple Latte. These products expanded our flavored coffee portfolio and received encouraging customer feedback.

[Translator]: On the product front, we launched nearly 30 new freshly brewed beverages and several snack items in Q3, continuously driving coffee innovation and shaping market trends. We also diversified our summer lineup with a wider selection of non-coffee options to enrich customer experience. In September, we partnered with our longtime brand ambassador Tang Wei to launch Luckin's Drink from Origin campaign, promoting a healthy lifestyle through high quality, locally sourced ingredients, and reinforcing our brand concept from the origin to you. For example, we launched Guangxi Honey Pomelo Latte, featuring famous Guangxi Honey Pomelo from Guangxi Province. We also selected Aksu apples from Xinjiang to upgrade our popular Apple C Americano and to launch our new Akesu Apple Latte. These products expanded our flavored coffee portfolio and received encouraging customer feedback.

Speaker #2: Front, we launched nearly 30 new freshly brewed beverages and several snack items in the third quarter. We are continuously driving coffee innovation and shaping market trends.

Speaker #2: We also diversified our summer lineup with a wider selection of non-coffee options to enrich the customer experience. In September, we partnered with our longtime brand ambassador, Tang Wei, to launch Luckin's "Drink from Origin" campaign.

Speaker #2: Promoting a healthy lifestyle through high-quality, locally sourced ingredients, and reinforcing our brand concepts from the origin tree. For example, we launched the Guanxi Honey Pomelo Latte, featuring famous Guanxi honey pomelo from Fujian Province.

Speaker #2: We also selected Apsu apples from Xinjiang to upgrade our popular Apple Sea Americano and to launch our new Apsu Apple Latte. These products expanded our flavored coffee portfolio and received encouraging customer feedback.

Speaker #2: In addition, our little butter series surpassed 200 million cumulative cups sold in its first year on the market, underscoring our strong product innovation capabilities and ability to set category trends.

Nancy Song: Our Little Butter series surpassed 200 million cumulative cups sold in its first year on the market, underscoring our strong product innovation capabilities and ability to set category trends, which continues to strengthen Luckin's brand leadership. On the non-coffee side, leveraging our fresh coconut sourcing advantage, we introduced the popular Mango Pomelo Sago, which sold over 12 million cups during the National Day holiday. Once again demonstrating our broad customer base and a strong market appeal.

[Translator]: Our Little Butter series surpassed 200 million cumulative cups sold in its first year on the market, underscoring our strong product innovation capabilities and ability to set category trends, which continues to strengthen Luckin's brand leadership. On the non-coffee side, leveraging our fresh coconut sourcing advantage, we introduced the popular Mango Pomelo Sago, which sold over 12 million cups during the National Day holiday. Once again demonstrating our broad customer base and a strong market appeal.

Speaker #2: Which continues to strengthen Luckin's brand leadership. On the non-coffee side, leveraging our fresh coconut sourcing advantage, we introduced the popular Mango Pomelo Seiko, which sold over 12 million cups during the National Day holiday.

Speaker #2: Once again, demonstrating our broad customer base, and the strong market appeal.

Speaker #1: 在客户方面，我们继续围绕多样化年轻化的消费趋势，捕捉市场热点与用户偏好，开展深度有趣且富含情绪价值的营销活动。本季度在获客、活跃和提品等方面，都有亮眼表现。例如，我们于热门院线电影、爆款游戏、经典动画片等多类跨界高热度IP开展联名合作，有效触达了更广泛的客群，提升品牌影响力的同时，也进一步激发了消费需求。在此基础上，三季度我们的新增交易客户数超4,200万，月均交易客户数超1.1亿。这两个指标均创历史新高。截至季度末，瑞幸的累计交易客户数已突破4.2亿。为我们持续培养高频成熟客群奠定了更扎实的基础，也为公司长期高质量发展提供了源源不断的动力。

Jinyi Guo: 在客户方面，我们继续围绕多样化年轻化的消费趋势，捕捉市场热点与用户偏好，开展生动有趣且富含情绪价值的营销活动。本季度在获客、活跃和提频等方面都有亮眼表现。例如我们与热门院线电影、爆款游戏、经典动画片等多类跨界高热度 IP 开展联名合作，有效触达了更广泛的客群，提升品牌影响力的同时，也进一步激发了消费需求。在此基础上，三季度我们的新增交易客户数超四千两百万，月均交易客户数超一点一亿。这两个指标均创历史新高。截至季度末，瑞幸的累计交易客户数已突破四点二亿，为我们持续培养高频成熟客群奠定了更扎实的基础，也为公司长期高质量发展提供了源源不断的动力。

Jinyi Guo: [Foreign language]

Speaker #2: On the customer front, we remained aligned with diversified and use-driven consumption trends, capturing market buzz and evolving customer preferences through engaging and emotionally resonant market campaigns.

Nancy Song: On the customer front, we remained aligned with diversified and use driven consumption trends, capturing market buzz and evolving customer preferences through engaging and emotionally relevant market campaigns. With these initiatives, we achieved impressive results in customer acquisition, engagement, and purchase frequency during Q3. For example, we partnered with a wide range of popular IPs such as hit movies, blockbuster games, and classic animated series, effectively reaching a broader audience, strengthening brand influence, and stimulating customer demand. Building on these efforts, we added over 42 million new transacting customers in Q3 and achieved an average of over 110 million monthly transacting customers, both record highs. By Q3 end, our cumulative transacting customer base surpassed 420 million, further strengthening our ability to cultivate a high frequency, loyal customer cohort, a key driver of our long term high quality growth.

[Translator]: On the customer front, we remained aligned with diversified and use driven consumption trends, capturing market buzz and evolving customer preferences through engaging and emotionally relevant market campaigns. With these initiatives, we achieved impressive results in customer acquisition, engagement, and purchase frequency during Q3. For example, we partnered with a wide range of popular IPs such as hit movies, blockbuster games, and classic animated series, effectively reaching a broader audience, strengthening brand influence, and stimulating customer demand. Building on these efforts, we added over 42 million new transacting customers in Q3 and achieved an average of over 110 million monthly transacting customers, both record highs. By Q3 end, our cumulative transacting customer base surpassed 420 million, further strengthening our ability to cultivate a high frequency, loyal customer cohort, a key driver of our long term high quality growth.

Speaker #2: With these initiatives, we achieved impressive results in customer acquisition, engagement, and purchase frequency during the quarter. For example, we partnered with a wide range of popular IPs such as kids' movies, blockbuster games, and classic animated series.

Speaker #2: Effectively reaching a broader audience, strengthening brand influence, and stimulating customer demand. Building on these efforts, we added over 42 million new transacting customers in Q3.

Speaker #2: And achieved an average of over 110 million monthly transacting customers, both record highs. By quarter-end, our cumulative transacting customer base surpassed 420 million, further strengthening our ability to cultivate a high-frequency loyal customer cohort.

Speaker #2: A key driver of our long-term high-quality growth.

Speaker #1: 此外，我们秉持以赴美好明天的可持续发展战略，持续践行企业社会责任。以公益行动反哺产业链上游。在瑞幸咖啡成立8周年之际，我们携手中国红十字基金会好基金，共同启动了博爱校园健康行动计划，向云南、新疆等地区捐建多所博爱校医室，助力提升咖啡及其他主要原材料产地的校园卫生保障水平。守护青少年健康成长。同时，围绕原产地儿童健康主题开展公益合作。我们连续两年资助天使之旅项目，支持当地先进病患而筛查与救治。未来，我们将继续深耕原产地，以公益回馈社会，共创美好未来。

Jinyi Guo: 此外，我们秉持依附美好明天的可持续发展战略，持续践行企业社会责任，以公益行动反哺产业链上游。在瑞幸咖啡成立八周年之际，我们携手中国红十字基金会好基金，共同启动了博爱校园健康行动计划，向云南、新疆等地区捐建多所博爱校医室，助力提升咖啡及其他主要原材料产地的校园卫生保障水平，守护青少年健康成长。同时，围绕原产地儿童健康主题开展公益合作。我们连续两年资助天使之旅项目，支持当地先心病患儿筛查与救治。未来，我们将继续深耕原产地，以公益回馈社会，共创美好未来。

Jinyi Guo: [Foreign language]

Speaker #2: Innovation: We remain committed to our sustainability strategy, being a force for a brighter future. We will continue to fulfill our corporate social responsibilities through charitable initiatives that support communities across our upstream supply chain.

Nancy Song: In addition, we remain committed to our sustainability strategy being a force for a brighter future and continue to fulfill our corporate social responsibilities through charitable initiatives that support communities across our upstream supply chain. To mark Luckin Coffee's eighth anniversary, we partnered with the China Red Cross Foundation's Hao Fund to launch the Philanthropy Campus Health Initiative, building multiple philanthropy health centers in schools across Yunnan and Xinjiang. This program enhances campus health care infrastructure in coffee regions and other key sourcing regions, helping safeguard the healthy development of local youth. Moreover, as part of our ongoing focus on children's health in origin regions, we have sponsored the Angel Journey project for 2 consecutive years, funding, screening, and treatment for local children with congenital heart disease.

[Translator]: In addition, we remain committed to our sustainability strategy being a force for a brighter future and continue to fulfill our corporate social responsibilities through charitable initiatives that support communities across our upstream supply chain. To mark Luckin Coffee's eighth anniversary, we partnered with the China Red Cross Foundation's Hao Fund to launch the Philanthropy Campus Health Initiative, building multiple philanthropy health centers in schools across Yunnan and Xinjiang. This program enhances campus health care infrastructure in coffee regions and other key sourcing regions, helping safeguard the healthy development of local youth. Moreover, as part of our ongoing focus on children's health in origin regions, we have sponsored the Angel Journey project for 2 consecutive years, funding, screening, and treatment for local children with congenital heart disease.

Speaker #2: To mark Luckin Coffee's eighth anniversary, we partnered with the China Red Cross Foundation's Hao Fund to launch the philanthropy Compass Health Initiative. We are building multiple philanthropy health centers in schools across Yunnan and Xinjiang.

Speaker #2: This program enhances Compass Healthcare's infrastructure in the coffee region and other key sourcing regions, helping safeguard the healthy development of local youth. Moreover, as part of our ongoing focus on children's health in origin regions, we have sponsored the Andrew Journey project for two consecutive years.

Speaker #2: Funding screening and treatment for local children with congenital heart disease. Moving forward, we will continue to deepen our engagement in origin communities, giving back to society through charitable efforts to build a brighter future together.

Nancy Song: Moving forward, we will continue to deepen our engagement in origin communities, giving back to society through charitable efforts to build a brighter future together.

[Translator]: Moving forward, we will continue to deepen our engagement in origin communities, giving back to society through charitable efforts to build a brighter future together.

Speaker #1: 今年以来，在外卖平台补贴活动的推动下，中国咖啡行业加速发展。消费需求呈现出巨大弹性，这都再次印证了中国咖啡市场的巨大潜力。面对复杂的市场环境，我们始终围绕既定增长战略，动态调整运营节奏和策略，积极把握行业发展机遇。三季度业务持续提速，实现了市占率持续提升的核心目标。同时，我们也看到，随着天气转冷，限制饮品行业已进入淡季，平台补贴力度也开始快速收缩。预计未来的补贴形式也会更为精细化。叠加今年以来国际咖啡生豆价格持续在高位运行，并且暂无趋缓迹象。这些因素都将给咖啡行业带来新的变化和压力，也会给我们的四季度甚至明年的业务发展带来挑战。在多变的市场形势下，我们会更加关注长期发展，相信只有战略聚焦，不断提升自身经营水平，才能对抗短期波动，穿越各种外部环境。

Jinyi Guo: 今年以来，在外卖平台补贴活动的推动下，中国咖啡行业加速发展，消费需求呈现出巨大弹性，这都再次印证了中国咖啡市场的巨大潜力。面对复杂的市场环境，我们始终围绕既定增长战略，动态调整运营节奏和策略，积极把握行业发展机遇。三季度业务持续提速，实现了势头力持续提升的核心目标。同时，我们也看到，随着天气转冷，现制饮品行业已进入淡季，平台补贴力度也开始快速收缩，预计未来的补贴形式也会更为精细化。叠加今年以来国际咖啡生豆价格持续在高位运行，并且暂无趋缓迹象，这些因素都将给咖啡行业带来新的变化和压力，也会给我们的四季度甚至明年的业务发展带来挑战。在多变的市场形势下，我们会更加关注长期发展。相信只有战略聚焦，不断提升自身经营水平，才能对抗短期波动，穿越各种外部环境。一方面，我们会持续强化产品创新和品牌创新，以高品质、高性价比、高便利性的产品，更好地满足客户多元需求，以支撑门店表现。另一方面，也会持续发挥瑞幸强大的数字化运营能力，结合对用户需求偏好的深刻洞察，做好留存复购，充分挖掘客户的长期消费潜力。

Jinyi Guo: [Foreign language]

Speaker #1: 一方面，我们会持续强化产品创新和品牌创新，以高品质、高性价比、高便利性的产品更好地满足客户多元需求，以支撑门店表现。另一方面，也会持续发挥瑞幸强大的数字化运营能力，结合对用户需求偏好的深刻洞察，做好留存复购，充分挖掘客户的长期消费潜力。 This year,

Nancy Song: This year, built by food delivery platform subsidy campaigns, China's coffee industry has seen accelerated growth, with consumer demand demonstrating strong elasticity. This trend further validates the enormous potential of China's coffee market. Amid this complex environment, we have remained focused on our established growth strategy, adjusting our operations dynamically to seize emerging opportunities. As a result, we achieved faster business growth and market share gains in Q3, effectively meeting our strategic goals. At the same time, as temperatures have dropped and the fresh liquid beverage industry has entered its seasonal slowdown, we have observed food delivery platforms rapidly scaling back their subsidies, which are expected to become more targeted and refined going forward. International green coffee bean prices have remained elevated this year, with no signs of moderation at the moment.

[Translator]: This year, built by food delivery platform subsidy campaigns, China's coffee industry has seen accelerated growth, with consumer demand demonstrating strong elasticity. This trend further validates the enormous potential of China's coffee market. Amid this complex environment, we have remained focused on our established growth strategy, adjusting our operations dynamically to seize emerging opportunities. As a result, we achieved faster business growth and market share gains in Q3, effectively meeting our strategic goals. At the same time, as temperatures have dropped and the fresh liquid beverage industry has entered its seasonal slowdown, we have observed food delivery platforms rapidly scaling back their subsidies, which are expected to become more targeted and refined going forward. International green coffee bean prices have remained elevated this year, with no signs of moderation at the moment.

Speaker #2: Built by food delivery platform subsidy campaigns, China's coffee industry has seen accelerated growth. With consumer demand demonstrating strong elasticity, this trend further validates the enormous potential of China's coffee market.

Speaker #2: Amid this complex environment, we have remained focused on our established growth strategy, adjusting our operations dynamically to seize emerging opportunities. As a result, we achieved faster business growth and market share gains in Q3.

Speaker #2: Effectively meeting our strategic goals, at the same time as temperatures have dropped, we have observed that the freshly brewed beverage industry has entered its seasonal slowdown. Additionally, food delivery platforms are rapidly scaling back their subsidies, which are expected to become more targeted and refined going forward.

Speaker #2: In addition, international green coffee bean prices have remained elevated this year, with no signs of moderation at the moment. These factors will introduce new dynamics and create headwinds for the industry.

Nancy Song: These factors will introduce new dynamics, create headwinds for the industry, and pose challenges to our Q4 or even next year's business development. In this evolving landscape, we will focus more on our long-term growth trajectory. We believe our continued strategic focus and enhanced operational excellence will enable us to weather short-term fluctuations and navigate various external environments. We will continue to strengthen our product and bring innovation, offering high-quality, affordable, and convenient products that better meet diverse customer needs and support store performance. We will also leverage Luckin's robust digital capabilities and deep customer insights to enhance retention and repeat purchases, fully unlocking long-term consumption potential.

[Translator]: These factors will introduce new dynamics, create headwinds for the industry, and pose challenges to our Q4 or even next year's business development. In this evolving landscape, we will focus more on our long-term growth trajectory. We believe our continued strategic focus and enhanced operational excellence will enable us to weather short-term fluctuations and navigate various external environments. We will continue to strengthen our product and bring innovation, offering high-quality, affordable, and convenient products that better meet diverse customer needs and support store performance. We will also leverage Luckin's robust digital capabilities and deep customer insights to enhance retention and repeat purchases, fully unlocking long-term consumption potential.

Speaker #2: And pose challenges to our fourth quarter or even next year's business development. In this evolving landscape, we will focus more on our long-term growth trajectory.

Speaker #2: We believe our continued strategic focus and enhanced operational excellence will enable us to weather short-term fluctuations and navigate various actionable environments. We will continue to strengthen our product and brand innovation, offering high-quality, affordable, and convenient products that better meet diverse customer needs and support store performance.

Speaker #2: We will also leverage Luckin's robust digital capabilities and deep customer insights to enhance retention and repeat purchases, fully unlocking long-term consumption potential.

Jinyi Guo: 最后，再次感谢一如既往信任支持瑞幸的各位消费者、合作伙伴和投资人。感谢我们 170,000 并肩作战、辛勤付出的瑞幸伙伴。我们将继续一起携手，致力于打造世界级咖啡品牌，让瑞幸成为人们日常生活的一部分，同时也会持续努力，为客户、伙伴和股东创造长期价值。

Jinyi Guo: [Foreign langauge]

Speaker #2: ??????????????????????????????????????17???????????????????????????????????????????????????????????????????????????????? We would like to extend our sincere gratitude to our customers, partners, and investors for their continued trust and support of Luckin.

Nancy Song: Finally, we would like to extend our sincere gratitude to our customers, partners, and investors for their continued trusting and support of Luckin, as well as to our 170,000 Luckin team members who stand with us through their dedication and hard work. Together, we will continue building a world-class coffee brand and making Luckin a part of everyone's daily life. As we move forward, we remain committed to long-term value creation for our customers, partners, and shareholders.

[Translator]: Finally, we would like to extend our sincere gratitude to our customers, partners, and investors for their continued trusting and support of Luckin, as well as to our 170,000 Luckin team members who stand with us through their dedication and hard work. Together, we will continue building a world-class coffee brand and making Luckin a part of everyone's daily life. As we move forward, we remain committed to long-term value creation for our customers, partners, and shareholders.

Speaker #2: As well as to our 170,000 Luckin team members who stand with us through their dedication and hard work. Together, we will continue building a world-class coffee brand and making Luckin a part of everyone's daily life.

Speaker #2: As we move forward, we remain committed to long-term value creation for our customers, partners, and shareholders.

Jinyi Guo: 好，接下来有请安静向大家介绍详细的财务数据。

Jinyi Guo: [Foreign language]

Speaker #2: With that, ??????????????????????I will now turn the call over to Anjing to go through our financial results in detail.

Nancy Song: With that, I will now turn the call over to An Jing to go through our financial results in detail.

[Translator]: With that, I will now turn the call over to An Jing to go through our financial results in detail.

Speaker #3: Thank you, Xinyi. Good day, everyone. Thank you for joining today's call. We delivered another strong quarter, underscoring our sustainable momentum and competitive strength.

An Jing: Thank you, Jin Yi. Good day, everyone. Thank you for joining today's call. We delivered another strong quarter, underscoring our sustained momentum and competitive strength. With a continued focus on scale and operational excellence, we achieved record highs in both customer acquisition and in monthly transacting customers. This achievement further strengthens the foundation for our future store performance and long-term growth. Let's now look at our financial performance in detail. In Q3, total net revenues increased by 60% year-over-year to RMB 15.3 billion. Primarily driven by a 48% year-over-year increase in GMV to RMB 17.3 billion. This accelerated growth reflected a strong performance across both self-operated and partnership stores, supported by our record monthly transacting customer accounts and the expanded store network to better meet rising demand.

Jing An: Thank you, Jin Yi. Good day, everyone. Thank you for joining today's call. We delivered another strong quarter, underscoring our sustained momentum and competitive strength. With a continued focus on scale and operational excellence, we achieved record highs in both customer acquisition and in monthly transacting customers. This achievement further strengthens the foundation for our future store performance and long-term growth. Let's now look at our financial performance in detail. In Q3, total net revenues increased by 60% year-over-year to RMB 15.3 billion. Primarily driven by a 48% year-over-year increase in GMV to RMB 17.3 billion. This accelerated growth reflected a strong performance across both self-operated and partnership stores, supported by our record monthly transacting customer accounts and the expanded store network to better meet rising demand.

Speaker #3: With the continued focus on scale and operational excellence, we achieved record highs in both customer acquisition and in monthly transacting customers. This achievement further strengthens the foundation for our future stock performance and long-term growth.

Speaker #3: Let's now look at our financial performance in detail. In the third quarter, total net revenues increased by 50% year over year to RMB 15.3 billion.

Speaker #3: Primarily driven by a 48% year over year increase in GMV to RMB 17.3 billion. This accelerated growth reflected a strong performance across both self-operated and partnership stores.

Speaker #3: Supported by our record monthly transacting customer accounts and expanded store network to better meet rising demand, revenues increased by 47% year over year to RMB 11.5 billion.

An Jing: Revenues increased by 47% year-over-year to RMB 11.5 billion, mainly driven by stronger sales performance in our self-operated stores. Breaking down our product sales into three streams. Net revenues from freshly brewed drinks were RMB 10.6 billion, representing about 70% of the total net revenues. Net revenues from other products were RMB 622 million, or roughly 4% of the total net revenues. Net revenues from others were RMB 233 million, or about 1% of the total net revenues. Looking at product sales from the perspective of company-owned stores, revenue from self-operated stores increased by 48% year-over-year to RMB 11.1 billion. Same-store sales growth reached 14.4% for this quarter, driven by increased cup sales and ASP, reflecting the shift in volume mix toward delivery.

Jing An: Revenues increased by 47% year-over-year to RMB 11.5 billion, mainly driven by stronger sales performance in our self-operated stores. Breaking down our product sales into three streams. Net revenues from freshly brewed drinks were RMB 10.6 billion, representing about 70% of the total net revenues. Net revenues from other products were RMB 622 million, or roughly 4% of the total net revenues. Net revenues from others were RMB 233 million, or about 1% of the total net revenues. Looking at product sales from the perspective of company-owned stores, revenue from self-operated stores increased by 48% year-over-year to RMB 11.1 billion. Same-store sales growth reached 14.4% for this quarter, driven by increased cup sales and ASP, reflecting the shift in volume mix toward delivery.

Speaker #3: Many were driven by stronger sales performance in our self-operated stores. Breaking down our product itself into three streams: net revenues from freshly brewed drinks were RMB 10.6 billion.

Speaker #3: Representing approximately 70% of total net revenues. Net revenues from other products were RMB 622 million, or roughly 4% of total net revenues. Net revenues from others were RMB 233 million, or about 1% of total net revenues.

Speaker #3: Looking at product sales from the perspective of company-owned stores, revenue from self-operated stores increased by 48% year-over-year to RMB 11.1 billion. Since store sales growth reached 14.4% for this quarter.

Speaker #3: Driven by increased cup sales, and ASP reflecting the shift in volume mix toward delivery, store-level operating profit grew 10% year over year to RMB 1.9 billion, with self-operated store-level operating margin of 17.5%.

An Jing: Store-level operating profit grew 10% year-over-year to RMB 1.9 billion, with self-operated store level operating margin of 17.5%. Revenues from partnership stores increased by 62% year-over-year to RMB 3.8 billion, accounting for 25% of the total net revenues. This impressive growth was primarily driven by higher material sales, profit sharing from strong partnership store performance, and increased delivery service fees resulting from greater delivery volumes. Cost of materials as a percentage of the total net revenues decreased to 36% from 39% in the same period of 2024, mainly due to our enhanced supply chain advantages. In absolute terms, cost of materials increased by 41% year-over-year to RMB 5.5 billion, in line with our business expansion.

Jing An: Store-level operating profit grew 10% year-over-year to RMB 1.9 billion, with self-operated store level operating margin of 17.5%. Revenues from partnership stores increased by 62% year-over-year to RMB 3.8 billion, accounting for 25% of the total net revenues. This impressive growth was primarily driven by higher material sales, profit sharing from strong partnership store performance, and increased delivery service fees resulting from greater delivery volumes. Cost of materials as a percentage of the total net revenues decreased to 36% from 39% in the same period of 2024, mainly due to our enhanced supply chain advantages. In absolute terms, cost of materials increased by 41% year-over-year to RMB 5.5 billion, in line with our business expansion.

Speaker #3: Revenues from partnership stores increased by 62% year over year to RMB 3.8 billion, accounting for 25% of total net revenues. This impressive growth was primarily driven by higher material sales, profit-sharing from strong partnership store performance, and increased delivery service fees resulting from greater delivery volumes.

Speaker #3: Cost of materials as a percentage of total net revenues decreased to 36% from 39% in the same period of 2024, mainly due to our intense supply challenges at the Vantages.

Speaker #3: In absolute terms, the cost of materials increased by 41% year over year to RMB 5.5 billion, in line with our business expansion. Store rental and other operating costs as a percentage of total net revenues decreased to 20% from 22% in the same period of 2024.

An Jing: Store rental and other operating costs as a percentage of the total net revenues decreased to 20% from 22% in the same period of 2024, mainly driven by improved operational efficiency and scale benefits from increased cup sales. In absolute terms, this cost increased by 36% year-over-year to RMB 3.1 billion, reflecting higher payroll costs tied to cup sales growth and increased rental costs from ongoing store expansion. Delivery expenses increased by 211% year-over-year to RMB 2.9 billion due to a significant increase in delivery orders from food delivery platforms. Delivery expenses as a percentage to total net revenue sharply rose to 19% from 9% in the same period of 2024. However, on a per order basis, delivery expenses decreased year-over-year, reflecting improved efficiency at scale.

Jing An: Store rental and other operating costs as a percentage of the total net revenues decreased to 20% from 22% in the same period of 2024, mainly driven by improved operational efficiency and scale benefits from increased cup sales. In absolute terms, this cost increased by 36% year-over-year to RMB 3.1 billion, reflecting higher payroll costs tied to cup sales growth and increased rental costs from ongoing store expansion. Delivery expenses increased by 211% year-over-year to RMB 2.9 billion due to a significant increase in delivery orders from food delivery platforms. Delivery expenses as a percentage to total net revenue sharply rose to 19% from 9% in the same period of 2024. However, on a per order basis, delivery expenses decreased year-over-year, reflecting improved efficiency at scale.

Speaker #3: Many are driven by improved operational efficiency and scale benefits from increased cup sales. In absolute terms, this cost increased by 36% year over year to RMB 3.1 billion, reflecting higher payroll costs tied to cup sales growth and increased rental costs from ongoing stock expansion.

Speaker #3: Delivery expenses increased by 211% year over year to RMB 2.9 billion, due to a significant increase in delivery orders from food delivery platforms. As a result, delivery expenses as a percentage of total net revenues sharply rose to 19% from 9% in the same period of 2024.

Speaker #3: However, order-based delivery expenses decreased year over year, reflecting improved efficiency at scale. Sales and marketing expenses, as a percentage of total net revenue, decreased to 5% from 6% in the same period of 2024.

An Jing: Sales and marketing expenses as a percentage of the total net revenue decreased to 5% from 6% in the same period of 2024, mainly driven by enhanced operating efficiency and the leverage from accelerated revenue growth. In absolute terms, sales and marketing expenses increased by 28% year-over-year to RMB 751 million, mainly due to higher commission fees paid to food delivery platforms as a result of the rising delivery volumes. General and administrative expenses as a percentage of the total net revenue decreased to 5% from 6% in the same period of 2024, mainly driven by enhanced operating efficiency and the leverage from accelerated revenue growth.

Jing An: Sales and marketing expenses as a percentage of the total net revenue decreased to 5% from 6% in the same period of 2024, mainly driven by enhanced operating efficiency and the leverage from accelerated revenue growth. In absolute terms, sales and marketing expenses increased by 28% year-over-year to RMB 751 million, mainly due to higher commission fees paid to food delivery platforms as a result of the rising delivery volumes. General and administrative expenses as a percentage of the total net revenue decreased to 5% from 6% in the same period of 2024, mainly driven by enhanced operating efficiency and the leverage from accelerated revenue growth.

Speaker #3: Many were driven by enhanced operating efficiency and the leverage from accelerated revenue growth. In absolute terms, sales and marketing expenses increased by 28% year over year to RMB 751 million, mainly due to higher commission fees paid to food delivery platforms as a result of the rising delivery volumes.

Speaker #3: General and administrative expenses as a percentage of total net revenue decreased to 5% from 6% in the same period of 2024. This decrease was driven by enhanced operating efficiency and the leverage from accelerated revenue growth.

Speaker #3: In absolute terms, G&A expenses increased by 25% year over year to RMB 793 million, primarily due to increased payroll expenses and share basis composition, as well as greater investment in research and development.

An Jing: In absolute terms, G&A expenses increased by 25% year-over-year to RMB 793 million, primarily due to increased payroll expenses and share-based compensation, as well as greater investment in research and development. As a result, our GAAP operating profit increased by 13% year-over-year to RMB 1.8 billion. Operating margin was 11.6% compared to 15.5% in the prior year period, mainly impacted by a significant increase in delivery expenses. On a GAAP basis, operating profit increased by 15% year-over-year to RMB 1.9 billion. With operating margin as a 12.6%. Net profit was at RMB 1.28 billion, with a net margin of 8.4% compared to RMB 1.31 billion and a 12.9% in the prior year period, mainly due to a higher effective tax rate.

Jing An: In absolute terms, G&A expenses increased by 25% year-over-year to RMB 793 million, primarily due to increased payroll expenses and share-based compensation, as well as greater investment in research and development. As a result, our GAAP operating profit increased by 13% year-over-year to RMB 1.8 billion. Operating margin was 11.6% compared to 15.5% in the prior year period, mainly impacted by a significant increase in delivery expenses. On a GAAP basis, operating profit increased by 15% year-over-year to RMB 1.9 billion. With operating margin as a 12.6%. Net profit was at RMB 1.28 billion, with a net margin of 8.4% compared to RMB 1.31 billion and a 12.9% in the prior year period, mainly due to a higher effective tax rate.

Speaker #3: As a result, our gap operating profit increased by 13% year over year to RMB 1.8 billion. The operating margin was 11.6% compared to 15.5% in the prior year period.

Speaker #3: Many impacted by a significant increase in delivery expenses. On an gap basis, operating profit increased by 15% year over year to RMB 1.9 billion, with operating margin at 12.6%.

Speaker #3: Net profit was at RMB 1.28 billion, with a net margin of 8.4% compared to RMB 1.31 billion and 12.9% in the prior year period.

Speaker #3: Mainly due to a higher effective tax rate on an gap basis, net profit was RMB 1.4 billion, with a net margin at 9.3%. Finally, turning to our balance sheet and cash flow items, our net operating cash inflow was around RMB 2.1 billion in the third quarter of 2025.

An Jing: On a non-GAAP basis, net profit was RMB 1.4 billion, with a net margin at 9.3%. Turning to our balance sheet and the cash flow items. Our net operating cash inflow was around RMB 2.1 billion in Q3 2025. As of 30 September 2025, we had RMB 9.3 billion in cash, including cash and cash equivalents, restricted cash, term deposits, and short-term investments compared to RMB 5.9 billion as of 31 December 2024. Our robust cash generation ability and a strong cash reserve enable us to flexibly adapt our business expansion pace to different market conditions, letting us fully capitalize on emerging opportunities. In close, our solid Q3 results reaffirmed our market leadership and the business resilience.

Jing An: On a non-GAAP basis, net profit was RMB 1.4 billion, with a net margin at 9.3%. Turning to our balance sheet and the cash flow items. Our net operating cash inflow was around RMB 2.1 billion in Q3 2025. As of 30 September 2025, we had RMB 9.3 billion in cash, including cash and cash equivalents, restricted cash, term deposits, and short-term investments compared to RMB 5.9 billion as of 31 December 2024. Our robust cash generation ability and a strong cash reserve enable us to flexibly adapt our business expansion pace to different market conditions, letting us fully capitalize on emerging opportunities. In close, our solid Q3 results reaffirmed our market leadership and the business resilience.

Speaker #3: As of September 30, 2025, we had RMB 9.3 billion in cash, including cash and cash equivalents, restricted cash, term deposit, and a short-term investment.

Speaker #3: Compared to RMB 5.9 billion, as of December 31, 2024, our robust cash generation ability and strong cash reserve enable us to flexibly adapt our business expansion pace to different market conditions, letting us fully capitalize on emerging opportunities.

Speaker #3: In quotes, our solid Q3 results reaffirm our market leadership and business resilience. We are particularly encouraged by the potential of our growing customer base, especially as we continue to expand loyal cohorts.

An Jing: We are particularly encouraged by the potential of our growing customer base, especially as we continue to expand loyal cohorts. This give us great confidence in capturing the vast opportunities in China's coffee market, despite involving external dynamics, while maintaining disciplined cost management and operational efficiency. With that, we will open the call for questions. Operator, please go ahead.

Jing An: We are particularly encouraged by the potential of our growing customer base, especially as we continue to expand loyal cohorts. This give us great confidence in capturing the vast opportunities in China's coffee market, despite involving external dynamics, while maintaining disciplined cost management and operational efficiency. With that, we will open the call for questions. Operator, please go ahead.

Speaker #3: This gives us greater confidence in capturing the vast opportunities in China's coffee market, despite involving external dynamics. While maintaining disciplined coffee management and operational efficiency, we will now open the call for questions.

Speaker #3: Operator, please go

Speaker #3: ahead.

Speaker #2: Ladies and gentlemen, we will

Operator: Ladies and gentlemen, we will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. Once again, it is star then one to ask a question. At this time, we will pause momentarily to assemble our roster. The first question comes from Ethan Wang with CLSA. Please go ahead.

Speaker #2: now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys.

Speaker #2: If at any time your question has been addressed and you would like to withdraw your question, please press star then two. Once again, it is star then one to ask a question.

Speaker #2: At this time, we will pause momentarily to assemble our roster. The first question comes from Ethan Wang with CLSA. Please go ahead.

Speaker #3: ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????I'll translate to English. Good evening, management. So in terms of the delivery subsidy, we understand that it definitely helps our revenue to grow very strongly in this quarter and the last quarter as well.

Ethan Wang: 王总晚上好, 我想提一个关于外卖的问题. 因为我们看到, 因为外卖补贴, 我们的收入增长确实很快, 但是利润率有一些影响. 刚才郭总在 prepared remarks 也提到, Q4 进入淡季, 这个外卖补贴的力度有所减弱. 我就想好奇, 就是, 这个是因为季节性减弱, 还是平台的外卖补贴规则有些变化, 以及到了明年我们会不会担心今年的高基数. I'll translate into English.

Ethan Wang: [Foreign language]. I'll translate into English.

Ethan Wang: Good evening, management. In terms of the delivery subsidy, we understand that it definitely helps our revenue to grow very strongly, in this quarter and the last quarter as well. It also has an impact, a negative impact on our margin. I can see mentions that going to Q4, the subsidy, the extent of subsidy has faded a bit, but I'm just wondering, is it because of seasonal effects or there are some structural changes behind, and going to next year, shall we worry about the high base effect? Thank you.

Speaker #3: But it also has an impact, a negative impact on our margin. I think the CEO mentioned that going into the fourth quarter, the extent of the subsidy has faded a bit. But I'm just wondering, is it because of seasonal effects or are there some structural changes behind it?

Speaker #3: And going to next year, shall we worry about the high base effect? Thank you.

Jinyi Guo: 好，谢谢啊。来我来，我来，那个，回答一下您这个问题。呃，对于我们现在看到的，就是我们看到的外卖补贴的整个的这个情况，以及对于瑞幸的未来业务的影响，我觉得对于这个问题呢，是要回到，嗯，整个咖啡业务的商业本质，嗯，再结合整个的中国咖啡行业的，呃，趋势，以及瑞幸我们自身的这个能力来进行一个综合的这种分析和判断。

Jinyi Guo: [Foreign language]

An Jing: That's all. I will answer your question. Regarding the potential impact of the subsidy situation, we think it's important to see this issue through the nature of a coffee business. Also we need to evaluate within the context of the broader industry trends as well as our own operational capabilities.

Jing An: That's all. I will answer your question. Regarding the potential impact of the subsidy situation, we think it's important to see this issue through the nature of a coffee business. Also we need to evaluate within the context of the broader industry trends as well as our own operational capabilities.

Speaker #1: I 我是想我来回答一下您这个问题。对于我们现在看到的，就是我们看到的外卖补贴的整个的这个情况，以及对于瑞幸的未来业务的影响，我觉得对于这个问题是要回到整个咖啡业务的商业本质。再结合整个的中国咖啡行业的趋势以及瑞幸我们自身的这个能力来进行一个综合的这种分析和判断。 I will answer your question. So regarding the potential impact of the subsidy situations, we think it's important to see this issue through the nature of coffee business and also we need to evaluate within the context of the broader industry trend as well as our own operational capabilities.

Speaker #4: 首先咖啡本质是一个基于位置的，也就是基于一个线下门店点位的消费品类。这决定了咖啡行业的长期发展仍将以自提为核心。外卖更多是阶段性的一个补充。这主要有两方面的理由。一方面外卖的履约成本和目前中国咖啡的主流价格带其实是不匹配的。外卖的成本对于单位价格其实是过于敏感的。所以基于外卖的这种经济学模型，单杯经济的模型并不是一个最优解。另一方面，配送的时长会影响到用户对于咖啡这种即时消费需求的满足的这种影响，也会影响到咖啡的这种产品的口感体验。从这个角度来看，也不是一个最理想的体验的模式。而瑞幸是一个以快取店型为主的这样的一个门店的模型体系。这样就可以密集地分布在几乎所有的场景，能够最大限度地贴近客户。这也是支持瑞幸业务长期发展的核心优势。因此我们判断咖啡业务长期也将逐步回归到以自提为主的这种常态。当然这确实还需要很长的这种发展周期。

Jinyi Guo: 嗯，首先呢，咖啡本质是一个基于位置的，也就是基于一个线下门店点位的消费品类，这决定了咖啡行业的长期发展仍将以自提为核心。外卖呢，更多是阶段性的一个补充。呃，这主要是有两方面的理由啊。一方面，外卖的履约成本和目前中国咖啡的主流价格带其实是不匹配的，外卖的成本对于单位价格其实是过于敏感的。所以呢，基于外卖的这种经济学模型，单位经济的模型并不是一个最优解。另一方面，配送的时长会影响到用户对于咖啡这种即时消费需求的满足的这种影响，也会影响到咖啡的这种产品的口感体验。从这个角度来看呢，也不是一个最理想的体验的模式。而瑞幸呢，是一个以快取店型为主的这样的一个门，门店的模型体系，这样就可以密集地分布在几乎所有的场景，能够最大限度地贴近客户，这也是支持瑞幸业务长期发展的核心优势。因此我们判断咖啡业务长期也将逐步回归到以自提为主的这种常态。当然这确实还需要很长的这种发展周期。好吗？

Jinyi Guo: [Foreign language]

Nancy Song: Yeah. First, coffee is inherently a location based and store driven consumer product. This means pickup will remain the primary consumption format over the long term. Delivery will serve as more as a supplemental channel at certain stages as the market evolves. There are two reasons for this. One is delivery fulfillment costs are disproportionately high compared to China's mainstream price range of freshly brewed coffee. Delivery is highly sensitive to per cup pricing and its unit economics are less favorable. The second is longer delivery times can compromise the immediacy and the coffee taste experience that consumers expect. Which makes it a less ideal consumption model.

[Translator]: Yeah. First, coffee is inherently a location based and store driven consumer product. This means pickup will remain the primary consumption format over the long term. Delivery will serve as more as a supplemental channel at certain stages as the market evolves. There are two reasons for this. One is delivery fulfillment costs are disproportionately high compared to China's mainstream price range of freshly brewed coffee. Delivery is highly sensitive to per cup pricing and its unit economics are less favorable. The second is longer delivery times can compromise the immediacy and the coffee taste experience that consumers expect. Which makes it a less ideal consumption model.

Speaker #1: So first, coffee is inherently a location-based and store-driven consumer product. This means pickup will remain the primary consumer format over the long term, but delivery will serve as more of a supplemental channel at certain stages of market evolution.

Speaker #1: So there are two reasons for this. One is that delivery fulfillment costs are disproportionately high compared to China's mainstream price range of freshly brewed coffee.

Speaker #1: So delivery is highly sensitive to per-cup pricing, and its unique economics are less favorable. Also, longer delivery times can compromise the immediacy and the coffee's taste experience that consumers expect.

Speaker #1: So, which makes it a less ideal consumption model. And our lattice pickup-oriented store format actually allows us to densely open stores across nearly all of the consumption scenarios.

Nancy Song: Our Luckin pickup-oriented store format actually allows us to densely open stores across nearly all of the consumption scenarios. It can keep us as close to customers as possible. This is actually the core advantage of Luckin and underpins our long-term growth. We believe the coffee business will naturally return to a pickup-oriented model over time. Although this transition period will take a longer time to happen.

[Translator]: Our Luckin pickup-oriented store format actually allows us to densely open stores across nearly all of the consumption scenarios. It can keep us as close to customers as possible. This is actually the core advantage of Luckin and underpins our long-term growth. We believe the coffee business will naturally return to a pickup-oriented model over time. Although this transition period will take a longer time to happen.

Speaker #1: It makes us keep as close to customers as possible. So this is actually the core advantage of locking, and it underpins our long-term growth.

Speaker #1: So, we believe the coffee business will naturally return to a pickup-oriented model over time, although this transition period will take a longer time to happen.

Speaker #4: 另外经过今年二季度开始的外卖平台的大规模补贴，整个的外卖平台的业务总量激增。从目前的趋势来看，明年外卖平台的补贴必将转入一个更为精细化的运营的策略，预计补贴的力度也会逐步收紧。在整个以 ROI 为导向的补贴策略下，平台预计更倾向于和订单密度高、交付效率强，也是补贴效果转化最好的品牌合作。瑞幸凭借庞大的门店网络、高效的门店运营以及稳定的交付体系，我相信还会是外卖平台补贴的一个最优的选择。

Jinyi Guo: 经过今年 Q2 开始的外卖平台的大规模补贴，整个的外卖平台的业务总量激增。从目前的趋势来看，明年外卖平台的补贴必将转入一个更为精细化的运营的策略，预计补贴的力度也会逐步收紧。在整个以 ROI 为导向的补贴策略下，平台预计更倾向于和订单密度高，交付效率强，也是补贴效果转化最好的品牌合作。瑞幸凭借庞大的门店网络，高效的门店运营以及稳定的交付体系，我相信还会是外卖平台补贴的一个最优的选择。

Jinyi Guo: [Foreign language]

Nancy Song: Yeah. This year's large scale subsidies have driven a significant surge in the overall order volumes on flat on food delivery platforms. Next year, these platforms are expected to adopt a more refined and ROI-driven operational strategies. The promotional intensity likely to taper gradually as well. Under such an ROI-driven approach, platforms will likely prioritize partnerships with brands who demonstrate high order density, strong fulfillment efficiency, and effective subsidy conversion. With our extensive store network, efficient operations at the storefront and our reliable fulfillment infrastructure, Luckin, I believe Luckin remains a preferred partner for food delivery platforms.

[Translator]: Yeah. This year's large scale subsidies have driven a significant surge in the overall order volumes on flat on food delivery platforms. Next year, these platforms are expected to adopt a more refined and ROI-driven operational strategies. The promotional intensity likely to taper gradually as well. Under such an ROI-driven approach, platforms will likely prioritize partnerships with brands who demonstrate high order density, strong fulfillment efficiency, and effective subsidy conversion. With our extensive store network, efficient operations at the storefront and our reliable fulfillment infrastructure, Luckin, I believe Luckin remains a preferred partner for food delivery platforms.

Speaker #1: subsidies have driven a significant surge in the overall order volumes on food delivery platforms. So next year these platforms are expected to adopt a more refined and ROI-driven operational strategies.

Speaker #1: And the promotion intensity likely to taper gradually as well. So under such an ROI-driven approach, platforms will likely prioritize partnerships with brands who demonstrate high order density, strong fulfillment efficiency, and effective subsidy conversion.

Speaker #1: So with our extensive store network, efficient operations as a storefront, and our reliable fulfillment infrastructure, locking I believe locking remains a preferred partner for food delivery platforms.

Speaker #4: 当然与此同时，我们也的确看到今年外卖渠道的补贴力度在起步阶段确实比较大。客观上也推动了我们订单量和客户数量的爆发式的提升，也形成了一个相对较高的业务基数。随着平台开始收补，明年补贴向精细化方向的调整，行业整体的增长节奏可能会呈现出与今年不同的阶段性特征。我们的明年同店的增长也会遇到挑战和压力，但正如我前面所提到的，在不断变化的行业环境中，我们相信关注长期发展、持续聚焦自身产品力和品牌力、持续释放客户的消费潜力才是穿越外部环境变化的核心所在。这也是支撑瑞幸业务长期可持续增长的一个原动力。以上就是对这个问题的回答，好吗？谢谢。

Jinyi Guo: 当然与此同时，我们也的确看到今年外卖渠道的补贴力度在起步阶段确实比较大，客观上也推动了我们订单，订单量和客户数量的爆发式的提升，也形成了一个相对较高的业务基数。随着平台开始收补，明年补贴向精细化方向的调整，行业整体的增长节奏可能会呈现出与今年不同的阶段性特征。我们的明年同店的增长也会遇到挑战和压力。但正如我前面所提到的，在不断变化的行业环境中，我们相信关注长期发展，持续聚焦自身产品力和品牌力，持续释放客户的消费潜力，才是穿越外部环境变化的核心所在，这也是支撑瑞幸业务长吃，长期可持续增长的一个源动力。以上就是对这个问题的回答，好吗？谢谢。

Jinyi Guo: [Foreign language]

Nancy Song: Yeah. At the same time, we also see that food delivery platforms, they offered substantial subsidies in the early stages of their campaigns, which objectively fueled a sharp increase in our order volumes and customer base, creating a relatively high comparison base. As platforms, they have already scaled back their subsidies and will shift towards a more refined approach next year, the industry's overall growth trajectory will differ from this year, and our same-store sales growth next year will also face challenges and pressure. As I mentioned earlier, in this evolving landscape, we believe that the only focusing on long-term development is the key to navigating external changes.

[Translator]: Yeah. At the same time, we also see that food delivery platforms, they offered substantial subsidies in the early stages of their campaigns, which objectively fueled a sharp increase in our order volumes and customer base, creating a relatively high comparison base. As platforms, they have already scaled back their subsidies and will shift towards a more refined approach next year, the industry's overall growth trajectory will differ from this year, and our same-store sales growth next year will also face challenges and pressure. As I mentioned earlier, in this evolving landscape, we believe that the only focusing on long-term development is the key to navigating external changes.

Speaker #1: that food delivery platforms, they offered substantial subsidies in the early stages of their campaigns. Which objectively filled an a sharp increase in our order volumes and the customer base.

Speaker #1: Creating a relatively high comparison base. As platforms, they have already scaled back their subsidies and will shift towards a more refined approach next year.

Speaker #1: The industry's overall growth trajectory will differ from this year. And our same-store sales growth next year will also face challenges and pressure. And as I mentioned earlier, in this evolving landscape, we believe that the only focusing on long-term development is a key is the key to navigating external changes.

Speaker #1: This means we continuously strengthen our product and brand competitiveness and lock in customers' consumption potential, which we see as the core key driver of our long-term sustainable growth.

Nancy Song: This means we continuously strengthen our product and brand competitiveness, unlock customer, customers' consumption potential, which we see this as a core, key driver of our long-term sustainable growth. Thank you. This is my answer to the question.

[Translator]: This means we continuously strengthen our product and brand competitiveness, unlock customer, customers' consumption potential, which we see this as a core, key driver of our long-term sustainable growth. Thank you. This is my answer to the question.

Speaker #1: Thank you. This is my answer to the question.

Speaker #2: Thank you, Gordon. Thank you.

Ethan Wang: 谢谢郭总. Thank you.

Ethan Wang: [Foreign language]. Thank you.

Speaker #3: Our next question comes from CG Lin of CICC. CIG, please go ahead.

Sijie Lin: Our next question comes from Sijie Lin of CICC. CG, please go ahead.

Operator: Our next question comes from Sijie Lin of CICC. CG, please go ahead.

Speaker #3: ahead. 谢谢 Gordon

Nancy Song: 谢谢郭总，安总，我想请教一个关于长期发展战略的问题，就是公司过去我们看到不断地面临，包括未来可能也会持续地面临，比如说这个竞争格局的变化，包括刚才提到的外卖平台补贴等等的外部环境的变化，那公司会如何平衡这个规模、同店还有利润这三者之间的关系？我翻译成英文。Thank you 郭总，安总。My question is about long term development strategy.

Speaker #2: 安总。我想请教一个关于长期发展战略的问题。就是公司过去我们看到不断的面临，包括未来可能也会持续的面临，比如说这个竞争格局的变化，包括刚才提到的外卖平台补贴等等的外部环境的变化。那公司会如何平衡这个规模同店还有利润这三者之间的关系？我翻译成英文。 Thank you, Gordon 安总。 My question is about long-term development strategy. We have constantly faced and may continue to face external environmental changes such as competitive landscape and delivery platform subsidies.

Sijie Lin: [Foreign language].Thank you [Foreign language]My question is about long term development strategy. We have constantly face and may continue to face external environmental changes such as competitive landscape and delivery platform subsidies. How will we balance different targets, including skills, same-store growth, and profits? Thank you.

Nancy Song: We have constantly face and may continue to face external environmental changes such as competitive landscape and delivery platform subsidies. How will we balance different targets, including skills, same-store growth, and profits? Thank you.

Speaker #2: So how will we balance different targets, including scale, same-store sales growth, and profits? Thank you.

Speaker #4: 好，谢谢。非常感谢您的提问。这是个很好的问题，也是一个我们在长期的这个在思考中的一个问题。对于这个问题呢，我觉得我们需要从一个更长期的发展视角，特别是要结合中国咖啡行业目前所处的发展阶段和瑞幸咖啡自身的实际情况来看待，就是包括规模、同店增长和利润之间的这三者之间的关系。一方面呢，总体来看，当前中国咖啡市场，我们觉得还是在一个刚刚起步的阶段。仍然处在快速发展的红利期，市场空间无比广阔。因此对于我们而言，如何把握住这一历史机遇，能够获得行业发展的最大红利，是最重要的。特别是今年的外卖补贴呢，其实进一步加速了整个行业的资源整合，提升了行业的集中度。未来随着补贴的这个退坡，我们相信集中度进一步加剧的这种趋势可能会进一步持续。在此背景下，我们会重点聚焦增长，持续关注份额，继续稳步扩大门店规模，努力通过高质量的门店网络承接住未来更多的客户需求。当然这也为长期的发展能够打下一个更为坚实的基础。先翻吧。

Jinyi Guo: 好，谢谢啊，非常感谢您的提问。呃这是个很好的问题，也是一个我们在长期的这个在思考中的一个问题。对于这个问题呢，我觉得我们需要从一个更长期的发展视角，呃特别是要结合中国咖啡行业目前所处的发展阶段和瑞幸咖啡自身的实际情况来看待，就是包括规模啊，同店增长和利润之间的这个三者之间的关系。一方面呢，总体来看，当前中国咖啡市场我们觉得还是在一个刚刚起步的阶段，仍然处在快速发展的红利期，市场空间无比广阔。因此，对于我们而言，如何把握住这一历史机遇，能够获得行业发展的最大红利是最重要的。特别是今年的外卖补贴呢，其实进一步加速了整个行业的资源整合，提升了行业的集中度。未来随着补贴的这个退坡，我们相信集中度进一步加剧的这种趋势可能会进一步持续。在此背景下，我们会重点聚焦增长，持续关注份额，继续稳步扩大门店规模，努力通过高质量的门店网络承接入未来更多的客户需求，当然这也为长期的发展能够打下一个更为坚实的基础。先翻译。

Jinyi Guo: [Foreign language]

Nancy Song: Yeah, thank you for your question. This is a very good question, and it's always on top of our mind. We need to take a much longer term perspective when evaluating the relationship among scale, same-store growth, and our profitability. Considering the current stage of China's coffee industry and Luckin's own development trajectory. China's coffee market is still in its early stages of development, and it remains in a high growth phase with vast market opportunities and potential. For us, it's very crucial to capture this historic opportunity and maximize the long-term benefits from these structural trends. In particular, this year's the food delivery platform subsidies have further accelerated industry consolidation as well as increased market concentration. At least some disease gradually phase out, this trend is expected to continue as well.

[Translator]: Yeah, thank you for your question. This is a very good question, and it's always on top of our mind. We need to take a much longer term perspective when evaluating the relationship among scale, same-store growth, and our profitability. Considering the current stage of China's coffee industry and Luckin's own development trajectory. China's coffee market is still in its early stages of development, and it remains in a high growth phase with vast market opportunities and potential. For us, it's very crucial to capture this historic opportunity and maximize the long-term benefits from these structural trends. In particular, this year's the food delivery platform subsidies have further accelerated industry consolidation as well as increased market concentration. At least some disease gradually phase out, this trend is expected to continue as well.

Speaker #1: This is a very good question, and it’s always on top of our mind. We need to take a much longer-term perspective when evaluating the relationship among scale, same-store growth, and our profitability.

Speaker #1: So considering the current stage of China's coffee industry and locking its own development trajectory. So China's coffee market is still in its early stages of development and remains in high growth phase with vast market opportunities and potential.

Speaker #1: So for us, it's very crucial to capture this historic opportunity and then maximize the long-term benefits from this structural trend. In particular, this year, the food delivery platform subsidies have further accelerated industry consolidation, as well as increased market concentration.

Speaker #1: So, as these subsidies gradually phase out, this trend is expected to continue as well. Against this backdrop, our strategic focus will remain on growth and market share.

Nancy Song: Against this backdrop, our strategic focus will remain on growth and market share. We will continue to steadily expand our store footprint, building a high-quality and efficient store network to meet growing customer demands and pave the way for our long-term growth.

[Translator]: Against this backdrop, our strategic focus will remain on growth and market share. We will continue to steadily expand our store footprint, building a high-quality and efficient store network to meet growing customer demands and pave the way for our long-term growth.

Speaker #1: And we continue to we will continue to steadily expand our store footprint, building a high-quality and efficient store network to meet growing customer demand and pave the way for our long-term growth.

Speaker #4: 从同店的这个指标来看呢，我首先需要强调的是瑞幸在2020年发生财务事件之后，我们的门店扩张始终以保证质量作为第一个重要的前提。一方面新店开业后会依托我们庞大的成熟的运营体系，快速爬坡提升门店的表现；另一方面也会通过持续的产品和品牌创新，不断提升客户的复购和消费频次，从而推动门店表现的持续健康发展。如我前面提到的，今年的四季度和明年，由于受到多种因素的叠加的影响，同店增长的指标短期可能会出现波动和压力，但是从长期看，更便捷的门店交付以及带来的更方便的客户触达，对于咖啡饮用的消费习惯的逐步养成，对于客户消费频次的天然提升，有着积极正向的作用。这也会给我们长期的门店向好带来一个持续的动力。

Jinyi Guo: 呃从同店的这个指标来看呢，呃我首先需要强调的是，瑞幸在 2020 年发生财务事件之后，我们的门店扩张始终以保证质量作为第一个重要的前提。一方面，新店开业后会依托我们庞大的成熟的运营体系，快速爬坡，提升门店的表现，另一方面也会通过持续的产品和品牌创新，不断提升客户的复购和消费频次，从而推动门店表现的持续健康发展。如我前面提到的，今年的四季度和明年由于受到多种因素的叠加的影响，同店增长的指标短期可能会出现波动和压力，但是从长期看，更便捷的门店交付以及带来的更方便的客户触达，对于客 -- 对于咖啡饮用的消费习惯的逐步养成，对于客户消费频次的天然提升有着积极正向的作用，这也会给我们长期的门店向好带来一个持续的动力。

Jinyi Guo: [Foreign language]

Speaker #1: Yeah, so regarding the same-store growth, we like to emphasize that since the financial issue in 2020, maintaining a high store quality has always been the top priority in our expansion.

Nancy Song: Yes, regarding the same-store growth, we like to emphasize that since the financial issue in 2020, maintaining a high store quality has always been the top priority in our expansion. On one hand, new stores can leverage our mature operational framework to quickly ramp up and improve their performance. On the other hand, we continue to improve customer loyalty and repeat purchases through continuous product innovation and brand innovation, driving steady and sustainable store performance. As I mentioned earlier, taking into account the factors above, our same-store sales growth metric in Q1 and even next year, we'll face some short term fluctuations and pressure. However, from a long term perspective, more convenient store fulfillment and improved customer reach play a very Positive and important role in fostering coffee drinking habits, as well as naturally increasing consumption frequency among customers.

[Translator]: Yes, regarding the same-store growth, we like to emphasize that since the financial issue in 2020, maintaining a high store quality has always been the top priority in our expansion. On one hand, new stores can leverage our mature operational framework to quickly ramp up and improve their performance. On the other hand, we continue to improve customer loyalty and repeat purchases through continuous product innovation and brand innovation, driving steady and sustainable store performance. As I mentioned earlier, taking into account the factors above, our same-store sales growth metric in Q1 and even next year, we'll face some short term fluctuations and pressure. However, from a long term perspective, more convenient store fulfillment and improved customer reach play a very Positive and important role in fostering coffee drinking habits, as well as naturally increasing consumption frequency among customers.

Speaker #1: So, on one hand, new stores can leverage our mature operational framework to quickly ramp up and improve their performance. On the other hand, we continue to improve customer loyalty and repeat purchases through continuous product innovation and brand innovation, driving steady and sustainable store performance.

Speaker #1: And as I mentioned earlier, taking into account the factors above, our same-store sales growth metric in the fourth quarter and even next year will face some short-term fluctuations and pressure.

Speaker #1: However, from a long-term perspective, more convenient store fulfillment and improved customer reach play a very positive and important role in fostering coffee drinking habits as well as naturally increasing consumption frequency among customers.

Speaker #1: So this in turn can provide lasting momentum for our continued improvement of our store performance over time. Right, so

Nancy Song: This in turn can 提供 lasting momentum for our continuing improvement of our store performance over time.

[Translator]: This in turn can 提供 lasting momentum for our continuing improvement of our store performance over time.

Speaker #4: 从利润率方面来看呢，短期来看，外卖占比显著提升的确会对利润率造成一定的负面影响。三季度营业利润率较上个季度呢略有下滑，也正是由于配送费用率环比有明显提升所导致的。这项费用完全抵消了我们运营提效所带来的正面影响。但这是行业发展阶段和战略推进过程中的阶段性情况，总体我觉得是可以接受的。同时也如刚才提到，由于国际咖啡生豆价格当前仍处于高位，而且没有一个趋缓的迹象，预计明年咖啡豆的成本可能依旧存在一定压力。这也可能会影响到利润率。在此背景下，我们将通过精细化的运营、持续优化成本结构，依托数字化的能力提升整个的运营效率，优化供应链管理。我们会争取在规模扩张的同时努力保持一个合理健康的利润水平。

Jinyi Guo: 从利润率方面来看呢，短期来看，外卖占比显著提升，的确会对利润率造成一定的负面影响。三季度营业利润率较上个季度呢略有下滑，也正是由于配送费用率环比有明显提升所导致的。这项费用完全抵消了我们运营提效所带来的正面影响。这是行业发展阶段和战略推进过程中的阶段性情况，总体我觉得是可以接受的。同时也如刚才提到，由于国际咖啡生豆价格当前仍处于高位，而且没有一个趋缓的迹象，预计明年咖啡豆的成本可能依旧存在一定压力，这也可能会影响到利润率。在此背景下，我们将通过精细化的运营，持续优化成本结构，依托数字化的能力，提升整个的运营效率，优化供应链管理。我们会争取在规模扩张的同时，努力保持一个合理健康的利润水平。

Jinyi Guo: [Foreign language]

Nancy Song: Regarding margins. In the short term, the notable higher mix of our delivery orders has put some pressure on our margins fully reflected in the decline of our Q3 operating margins compared to the previous quarter. The positive impact of our improved operational efficiency was actually completely offset by the significantly higher delivery expenses as a percentage of total revenues quarter-over-quarter. We view this as a temporary and expected impact reflecting both the current stage of industry development and our strategic execution process. At the same time, as I mentioned earlier, international green coffee bean prices have remained elevated with no signs of moderation, which could also pose some challenges to our coffee bean costs next year, which can also affect margins.

Speaker #1: regarding margins, in the short term, the notable higher mix of our delivery orders has put some pressure on our margins. Fully reflected in the decline of our third quarter operating margin compared to the previous quarter.

[Translator]: Regarding margins. In the short term, the notable higher mix of our delivery orders has put some pressure on our margins fully reflected in the decline of our Q3 operating margins compared to the previous quarter. The positive impact of our improved operational efficiency was actually completely offset by the significantly higher delivery expenses as a percentage of total revenues quarter-over-quarter. We view this as a temporary and expected impact reflecting both the current stage of industry development and our strategic execution process. At the same time, as I mentioned earlier, international green coffee bean prices have remained elevated with no signs of moderation, which could also pose some challenges to our coffee bean costs next year, which can also affect margins.

Speaker #1: And the positive impact of our improved operational efficiency was actually completely offset by the significantly higher delivery expenses as a percentage of total revenues quarter over quarter.

Speaker #1: But we view this as a temporary and expected impact reflecting both the current stage of industry development and our strategic execution process. At the same time, as I mentioned earlier, international green coffee bean prices have remained elevated with no signs of moderation, which could also pose some challenges to our coffee bean costs next year and could affect margins.

Speaker #1: And in this environment, we will continue to optimize our cost structure through refined operations, leveraging our digital capabilities to further enhance operational efficiency and strengthen our supply chain management.

Nancy Song: In this environment, we will continue to optimize our structure through refined operations, leveraging our digital capabilities to further enhance operational efficiency and strengthen our supply chain management. As we scale, we will strive to maintain a healthy and sustainable pro-profit profile.

[Translator]: In this environment, we will continue to optimize our structure through refined operations, leveraging our digital capabilities to further enhance operational efficiency and strengthen our supply chain management. As we scale, we will strive to maintain a healthy and sustainable pro-profit profile.

Speaker #1: And as we scale, we will strive to maintain a healthy and sustainable profit profile.

Jinyi Guo: 基于以上，我总结一下。当前阶段业务增速和市场份额仍然是瑞幸的战略发展重点。我们会在持续扩张中持续关注门店的质量，并坚持产品与品牌创新。在高速的发展过程中，同店表现即使有一些波动，但整体的趋势走向判断是可以接受的。与此同时，我们会努力保持合理健康的利润水平，也对未来长期的利润表现充满信心。好，谢谢。

Jinyi Guo: [Foreign language]

Speaker #1: Yeah, so based on above in 基于以上的我总结一下，当前阶段业务增速和市场份额仍然是瑞幸的战略发展重点。我们会在持续扩张中。持续关注门店的质量，并坚持产品与品牌创新。在高速的发展过程中，同店表现即使有些波动，但整体的趋势走向判断是可以接受的。与此同时，我们会努力保持合理健康的利润水平，也对未来长期的利润表现充满信心。好，谢谢。 conclusion, business growth and market share expansion remain our strategic priority. At this stage, we will continue to ensure our store quality while driving product and brand innovation amid our robust expansion.

Nancy Song: Based on above, in conclusion, business growth and market share expansion remain our strategic priority at this stage. We will continue to ensure our store quality while driving product and brand innovation amid our robust expansion. During this period of rapid growth, even if same store performance shows some fluctuations, the overall trajectory remains within our expectations. At the same time, we will strive to maintain healthy and sustainable profit levels and remain confident in our long term profitability potential. Thank you.

[Translator]: Based on above, in conclusion, business growth and market share expansion remain our strategic priority at this stage. We will continue to ensure our store quality while driving product and brand innovation amid our robust expansion. During this period of rapid growth, even if same store performance shows some fluctuations, the overall trajectory remains within our expectations. At the same time, we will strive to maintain healthy and sustainable profit levels and remain confident in our long term profitability potential. Thank you.

Speaker #1: And during this period of rapid growth, even if same-store performance shows some fluctuations, the overall trajectory remains within our expectations. And at the same time, we will strive to maintain healthy and sustainable profit levels and remain confident in our long-term profitability potential.

Speaker #1: Thank

Speaker #2: Our next question comes from Hua Yi Li with Sonolink Securities. Hua Li, please go ahead.

Sijie Lin: Our next question comes from Huayi Li with Centerlink Securities. Huayi Li, please go ahead.

Operator: Our next question comes from Huayi Li with Centerlink Securities. Huayi Li, please go ahead.

Speaker #5: ??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????let me translate my questions. Good evening, management. I'd like to ask about the company's capital market strategy. At the Xiamen Entrepreneurs Days Conference a few days ago, Dr. Guo mentioned the company's intention to pursue a relisting on a major US exchange.

Huayi Li: 管理层晚上好，我是国金证券李华益，我有一个关于资本市场战略相关的问题。在前几天的厦门企业家日大会上，我们听到郭总提到了公司准备重新回归美国主板上市的一个计划，请问管理层目前我们的转板计划进展如何？能否给我们做一些更多的分享？我来翻译一下我的问题。 Let me translate my question. Good evening, management. I'd like to ask about the company's capital market strategy. At Xiamen Entrepreneurs Day Conference a few days ago, Doctor Guo mentioned the company's intention to pursue a relisting on a major US exchange. Could management please share an update on the current status of this initiative? Thank you.

Huayi Li: [Foreign language] Let me translate my question. Good evening, management. I'd like to ask about the company's capital market strategy. At Xiamen Entrepreneurs Day Conference a few days ago, Doctor Guo mentioned the company's intention to pursue a relisting on a major US exchange. Could management please share an update on the current status of this initiative? Thank you.

Speaker #5: Could management please share an update on the current status of this initiative? Thank you.

Speaker #4: 呃，感谢您的提问啊。呃，瑞幸总部位于厦门，呃，自从公司成立以来就得到了厦门市各方面的权力支持，特别是在2020年瑞幸发生了财务事件以后，

Jinyi Guo: 呃，感谢您的提问啊。呃，瑞幸总部位于厦门。呃，自从公司成立以来，就得到了厦门市各方面的全力支持。特别是在 2020 年瑞幸发生了财务事件以后，在厦门市始终如一的支持和指导下，瑞幸的业务持续向好发展，实现了涅槃重生。嗯。

Jinyi Guo: [Foreign language]

Speaker #4: 在厦门市始终如一的支持和指导下，瑞幸的业务持续向好发展，实现了涅槃重生。嗯。 Right, thank you

Nancy Song: Right. Thank you for your question. Luckin is headquartered in Xiamen, where we received holistic and tremendous support since our inception, especially after the financial issue in 2020. With Xiamen's continuous support and the guidance, Luckin has consistently delivered a strong performance and achieved a successful turnaround.

[Translator]: Right. Thank you for your question. Luckin is headquartered in Xiamen, where we received holistic and tremendous support since our inception, especially after the financial issue in 2020. With Xiamen's continuous support and the guidance, Luckin has consistently delivered a strong performance and achieved a successful turnaround.

Speaker #1: for your questions. Luckin is headquartered in Xiamen, where we received holistic and tremendous support since our inception. Especially after the financial issue in 2020, with Xiamen's continued support and the guidance, Luckin has consistently delivered strong performance and achieved a successful turnaround.

Speaker #4: 呃，对于这个问题呢，和我们之前呃和市场沟通是一致的，就是我们会持续关注美国资本市场，但公司目前对于重返主板上市没有明确的时间表。公司现阶段的首要任务仍是践行公司的业务战略，聚焦发展，通过向客户提供卓越的产品和服务，充分把握中国咖啡市场的长期发展机遇，努力争取更高的市场份额，为公司的股东持续提供可持续的长期价值。好吧，谢谢啊。

Jinyi Guo: 呃对于这个问题呢，和我们之前呃，和市场沟通是一致的，就是我们会持续关注美国资本市场，但公司目前对于重返主板上市没有明确的时间表。公司现阶段的主要任务仍是践行公司的业务战略，聚焦发展，通过向客户提供卓越的产品和服务，充分把握中国咖啡市场的长，长期发展机遇，努力争取更高的市场份额，为公司的股东持续提供可持续的长期价值。好吧，谢谢啊。

Jinyi Guo: [Foreign language]

Speaker #1: Right, so regarding this question, as we mentioned before, we remain committed to the U.S. capital market. Though we currently have no specific timeline or schedule for uplisting on the main board, our top priority at this current stage remains focusing on our strategy execution and business development.

Nancy Song: Right, regarding this question, as we mentioned before, we remain committed to the US capital market, though we currently have no specific timeline or schedule for us listing on the main board. Our top priority at current stage remains focusing on our strategy execution and business development through offering our customers exceptional products and services. We aim to fully capture the long-term growth opportunities in China's coffee market and expand our market share, creating sustainable long-term value for our shareholders. Thank you.

[Translator]: Right, regarding this question, as we mentioned before, we remain committed to the US capital market, though we currently have no specific timeline or schedule for us listing on the main board. Our top priority at current stage remains focusing on our strategy execution and business development through offering our customers exceptional products and services. We aim to fully capture the long-term growth opportunities in China's coffee market and expand our market share, creating sustainable long-term value for our shareholders. Thank you.

Speaker #1: Through offering our customers exceptional products and services, we aim to fully capture the long-term growth opportunities in China's coffee market and expand our market share, creating sustainable long-term value for our shareholders.

Speaker #1: Thank you.

Speaker #2: Due to time constraints, no further questions will be taken at this time. This concludes the question and answer session. I'd like to turn the call back to the management team for any closing remarks.

Operator: Due to time constraints, no further questions will be taken at this time. This concludes the question and answer session. I'd like to turn the call back to the management team for any closing remarks.

Speaker #1: Thank you, everyone, for joining our call today. If you have any further questions, please feel free to contact our IR team. This concludes today's call.

Nancy Song: Thank you everyone for joining our call today. If you have any further questions, please feel free to contact our IR team. This concludes today's call. We look forward to speaking with you again next quarter. Thank you.

Speaker #1: We look forward to speaking with you again next quarter. Thank you.

Speaker #4: Thank you. 谢谢。

Jinyi Guo: Thank you. 谢谢.

Jinyi Guo: Thank you. [Foreign language]

Nancy Song: Thank you.

Speaker #1: you. The conference has ended.

Operator: The conference has ended. You may disconnect your line. Thank you.

Q3 2025 Luckin Coffee Inc Earnings Call

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