Q1 2026 Luckin Coffee Inc Earnings Call

April 29, 2026

Operator 2: Ladies and gentlemen, welcome to Luckin Coffee's Q1 2026 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. 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 at Luckin Coffee. Nancy, please go ahead.

Operator: Ladies and gentlemen, welcome to Luckin Coffee's Q1 2026 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. 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 at Luckin Coffee. Nancy, please go ahead.

Speaker #2: 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 at Luckin Coffee.

Speaker #2: Nancy, please go ahead. Thank you. And hello, everyone. Welcome to Luckin Coffee's first quarter 2026 earnings conference call. We announced our financial results earlier today before the U.S. market opened.

Nancy Song: Thank you, hello, everyone. Welcome to Luckin Coffee's Q1 2026 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 Jinyi Guo, Co-founder and CEO of Luckin Coffee, who will share a strategic overview of our business. Following that, Anjing, 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. Further information regarding these and other risks is included in our filings with the SEC.

Speaker #2: The earnings release is now available on our IR website, and the Y News web 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. Anjin, 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.

Speaker #2: 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.

Speaker #2: These statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in our findings with the SEC. In addition, for non-GAAP matters discussed today, the reconciliation information related to those matters can be found in our earnings press release.

Nancy Song: In addition, for non-GAAP matters discussed today, the reconciliation information related to those matters 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. Now, I'd like to turn the call over to Dr. Jinyi Guo, 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. Dr. Guo, please go ahead.

Speaker #3: 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与支持。

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与支持。

Jinyi Guo: [Foreign language]

Speaker #2: Good day, everyone. And welcome to today's earnings conference call. Thank you for your continuous interest in and support for Luckin Coffee.

Nancy Song: Good day everyone, welcome to today's earnings conference call. Thank you for your continuous interest in and support for Luckin Coffee.

Speaker #3: 2020年第一季度，我们聚焦执行高质量规模增长的核心策略，实现业绩稳健开局。在愈发多元的竞争环境中，我们利用全链路数字化的运营能力，稳步推进门店规模、客户规模、消费规模和供应链规模的协同发展，构建人货场、端到端的长期竞争壁垒。

Jinyi Guo: 二零二六年第一季度，我们聚焦执行高质量规模增长的核心策略，实现业绩稳健开局。在愈发多元的竞争环境中，我们利用全链路数字化的运营能力，稳步推进门店规模、客户规模、消费规模和供应链规模的协同发展，构建人、货、场端到端的长期竞争壁垒。

Jinyi Guo: [Foreign language]

Speaker #2: We began 2026 with robust momentum. In the first quarter, we remained focused on executing our core strategy of high-quality scaled growth and delivered solid results.

Nancy Song: We began 2026 with robust momentum. In Q1, we remained focused on executing our core strategy of high quality scaled growth and delivered solid results. Amid an increasingly diverse and dynamic competitive landscape, we leveraged our end-to-end digital capabilities to expand our store network, grow our customer base, increase consumption, and strengthen our supply chain. Together, these multi-dimensional scaling efforts create a system-wide competitive advantage across our four pillars of people, products, and places.

Speaker #2: Amid an increasingly diverse and dynamic competitive landscape, we leveraged our end-to-end digital capabilities to expand our store network, grow our customer base, increase consumption, and strengthen our supply chain.

Speaker #2: Together, this multi-dimensional scaling effort brings a system-wide competitive advantage across our four pillars of people, products, and places.

Speaker #3: 一季度，公司总净收入同比增长35%，达到约120亿元。我们继续保持行业领先的开店节奏，并紧密关注门店质量与效率，实现了自营门店同店销售基本稳定、门店运营相关费用率同比优化。从备量结构看，一季度外卖占比继续回落，但仍然显著高于去年同期水平。受此阶段性影响，营业利润约7.1亿元，营业利润率约6%。着眼长期，我们相信瑞幸的规模与运营体系优势将持续体现，并有效地驱动长期同店表现、运营效率与盈利水平的稳步提升。

Jinyi Guo: 一季度公司总净收入同比增长35%，达到约120亿元。我们继续保持行业领先的开店节奏，并紧密关注门店质量与效率，实现了自营门店同店销售基本稳定，门店运营相关费用率同比优化。从备量结构看，一季度外卖占比继续回落，但仍然显著高于去年同期水平。受此阶段性影响，营业利润约7.1亿元，营业利润率约6%。着眼长期，我们相信瑞幸咖啡的规模运营体系优势将持续体现，并有效地驱动长期同店表现、运营效率与盈利水平的稳步提升。

Jinyi Guo: [Foreign language]

Speaker #2: In the first quarter, open net revenues grew 35% year-over-year to approximately R&D $12 billion. We continue to expand our store network at an industry-leading pace, while remaining disciplined on store quality and operational efficiency.

Nancy Song: In Q1, total net revenue grew 35% year-over-year to approximately RMB 12 billion. We continue to expand our store network at an industry leading pace while remaining disciplined on store quality and operational efficiency. Same-store sales for our self-operated stores remained broadly stable and the store level operating spend ratios improved compared to last year. From a sales channel perspective, the delivery volume mix declined sequentially but remained well above last year's level, reflecting a temporary mix-driven impact. As a result, operating income reached around RMB 710 million, representing an operating margin of around 6%. Looking ahead, we expect our scale advantages and operating capabilities to become increasingly evident, supporting improvements in same-store performance, efficiency, and profitability over time.

Speaker #2: Same-store sales for our self-operated stores remain broadly stable. And the store-level operating expense ratios improved compared to last year. From a sales channel perspective, the delivery volume mix declined sequentially, but remained well above last year's level.

Speaker #2: Reflecting a temporary mix-driven impact, as a result, operating income reached around R&D $710 million, representing an operating margin of around 6%. Looking ahead, we expect our scale advantages and operating capabilities to become increasingly evident.

Speaker #2: Supporting improvements in same-store performance efficiency and profitability over time.

Speaker #3: 立足扎实的基本面，以及对公司战略和长期发展前景的坚定信心，我们正式启动了首次总额3亿美金的一年期股票回购计划。这既是公司持续优化股东回报的重要举措，也体现了我们为股东创造长期价值的承诺。

Jinyi Guo: 立足扎实的基本面，以及对公司战略和长期发展前景的坚定信心，我们正式启动了首次总额三亿美金的一年期股票回购计划。这既是公司持续优化股东回报的重要举措，也体现了我们为股东创造长期价值的承诺。

Jinyi Guo: [Foreign language]

Speaker #2: Grounded in our solid fundamentals and strong confidence in our strategy and long-term prospects, we launched our first share repurchase program of up to 300 million, over a one-year period.

Nancy Song: Grounded in our solid fundamentals and strong confidence in our strategy and long-term prospects, we launched our first share repurchase program of up to $300 million over a 1 year period. This marks an important step in our efforts to enhance shareholder returns and reaffirms our commitment to long-term value creation.

Speaker #2: This marks an important step in our efforts to enhance shareholder returns and reaffirm our commitment to long-term value creation.

Speaker #3: 接下来，我将围绕规模增长战略，从人货场三大核心维度介绍本季度的运营进展，稍后CFO安静会分享更详细的财务数据。

Jinyi Guo: 接下来我将围绕规模增长战略，从人、货、场三大核心维度介绍本季度的运营进展。稍后CFO安静会分享更详细的财务数据。

Jinyi Guo: [Foreign language]

Speaker #2: Next, I will walk you through our quarterly progress across the three core dimensions of our scaled growth strategy: people, products, and places. Following that, our CFO, Anjin, will provide a more detailed review of our financial performance.

Nancy Song: Next, I will walk you through our quarterly progress across the three core dimensions of our scaled growth strategy: people, products, and places. Following that, our CFO Anjing, will provide more detailed review of our financial performance.

Speaker #3: 在门店方面，我们以单店健康表现为基础，保持有竞争力的开店速度，深化高低线城市的网络覆盖和便捷性，强化品牌触达与需求承接能力，夯实长期市场领先地位。截至一季度，公司门店总数达到33,596家，同比增长39%，持续扩大的门店网络将为客户拉新提品以及逐步释放规模效应奠定了坚实的基础。

Jinyi Guo: 在门店方面，我们以单店健康表现为基础，保持有竞争力的开店速度，深化高低线城市的网络覆盖和便捷性，强化品牌触达与需求承接能力，夯实长期市场领先地位。截至一季度，公司门店总数达到33,596家，同比增长39%。持续扩大的门店网络将为客户拉新提频以及逐步释放规模效应奠定了坚实的基础。

Jinyi Guo: [Foreign language]

Speaker #2: 加入WindSource， we continue to expand at a competitive pace while maintaining a clear focus on healthy store-level performance. We further deepened our network coverage across both high-tier and lower-tier cities.

Nancy Song: Starting with stores, we continue to expand at a competitive pace while maintaining a clear focus on healthy store level performance. We further deepened our network coverage across both high tier and low tier cities, enhancing convenience, strengthening brand accessibility, and improving our ability to capture demand, which ultimately reinforces our long-term market leadership. By the end of Q1, our total store count reached 33,596, representing 39% year-over-year growth. Our expanding store network will continue to support customer acquisition, higher purchase frequency, and improved scale efficiencies over time.

Speaker #2: Enhancing convenience, strengthening brand accessibility, and improving our ability to capture demand, which ultimately reinforces our long-term market leadership. By the end of the first quarter, our total store count reached 33,596, representing 39% year-over-year growth.

Speaker #2: Our expanding store network will continue to support customer acquisition, higher purchase frequency, and improved scale efficiencies over time.

Speaker #3: 具体来看，中国市场竞争2,531家，门店总数达到了33,419家，其中自营21,713家，联营11,706家。逐步形成了各县级城市相对均衡的网络布局。这种全国性纵深渗透的门店网络，让瑞幸的业务经营具备更强的系统韧性，能够更好地应对季节性、节日类的需求波动，保持整体大盘的稳健发展。例如，今年春节期间，伴随着高线城市人口返乡、叠加咖啡消费习惯的持续普及，下沉市场的消费活力得到了充分释放，低线城市联营门店表现尤为亮眼。这既体现了中国咖啡市场巨大的需求潜力，也再次印证了瑞幸的品牌势能、规模优势与全品类协同驱动增长的综合能力。

Jinyi Guo: 具体来看，中国市场净增2,531家，门店总数达到了33,419家，其中自营21,713家，联营11,706家，逐步形成了各县级城市相对均衡的网络布局。这种全国性纵深渗透的门店网络，让瑞幸咖啡的业务经营具备更强的系统韧性，能够更好地应对季节性、节日类的需求波动，保持整体大盘的稳健发展。例如，今年春节期间，伴随着高线城市人口返乡，叠加咖啡消费习惯的持续普及，下沉市场的消费活力得到了充分释放。低线城市联营门店表现尤为亮眼。这既体现了中国咖啡市场巨大的需求潜力，也再次印证了瑞幸的品牌势能、规模优势与全品类协同驱动增长的综合能力。

Jinyi Guo: [Foreign language]

Speaker #2: In China, we added 2,531 manual stores during the quarter, bringing our total store count to 33,419. This included 21,713 self-operated stores and 11,706 partnership stores.

Nancy Song: In China, we added 2,531 net new stores during the quarter, bringing our total store count to 33,419. This included 21,713 self-operated stores and 11,706 partnership stores, forming a well-balanced footprint across all city tiers nationwide. Our deeply penetrated national store network strengthens the structural resilience of our business, allowing us to better absorb seasonal and holiday demand volatility while sustaining stable overall performance. For example, during this year's Chinese New Year holiday, as consumers in higher tier cities returned to their hometowns and coffee consumption habits continued to gain traction, demand in lower tier markets was fully activated, with our partnership stores performing particularly well.

Speaker #2: Forming a well-balanced footprint across all city tiers nationwide, our deeply penetrated national store network strengthens the structural resilience of our business, allowing us to better absorb seasonal and holiday demand volatility while sustaining stable overall performance.

Speaker #2: For example, during this year's Chinese New Year holiday, as consumers in higher-tier cities returned to their hometowns and coffee consumption habits continued to gain traction, demand in lower-tier markets was fully activated.

Speaker #2: With our partnership stores performing particularly well, this performance underscores the significant long-term potential of China's coffee market and highlights the strength of our brand momentum.

Nancy Song: This performance underscores the significant long-term potential of China's coffee market and highlights the strength of our brand momentum, scale advantages, and a well-rounded product portfolio in driving growth.

Speaker #2: Scale advantages and a well-rounded product portfolio in driving growth.

Speaker #3: 国际市场方面，我们延续稳健的拓展节奏，季度竞争17家，门店总数达到了177家，其中包括新加坡自营门店82家、美国自营门店12家、马来西亚加盟门店83家。本季度，我们完成了国际化业务中台的整合，提升了海外拓展的运营管理能力。在系统化中台的支持下，我们将继续以灵活的本地运营模式深耕现有市场，优化单店表现，积累海外运营经验和用户理解，稳步探索推进海外市场扩张。

Jinyi Guo: 国际市场方面，我们延续稳健的拓展节奏，季度净增十七家，门店总数达到了一百七十七家，其中包括新加坡自营门店八十二家、美国自营门店十二家、马来西亚加盟门店八十三家。本季度我们完成了国际化业务中台的整合，提升了海外拓展的运营管理能力。在系统化中台的支持下，我们将继续以灵活的本地运营模式深耕现有市场，优化单店表现，积累海外运营经验和用户理解，稳步探索推进海外市场扩张。

Jinyi Guo: [Foreign language]

Speaker #2: In international markets, we continue to expand in a disciplined and measured manner. During the quarter, we added 17 new manual stores, bringing our total overseas store count to 177.

Nancy Song: Internationally, we continue to expand in a disciplined and measured manner. During the quarter, we added 17 net new stores, bringing our total overseas store count to 177. This includes 82 self-operated stores in Singapore, 12 self-operated stores in the US, and 83 franchise stores in Malaysia. During the quarter, we also completed the integration of our international centralized mid-office functions, further enhancing our global operating and management capabilities. Looking ahead, we will continue to deepen our presence in existing markets through flexible, localized operating models, optimize store-level performance, and build further overseas operating experience and customer insights while prudently exploring overseas expansion.

Speaker #2: This includes 82 self-operated stores in Singapore, 12 self-operated stores in the US, and 83 franchise stores in Malaysia. During the quarter, we also completed the integration of our international centralized main office functions, further enhancing our global operating and management capabilities.

Speaker #2: Looking ahead, we will continue to deepen our presence in existing markets through flexible localized operating models, optimized store-level performance, and built further overseas operating experience and customer insights.

Speaker #2: We are prudently exploring overseas expansion.

Speaker #3: 在产品方面，我们持续以创新驱动与全品类布局为举措，提升用户活跃、消费频次与整体消费规模，为同店表现提供长期支撑。一季度，共上新26款限制饮品及17款轻食。今年以来，我们聚焦强化瑞幸咖啡的专业品牌心智，持续提升咖啡豆风味和专业体验，先后推出浅烘美式、埃塞金烘美式、埃塞金烘拿铁等多款经典产品。目前，我们的客制化选项已覆盖意式拼配、深烘和埃塞金烘三种不同烘焙程度的咖啡豆，全面满足消费者风味进阶的专业品质需求。此外，我们还推出了比利时黑巧拿铁、树莓美式、甜糖龙井拿铁等新产品，为不同咖啡系列注入了活力。非咖啡方面，我们持续丰富产品矩阵和品质体验。一季度推出了雪酪芝士系列，依托原产地布局全线升级抹茶产品。通过这些多元化的产品创新，强化覆盖全时段、多场景的消费需求，有力支撑了新客获取与老客复购。

Jinyi Guo: 在产品方面，我们持续以创新驱动与全品类布局为举措，提升用户活跃、消费频次与整体消费规模，为同店表现提供长期支撑。一季度共上新二十六款限制饮品，及十几款轻食。今年以来，我们聚焦强化瑞幸咖啡的专业品牌心智，持续提升咖啡豆风味和专业体验，先后推出浅烘美式、埃塞金烘美式、埃塞金烘拿铁等多款经典产品。目前，我们的客制化选项已覆盖意式拼配、深烘和埃塞金烘三种不同烘焙程度的咖啡豆，全面满足消费者风味进阶的专业品质需求。此外，我们还推出了比利时黑巧拿铁、树莓美式、浅糖龙井拿铁等新产品，为不同咖啡系列注入了活力。非咖啡方面，我们持续丰富产品矩阵和品质体验，一季度推出了雪酪芝士系列，依托原产地布局，全线升级抹茶产品。通过这些多元化的产品创新，强化覆盖全时段多场景的消费需求，有力支撑了新客获取与老客复购。

Jinyi Guo: [Foreign language]

Speaker #2: On the product front, we continue to drive higher engagement, purchase frequency, and overall consumption through ongoing innovation and increasingly diversified product portfolio. Supporting long-term same-store performance, in the first quarter, we launched 26 new freshly brewed beverages and more than 10 snack items.

Nancy Song: On the product front, we continue to drive higher engagement, purchase frequency, and overall consumption through ongoing innovation and an increasingly diversified product portfolio, supporting long-term same-store performance. In Q1, we launched 26 new freshly brewed beverages and more than 10 snack items. Since the beginning of the year, we have focused on strengthening Luckin Coffee's positioning as a professional coffee brand by continuously upgrading our bean flavor profiles and overall coffee experience. We introduced a range of classic offerings, including light roast Americano, Ethiopian blend Americano, and Ethiopian blend latte. Our customization options now cover multiple roast profiles, including espresso blend, dark roast, and Ethiopian blend, allowing us to meet increasingly sophisticated consumer preferences.

Speaker #2: Since the beginning of the year, we have focused on strengthening lock-in coffees' provisioning as a professional coffee brand by continuously upgrading our bean-flavor profiles and overall coffee experience.

Speaker #2: We introduced a range of classic offerings, including light rose americano, easy-open blonde americano, and easy-open blonde latte. Our customization options now cover multiple roast profiles, including espresso blend, dark roast, and easy-open blonde.

Speaker #2: Allowing us to meet increasingly sophisticated consumer preferences. In addition, we continue to refresh our coffee lineup with new products, such as the Belgium dark chocolate flavored latté, raspberry americano, and Qiantang Longjing latte.

Nancy Song: In addition, we continue to refresh our coffee lineup with new products, such as the Belgian Dark Chocolate Latte, Raspberry Americano, and the Qian Tang Longjing latte, keeping our menu innovative and engaging. In non-coffee categories, we continue to enrich our product matrix and enhancing quality, including the launch of our Cloud Series and a full upgrade of our Matcha lineup supported by origin-based sourcing. These innovations further expanded our coverage of full all-day multi-occasion consumption demands, which strongly support new customer acquisition and repeat purchases from existing customers.

Speaker #2: Keeping our menu innovative and engaging, in non-coffee categories, we continue to enrich our product matrix and enhance quality. Including the launch of our cheese-covered cereal, and a full upgrade of our matcha lineup supported by origin-based sources, these innovations further expanded our coverage of full all-day, multi-occasion consumption demand.

Speaker #2: Which strongly supports new customer acquisition and repeat purchases from existing customers.

Speaker #3: 在客户方面，我们坚持以客为先，持续打造高品质、高性价比、高便利性、高情绪价值的综合消费体验，将门店网络优势转化为客户规模和消费规模的可持续增长。一季度，我们重点升级客制化体验，除了持续扩充咖啡豆选择外，还推出了冷热饮等更多SKU的升杯选项。这些超大杯产品上线后广受客户喜爱，初期升杯率表现亮眼。这一围绕用户需求的体验升级，也为本季度整体的客单价提供了有力支撑。此外，我们通过与知名艺术家潮玩IP的跨界联名，以及近期生椰上市五周年庆生观等创意活动，持续深化品牌与年轻用户的情感连接与共鸣。在这些举措的推动下，一季度新增交易客户超2,100万，月均交易客户同比增长25%，超9,300万。得益于产品吸引力、品牌创新力以及交付便利性，本季度新老客户人均杯量同比均有提升，进一步验证了规模扩张与消费增长的良性循环。

Jinyi Guo: 在客户方面，我们坚持以客为先，持续打造高品质、高性价比、高便利性、高情绪价值的综合消费体验，将门店网络优势转化为客户规模和消费规模的可持续增长。一季度，我们重点升级客制化体验，除了持续扩充咖啡豆选择外，还推出了冷热饮等更多SKU的升杯选项。这些超大杯产品上线后广受客户喜爱，初期升杯率表现亮眼。这一围绕用户需求的体验升级，也为本季度整体的客单价提供了有力支撑。此外，我们通过与知名艺术家、潮玩IP的跨界联名，以及近期「生椰上市五周年庆生官」等创意活动，持续深化品牌与年轻用户的情感连接与共鸣。在这些举措的推动下，一季度新增交易客户超2,100万，月均交易客户同比增长25%，超9,300万。得益于产品吸引力、品牌创新力以及交付便利性，本季度新老客户人均杯量同比均有提升，进一步验证了规模扩张与消费增长的良性循环。

Jinyi Guo: [Foreign language]

Speaker #2: On the customer front, we remain committed to a customer-first approach. Delivering a compelling value proposition across quality, affordability, convenience, and emotional engagement. This enables us to translate our store network advantages into sustainable growth in both customer scale and consumption.

Nancy Song: On the customer front, we remain committed to a customer-first approach, delivering a compelling value proposition across quality, affordability, convenience, and emotional engagement. This enables us to translate our store network advantages into sustainable growth in both customer scale and consumption. During Q1, we further upgraded our customization offerings. In addition to the expanded coffee bean selection, we also rolled out larger cup sizes across a broader range of hot and iced SKUs. These larger size offerings have been well received by customers, with encouraging early adoption rates and a positive contribution to overall average selling price during the quarter. We continue to deepen emotional connections with younger consumers through collaborations with well-known artists and pop culture IPs, as well as our creative Coconut Latte fifth anniversary campaign. Supported by these initiatives, we added more than 21 million new transacting customers during the quarter.

Speaker #2: During the first quarter, we further upgraded our customization offerings in addition to the expanded coffee bean selection. We also rolled out larger cup sizes across a broader range of hot and iced SKUs.

Speaker #2: These larger size offerings have been well received by customers. With the encouraging early adoption rates and the positive contribution to overall average selling price during the quarter, we continue to deepen emotional connections with younger consumers through collaborations with well-known artists and pop culture IPs.

Speaker #2: As well as our creative Coconut Latte fifth anniversary campaign. Supported by these initiatives, we added more than 21 million new transacting customers during the quarter.

Speaker #2: Average monthly transacting customers increased 25% year over year to over 93 million. Benefiting from product innovation, brand engagement, and network convenience, average cups purchased per customer increased year over year across both new and existing customers.

Nancy Song: Average monthly transacting customers increased 25% year over year to over 93 million. Benefiting from product innovation, brand engagement, and network convenience, average cups purchased per customer increased year over year across both new and existing customers, validating the positive flywheel between scale expansion and demand growth.

Speaker #2: Validating the positive flywheel between scale expansion and demand growth.

Speaker #3: 此外，再可持续供应链方面，我们深化以咖啡豆为核心的自主供应链建设，强化原产地布局，将规模优势转化为系统性的经营韧性。近期，瑞幸咖啡、青岛创新生产中心正式投产，成为公司第三座投产的烘焙基地。至此，青岛、平南、昆山、在建的厦门四地协同，总产能15.5万吨的烘焙供应矩阵进一步成型。核心供应链弹性与稳定性显著增强，为业务规模化扩张提供了更坚实的支撑。同时，我们依托供应链规模优势深化产业链协同，助力原产地产业升级。本产季，我们加大国内采购力度，采购云南咖啡豆超3万吨，构建了更加多元稳健的海内外产区协同的供应体系，也为云南咖啡种植者提供了稳定收入与长期信心。我们还通过搭建产学研合作平台，支持咖啡专业赛事等多样化举措，将瑞幸的供应链规模优势融入ESG实践，推动中国咖啡产业可持续高质量发展。

Jinyi Guo: 此外，在可持续供应链方面，我们深化以咖啡豆为核心的自主供应链建设，强化原产地布局，将规模优势转化为系统性的经营韧性。近期，瑞幸咖啡青岛创新生产中心正式投产，成为公司第三座投产的烘焙基地。至此，青岛、平南、昆山、在建的厦门四地协同总产能15.5万吨的烘焙供应矩阵进一步成型，核心供应链弹性与稳定性显著增强，为业务规模化扩张提供了更坚实的支撑。同时，我们依托供应链规模优势，深化产业链协同，助力原产地产业升级。本产季，我们加大国内采购力度，采购云南咖啡豆超3万吨，构建了更加多元、稳健的海内外产区协同的供应体系，也为云南咖啡种植者提供了稳定收入与长期信心。我们还通过搭建产学研合作平台、支持咖啡专业赛事等多元化举措，将瑞幸的供应链规模优势融入ESG实践，推动中国咖啡产业可持续高质量发展。

Jinyi Guo: [Foreign language]

Speaker #2: In addition, on the sustainable supply chain front, we continue to strengthen our proprietary supply chain centered around coffee beans. Deepening our presence in origin regions and translating our scale into greater system-wide resilience recently, our Qingdao Innovation Production Center commenced operations becoming our third roasting facility to come online.

Nancy Song: In addition, on the sustainable supply chain front, we continue to strengthen our proprietary supply chain centered around coffee beans, deepening our presence in origin regions and translating our scale into greater system-wide resilience. Recently, our Qingdao Innovation Production Center co-commenced operations, becoming our third roasting facility to come online. With facilities in Qingdao, Pingnan, and Kunshan fully operational and Xiamen under construction, we are building a coordinated roasting network with total annual capacity reaching 155,000 tons. This further enhances the flexibility and reliability of our core supply chain, providing strong support for our continued scale expansion. At the same time, we continue to leverage our scale to deepen collaboration across the value chain and support the development of coffee origin regions. During the current harvest season, we increased our domestic sourcing, procuring over 30,000 tons of coffee beans from Yunnan.

Speaker #2: With facilities in Qingdao, Pingnan, and Kunshan fully operational, and Xiamen under construction, we are building a coordinated roasting network with total annual capacity reaching 155,000 tons.

Speaker #2: This further enhances the flexibility and reliability of our core supply chain. Providing strong support for our continued scale expansion, at the same time, we continue to leverage our scale to deepen collaboration across the value chain and support the development of coffee origin regions.

Speaker #2: During the current harvest season, we increased our domestic sourcing, procuring over 30,000 tons of coffee beans from Yunnan. This not only strengthens the diversity and resilience of our sourcing network across both domestic and international origins, but also provides stable income and long-term confidence for local growers.

Nancy Song: This not only strengthens the diversity and resilience of our sourcing network across both domestic and international origins, but also provides stable income and long-term confidence for local growers. Through partnerships with research institutions and support for professional coffee competitions, we're integrating our supply chain capabilities into our ESG initiatives, contributing to the sustainable and high-quality development of China's coffee industry.

Speaker #2: In addition, through partnerships with research institutions and support for professional coffee competitions, we are integrating our supply chain capabilities into our ESG initiatives, contributing to the sustainable and high-quality development of China's coffee industry.

Speaker #3: 总结来看，中国咖啡市场仍处于需求持续释放的快速发展期，长期增长空间十分广阔。当前阶段，我们坚定聚焦高质量规模增长，保持扩张速度，门店质量与运营效率的动态平衡，依托数字化驱动的高效率、高便利性的商业模式，把握行业结构性机遇，实现长期可持续增长。面对复杂多变的市场竞争环境，以及去年外卖补贴带来的高技术影响，我们相信瑞幸行业领先的规模化布局将支撑公司穿越短期波动，并逐步释放长期增长与盈利潜力。未来，我们将持续通过产品创新、品牌创新和体验创新，不断挖掘消费潜力，推动业务稳健发展，进一步巩固市场领先地位。

Jinyi Guo: 总结来看，中国咖啡市场仍处于需求持续释放的快速发展期，长期增长空间十分广阔。当前阶段，我们坚定聚焦高质量规模增长，保持扩张速度、门店质量与运营效率的动态平衡，依托数字化驱动的高效率、高便利性的商业模式，把握行业结构性机遇，实现长期可持续增长。面对复杂多变的市场竞争环境，以及去年外卖补贴带来的高基数影响，我们相信瑞幸咖啡行业领先的规模化布局将支撑公司穿越短期波动，并逐步释放长期增长与盈利潜力。未来，我们将持续通过产品创新、品牌创新和体验创新，不断挖掘消费潜力，推动业务稳健发展，进一步巩固市场领先地位。

Jinyi Guo: [Foreign language]

Speaker #2: In summary, China's coffee market remains in a rapid growth phase, with consumer demand continuing to extend and significant long-term potential ahead. At this stage, we remain firmly focused on high-quality scaled growth, maintaining a dynamic balance among expansion pace, store quality, and operational efficiency.

Nancy Song: In summary, China's coffee market remains in a rapid growth phase, with consumer demand continuing to extend and a significant long-term potential ahead. At this stage, we remain firmly focused on high-quality scaled growth, maintaining a dynamic balance among expansion pace, store quality, and operational efficiency. Our digitally driven business models, built on high efficiency and convenience, positions us well to capture structural growth opportunities and deliver sustainable long-term growth. Amid a dynamic and evolving competitive landscape, as well as a high comparison base created by last year's delivery subsidies, we believe our industry-leading scale will enable us to navigate near-term volatility while unlocking long-term growth and profitability. Looking ahead, we will continue to drive innovation across product development, brand engagement, and customer experience to further unlock consumption potential, support sustained business growth, and strengthen our leadership position in the market.

Speaker #2: Our digitally driven business models built on high efficiency and convenience positions us well to capture structural growth opportunities and deliver sustainable long-term growth. Amid a dynamic and evolving competitive landscape, as well as a high comparison base created by last year's delivery subsidies, we believe our industry-leading scale will enable us to navigate near-term volatility while unlocking long-term growth and profitability.

Speaker #2: Looking ahead, we will continue to drive innovation across product development, brand engagement, and customer experience, to further lock consumption potential. Support sustained business growth and strengthen our leadership position in the market.

Speaker #3: 最后，再次感谢各位消费者、合作伙伴与投资者的信任与支持。感谢19万瑞幸伙伴的辛勤付出，我们将继续全力以赴推动中国咖啡行业健康发展，打造世界级咖啡品牌，为客户、伙伴与股东创造可持续的长期价值。

Jinyi Guo: 最后，再次感谢各位消费者、合作伙伴与投资者的信任与支持。感谢十九万瑞幸伙伴的辛勤付出。我们将继续全力以赴，推动中国咖啡行业健康发展，打造世界级咖啡品牌，为客户、伙伴与股东创造可持续的长期价值。

Jinyi Guo: [Foreign language]

Speaker #2: 欢迎为We would like to thank our customers, partners, and investors for your continued trust and support. As well as our 190,000 Luckin team members for your dedication and hard work.

Nancy Song: Finally, we would like to thank our customers, partners, and investors for your continued trust and support, as well as our 190,000 Luckin team members for your dedication and hard work. We remain committed to supporting the healthy development of China's coffee industry, building a world-class coffee brand, and creating sustainable long-term value for our customers, partners, and shareholders.

Speaker #2: We remain committed to supporting the healthy development of China's coffee industry, building a world-class coffee brand, and creating sustainable long-term value for our customers' partners and shareholders.

Speaker #1: Thank you, Jin Yi. Good day, everyone. Thank you for joining today's call. We delivered solid top-line growth, while maintaining financial discipline in the first quarter.

Anjing: Thank you, Yi. Good day, everyone. Thank you for joining today's call. We delivered solid top-line growth while maintaining financial discipline in the Q1, despite the impact of a higher delivery mix and underlying operating efficiency improved both at in-store and group levels. As we continue to scale our business and strengthen our market leadership, we believe we are well positioned to drive operational leverage and profitability over time, supported by our sustained quality growth. Let's now look at our financial performance in detail. In the Q1, total net revenues increased by 35% year over year to around RMB 12 billion. Primarily driven by a 35.8% year over year increase in GMV to RMB 14.1 billion.

Jing An: Thank you, Yi. Good day, everyone. Thank you for joining today's call. We delivered solid top-line growth while maintaining financial discipline in the Q1, despite the impact of a higher delivery mix and underlying operating efficiency improved both at in-store and group levels. As we continue to scale our business and strengthen our market leadership, we believe we are well positioned to drive operational leverage and profitability over time, supported by our sustained quality growth. Let's now look at our financial performance in detail. In the Q1, total net revenues increased by 35% year over year to around RMB 12 billion. Primarily driven by a 35.8% year over year increase in GMV to RMB 14.1 billion.

Speaker #1: Despite the impact of a higher delivery mix, underlying operating efficiency improved, both at store and group levels. As we continue to scale our business and strengthen our market leadership, we believe we are well positioned to drive operational leverage and profitability over time, supported by our sustained quality growth.

Speaker #1: Let's now look at our financial performance in detail. In the first quarter, total net revenues increased by 35% year over year to around R&B 12 billion.

Speaker #1: Primarily driven by a 35.8% year-over-year increase in GMV to R&B 14.1 billion. This growth was supported by higher cup volumes across our self-operated and partnership stores, a result of our expanding store network and a growing base of active transacting customers.

Anjing: This growth was supported by higher volumes across our self-operated and partnership stores, a result of our expanding store network and a growing base of active transacting customers. Revenues from product sales increased by 32% year over year to RMB around 9 billion, mainly reflecting the solid performance of our self-operated stores, breaking down our product sales into three streams. Net revenues from freshly brewed drinks were RMB 8.3 billion, representing about 69% of the total net revenues. Net revenues from other products were RMB 566 million or about 5% of the total net revenues. Net revenues from others were RMB 157 million or roughly 1% of the total net revenues.

Jing An: This growth was supported by higher volumes across our self-operated and partnership stores, a result of our expanding store network and a growing base of active transacting customers. Revenues from product sales increased by 32% year over year to RMB around 9 billion, mainly reflecting the solid performance of our self-operated stores, breaking down our product sales into three streams. Net revenues from freshly brewed drinks were RMB 8.3 billion, representing about 69% of the total net revenues. Net revenues from other products were RMB 566 million or about 5% of the total net revenues. Net revenues from others were RMB 157 million or roughly 1% of the total net revenues.

Speaker #1: Revenues from productive sales increased by 32% year over year to R&B around 9 billion. Mainly reflecting the solid performance of our self-operated stores breaking down our productive sales into three springs.

Speaker #1: Net revenues from freshly brewed drinks were R&B 8.3 billion, representing about 69% of total net revenues. Net revenues from other products were R&B 566 million, or about 5% of total net revenues.

Speaker #1: Net revenues from others were RMB 157 million, or roughly 1% of total net revenues. Looking at productive sales from the perspective of company-owned stores, revenues from self-operated stores increased by 33% year over year to RMB 8.6 billion.

Anjing: Looking at product sales from the perspective of company-owned stores, revenues from self-operated stores increased by 33% year over year to CNY 8.6 billion. Same-store sales growth was largely stable for this quarter amid the rapid expansion of our store network. Store-level operating profit increased by 6% year over year at CNY 1.2 billion, with self-operated store-level operating margin of 13.6%. Revenues from partnership stores increased by 45% year over year to about CNY 3 billion, accounting for 25% of the total net revenues. This strong growth was mainly supported by increased sales of materials and improved contributions from profitable partnership stores, particularly reflecting the outer performance of partnership stores in the lower tier cities during the Chinese New Year holiday seasons.

Jing An: Looking at product sales from the perspective of company-owned stores, revenues from self-operated stores increased by 33% year over year to CNY 8.6 billion. Same-store sales growth was largely stable for this quarter amid the rapid expansion of our store network. Store-level operating profit increased by 6% year over year at CNY 1.2 billion, with self-operated store-level operating margin of 13.6%. Revenues from partnership stores increased by 45% year over year to about CNY 3 billion, accounting for 25% of the total net revenues. This strong growth was mainly supported by increased sales of materials and improved contributions from profitable partnership stores, particularly reflecting the outer performance of partnership stores in the lower tier cities during the Chinese New Year holiday seasons.

Speaker #1: Same-store sales growth was largely stable for this quarter. Amid the rapid expansion of our store network, store-level operating profit increased by 6% year over year at R&B 1.2 billion.

Speaker #1: With self-operated store-level operating margin of 13.6%, revenues from partnership stores increased by 45% year over year to about R&B 3 billion. Accounting for 25% of total net revenues, this strong growth was mainly supported by increased sales of materials and improved contributions from profitable partnership stores.

Speaker #1: Particularly reflecting the outer performance of partnership stores in the lower-tier cities during the Chinese New Year holiday seasons. Cost of materials as a percentage of total net revenues remained stable year over year at around 40%.

Anjing: Cost of materials as a percentage of the total net revenues remained stable year over year at around 40%. In absolute terms, cost of our materials increased by 36% year over year to RMB 4.9 billion, in line with our business expansion. Store rental and other operating costs as a percentage of the total net revenues decreased to 25.5% from 26.3% in the same period of 2025. In absolute terms, these expenses increased by 31% year over year to RMB 3.1 billion, driven by higher payroll costs from volume growth and the rising rental expenses due to continued store expansion. Delivery expenses increased by 9% year over year to RMB 1.3 billion, driven by a significant increase in delivery orders through food delivery platforms.

Jing An: Cost of materials as a percentage of the total net revenues remained stable year over year at around 40%. In absolute terms, cost of our materials increased by 36% year over year to RMB 4.9 billion, in line with our business expansion. Store rental and other operating costs as a percentage of the total net revenues decreased to 25.5% from 26.3% in the same period of 2025. In absolute terms, these expenses increased by 31% year over year to RMB 3.1 billion, driven by higher payroll costs from volume growth and the rising rental expenses due to continued store expansion. Delivery expenses increased by 9% year over year to RMB 1.3 billion, driven by a significant increase in delivery orders through food delivery platforms.

Speaker #1: In absolute terms, cost of materials increased by 36% year over year to R&B 4.9 billion in line with our business expansion. Store rental and other operating costs as a percentage of total net revenues decreased to 25.5% from 26.3% in the same period of 2025.

Speaker #1: In absolute terms, these expenses increased by 31% year over year to R&B 3.1 billion. Driven by higher payroll costs from volume growth and the rising rental expenses due to continued store expansion.

Speaker #1: Delivery expenses increased by 90% year over year to R&B 1.3 billion. Driven by a significant increase in delivery orders. Through food delivery platforms, as a result, delivery expenses as a percentage of total net revenues increased to around 11% from around 8% in the same period of 2025.

Anjing: As a result, delivery expenses as a percentage of the total net revenues increased to around 11% from around 8% in the same period of 2025. However, our delivery cost per order declined year-over-year, reflecting better efficiency as we scale our operation. Sales and marketing expenses as a percentage of the total net revenues were 6.1% compared to 5.6% in the same period of 2025. In absolute terms, sales and marketing expenses rose 48% year-over-year to RMB 732 million, mainly driven by increased advertising and promotion expenses, as well as higher commission fees paid to food delivery platforms as delivery volumes increased. General and administrative expenses as a percentage of the total net revenues decreased to around 7% from around 8% in the same quarter of 2025.

Jing An: As a result, delivery expenses as a percentage of the total net revenues increased to around 11% from around 8% in the same period of 2025. However, our delivery cost per order declined year-over-year, reflecting better efficiency as we scale our operation. Sales and marketing expenses as a percentage of the total net revenues were 6.1% compared to 5.6% in the same period of 2025. In absolute terms, sales and marketing expenses rose 48% year-over-year to RMB 732 million, mainly driven by increased advertising and promotion expenses, as well as higher commission fees paid to food delivery platforms as delivery volumes increased. General and administrative expenses as a percentage of the total net revenues decreased to around 7% from around 8% in the same quarter of 2025.

Speaker #1: However, our delivery cost per order declined year over year, reflecting better efficiency as we scale our operation. Sales and marketing expenses as a percentage of total net revenues were 6.1% compared to 5.6% in the same period of 2025.

Speaker #1: In absolute terms, sales and marketing expenses rose 48% year over year to RMB 732 million, mainly driven by increased advertising and promotion expenses, as well as higher commission fees paid to food delivery platforms as delivery volumes increased.

Speaker #1: General and administrative expenses as a percentage of total net revenues decreased to around 7% from around 8% in the same quarter of 2025. In absolute terms, T&A expenses rose 25% year over year to R&B 851 million, managed by higher payroll costs and share-based compensations as well as increased investment in research and development.

Anjing: In absolute terms, G&A expenses rose 25% year over year to RMB 851 million. Mainly driven by higher payroll costs and share-based compensations, as well as increased investment in research and development. Our GAAP operating profit was RMB 760 million, with an operating margin of around 6% compared to RMB 735 million, around 8.3% in the prior year period. Mainly reflecting higher delivery-related expenses as delivery volume increased. On a non-GAAP operating basis, operating profit was RMB 898 million, with a margin of 7.5%. Net profit was at RMB 506 million, with a net margin of 4.2% compared to RMB 524 million and 5.9% in the prior year period.

Jing An: In absolute terms, G&A expenses rose 25% year over year to RMB 851 million. Mainly driven by higher payroll costs and share-based compensations, as well as increased investment in research and development. Our GAAP operating profit was RMB 760 million, with an operating margin of around 6% compared to RMB 735 million, around 8.3% in the prior year period. Mainly reflecting higher delivery-related expenses as delivery volume increased. On a non-GAAP operating basis, operating profit was RMB 898 million, with a margin of 7.5%. Net profit was at RMB 506 million, with a net margin of 4.2% compared to RMB 524 million and 5.9% in the prior year period.

Speaker #1: Our gap operating profit was R&B 760 million, with an operating margin of around 6% compared to R&B 735 million, around 8.3% in the prior year period.

Speaker #1: Mainly reflecting higher delivery-related expenses as delivery volume increased. On a non-GAAP basis, operating profit was RMB 898 million, with a margin of 7.5%. Net profit was RMB 506 million, with a net margin of 4.2%, compared to RMB 524 million and 5.9% in the prior year period.

Speaker #1: On a non-gap basis, net profit was R&B 686 million, with net margin of 5.7%. Finally, looking at our balance sheet and cash flow, we generated around R&B 791 million in net operating cash during the first quarter of 2026.

Anjing: On a non-GAAP basis, net profit was RMB 686 million, with net margin of 5.7%. Finally, looking at our balance sheet and cash flow, we generated around RMB 791 million in net operating cash during Q1 2026.

Jing An: On a non-GAAP basis, net profit was RMB 686 million, with net margin of 5.7%. Finally, looking at our balance sheet and cash flow, we generated around RMB 791 million in net operating cash during Q1 2026.

Speaker #1: As of March 31, 2026, our total cash position, which includes cash and cash equivalents, restricted cash, term deposits, and short-term investments, was about R&B 9.1 billion.

Nancy Song: As of 31 March 2026, our total cash position, which includes cash and cash equivalents, restricted cash, term deposits, and short term investments, was about RMB 9.1 billion compared to around RMB 9 billion as of 31 December 2025. Our healthy cash position provides flexibility to support continued business expansion, while allowing us to enhance shareholder returns. In closing, this quarter's continued momentum validates our long term growth strategy. We remain dedicated to qualitative expansion. We are optimizing operational efficiency at every step, ultimately delivering sustainable value to our shareholders. With that, we will open the call for questions. Operator, please go ahead.

Jing An: As of 31 March 2026, our total cash position, which includes cash and cash equivalents, restricted cash, term deposits, and short term investments, was about RMB 9.1 billion compared to around RMB 9 billion as of 31 December 2025. Our healthy cash position provides flexibility to support continued business expansion, while allowing us to enhance shareholder returns. In closing, this quarter's continued momentum validates our long term growth strategy. We remain dedicated to qualitative expansion. We are optimizing operational efficiency at every step, ultimately delivering sustainable value to our shareholders. With that, we will open the call for questions. Operator, please go ahead.

Speaker #1: Compared to around R&B 9 billion as of December 31, 2025, our healthy cash position provides flexibility to support continued business expansion with allowing us to enhance shareholder returns.

Speaker #1: In closing, this quarter's continued momentum validates our long-term growth strategy. We remain dedicated to qualitative expansion with optimizing operational efficiency at every step, ultimately delivering sustainable value to our shareholders.

Speaker #1: With that, we will open the call for questions. Operator, please go ahead.

Speaker #2: Ladies and gentlemen, we will now begin the Q&A session. To ask a question, you may press *1 on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys.

Operator 2: Ladies and gentlemen, we will now begin the Q&A session. To ask a question, you may press star 1 on your telephone keypad. If you're 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 2. At this time, we will pause momentarily to assemble our roster. The first question comes from Jessie Xu of J.P. Morgan. Jesse, please go ahead.

Operator: Ladies and gentlemen, we will now begin the Q&A session. To ask a question, you may press star 1 on your telephone keypad. If you're 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 2. At this time, we will pause momentarily to assemble our roster. The first question comes from Jessie Xu of J.P. Morgan. Jesse, please go ahead.

Speaker #2: If at any time your question has been addressed and you would like to withdraw your question, please press *2. At this time, we will pause momentarily to assemble our roster.

Speaker #2: The first question comes from Jesse Zhu of JPMorgan. Jesse, please go ahead.

Speaker #3: I want to share a quote on Nancy 晚上好，我是摩根大通的分析师Jesse。感谢接受我的提问。非常恭喜公司开门红，特别变幻莫测的第一季度取得了非常不错的成绩，特别是利润端也超预期，然后回购计划也非常令人惊喜。一季度我们看得出来保持了比较快的一个开店节奏，净开店超过了2500家，然后在快速开店的同时同店还保持在了相对比较稳定的水平。想请教管理层，今年接下来的开店节奏我们应该怎么看，以及我们对于平衡开店速度与单店的表现之间是如何思考的。我来翻译一下。 Thanks for taking my question. This is Jesse Zhu from JPMorgan. Congrats on a very strong set of results and a very dynamic and competitive quarter.

Jessie Xu: 好，谢谢。郭总、安总、Nancy，晚上好，我是摩根大通的分析师Jesse，感谢接受我的提问。恭喜公司开门红，在这个特别变幻莫测的第一季度取得了非常不错的成绩，特别是利润端也超预期，然后回购计划也非常令人惊喜。那一季度我们看得出来保持了比较快的一个开店节奏，新开店超过了两千五百家，然后在快速开店的同时，同店还保持在了相对比较稳定的水平。那想请教，就是关于今年接下来的这个开店节奏，我们应该怎么看，以及我们对于平衡开店速度与单店的表现之间是如何思考的？那我来翻译一下。Thanks for taking my question, this is Jessie Xu from J.P. Morgan.

Jessie Xu: [Foreign language]

[Translator]: Thanks for taking my question, this is Jessie Xu from J.P. Morgan.

Jessie Xu: Congrats, congrats on a very strong set of results in a very dynamic and competitive quarter, especially on margin side. Share repurchase is also a positive surprise. I am sure shareholders are very happy today. My question is on growth and quality. Q1 seems to be another fast quarter as we recorded another 2.5K net opening, a similar pace to the past few quarters. At the same time, same-store sales stayed relatively stable, which is not bad. If we look into the rest of the year, how should we think about the expansion pace and what is your strategy in balancing scale market share and average store performance? Thank you.

[Translator]: Congrats, congrats on a very strong set of results in a very dynamic and competitive quarter, especially on margin side. Share repurchase is also a positive surprise. I am sure shareholders are very happy today. My question is on growth and quality. Q1 seems to be another fast quarter as we recorded another 2.5K net opening, a similar pace to the past few quarters. At the same time, same-store sales stayed relatively stable, which is not bad. If we look into the rest of the year, how should we think about the expansion pace and what is your strategy in balancing scale market share and average store performance? Thank you.

Speaker #3: Especially on margin side. Share repurchase is also a positive surprise. I'm sure shareholders are very happy today. My question is on growth and quality.

Speaker #3: First quarter seems to be another fast quarter as we recorded another 2.5K net opening. A similar pace to the past few quarters. At the same time, same-store sales stayed relatively stable which is not bad.

Speaker #3: If we look into the rest of the year, how should we think about the expansion pace and what's your strategy in balancing scale, market share, and average store performance?

Speaker #3: Thank you.

Speaker #2: 好，谢谢。非常感谢您的提问。我来回答一下这个问题。首先关于大家都非常关注的开店与同店，我们始终都是围绕着高质量规模增长这一个公司的核心策略。在持续的扩张过程中，我们总体非常注意动态平衡开店速度、开店质量、运营效率和同店表现等几个关键的指标。

Jinyi Guo: 好，谢谢。非常感谢您的提问。我来回答一下这个问题。首先，关于大家都非常关注的这个开店与同店，我们始终都是围绕着高质量规模增长这一个公司的核心策略。在持续的扩张过程中，我们总体非常注意动态平衡开店速度、开店质量、运营效率和同店表现等几个关键的指标。

Jinyi Guo: [Foreign language]

Speaker #3: Yeah, so thank you for your question. I will answer your question. First, on the store expansion and same-store sales, we remain focused on our core strategy of high-quality scale growth.

Nancy Song: Thank you for your question. I will answer your question. First, on the store expansion and same-store sales, we remain focused on our core strategy of high quality scale growth. As we continue to expand, we focus on maintaining a dynamic balance across these important metrics between the pace of expansion, store quality, operating efficiency, and same-store performance.

Speaker #3: As we continue to expand, we focus on maintaining a dynamic balance across this important metrics between the pace of expansion, store quality, operating efficiency, and same-store performance.

Speaker #2: 从一季度表现来看，我们延续了前期的既定的战略。整体上保持了相对较快的扩张。从本质来看，门店的扩张是基于我们对于中国咖啡消费长期需求的判断所做出的战略性的投入。所以在确保单店模型健康的前提下，以一个有竞争力的速度推进门店网络的建设。这也是持续强化最新的规模优势和长期市场布局的一个重要手段。

Jinyi Guo: 从一季度表现来看，我们延续了前期的既定的战略，整体上保持了相对较快的扩张。从本质来看呢，门店的扩张是基于我们对于中国咖啡消费长期需求的判断所做出的战略性的投入。所以在确保单店模型健康的前提下，以一个有竞争力的速度推进门店网络的建设，这也是持续强化瑞幸的规模优势和长期市场布局的一个重要手段。

Jinyi Guo: [Foreign language]

Speaker #3: So, in the first quarter, we continue to execute our established strategy and maintain a relatively fast pace of expansion. Fundamentally, our store expansion is a strategic investment based on our long-term view of China's coffee consumption demand.

Nancy Song: In the first quarter, we continue to execute our established strategy and maintain a relatively fast pace of expansion. Fundamentally, our store expansion is a strategic investment based on our long term view of China's coffee consumption demand. While maintaining a healthy unit economics, we are building our store network at a competitive pace to strengthen Luckin Coffee's scale advantage and long term marketing positioning.

Speaker #3: While maintaining a healthy unit economics, we are building our store network at a competitive pace to strengthen lock-in coffee scale advantage and long-term marketing positioning.

Speaker #2: 所以在过去的一年左右的时间里，面对整个外卖大战，给中国咖啡消费需求带来的强劲的增长机遇，瑞幸整体上处于一个较快的扩张的阶段。同时第一季度延续了这一个节奏。所以在这个背景下面，同店出现一定的波动也是比较正常的。也完全符合我们的业务预期。从结果来看，一季度自营门店同店基本保持稳定，我们认为也体现了瑞幸整体经营的韧性。

Jinyi Guo: 所以在过去的一年左右的时间里，面对整个外卖大战给中国咖啡消费需求带来的一个强劲的增长机遇，瑞幸整体上处于一个较快的扩张阶段。同时，第一季度延续了这一个节奏。所以在这个背景下面，同店出现一定的波动也是比较正常的，也完全符合我们的业务预期。从结果来看，一季度经营门店同店基本保持稳定，我们认为也体现了瑞幸整体经营的韧性。

Jinyi Guo: [Foreign language]

Speaker #3: So recently the delivery wall has created very strong growth opportunities in China's coffee consumption. Accordingly, we've been in a phase of relatively rapid expansion and this momentum continued into the first quarter.

Nancy Song: Recently, the delivery world has created very strong growth opportunities in China's coffee consumption. Accordingly, we've been in a phase of relatively rapid expansion, and this momentum continued into the first quarter. In this backdrop, some level of fluctuation in our same-store performance is normal. Also this is very well in line with our business expectations. Having said that, same-store sales for our self-operated stores remained broadly stable in the first quarter. We believe it also reflects the resilience of our overall operations.

Speaker #3: In this backdrop, some level of fluctuation in our same-store performance is normal and also this is well in line with our business expectations. Having said that, same-store sales for our self-operated stores remained broadly stable in the first quarter; we believe it also reflects the resilience of our overall operations.

Speaker #2: 另外从需求侧来看，如刚才我提到的，今年的春节期间下沉市场表现尤其亮眼。这也进一步验证了我们全国相对均衡的门店网络在承接需求和转化需求方面的能力。同时我们认为需求并不是静态的，除了咖啡消费习惯逐步养成带来的频次提升外，我们在供给侧的持续投入，包括门店网络的拓展和产品的持续创新，也在不断激发和创造新的消费需求。这也是我们对于长期同店表现保持信心的一个重要的基础。

Jinyi Guo: 另外，从需求侧来看，如刚才我提到的，今年的春节期间，下沉市场表现尤其亮眼，这也进一步验证了我们全国相对均衡的门店网络在承接需求和转化需求方面的能力。同时，我们认为需求并不是静态的，除了咖啡消费习惯逐步养成带来的频次提升外，我们在供给侧的持续投入，包括门店网络的拓展和产品的持续创新，也在不断激发和创造新的消费需求。这也是我们对于长期同店表现保持信心的一个重要的基础。

Jinyi Guo: [Foreign language]

Speaker #3: And from a demand perspective, as mentioned earlier, the strong performance in lower-tier markets during the Chinese New Year further validated the ability of our nationwide well-balanced store network as we capture and convert demand.

Nancy Song: From a demand perspective, as mentioned earlier, the strong performance in lower tier markets during the Chinese New Year further validated the ability of our nationwide well-balanced store network as we capture and convert demand. At the same time, we don't view demand as static. In addition to a natural increase in the consumer's purchase frequency as coffee consumption habits develop. Our ongoing supply side investments, including our store network expansion and our product innovation, also helps with simulation and creation of new demand. This underpins our confidence in our long term same store performance as well.

Speaker #3: At the same time, we don't view demand as static; in addition to a natural increase in the consumers' purchase frequency, as coffee consumption habits develop, our ongoing supply side investment, including our store network expansion and our product innovation, also helps with stimulation and creation of new demand.

Speaker #3: This underpins our confidence in our long-term same-store performance as well.

Speaker #2: 未来的几个季度，随着马上进入去年外卖补贴较高的一个对比的阶段，同店的指标在短期内可能仍会受到一定的技术影响，出现一定的波动。但与此同时，我们也正在持续通过一系列的经营举措进行对冲，包括强化产品的创新能力、提升咖啡产品的专业度、丰富非咖啡产品的产品矩阵等等。以及优化客制化的体验，从而不断地拓展消费的场景，提升转化效率和消费的频次。

Jinyi Guo: 未来的几个季度啊，随着马上进入去年外卖补贴较高的一个对比的阶段，同店的指标在短期内可能仍会受到一定的基础影响，出现一定的波动。但与此同时，我们也正在持续通过一系列的经营举措进行对冲，包括强化产品的创新能力，提升咖啡产品的专业度，丰富非咖啡产品的产品矩阵等等，以及优化客制化的体验，从而不断地拓展消费的场景，提升转化效率和消费的频次。

Jinyi Guo: [Foreign language]

Speaker #3: In the following quarters, as we move into the comparison period impacted by last year's elevated delivery subsidies, our same-store sales may face some short-term volatility.

Nancy Song: In the following quarters as we move into the comparison period impacted by last year's elevated delivery subsidies, our same-store sales may face some short term volatility, but at the same time, we are actively managing this through our product innovation, continued enhancement of our professional coffee offerings, expansion of our non-coffee portfolio as well as further improved customization. With all these efforts, what we think will help with broaden the consumption scenarios, improve conversion, and increase frequency.

Speaker #3: At the same time, we are actively managing this through product innovation, continued enhancement of our professional coffee offerings, expansion of our non-coffee portfolio, as well as further improved customization.

Speaker #3: With all these efforts, we think we will help with broadening the consumption scenarios and improve conversion and increased frequency.

Speaker #2: 总结一下，我们相信在高速发展的过程中，同店表现即使短期有所波动，但从更长的周期来看，整体趋势走向必然会是健康向上的。我们对长期的同店表现充满了信心。这是对于第一个问题的回答，谢谢。

Jinyi Guo: 总结一下，我们相信在高速发展的过程中，同店表现即使短期有所波动，但从更长的周期来看，整体趋势走向必然会是健康向上的。我们对长期的同店表现充满了信心，这是对于第一个问题的回答。谢谢。

Jinyi Guo: [Foreign language]

Speaker #3: Yes, so in conclusion, while same-store performance may fluctuate in the short term with our rapid growth, we believe the long-term trend will be will remain healthy and upward.

Nancy Song: Yeah. In conclusion, while same store performance may fluctuate in the short term, with our rapid growth, we believe the long term trend will remain healthy and upward. We remain confident in our same store performance in the long run. This is my response to your first question. Yeah. Thank you.

Speaker #3: We remain confident in our same-store performance in the long run. This is my response to your first question. Yeah. Thank you.

Speaker #1: Our next question comes from Linda Wong with Macquarie. Linda, please go ahead with your question.

Operator 2: Our next question comes from Linda Huang with Macquarie. Linda, please go ahead with your question.

Operator: Our next question comes from Linda Huang with Macquarie. Linda, please go ahead with your question.

Linda Huang: 谢谢管玉成给我这个提问的机会，我是麦格理证券的Linda Huang，黄晓玲。那我这边有一个问题是关于我们的回购计划。那我们也非常乐见公司推出这个股份回购计划。那我想问的就是说，公司选择在这个时候去启动回购的这个核心考量跟战略的动力是什么？那同时也是想了解，就是说未来呢，公司是不是会考虑采用现金分红等其他的这个股东回报的方式。So let me translate into English.

Linda Huang: [Foreign language]

Speaker #4: 谢谢 Graham 先生给我这个提问的机会。我是麦格理证券的 Linda Wong，黄晓玲。那我这边有一个问题是关于我们的回购计划。那我们也非常乐见公司推出这个股份回购计划。那我想问的就是说，公司选择在这个时候去启动回购的这个核心考量跟战略的动因是什么？那同时也是想了解，公司未来是不是会考虑采用现金分红等其他的股东回报方式。So let me translate into English. This is Linda Wong. I'm from Macquarie. So we are very pleased to see the company's launch of the share repurchase scheme.

Linda Huang: This is Linda Huang. I'm from Macquarie. We are very pleased to see the company's launch of the share repurchase scheme. I would like to know about the key considerations and the strategic motivation behind initiating this repurchase program. Additionally, I also want to know whether the company will consider adopting other shareholder reward initiatives such as the cash dividend distribution going forward. Thank you very much.

[Translator]: This is Linda Huang. I'm from Macquarie. We are very pleased to see the company's launch of the share repurchase scheme. I would like to know about the key considerations and the strategic motivation behind initiating this repurchase program. Additionally, I also want to know whether the company will consider adopting other shareholder reward initiatives such as the cash dividend distribution going forward. Thank you very much.

Speaker #4: So, I would like to know about the key considerations and the strategic motivation behind initiating this repurchase program. Additionally, I also want to know whether the company will consider adopting other shareholder reward initiatives, such as cash dividend distribution, going forward.

Speaker #4: Thank you very much.

Speaker #2: 好，谢谢您的提问。首先我们在这个阶段推出了3亿美金的股票回购的计划，核心还是源于我们对于中国咖啡市场长期潜力的一个坚定的看好，以及对于公司未来增长前景和长期价值的充分的信心。经过过去6年多的发展，瑞幸建立了扎实的基本面，经营业绩持续提升，先进的状况也更加健康。这些都为我们进行股东回报提供了坚实的基础。

Jinyi Guo: 谢谢您的提问。首先，我们在这个阶段推出了三亿美金的股票回购的计划，核心还是源于我们对于中国咖啡市场长期潜力的一个坚定的看好，以及对于公司未来增长前景和长期价值的充分的信心。经过过去六年多的发展，瑞幸建立了扎实的基本面，经营业绩持续提升，现金流的状况也更加健康。这些都为我们进行股东回报提供了坚实的基础。

Jinyi Guo: [Foreign language]

Nancy Song: Thank you for your question. Fundamentally our decision to launch the $300 million share buyback program at this stage reflects our strong confidence in the long term potential of China's coffee market. Also in our own growth prospect and our ability to create long term value. Over the past six years, we've built a very solid fundamentals with improving operating performance and increasingly healthy cash flows, which supports our ability to return capital to shareholders.

Speaker #3: Thank you for your question. So fundamentally, our decision to launch the three hundred million share buyback program at this stage reflects our strong confidence in the long-term potential of China's coffee market, also in our own growth prospects and our ability to create long-term value.

Speaker #3: So over the past six years, we've built a very solid fundamentals with improving trading performance and increasingly healthy cash flows which support our ability to return capital to shareholders.

Speaker #2: 随着公司进入了更加成熟的发展阶段，我们对于资本配置纪律和资本使用效率的重视程度也在持续的提升。在确保长期战略投入支撑业务稳健的前提下，我们希望通过更加积极也更可持续的方式提升股东的长期价值。所以本次回购正是公司优化资本配置、强化股东回报的一个重要举措。

Jinyi Guo: 随着公司进入了更加成熟的发展阶段，我们对于资本配置纪律和资本使用效率的重视程度也在持续的提升。在确保长期战略投入、支撑业务稳健的前提下，我们希望通过更加积极也更可持续的方式提升股东的长期价值。所以本次回购正是公司优化资本配置、强化股东回报的一个重要举措。

Jinyi Guo: [Foreign language]

Speaker #3: As we enter a more mature stage of development, we are placing greater emphasis on capital allocation discipline and the efficient use of our capital.

Nancy Song: As we enter a more mature stage of development, we are placing greater emphasis on capital allocation, discipline, and the efficient use of our capital while continuing to support our strategic investments and steady business growth. We aim to enhance long term shareholder value in a more proactive and sustainable way. Our buyback program is a key step in optimizing our capital structure and strengthening shareholder returns.

Speaker #3: We are continuing to support our strategic investments and steady business growth. We aim to enhance long-term shareholder value in a more proactive and sustainable way.

Speaker #3: So our buyback program is a key step in optimizing our capital structure and strengthening shareholder returns.

Speaker #2: 另外，关于未来股东的回报安排，我们始终保持着开放和积极的态度。由于众所周知的历史原因的影响，目前公司短期还不具备分红的条件，但我们未来会结合经营表现、现金流的状况、长期发展的需求，综合评估包括回购、分红在内的各类股东的回报方式。在平衡业务发展与股东回报的基础上，持续为股东创造长期可持续的价值。谢谢。

Jinyi Guo: 另外，关于未来股东的回报安排，我们始终保持着开放和积极的态度。由于众所周知的历史原因的影响，目前公司短期还不具备分红的条件，但我们未来会结合经营表现、现金流的状况、长期发展的需求，综合评估包括回购、分红在内的各类股东的回报方式，在平衡业务发展与股东回报的基础上，持续为股东创造长期可持续的价值。谢谢。

Jinyi Guo: [Foreign laguage]

Speaker #3: So looking ahead, we remain open to various shareholder return options. Due to historical reasons, we are not able to pay dividends in the short term, but we will continue to evaluate all the alternatives, including buybacks and further dividends, in the context of our operating performance, cash flows, and long-term development needs.

Nancy Song: Looking ahead, we remain open to various shareholder return options. Due to historic reasons, we are not able to pay dividends in the short term, but we will continue to evaluate all the alternatives, including buybacks and further dividends in the context of our operating performance, cash flows and long-term development needs. Our goal is to continue delivering a sustainable and long term value to our shareholders while maintaining an appropriate balance between our business growth and shareholder returns. Thank you.

Speaker #3: Our goal is to continue delivering sustainable and long-term value, maintaining an appropriate balance between our business growth and shareholder returns. Thank you.

Speaker #4: 非常感谢。那我相信这个也是很多投资人所乐见的。感谢Graham先生。

Linda Huang: 非常感谢。那我相信这个也是很多投资人所乐见的，感谢管理层。

Linda Huang: [Foreign language]

Speaker #2: 好，谢谢。

Jinyi Guo: 好，谢谢。

Jinyi Guo: [Foreign Language]

Speaker #3: Thank you.

Nancy Song: Thank you.

[Translator]: Thank you.

Speaker #1: 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 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.

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

Speaker #3: We look forward to speaking with you again next quarter. Thank you.

Operator 2: Once again, the conference has now concluded。You may disconnect your line。Thank you。

Operator: Once again, the conference has now concluded。You may disconnect your line。Thank you。

Q1 2026 Luckin Coffee Inc Earnings Call

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