Luckin pays 1.2 billion yuan fine?How can you sell 75 million lattes and survive?
Luckin has paid a whopping $180 million fine under its previous settlement with the SECURITIES and Exchange Commission (SEC), according to an SEC filing filed by Luckin, as reported by Fast Tech on February 6.Luckin is offsetting the fine based on the cash value it will pay to its security holders under a previously announced restructuring arrangement of $460m of 2025 convertible senior notes.Luckin would need to sell more than 75 million lattes at 16 yuan a cup to “recoup” the fine.At this point, Luckin financial fraud temporarily come to an end.Luckin was said to be working on relisting its shares in the US to Nasdaq as soon as the end of this year, but this was officially denied.On the evening of December 9, 2021, Luckin Coffee released its unaudited financial results for the third quarter of 2021.According to the financial report, luckin coffee’s total net revenue in the third quarter of 2021 was 2,350.2 billion yuan, up 105.6% from 1.143 billion yuan in the same period last year, indicating a significant increase in total revenue.In terms of stores, luckin coffee increased its total number of stores to 5,671 in the third quarter.Among them, 4,206 new self-owned stores, an increase of 6.4% compared with the same period last year;There were 1,465 new affiliate stores, up 66.7% from the same period last year.Indeed, and see the finished her love coffee money, a lot of people would be very surprised, after we thought rui xing coffee delisting, big probability is to close the door closed, rui xing coffee not only survived, instead of paying the fine, and even the possibility of a listed again, why what’s going on?First of all, we have to understand that rui xing coffee before although there are a lot of problems, but its business fundamentals and strong sustainability, in a sense, Chinese white-collar consumer groups for the popularity of specialty coffee is done by rui xing, so rui xing coffee have good market prospects for development, on the basis of their own advantages,Although a huge blow, still has the strong market toughness, this market resilience is what most of the listed company does not have, so although rui xing to retreat city, but its market resilience to rui xing survived and good market development, this is the current rui xing was able to paying a fine.Second, rui xing xing is a very special enterprise, rui xing coffee is very hard on the surface, but in fact, he can get this kind of desperate and epigenetic effects, really only because rui xing coffee own efforts, more is the blessing of the whole Chinese coffee market, after all, for the current Chinese,Chinese people’s demand for coffee has reached an unprecedented high, and the continuous purification of coffee habits has helped Luckin achieve good market results. Luckin can be said to be right on the wind of the whole market. Although it made some mistakes in the past, it can be made up by sealing.This is the core of luckin coffee’s relatively good market performance.Third, from rui xing coffee long-term development perspective, the current rui xing has achieved bottomed out, coffee can have a fair market situation, if you can keep this situation further promotion, rui xing coffee again listed may still have hope, but must learn to conscientious rui xing coffee steadfast to do business,It is hoped that luckin has been reorganized and the board of directors can have a more stable development concept. In the face of great pressure, Luckin can not only survive, but also need to further develop itself. Only in this way can Luckin become a better enterprise.