According to its 2021 financial results, Luckin Coffee, a Chinese coffee chain store, has overtaken Starbucks for the first time to become the top coffee chain in China.
In 2020, Luckin Coffee made its name for accounting fraud. It “intentionally and materially” inflated its 2019 revenue and understated a net loss, while it was listed on the American stock market. The scandal resulted in the stock price crashing and several executives being fired. Trading was suspended and the company was delisted from NASDAQ in June 2020. In February 2022, Luckin paid off its $180 million penalty levied by the U.S. Securities and Exchange Commission (SEC).
According to the recently released 2021 financial report, Luckin’s total net revenue was 7.9 billion yuan ($US 1.24 billion), a leap of 97.5 percent over 2020. By the end of 2021, Luckin, with 6,024 stores across China, beat Starbucks (5,557 stores) for the first time and became the country’s largest coffee chain brand.
Source: Central News Agency (Taiwan), March 27, 2022