Fourth Quarter Net Revenues Increased by 32.9% Year-over-Year to RMB12.8 Billion

Fourth Quarter Average Monthly Transacting Customers Increased by 26.5% Year-over-Year to 98.4 Million

8,708 Net New Store Openings in 2025; Ending the Year with 31,048 Stores

BEIJING, Feb. 26, 2026 (GLOBE NEWSWIRE) -- Luckin Coffee Inc. ("Luckin Coffee" or the "Company") (OTC: LKNCY) today announced its unaudited financial results for the three months and fiscal year ended December 31, 2025.

FOURTH QUARTER 2025 HIGHLIGHTS(1)

   -- Total net revenues were RMB12,776.8 million (US$1,823.6 million), 
      representing a 32.9% year-over-year increase. 
 
   -- Net new store openings were 1,834, comprising 1,792 stores in China 
      (including Hong Kong), 13 stores in Singapore, 25 stores in Malaysia and 
      4 stores in the U.S. Total number of stores increased to 31,048 at the 
      fourth quarter end, comprising 20,234 self-operated stores and 10,814 
      partnership stores, which represented a store unit growth of 6.3% from 
      the total store count as of the end of the third quarter of 2025. 
 
   -- Average monthly transacting customers were 98.4 million, representing a 
      26.5% year-over-year increase. 
 
   -- Revenues from self-operated stores were RMB9,546.8 million (US$1,362.6 
      million), representing a 32.0% year-over-year increase. 
 
   -- Same-store sales growth for self-operated stores was 1.2%, improved from 
      negative 3.4% in the same quarter of 2024. 
 
   -- Store-level operating profit -- self-operated stores was RMB1,429.2 
      million (US$204.0 million), largely remaining flat year-over-year. Store 
      level operating margin was 15.0%, compared to 19.8% in the same quarter 
      of 2024. 
 
   -- Revenues from partnership stores were RMB2,846.7 million (US$406.3 
      million), representing a 39.2% year-over-year increase. 
 
   -- GAAP operating income was RMB821.4 million (US$117.2 million), compared 
      to RMB1,007.8 million in the same quarter of 2024. GAAP operating margin 
      was 6.4%, compared to 10.5% in the same quarter of 2024. Non-GAAP 
      operating income, which adjusts for share-based compensation expenses, 
      was RMB963.8 million (US$137.6 million), compared to RMB1,104.4 million 
      in the same quarter of 2024. Non-GAAP operating margin was 7.5%, compared 
      to 11.5% in the same quarter of 2024. 

(___________________________) (1) Please refer to the section "KEY DEFINITIONS" for detailed definitions on certain terms used.

FISCAL YEAR 2025 HIGHLIGHTS

   -- Total net revenues were RMB49,288.1 million (US$7,034.8 million), 
      representing a 43.0% year-over-year increase. 
 
   -- Net new store openings were 8,708, comprising 8,599 stores in China 
      (including Hong Kong), 30 stores in Singapore, 70 stores in Malaysia and 
      9 stores in the U.S. Total number of stores increased by 39.0% 
      year-over-year to 31,048, comprising 20,234 self-operated stores and 
      10,814 partnership stores. 
 
   -- Average monthly transacting customers were 94.2 million, representing a 
      31.1% year-over-year increase. 
 
   -- Revenues from self-operated stores were RMB36,242.8 million (US$5,172.9 
      million), representing a 41.6% year-over-year increase. 
 
   -- Same-store sales growth for self-operated stores was 7.5%, significantly 
      improved from negative 16.7% in the fiscal year 2024. 
 
   -- Store-level operating profit -- self-operated stores was RMB6,436.1 
      million (US$918.6 million), representing a 32.2% year-over-year increase. 
      Store-level operating margin was 17.8%, compared to 19.0% in the fiscal 
      year 2024. 
 
   -- Revenues from partnership stores were RMB11,593.7 million (US$1,654.8 
      million), representing a 49.7% year-over-year increase. 
 
   -- GAAP operating income was RMB5,072.9 million (US$724.1 million), 
      representing a 42.1% year-over-year increase. GAAP operating margin of 
      10.3%, compared to 10.4% in the fiscal year 2024. Non-GAAP operating 
      income, which adjusts for share-based compensation expenses, was 
      RMB5,646.1 million (US$805.9 million), representing a 43.5% 
      year-over-year increase. Non-GAAP operating margin was 11.5%, compared to 
      11.4% in the fiscal year 2024. 

Dr. Jinyi Guo, Co-founder and CEO of Luckin Coffee, said, "Our 2025 results reflect the strength of our scale-focused execution, as we achieved robust growth amid shifting market dynamics. We finished the year strong, reaching our 30,000(th) -store milestone and expanding our cumulative transacting customer base to over 450 million. This expanded scale reinforced our market leadership and further strengthened our ability to capture the structural tailwinds of China's coffee market, where competitive advantages are increasingly defined by end-to-end operational and systematic capabilities. Looking ahead to 2026, we remain focused on offering high-quality, great-value products that resonate with customers, while continuing to scale our business to drive long-term shareholder value."

FOURTH QUARTER 2025 FINANCIAL RESULTS

Total net revenues were RMB12,776.8 million (US$1,823.6 million), representing an increase of 32.9% from RMB9,613.3 million in the same quarter of 2024. Net revenues growth was primarily driven by a 32.8% year-over-year increase in GMV, which reached RMB14.8 billion, as a result of an increase in the number of products sold resulting from growth in (i) the number of stores in operation as well as (ii) monthly transacting customers.

   -- Revenues from product sales were RMB9,930.1 million (US$1,417.3 million), 
      representing an increase of 31.2% from RMB7,567.5 million in the same 
      quarter of 2024. 
 
          -- Net revenues from freshly brewed drinks increased to RMB9,150.6 
             million (US$1,306.1 million) from RMB6,924.5 million in the same 
             quarter of 2024. This revenue stream accounted for 71.6% of total 
             net revenues, compared to 72.0% in the same quarter of 2024. 
 
          -- Net revenues from other products increased to RMB605.1 million 
             (US$86.4 million) from RMB496.0 million in the same quarter of 
             2024. This revenue stream accounted for 4.7% of total net revenues, 
             compared to 5.2% in the same quarter of 2024. 
 
          -- Net revenues from others increased to RMB174.4 million (US$24.9 
             million) from RMB147.0 million in the same quarter of 2024. This 
             revenue stream accounted for 1.4% of total net revenues, compared 
             to 1.5% in the same quarter of 2024. 
 
   -- Revenues from partnership stores were RMB2,846.7 million (US$406.3 
      million), representing an increase of 39.2% from RMB2,045.8 million in 
      the same quarter of 2024. This revenue stream accounted for 22.3% of 
      total net revenues, compared to 21.3% in the same quarter of 2024. 
      Revenues from partnership stores included sales of materials of 
      RMB1,744.4 million (US$249.0 million), delivery service fees of RMB506.6 
      million (US$72.3 million), profit sharing and royalty fee of RMB387.9 
      million (US$55.4 million), sales of equipment of RMB187.7 million 
      (US$26.8 million), and franchise and other service fees of RMB20.0 
      million (US$2.9 million). 

Total operating expenses were RMB11,955.4 million (US$1,706.4 million), representing an increase of 38.9% from RMB8,605.5 million in the same quarter of 2024. The increase primarily resulted from the Company's business expansion. Operating expenses as a percentage of net revenues was 93.6%, compared to 89.5% in the same quarter of 2024. The ratio change was primarily attributable to rising delivery expenses as a percentage of total net revenues due to the increase in fourth-quarter delivery orders.

   -- Cost of materials were RMB5,107.8 million (US$729.0 million), 
      representing an increase of 33.2% from RMB3,834.4 million in the same 
      quarter of 2024. The increase was mainly due to increases in (i) the 
      number of products sold and (ii) sales of materials to partnership 
      stores. 
 
   -- Store rental and other operating costs were RMB3,150.6 million (US$449.7 
      million), representing an increase of 32.8% from RMB2,372.3 million in 
      the same quarter of 2024. The increase mainly resulted from the increased 
      number of stores and items sold which led to year-over-year increases in 
      (i) labor costs, (ii) store rental costs as well as (iii) utilities and 
      other store operating costs. 
 
   -- Depreciation and amortization expenses were RMB434.3 million (US$62.0 
      million), representing an increase of 30.9% from RMB331.8 million in the 
      same quarter of 2024. The increase was mainly due to increases in (i) 
      amortization of leasehold improvements for the stores and (ii) 
      depreciation expenses of additional equipment put into use in new stores. 
 
   -- Delivery expenses were RMB1,630.9 million (US$232.8 million), 
      representing an increase of 94.5% from RMB838.7 million in the same 
      quarter of 2024. The significant increase was mainly driven by the rise 
      in delivery volumes from the third-party food delivery platforms. 
 
   -- Sales and marketing expenses were RMB755.6 million (US$107.8 million), 
      representing an increase of 31.9% from RMB572.9 million in the same 
      quarter of 2024. The increase was mainly driven by increases in (i) 
      commissions to the third-party food delivery and live streaming platforms, 
      (ii) advertising and other promotion expenses and (iii) payroll costs for 
      sales and marketing staff. Sales and marketing expenses as a percentage 
      of total net revenues was 5.9%, similar to 6.0% in the same quarter of 
      2024. 
 
   -- General and administrative expenses were RMB846.2 million (US$120.8 
      million), representing an increase of 32.7% from RMB637.6 million in the 
      same quarter of 2024. The increase was mainly driven by increases in (i) 

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