瑞幸咖啡上市招股书-2019.4-277页_2mb

Summary of Luckin Coffee Inc. Initial Public Offering (IPO)

Core Content

This document is the Form F-1 registration statement for the initial public offering (IPO) of American Depositary Shares (ADSs) of Luckin Coffee Inc., a Cayman Islands company. The offering is intended to be listed on the Nasdaq Global Select Market under the symbol "LK."

Key Information

• Offering Type: Initial Public Offering of ADSs representing Class A ordinary shares.
• Company: Luckin Coffee Inc., incorporated in the Cayman Islands.
• Offering Price: Estimated to be between US$ and US$ per ADS.
• ADSs Offered: Up to ADsSs (or ADSs if the underwriters exercise their over-allotment option).
• Par Value: Each Class A ordinary share has a par value of US$0.000002.
• ADS Structure: Each ADS represents 1/500 of a Class A ordinary share.
• Registration Fee: US$12,120 for the Class A ordinary shares with a proposed maximum aggregate offering price of US$100,000,000.
• Underwriters: The underwriters have a 30-day option to purchase up to additional ADSs.
• Listing: The ADSs will be listed on Nasdaq Global Select Market under the symbol "LK."
• Emerging Growth Company: Luckin qualifies as an emerging growth company under the JOBS Act and is eligible for reduced reporting requirements.

Main Points

Company Overview

• Luckin Coffee Inc. is China's second largest and fastest-growing coffee network in terms of stores and coffee sold, according to Frost & Sullivan.
• It operates a technology-driven new retail model, focusing on cashier-less operations through mobile apps.
• The company has a store network of 2,370 stores as of March 31, 2019, with 91.3% being pick-up stores.
• Cumulative transacting customers reached over 16.8 million as of March 31, 2019.
• Customer repurchase rate in 2018 was over 54%, indicating strong customer loyalty.

Business Model

• Luckin's model is based on high quality, high affordability, and high convenience.
• The company uses big data analytics and AI to analyze customer behavior and transaction data, enabling dynamic pricing and customer retention.
• It sources premium Arabica coffee beans and uses renowned global suppliers for coffee machines and condiments.
• Luckin's coffee has won awards, including a Gold Medal in the 2018 IIAC International Coffee Tasting competition.

Share Structure

• Luckin has adopted a dual-class share structure:
  • Class A ordinary shares: 1 vote per share, non-convertible to Class B.
  • Class B ordinary shares: 10 votes per share, convertible to Class A at any time.
• Class B shares will constitute approximately % of total issued and outstanding share capital and % of the voting power, assuming the majority of Class A shares are issued in connection with the private placement to Louis Dreyfus Company B.V..
• Pre-IPO Shareholders will beneficially own all Class B ordinary shares.

Strategies

• Expand customer reach and frequency.
• Grow store network.
• Introduce new products.
• Continue to invest in technology.

Challenges and Risks

• Sustaining historical growth rates and managing rapid expansion.
• Securing sufficient funding for future growth.
• Customer acquisition and retention in a cost-effective manner.
• Operational efficiency and supply chain management.
• Competition from similar products.
• Compliance with PRC regulations.

Recent Developments

• In April 2019, Luckin entered into a joint venture with Louis Dreyfus Company Asia Pte. Ltd. to build a coffee roasting plant in China.
• Louis Dreyfus Company B.V. will purchase Class A ordinary shares in a concurrent private placement worth US$50 million, based on the IPO price.
• In April 2019, Luckin issued Series B-1 convertible redeemable preferred shares for US$150 million to certain investors, including BlackRock.

Corporate Structure

• Luckin Coffee Inc. is the parent company.
• The VIE (Variable Interest Entity) is Beijing Luckin Coffee Technology Ltd., a PRC company whose financial results are consolidated under U.S. GAAP.
• Luckin has 49 direct and indirect subsidiaries in China.

Dividends and Shareholder Rights

• No dividends are expected in the foreseeable future.
• If dividends are declared, the depository will distribute them to ADS holders after deducting fees.
• ADS holders can exchange ADSs for Class A ordinary shares, though the depository may charge fees for such exchanges.

Legal and Regulatory Information

• The Securities and Exchange Commission (SEC) has not approved or disapproved the offering.
• This prospectus is subject to U.S. federal securities laws.
• Information is accurate only as of the date on the front cover.

Key Definitions

• ADSs: American Depositary Shares representing 1/500 of a Class A ordinary share.
• CAGR: Compound Annual Growth Rate.
• Transacting customer: A customer who has made at least one transaction on mobile apps or third-party platforms.
• VIE: Variable Interest Entity, Beijing Luckin Coffee Technology Ltd., which is consolidated under U.S. GAAP.

Additional Notes

• The registration statement is subject to amendment to delay its effective date if necessary.
• Investors should refer to the "Risk Factors" section for a detailed discussion of the risks involved in investing in the ADSs.
• This document is not a part of the prospectus and should not be relied upon for investment decisions without reviewing the full prospectus.