Operator
Ladies and gentlemen, welcome to Luckin Coffee's fourth quarter and full year 2025 earnings conference call. All participants will be in a 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.
Thank you, and hello, everyone. Welcome to Locking Coffee's fourth quarter and the full year 2025 earnings conference call. We announced our financial results earlier today before the U.S. market opened. The earnings release is now available on our IR website and the venues where it exists. Today, you will hear from Dr. Guo Jingyi, co-founder and CEO of Locking Coffee, who will share a strategic overview of our business. Following that, Ms. Anjing, our CFO, will discuss our financial results in greater detail. Afterwards, we'll open up the poll 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, These statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in our findings with the In addition, the non-GAAP measures discussed today, the reconciliation information related to those measures can be found in our earnest 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. Guo Jingyi, co-founder and CEO of Locking Coffee. Dr. Guo, please go ahead.
Welcome to today's EARNIST conference call. Thank you for your continued interest in and support of Locking Coffee. 聚焦规模增长核心战略,不断扩大供需两端的领先优势,市场份额持续稳步提升。 2025 marked a year of foundational progress and a rapid growth for locking coffee. As growth in China's coffee market continued to accelerate, we remained focused on IGEL, consistently executing our scale-focused strategy centered on store extension, customer growth, and product innovation.
This approach further reinforced our leadership across both our store footprint and the customer base, while steadily increasing our market share. 已突破4.5亿 全年限制饮品销量同比增长39% 达41亿杯 市占率和人均杯量都持续提升 得益于旺盛的市场需求 我们快速调整开店计划 加速门店网络布局 全年竞争超8700家 年末全球门店总规模突破3万大关
Over the past year, we responded swiftly to market changes and fully capitalized on the expanding demand for coffee consumption. Efficiently converting customer demand into meaningful growth. Since June 2025, Lockheed's average monthly transacting customers have exceeded 100 million for five consecutive months. In addition, we added over 110 million new transacting customers during the year, bringing our cumulative customer base to over 450 million. At the same time, annual sales of freshly brewed beverages increased by 39% year-over-year to 4.1 billion cups, with both our market share and average cups per customer continuing to rise.
Supported by strong demand, we quickly adjusted our… 客户规模和门店网络的持续扩张 推动了全年业绩的强劲增长 2025年 公司总净收入同比增长43% 达到约493亿元 内容铜电销售稳步提升 全年增长率达到7.5% 我们的营业利润也表现稳健 同比增长42% 达到约51亿元 The continued expansion of our customer base and the store network
built our strong two-year financial performance. In 2025, our total net revenues increased by 43% year-of-year to around $49.3 billion. Same-store sales for our self-operated stores steadily improved, achieving annual growth of 7.5%. Our operating profit also demonstrated solid momentum, increasing by 42% year-of-year to around $5.1 billion. We believe that Lockheed's advanced digital business model together with accelerated scale extension across both our store network and the customer base will create a more resilient foundation for our future development. These advantages position us well to navigate external changes while gradually translating our digital operational capabilities into long-term efficiency gains and continuing profitability. 接下来我将介绍公司本季度的业绩和运营进展。稍后CFO安静会和大家分享更详细的财务数据。 I will now provide some highlights of our first quarter results and operational progress.
Our CFO安静 will share additional financial details later on this call. 四季度 业务增速保持稳健 总净收入同比增长33% 达到约128亿元 本季度 外卖平台补贴力度在行业淡季明显收缩 外卖占比虽环比有所下降 但仍处在较高水平 总和以上因素 四季度自营铜电销售增长率回落至1.2% In the first quarter, we delivered solid growth, with total net revenues increasing by 33% year-of-year to around 12.8 billion during the quarter.
Food delivery platforms significantly reduced subsidies during the industry's off-peak seasons. While the delivery order mix declined sequentially, it remained at a relatively high level. Against this backdrop, same-store sales growth for self-operative stores moderated to 1.2% in the first quarter, and operating profit amounted to around 820 million, as mentioned in our previous earnings call. These short-term fluctuations reflect the industry's current stage of development and the face execution of our strategy, fully in line with our earlier expectations.
From具体運營 to the market, we are looking at the three big companies.
We are at the same time, we are constantly strengthening the product of the market and the customer experience. operationally, centered on our three or four pillars of people, products, and places, we continue to scale our business while enhancing product fuel and the customer experience, further reinforcing Lockheed's leading advantages in China's coffee market. 在门店方面 我们保持有竞争力的开店节奏 稳步推进高线城市优质点位布局和下沉市场的拓展
加强多元消费场景的覆盖 进一步拉大规模优势 截至四季度 公司门店总数达到38480 实现了又一重要里程碑 我们的第三万家门店 原产地旗舰店已正式落地深圳 该门店以布局全球原产地为主题 配置原产地实验室 大师互动空间 门店专属精品斗选择和特条菜单 体现了瑞幸在规模领先的基础上 进一步延展咖啡专业度与升级体验的能力 On the storefront, we maintained a competitive pace of store openings,
further strengthening our presence across high-quality locations in high-tier cities while expanding into lower-tier markets. These efforts strengthened our coverage across diverse consumption scenarios and further widened our scale advantage. By the first quarter, our total store count reached 31,048, marking another key milestone. We officially opened our 30,000th store, the Origin flagship store in Shenzhen. The store is themed around global origins and features an origin lab, a coffee master space, and the store-exclusive selections of premium single-origin bins and a curated specialty coffee product menu. This flagship store showcases Lockheed's ability to lead beyond its scale by advancing coffee trustmanship and advising the customer experience.
We warmly welcome everyone to visit and experience our origin flagship store. 其中自营20144家 联营10744家 至此 我们也正式成为国内第一家自营门店数量突破2万家的连锁餐饮品牌 这不仅再次体现了瑞幸咖啡的品牌领导力 也意味着公司具备更强的市场反应速度 运营管控能力 以及规模化执行效率
进一步夯实了与联营伙伴长期合作共鸣的业务基础 未来 我们依然坚信中国咖啡市场潜力空间巨大 我们有信心保持领先行业的拓电速度 进一步扩大市场覆盖 聚焦市场份额 布局长期发展 Looking at our store expansion progress in more detail, we added 1,792 annual stores in China, bringing our total domestic store count to 30,888, including 20,444 self-operated stores and 10,744 partnership stores. With this milestone, we officially became the first food and beverage chain in China to support 20,000 self-operated stores. This is another testament to Lockheed's brand leadership, reflecting our stronger market responsiveness, operational discipline, and the scaled execution efficiency. It also reinforces the foundation for long-term win-win collaboration with our partners. Looking ahead, we firmly believe that China's coffee market has significant growth potential.
We are confident in our ability to maintain an industry-leading pace of extension and further broaden market coverage, while focusing on market share and driving our long-term growth. 国际市场方面 我们稳扎稳打的拓展节奏持续产生了积极效果 本季度竞争42家 门店总数达到160家 其中包括新加坡自营门店81家 美国自营门店9家 马来西亚加盟门店70家 截至年底 新加坡门店数量已极深当地品牌前列 商业模式和单店模型均得到了基本验证 我们与马来西亚合作伙伴也建立了良好的合作关系 并依托新加坡市场的成功经验 协助其深入推进本土化运营 稳步提升经营表现 美国市场目前仍处在早期探索阶段 我们会继续保持稳健的拓展策略 重点树立底层运营体系和模式探索 持续积累运营经验 进一步加深对当地消费者的理解 凭借瑞幸的好产品 好体验和出色的支架品 我们对海外业务的长期发展充满信心
Internationally, our disciplined and steady expansion continue to yield positive results During the quarter, we added 42 manual stores, bringing our total overseas store count to 160, including 81 self-operated stores in Singapore, 9 self-operated stores in the U.S., and 70 franchise stores in Malaysia. As of year end, our store count in Singapore reached among the leading coffee brands in the local market. With both our business model and The store unit in Nomex largely validated. We have also built a constructive relationship with our partner in Malaysia. And by leveraging our successful experience in Singapore, we consistently support our partner in enhancing localized operations and improving store performance. In the U.S., we are still in the early stages of exploration and remain committed to our disciplined expansion strategy. With a focus on refining our underlying operational infrastructure and exploring locally tailored operating models, we will continue to accumulate operational experience and further deepen our local consumer insights. Supported by our great tasting products, seamless customer experience, and compelling value for money proposition, we are confident in the long-term growth of our overseas business.
In the market, 4.00... 12月, we開啟了瑞幸巴西主題記,推出桑巴深紅美式、桑巴深紅拿鐵等新品, 採用巴西核心產區阿拉比卡咖啡豆,通過自研的高溫慢烘工藝, 進一步強化了瑞幸以原產地位導向的咖啡風味選擇,提升了品牌的專業心智。 此外 我们还为25款饮品增加了深欧豆的客制化选项 更好地满足消费者对专业度和个性化的需求 在非咖啡方面 我们推出了瑞士抹茶 西林菇勒咸奶茶 美日维C火蔬茶等多款新品 持续拓宽时间场景和时段的饮品选择 随着产品矩阵的不断丰富,2025年全年来看,非咖啡饮品的杯量占领已经超过了20%.
On the product front, we launched 30 new freshly brewed beverages and around a dozen snack items in the fourth quarter, bringing the total number of new product launches for the year to over 140. During the quarter, we continued to lead in product innovation while further strengthening our positioning as a professional coffee brand. At the same time, we expanded our non-coffee portfolio to better address consumers' diverse tastes and experience needs across different consumption scenarios. In December, we launched La King's Brazil season, introducing new products such as the Samba Dark Roast Americano and Samba Dark Roast Latte. Featuring Arabica beans sourced from core origins in Brazil and roasted using our pro-territory high temperature low roasting technique. These new launches further reinforced Latte's origin-oriented flavor selection and strengthened our professional brand perception. In addition, we added dark roast bean options for 25 beverages, better meeting consumers' growing demand for professional quality and personalization. On the non-coffee side, we launched several new products, including rain mocha, chelingo savory milk tea, and daily vitamin C fruits and veggies tea, continuing to extend beverage offerings across a broader range of leisure occasions and day parts. With the continued enrichment of our product matrix, non-coffee beverages accounted for more than 20% of total cups sold for full year 2025.
On the customer front, we continue to deliver great tasting products and emotionally relevant brand experiences. creating a consumption journey that combines quality and the connection. During the quarter, we partnered with popular IPs from a national blockbuster model game and several animated films. Through well-received co-branded campaigns and merchandise, we further enhanced customer engagement, strengthening consumers' recognition of and loyalty to our brand, while maintaining our high-quality, high-affordability value proposition. In the fourth quarter, we added over 24 million new transacting customers. Our average monthly transacting customers grew 26% year-of-year to over 98 million, maintaining a level close to 100 million even during the industry's off-peak season.
Powered by Lockheed's digital operational capabilities, we integrated product innovation, IT collaborations, and refined user operations to effectively expand our customer base, while steadily increasing the proportion of high-frequency users and overall purchase frequency. 此外 在ESG方面 我们积极探索企业社会价值与人们关怀的深度融合 将可持续发展理念持续融入日常运营 作为首批响应 台华公约 为残量人士提供无障碍环境的企业之一 12月 我们在杭州 开设了瑞幸首家无障碍设计门店 并在全国积极推广 标准化 可复制的残障人士 融合就业方案 进一步完善包容性的工作 与消费环境 凭借多元的可持续时间落地 我们于12月 还获得了 宜安集团 2025中国最佳ESG雇主奖项 这也是瑞幸连续三年
On the ESG front, we have been advancing the deep integration of corporate social responsibility and human-centered care, continuously embedding sustainable development principles into our daily operations. As one of the first companies to support the multiple-hour compact by providing barrier-free environments for people with accessibility needs, we opened Locking Coffee's first accessible store in Hangzhou in December. In parallel, we are actively advancing standardized and scalable inclusive employment programs for people with disabilities nationwide. further fostering a more supportive workplace and the consumption environment. In recognition of these sustainability initiatives, we were awarded 2025 China-Best ESG employers by Ion Group in December. Marking the third consecutive year, we have received this distinction.
Guided by our long-term perspective, we will continue to create value for customers, society, and our partners. 总结而言 经历了2025年的高速发展 中国咖啡市场在需求加速释放的同时 竞争格局也愈发多元 我们始终认为 限制咖啡作为以线下点位和综合消费体验为核心的业务 其竞争壁垒并非来自单一维度 而在于端到端全链路的系统性优势 以作人货厂协同的数字化运营能力 我们相信 瑞幸在品牌新制 客户体验 供链深度 产品创新 以及门店管理等方面形成的综合竞争力 形成打造了我们能够穿越不同外部环境 把握咖啡行业结构性增长机遇的关键优势
In summary, following a year of rapid growth in 2025, China's coffee market is experiencing accelerated demand along with an increasingly diverse competitive landscape. We have consistently believed that freshly brewed coffee as a business inherently centered on offline physical locations and comprehensive consumer experiences derives its core competitive mode not from any single dimension but from integrated end-to-end operational and systematic strength across the entire value chain. Leveraging our digital operational capabilities across people, products and places, we are confident that Locking's comprehensive strength in brand perception, customer experience, supply chain depth, product innovation and store management form the key advantages that enable us to navigate evolving external environments and capture structural growth opportunities in the coffee market. Looking into 2026, we will remain focused on scale expansion while maintaining the flexibility to adapt to market changes. As we maintain healthy profitability levels, we remain committed to steadily growing our market share, strengthening our industry-leading position, and unlocking long-term growth potential. Finally, we extend our sincere gratitude to our customers, partners, and investors for their continued trust and support, and to our 170,000 Lock-in team members for their dedication and hard work. We will keep moving forward to build a world-class coffee brand, make Lock-in coffee a part of everyone's daily life, and create a long-term value for our customers, partners, and shareholders. 接下来,有请我们的CFO安静向大家介绍详细的财务数据。 Now, I will turn the call over to our CFO安静 to go through our financial results in detail.
Thank you, Jingyi. Good day, everyone. Thank you for joining today's call. We closed 2025 on a strong note. as our scale-focused strategy drove robust full-year revenue growth along with solid profit performance. Record customer additions strengthens the foundation for our long-term success. We'll accelerate its toll openings, underscore our ongoing investments to capture rising customer demand. Let's now look at our financial performance in detail. In the fourth quarter, total net revenue increased by 33% year-over-year to RMB 12.8 billion, primarily driven by a 33% year-over-year increase in GMV to RMB 14.8 billion. This growth was mainly driven by higher-cut volumes across our self-operated and partnership stores, reflecting ongoing store expansion and growth in transecting customers. Revenues from productive sales increased by 31% year-over-year to R&B $9.9 billion, primarily driven by enhanced sales performance in our self-operated stores. Breaking down our productive sales into three streams. Net revenues from fresh-to-group streams were R&D $9.2 billion, representing about 72% of the total net revenues. Net revenues from other products were R&D $605 million, or about 5% of the total net revenues. Net revenues from others were R&B 174 million, or roughly 1% of the total net revenues. Looking at the product itself from the perspective of company-owned stores, revenues from self-operated stores increased by 32% year-over-year to R&B 9.5 billion. Same-store self-growth was 1.2% for this quarter. Money-driven by volume growth. Store-level operating profit remained largely flat year-over-year at RMB 1.4 billion, with self-operative store-level operating margin of 15%. Revenues from partnership store increased by 39% year-over-year to RMB 2.8 billion. accounting for 22% of total net revenues. This growth mainly came from increased sales of materials, higher contribution from profitable partnership stores, and increased delivery service fees driven by rising delivery volumes. Costs of materials as a percentage of total net revenues remain stable year over year at 40%. In absolute terms, Cost of material increased by 33% year-over-year to RMB 5.1 billion, in line with our business expansion. So, rental and other operating costs as a percentage of total net revenue was 25%, relatively less compared with the same period of 2024. In absolute terms, state expenses increased by 33% year-over-year to RMB 3.2 billion, driven by higher payroll costs associated with cost volume growth and increased rental expenses from continued store expansion. Delivery expenses increased by 94% year-over-year to RMB 1.6 billion, driven by a substantial increase in delivery orders through food delivery platforms. As a result, delivery expenses as a percentage of a total net revenue increased to 13% from 9% in the same period of 2024. However, on a per-order basis, delivery costs declined year over year, reflecting improved operational efficiency driven by our scale expansion. Sales and marketing expenses at the percentage of total net revenue was 86%, remaining stable from the same period of 2024. In absolute terms, sales and marketing expenses rose 32% year-over-year to RMB $756 million, largely due to higher commission fees paid to food delivery platforms as delivery volumes increased. General and administrative expenses as a percentage of the total net revenue remains stable year-over-year at 7%. In absolute terms, GNA expenses rose 33% year-over-year to RMB $846 million, money driven by higher payroll costs and share-based compensation, as well as increased investment in research and development. development. Our gap operating profit was R&B 821 million, with an operating margin of 6.4% compared to R&B 1 billion at 10.5% in the prior year period, certainly reflecting higher delivery-related expenses as the delivery volume increased. On a non-GAAP basis, operating profit was R&B 946 million, with a margin of 7.5%. Net profit was at R&B 518 million, with a net margin of 4.1%, compared to R&B 851 million and 8.8% in the five-year period. managed to a higher effective tax rate on a net-get basis. Net profit was R&B 699 million, with net margin at 5.5%. Finally, looking at our balance sheet and cash flow, we generated around R&B 565 million in net operating cash during the fourth quarter of 2025. As of the year end, our total cash position, which included cash and cash equivalents, restricted cash, 70 profits, and a short-term investment worth about R&B 9 billion, compared to R&B 5.9 billion at the end of 2024. Our strong cash position and the continued cash generation provide us with a solid financial Foundation, giving us the flexibility to pace our investments and expansion in line with market conditions. Before we begin the Q&A portion of the court, I will briefly touch on the full year of 2025 financial highlights. Compared to 2024, total net revenues increased by 43% to RMB 49.3 billion. Gap operating profit increased by 42 percent to RMB 5.1 billion with operating margin at 10.3 percent. Non-gap operating profit increased by 43 percent to RMB 5.6 billion with non-gap operating margin at 11.5 percent. Net profit increased by 22 percent to RMB 3.6 with net margin at a 7.3%. NANDGAAP net profit increased by 27% to R&D 4.0 billion with NANDGAAP net margin at an 8.5%. In closing, our full-year results have placed us on a stronger footing. We remain well positioned to execute our long-term growth strategy with a continued focus on discipline to cost the management and ongoing efforts to optimize operating performance. With that, we'll open the call for questions. Operator, please go ahead.
Operator
Thank you. We will now begin the question and answer session. To ask a question, you may press star than 1 on your telephone, and to remove yourself from queue, please press star than 2. Our first question today comes from Jessie Xu at JPMorgan. Please go ahead.
Thank you. 郭总安总Nancy晚上好 谢谢接受我的提问 我是摩根大通的分析师Jesse徐 很高兴第一次在业绩电话会上跟郭总安总交流 作为消费者我们感受到就是去年这一年是非常精彩 那作为分析师也是同样感觉到这个行业变化之快 每天都有新的见闻 感觉在一个快速迭代的行业里是非常幸福和有成就感的 那从咱们四季度的业绩来看 竞争8000多家电是满超预期的 我相信这个充分说明了咱们强大的中后台和这个落地执行能力 放言整个中国的直营零售市场几乎都是独一无二的存在 这个是非常的respect 我们也知道机遇通常伴随这些挑战嘛 那四季度的铜电增长似乎是有些不及预期的 这里是否可以就是帮助我们理解一下这个背后的逻辑 另外更重要的是想请教您对二二六年怎么看 那在现在这个时间点我们应该怎么样去推演接下来的统电 门店利润率和公司利润率的一个趋势 以及我们在运营上会有哪些新的举措来应对可能会出现的一些新的机遇和挑战 那我来翻译一下 Thanks for taking my questions Jesse Hsu from JP Morgan 2025 has been quite volatile with many more moving factors in the industry Very excited to be in the fast-growing sector. It's very dynamic and very interesting. For the fourth quarter, 25, store expansion is definitely a strong beat. A net opening of over 8,000 stores fully demonstrates the competitive edges and strong execution, which is very rare in the whole China retail market. But at the same time, we also noticed that same-store sales performance seemed to be weaker than expected. So could you first maybe elaborate a little bit more to help us understand the rationale behind the numbers? And more importantly, how should we think about the outlook or trend for 26, including new store opening pace, same-store sales trend, and margins on both store level and company level? What's your strategy to cope with the fluid situation this year? Any guidance or colors would be great Thank you Thank you for your question.
And this is also a question that is done by investors. As I mentioned earlier, our fourth quarter same-store sales performance and profit performance were affected by a combination of factors, including seasonality changes in food delivery platforms, their subsidy dynamics, and also cut volume mix.
So all of these factors are actually in line with our expectations. 而随之带来的限制咖啡行业的需求弹性 以及消费潜力的快速释放 这些都印证了我们的战略判断 因此 获取市场份额依然是公司战略规划的重中之重 这一条运营层面 面对限制饮品行业复杂多变的市场环境 我们会保持稳健且灵活的一个发展节奏
So looking into 2026 and our long-term development strategy, so as emphasized in our previous earnings calls, I'd like to affirm again that China's coffee market remains in a rapid growth phase with significant structural opportunities ahead. So in 2025, food delivery platform, their subsidy campaigns significantly accelerated coffee adoption among Chinese consumers. So accordingly, we saw strong demand and fast-growing coffee consumption, which further validated our strategic view. So therefore, gaining market share remains our top strategic priority and focus. For 2016, in a complex and dynamic market environment, we will maintain a disciplined yet agile development approach, focusing on key areas, for example, stores, costs, and price levels to drive healthy business performance. Right, so in terms of store extension, we will leverage our unique and also industry-leading digital site selection and planning system to implement a refined strategy, maintaining an efficient and competitive pace to capture the fast-growing market demand. And at the same time, we'll continue to closely track store performance to make sure that we have a healthy ramp-up and maturation cycle. 对于贝量方面 从供给端 我们会聚焦客户的需求 持续做好产品创新 丰富产品结构 进一步扩展人群和消费的场景覆盖 从需求端来看 我们会继续发挥数字化运营优势 利用贴合用户和市场的营销方式 以品牌创新 强化对于客户情绪价值的传递 加强用户处达和转化效率 So, in terms of cut volume, on the supply side, centered around customer needs will continue to drive product innovation and enrich our product portfolio to reach more customers, as well as to cover more consumption scenarios. On the demand side, we'll leverage our digital capabilities to implement more targeted and market-relevant marketing strategies. All these efforts will allow us to strengthen emotional connection through brand innovation and improve customer reach and conversion efficiency, ultimately contribute to retention and purchase frequency. And our pricing will maintain competitive price levels while broadening our price range to optimize our overall price. And at the same time, we'll continue to enhance the consumption experience to support our overall pricing and operating performance. For example, we will introduce more diversified console offerings, more customization options, as well as professional coffee bean flavor selections. 而最后总结一下综合来看呢考虑到整个外卖平台补贴策略的持续变化 被量结构逐步回到字体确实需要一段过程 同时考虑到2025年大规模补贴带来的高基数 2026年铜电和利润表现确实可能存在一定的阶段性的波动和挑战 这也符合客观规律 但是我们相信这些短期的波动并不会改变长期的增长逻辑 凭借瑞幸数字化基础和规模优势给我们在工序两端带来的持续强化的竞争优势 以及效率提升带来的这种运营体系的这种升级 我们对长期的通电表现和盈利能力我们还是充满信心的 好吧 谢谢 So, in conclusion, overall, given the evolving full-dealer platform, the subsidy dynamics and the time required for order mix to gradually shift back to pick up. And on top of that, also considering the high base created by large-scale subsidies in 2025, we may continue to see some near-term volatility and the challenges in the same-store performance and the profitability in 2006, which is also consistent with such market dynamics. However, we believe these short-term fluctuations don't change the underlying drivers of our long-term growth. And with our digital infrastructure and our strengthened competitive advantages across both store scale and the customer base, along with our operating infrastructure that continuously improve efficiency, we are confident in the long-term outlook for same-store performance and profitability. Thank you.
Operator
And our next question today comes from Becky Kai at McQuarrie.
Speaker 6
Please go ahead. 郭总安总, Nancy总,我是那个麦格丽正确的Becky. 那我的问题是有关这个行业竞争格局的。 因为现在看到咖啡赛道这个竞争更加多元, 就比如像我们在做更多这个非卡产品 然后一些产品牌也开始在做咖啡 所以就想请教一下 您怎么看待目前的这个竞争格局的演变 以及会对就是内心会有什么样的影响 那我翻译一下 My question is regarding the market competition So the coffee market is getting way more diverse So for example, like we see more cross-category competition between tea and coffee brands. So how do you see the current competition evolving and what does it mean for our team?
Thank you for your question. The competition is one that everyone is very interested in. It's also one of us that we are interested in. First of all, we always think that the Chinese coffee industry is currently in a relatively early stage. 无论是从咖啡人群的渗透率来看 还是从人群杯量的水平来看 对标成熟市场 还有着巨大的发展空间 因此 限制咖啡行业也是国内为数不多的 拥有长期发展红利的赛道 长坡后雪 空间广阔 随着消费者引用习惯的持续培养 有更多的玩家参与进来 这既是行业发展的自然过程,也有助于深化市场教育和渗透,从而进一步推动整体市场规模的持续扩大。
Thank you for your question. So we are also very closely monitoring the evolving competitive dynamics. But first of all, we strongly believe that China's coffee industry remains at a relatively early stage of development. So, there is still a substantial headroom in both consumer penetration and the per capita consumption compared with the mature markets. So, the freshly brewed sector stands out as one of the few industries in China with significant long-term structural opportunities and also a long runway for growth. So, when consumers' habits continue to develop, it's natural to see more players entering the market. But more importantly, increased participation also contributes to broader consumer education and a deeper market penetration, so we'll further expand the overall market size. 无法只靠价格或者单个报品或者某一次营销活动来取胜 品牌心智客户体验情绪价值包括产品研发体系门店网络覆盖等多个维度的全方位体验 我们认为才是赢得竞争的关键 而这一切呢都离不开数字化运营体系和规模领先的优势的这种强烈的支撑 From a long-term perspective, the basis of competition in the industry is also evolving. So since Lockheed's inception, both China's coffee industry and the consumer's behavior have transformed rapidly. So today, freshly brewed coffee brands can no longer rely solely on pricing individual hit product or single marketing campaigns to achieve lasting success. Instead, this long-term competitiveness increasingly depends on an integrated set of capabilities, for example, brand perception, customer experience, emotional connection, product development capabilities, and store coverage. So ultimately, delivering a comprehensive experience across these dimensions is what will define our long-term success, which also requires the support of a very powerful digital operations and the scale advantage.
And after five years of development, we believe that locking has begun to build the systematic competitive advantages across all the dimensions. 另外咖啡本身也是一个具有明显品类心智的消费类产品 作为一个专注咖啡赛道的品牌 瑞幸长期围绕专业年轻时尚健康的定位调性进行品牌建设 持续强化幸运在握的品牌主张 从产品创新到客户体验 再到一个又一个的品牌活动和IP合作 不断加强消费者对于瑞幸咖啡的品牌认知
And coffee is a well-established category with strong consumer recognition. So as a dedicated coffee brand, Locking has consistently positioned ourselves around professionalism, youthfulness, fashion, and wellness, while continuing to strengthen our brand concept, Locking Hands. We continuously reinforce our coffee identity through product innovation, customer experience, brand campaigns, and IT collaborations. All these efforts have deepened consumers' brand recognition of Locking Coffee.
This deeply established brand perception forms a key competitive advantage for us. 这个连接,我们可以更加深刻的理解客户,把握口味偏好等等的消费的趋势,进行更有针对性的产品创新,营销活动,以及用户的触达。 像我刚才所提到的,2025年从6月到10月,瑞幸的月均和活跃的交易用户连续五个月破亿,正是这种高效连接运营能力的一个最直观的体现。
这种以数据驱动的产品与品牌创新,以及用户的运营能力,是瑞幸保持高品牌势能的重要助力,也是支撑长期增长的一个核心的基础。 Building up all these foundations, Locking has leveraged our digital capabilities to establish direct, frequent, and efficient interactions with our customers. This enables us to gain deeper consumer insights, better understand evolving tips and preferences, and execute more targeted product launches, marketing campaigns, and the customer engagement initiatives. And as mentioned earlier, our average monthly transaction customers have exceeded 400 million for five consecutive months from June to October last year. This is also the most direct testament to this highly efficient interaction and our operational capabilities. And our data-driven approach to product innovation, brand building, and user operations help us sustain our strong brand momentum and support our long-term growth.
瑞幸从全球的原产地深耕布局 到自建中国最大的烘焙基地网络 再到专业的咖啡大师团队 这些都是从底层的基础设施上 为长期竞争奠定的一个扎实的基础
And in terms of products guided by customer needs we continue to drive product innovation with a strong focus on elevating coffee expertise and flavor experience. Our frequent new product launches aren't simply an expansion of excuse, but rather reflect the strength of our supply chain elasticity and the product development capabilities, including bean sourcing, roasting capabilities, recipe formulation, flavor expression, and the customization from expanding our global origin footprint to building China's largest in-house roasting network, all the way to assembling professional coffee master teams, we have built a robust infrastructure that supports our long-term competitiveness. The freshly brewed coffee is fundamentally a category that relies on convenient locations and efficient customer fulfillment. The breadth of consumption scenario coverage and the store proximity to customers are key to converting these demands into actual sales. So with our 30,000 stores nationwide, we have broad coverage of cities and townships from high tier to lower tier markets.
Our clear scale advantage better positions us to capture this sustained demand growth. 最后 贯穿前连路全业务场景的这种数字化的运营能力是瑞幸重要的差异化优势 随着AI时代的到来 我们会持续加大科技投入 主动拥抱新技术 积极探索推进智能化升级 在客户方面 通过AI算法加速驱动公司域的增长机会 在产品方面 从用户洞察到产品研发 再到供应链管理 打造更精准高效 成本更优的产品和供应链体系 在门店方面 从选址规划 营键 到IoT物联网重构门店的工作模式 持续提升智慧门店的运营效率 我们相信这一系列前代性的布局 将为我们长期的运营体效和竞争力提升 提供坚实的支撑 And finally, our end-to-end digital capabilities across all businesses are a key competitive differentiator for us.
As the era of AI arrives, we continue to increase our technology investment, exploring ways to adopt new technologies and advance our intelligent upgrade. On the customer side, we leverage AI-driven algorithms to unlock more opportunities across both private and public channels. And on the product side, we are building a more efficient and cost-effective product and supply chain infrastructure across consumer insights, product development, and supply chain management. On the store side, we apply AI across site selection, store construction, and AIoT-enabled store operations to continuously enhance efficiency.
All these initiatives will support our long-term operational efficiency and reinforce our competitive edge. 总体来看 随着更多的行业参与者的进入 咖啡行业的竞争确实变得更加多元 但是我们坚信 瑞幸在上述环节建立起来的规模优势和体系优势 可以让我们在中国咖啡行业持续的高速发展的过程中 进一步扩大 巩固 并且提升市场的领先地位 长期来看,它将转化为持续的增长动能和盈利潜力。 Thank you.
So overall, as more players enter the market, competition is becoming increasingly multifaceted. We firmly believe that the scale and structural advantages we have built across these key areas will allow us to further expand, consolidate, and strengthen our market-leading position as China's coffee industry continues to grow rapidly. So over the long term, this will also translate into sustained growth momentum and long-term profitability. Thank you.
Operator
And our next question today comes from Cigi Lin with CICC. Please go ahead.
Speaker 5
Thank you, Mr. President. I'm Mr. President, Mr. Zizie. I just talked about this country. I want to ask you a question about the international policy. Our international policy has been a long time. So thank you, I have a question on globalization. Our globalization, our global expansion has been underway for some time now. So how should we evaluate the current progress of overseas expansion and what's the strategy and plan for the future?
Thank you. 您的提问,瑞幸咖啡的发展愿景是创建世界级的咖啡品牌,国际化是瑞幸长期战略的一个重要组成部分,也是我们打造世界级咖啡品牌的必经之路。 我们会持续关注并稳步推进瑞幸的海外布局 当然 与海外咖啡消费成熟的存量市场相比 中国大陆仍然是全球最具增长潜力 最有想象空间的咖啡市场 也是瑞幸发展的核心基本盘 我们相信 瑞幸在中国复杂竞争激烈环境下 打造的数字化 规模化的综合优势和业务模式 也会成为瑞幸出海的最核心优势
因此 对于国际化发展 我们会始终坚持长期视角 稳扎稳打 步步为营 致力于打造可持续
apologies we were experiencing some interruptions now we are back online and I will translate this question from the beginning so thank you for your question Locking Coffee's vision is to build a world-class coffee brand So international expansion is a key part of Lockheed's long-term strategy and a necessary step in fulfilling our vision. Therefore, we will continue to evaluate and steadily advance our overseas expansion. Compared with the overseas markets where coffee consumption is very mature and stable, mainland China's coffee market remains the most attractive globally in terms of growth and upside potential. And it continues to be the core foundation of our business. And Lockheed has viewed our comprehensive advantages and proven business model on digitalization and scale in China's complex and intense competitive dynamics, which we believe will also form the core advantages for Lockheed's overseas expansion. Therefore, we are advancing our international expansion with a long-term perspective and a married approach as we remain committed to building a sustainable and replicable operating model. Overall, all, Locking's overseas development has delivered encouraging early results. In Singapore, which is our first international market with a self-operated model, after three years of exploration and operational build-out, we had over 80 stores there by the first quarter, making Singapore's second largest coffee chain by store count. With our innovative product offering convenient digital services and the strong value for money proposition, we've been extending our customer base while achieving growth in both cup volume and ASP. Since the second half of last year, we've achieved stable store-level profitability with business model largely validated. Also, this demonstrates the viability of Lockheed's model in the overseas market.
我们以品牌授权的模式进入了马来西亚 截至年底共开设70家门店 如其打赏了首年的开店目标 凭借新加坡的承受经验 我们指导并协助当地的合作伙伴 搭建了精准的本地化运营体系 覆盖用户运营 选品策略 营销推网等各个方面 稳固提升了市场表现 目前已经进入了加速扩张的阶段
双方对发展均充满了信心,这也为后续拓展更多的 国家品牌授权提供了一个非常良好的示范。 So building on the brand influence established in Singapore, we entered Malaysia in 2035 through a master franchise model. By year end, we had opened 70 stores there, achieving our first-year store opening target as we planned. Leveraging our proven experience in Singapore, we guide and help our local partner to build a highly localized operating infrastructure covering customer operations, product selection, and marketing methodology, which has steadily strengthened market performance. As our Malaysian business enters a phase of accelerated expansion, both us and our local partner remain fully confident in our future development. This also provided a strong reference case for future franchise opportunities in more international markets.
In the end of 2025, we started to build the American market. Until the year ago, we opened the酒家门店. As the largest and the most popular coffee market, the American market is our most important time. 因此,我们拓展美国市场会保持足够耐心,在产品、供应链、用户洞察、客户体验以及组织建设等各个方面做好长期准备。 In the previous phase, we are able to increase the model and increase the product of the product and the product of the product and the user experience. We also have to fix the product and fix the design of the product and fix the design of the product and fix the design of the product.
In May 2015, we began exploring the U.S. market, and now we had opened NICE stores by year-end As one of the world's largest and the most mature coffee markets, the U.S. represents one of our important long-term opportunities. So we are expanding our U.S. business with great patience and discipline, focusing on building strong foundations across products, supply chain, consumer insights, customer experience, and organizational capabilities for the long run.
So at this very early stage, when our priority remains on validating our business model and building operational experience, we are focused on refining fundamental capabilities such as product R&D methodology, user experience, and supply chain optimization to establish a solid foundation for future-scaled expansion. 未来 我们将秉持稳健的拓展策略 深增本地化运营 一方面既要坚持瑞幸的核心优势 又要根据当地的情况因例制宜 打造差异化的创新产品和用户体验 打磨门店模型 以更灵活 更符合当地情况的运营模式 积累海外运营经验 持续布局更多的海外市场
We will continue to follow a disciplined approach to deepening localized operations. We remain committed to maximizing lacking support strength while adopting flexible locally tailored models to deliver differentiated and innovative product offerings as well as customer experiences and refine our store model. As we build overseas operational experience, we aim to expand into more international markets over time and dedicate ourselves to building locking into a world-class coffee brand.
Operator
Thank you. 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.
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.
That concludes today's conference call.
Operator
We thank you all for...
