Luckin Coffee 3Q25 Quick Interpretation: Overall, in the context of the peak season and continued delivery subsidies, Luckin's revenue accelerated quarter-on-quarter, showing a very impressive performance. However, the downside was the impact of soaring delivery costs due to the 'delivery war,' which was fully reflected in the third quarter, dragging down profit performance. This was, however, within Dolphin Research's expectations.

1. The revenue growth rate in Q3 reached 50.2%. From the core indicator of revenue, same-store sales growth (SSSG), after a significant increase to double-digit growth in the previous quarter, it further accelerated slightly quarter-on-quarter this quarter, reaching 14.4%, maintaining high-speed growth.

Breaking it down, since the management clearly stated in the early-year conference call that the price per cup would not change significantly, the substantial increase in cup volume is the main driver of same-store growth.

2. In terms of store openings, 3,008 new stores were opened in the third quarter (including 29 overseas), setting a new single-quarter record for store opening speed. The essence behind Luckin's re-acceleration of store openings starting in 2025 is still due to the slowdown in price wars and reduced pressure from vicious competition, thus accelerating the penetration into lower-tier markets.

3. Regarding gross margin, although coffee bean prices slightly rebounded in the third quarter, Luckin achieved a gross margin of 63.8% under the large-scale direct procurement and continuous ramp-up of self-built roasting plant capacity utilization, releasing scale effects, reaching the highest level for the same period.

Breaking down the cost side, apart from the significant increase in delivery costs due to the higher proportion of delivery business, other expenses narrowed compared to the same period under the release of operating leverage, ultimately achieving a net profit attributable to the parent company of 1.28 billion yuan (Non-GAAP net profit of 1.42 billion yuan) $Luckin Coffee(LKNCY.US)