Preface
In June, 22, Ruixing, who went public quickly in only 18 months and set the world's fastest IPO record, was delisted because of financial fraud, causing a sensation in the whole city. When the scenery was infinite, the market value was nearly 13 billion, but it fell dramatically to the altar.
Luckin coffee, a legendary company, went public quickly in just 18 months, setting the world's fastest IPO record, and quickly withdrew from the market. What happened to Rui Xing after delisting?
With a cup of coffee, Ruixing completed the process from zero to listing in 18.5 months, creating the myth of Ruixing. However, after 13 months of listing, it was required to withdraw from the market due to financial fraud. It really is: watch him lift a tall building and watch his building collapse. How is Rui Xing now?
fortunately, Rui expanded its stores rapidly by burning money from the beginning. So where does this capital come from?
China Iron Triangle: It is the capital operation relationship between Shandong and Shandong that enables Ruixing to obtain funds continuously.
from the previous rounds of financing paths and the relationship between investors and shenzhou department, ruixing is one of the projects of shenzhou department and its investors. The CEO of Luckin coffee, Qian, was originally from the background of China. At the same time, the investors of Daxie Capital and Joy Capital are all investors of Shenzhou Group, and long-standing friendship has been with Lu for many years. Mature entrepreneurs represented by Lu Heqian directly copied the Internet style of CAR Inc. and invaded the traditional coffee industry. In the way of capital invasion, we will quickly open stores, subsidize heavily to obtain traffic, and subvert the "third space" of the traditional coffee industry with the new retail business model.
in addition, the company acquired the capital platform of BlackRock, an investor of Starbucks, before listing, so that it can quickly land on the Nasdaq IPO even in the face of huge losses.
Rui's business model mainly adopts the new retail model, which is based on enterprise App and offline stores. Let's go Through mode innovation, it finally brings users a brand-new experience.
Lucky's mobile usage covers the whole customer purchase process, providing customers with a 1% cashier-free environment. This improves the customer experience, improves the operational efficiency of Ruixing, and enables it to keep in touch with customers anytime and anywhere.
the destructive innovation of luckin coffee channel caught all people in the industry off guard. It has a leisure shop, a cache shop and a kitchen shop, mainly taking the route of cache shop and kitchen, placing orders online, picking up goods from the cache shop or delivering them directly to the door. This kind of channel innovation greatly reduces the cost of storefront and labor, so it can control the price. At the same time, many welfare subsidies have been set up to ensure the fission of seed users, and a steady stream of coupons and promotional activities have avoided users.
summary of the key events of Luckin Coffee's return to the right track
In April p>221, Ruixing found Li Wei, a draft star with high topic of the year, to shoot an advertisement for the original coconut series. As soon as the original coconut series was put on the shelves, it became the "out-of-stock king" and exploded in stores in many cities across the country.
April p>221: Ruixing obtained a new round of financing with a total amount of 25 million US dollars, of which 24 million US dollars was led by Daxie Capital and 1 million US dollars was invested by Joy Capital. In addition, under certain conditions, Daxie Capital and Joy Capital can invest an additional $15 million in proportion.
in June, 221, the cumulative number of consumers of Luckin coffee exceeded 75 million, and the monthly sales of the original coconut series exceeded 1 million cups, setting a new sales record for Ruixing.
July p>221: As of July 22, the number of Luckin coffee WeChat communities exceeded 9,; There are more than 1.8 million private domain users, of which more than 6% are active users. Private users directly contribute more than 35, cups a day. After users became private users, Ruixun's monthly consumption frequency increased by 3%, and the number of repurchases per week increased by 28%.
After the financial turmoil, under the governance of Guo Jinyi, Ruixing gradually got rid of the haze.
at the beginning of its establishment, Ruixing's barbaric growth rate was amazing. The company was established in October 217, and by mid-218, the number of its stores has exceeded 6; By mid-219, the number of Ruixing stores has exceeded 2,96; By the end of 219, the number of its direct stores had recovered
At that time, Ruixing also announced that the number of the company's stores would reach 1, in 221. However, with the occurrence of financial fraud, the expansion of Ruixing gradually evolved into contraction.
As of May 12, 22, Ruixing has 6,912 stores in China; Six months later, the number dropped to 3898.
However, apart from the sharp decrease in the number of stores, Ruixing's business is proceeding normally step by step even in the "darkest hour".
In the month when the news of financial fraud came out, Ruixing was still launching new products, including the Spring Cherry Blossom Series and many others. In July, 22, Ruixing, who just delisted from Nasdaq and was cooperating with the Cayman Islands Grand Court in debt restructuring, suddenly announced that "the cash flow of a single store is positive, or it will be profitable next year".
In September, Ruixing was punished by the General Administration of Market Supervision and the market supervision departments in Shanghai and Beijing, and launched a new series of thick milk products.
from the end of 22 to the beginning of 221, Ruixun, who was deeply involved in high-level infighting, paid a fine of 18 million dollars to reach a settlement with the SEC, and disclosed the data of nearly 4,8 stores of Ruixun by the end of 22 through Guo Jinyi's internal letter.
After solving the problem of "seizing power" by Lu, Ruixing also accelerated the pace of reorganization.
In February, 221, Ruixing disclosed that it had reached a settlement with the SEC on its investigation of some former executives and employees' fabricated transactions, and obtained the necessary approval from the court; In mid-March, Ruixing reached a restructuring support agreement with important creditors.
In April, American investors collectively sued Ruixing in Shanghai, which was the first case brought by China Stock Exchange in China. Ruixing also reached a new round of financing agreement with shareholders Dahuan Capital and Joy Capital, totaling 25 million US dollars, of which Dahuan Capital invested 24 million US dollars. It is reported that this round of financing will be mainly used for Luckin coffee's overseas restructuring plan and for fulfilling the settlement agreement reached with the SEC. In addition, under certain conditions, Daxie Capital and Joy Capital can invest an additional $15 million in proportion. This financing also shows that the capital market recognizes the prospect of Ruixing.
Luckin coffee re-released its 219 annual report. After the revision, the company's online
revenue was 3.25 billion yuan. Although its revenue soared by 26% compared with that in 218, it was mainly due to the company's investment in store expansion and the steady growth of the number of customers, but the cost brought to the company also increased significantly.
In p>219, Ruixing's material cost, store operating cost, marketing and management expenses all skyrocketed, increasing by 25%, 177%, 167% and 282% respectively, which also led to the company's total operating and cost expenses reaching 6.237 billion yuan and operating loss of 3.212 billion yuan, up by 11% year-on-year.
In the statement, Ruixun mentioned that by the end of June this year, the number of stores in Ruixun had exceeded 5,2, and the cumulative number of consumers had exceeded 75 million.
Luckin Coffee has made a lot of progress on the way back to the right track, including gradually accelerating the pace of opening stores, reaching a settlement with the US Securities and Exchange Commission (SEC), and obtaining a new round of financing of $25 million from Datong Capital and Joy Capital.
At the same time, the operation side has also released a series of positive signals. According to the publicly disclosed information, in the first three quarters of 22, Luckin Coffee's single-season revenue was 565 million, 98 million and 1.145 billion respectively, up by 18.1%, 49.9% and 35.8% year-on-year. Last August, Luckin Coffee announced for the first time that the cash flow of a single store had turned positive. According to the report released in December 22, more than 6% of the directly operated stores achieved store profitability in November.
In order to adapt to the market, Ruixing has also launched a series of teas that meet the tastes of Chinese people. It is worth mentioning that this year, the company created a new explosion of raw coconut series, which sold more than 1 million cups in a single month under the out-of-circle marketing of the creation camp contestant Li Luxiu "YYDS" (forever dripping God), setting a new sales record for Ruixing.
China's coffee market has a huge expansion space. At present, the per capita consumption of coffee cups in China is only 6.2 cups per year, which is far lower than that in developed countries, Hong Kong and Taiwan Province. With the accelerated pace of urbanization, the demand for refreshing drinks such as coffee is increasing day by day. In the next five years, the market size of freshly ground coffee is expected to maintain a high growth rate of over 3%, which is a track with very strong growth ability under the current macro background. In recent years, with the improvement of people's living standards, the demand for health and quality of tea products is gradually increasing. Compared with traditional instant or ready-to-drink tea, the new tea, which has become more and more popular in recent years, is more healthy in raw materials and ingredients, more innovative and diverse in formula, and more exquisite and distinctive in the value of products and stores. It is very suitable for taking photos and punching cards, which is very popular among young people. Moreover, from the perspective of the growth rate of tea shops in various cities, the sinking market space is huge, and the growth rate far exceeds that of cities such as Beijing, Guangzhou and Shenzhen.
The major shareholders and senior executives of the company are from "China Department" and have rich Internet experience, which has laid a solid foundation for the rapid expansion of Ruixing. Ruixing's new retail model can be quickly replicated, and at the same time, the company is also improving its efficiency. Due to the scale effect, the cost is gradually reduced, while the efficiency of innovation is further improved, and the company's business is gradually entering a positive cycle.
the company attracts consumers with products that are convenient, quality and cost-effective. At the same time, it is empowered by technology and data to change the traditional business model and create a unique business model. In the next step, the company will continue to expand its business categories and lay out unmanned retail. The future is quite imaginative.
The popularity of Ruixun's "burning money" marketing model and its innovative new retail model have built a solid moat for Ruixun. Today, Ruixing is slowly coming out of the haze, and the overall store is profitable, and everything is rejuvenating. In the process of learning Ruixing to do private domain traffic, we must first learn the digital level of Ruixing.
Perhaps the so-called final thinking of the Internet should not be overemphasized on the consumer industry. It should be a matter of constant dynamic balance to determine a good brand foothold, provide high-quality user experience and improve its own infrastructure. To judge the future of a company, it is not what it did wrong before, but what it has done now, that is, the overall competitive advantage and intrinsic value of the company.
For Ruixing, whether it is to reach a restructuring support agreement with important creditors at the beginning of the year, to complete a new round of financing, and to officially put the baking base into operation, it means that after Qian Fan, Ruixing is releasing more signs of improvement. Related Q&A: How to modify the bound mobile phone number in Luckin Coffee
First, open the Ruixing app, click "My", enter it in the upper left corner, and click "Log out" to log in again with a different mobile phone number.
Luckin Coffee WeChat official account unbinding operation:
1: Log in to the backstage of WeChat public platform.
2: click the security assistant (pull down the webpage in the settings below).
3: click modify to bind wechat.
4: scan with your mobile phone, you can unbind successfully, and then rebind.
5: You can also click the Security Center.
6: then select the security center, details.
7: Then click Replace, or you can rebind a new micro signal.
Luckin Coffee (China) Co., Ltd. was established on March 28th, 218, and its legal representative is Qian Zhiya.
In October p>217, luckin coffee opened its first store in Galaxy soho.
In October p>217, luckin coffee invited Hideki Inozaki, champion of WBC (World Coffee Master Competition), Andrei Latouada, champion of Italian region, and Pan Zhimin, champion of China region, to be the chief coffee masters.
in November p>217, luckin coffee invited Tang Wei and Zhang zhen as brand spokespersons.
On January 1, 218, it was put into trial operation in 13 cities including Beijing and Shanghai. By May 218, 525 stores had been laid out. After four months of running-in of products, processes and operation systems, it was officially opened on May 8.
Luckin Coffee has completed about 3 million orders, sold about 5 million cups of coffee and served more than 1.3 million users. On April 18th, Luckin Coffee APP ranked first in the free list of delicious food and good drinks in Apple's mobile phone store.
after the announcement of a new round of financing in early July p>218, Luckin Coffee has invested more than RMB 1 billion, most of which is used for user subsidies.
on August 1, 218, luckin coffee announced its entry into the light food market. From August 2 to the end of the year, all light food in all stores in the country will be 5% discount, and it is announced that 2 stores will be built nationwide before the end of the year.
since its operation, Luckin Coffee has completed the layout of 89 stores, serving more than 3.5 million users and selling more than 18 million cups. Luckin Coffee has introduced various light food products, including muffins, sandwiches and croissants.
on July 11th, 218, Luckin Coffee announced that it had completed the $ 2m Series A financing, with a post-investment valuation of $ 1bn.
on December 12, 218, Luckin Coffee announced the completion of the $2 million Series B financing, with a valuation of $2.2 billion.
On December 25th, 218, Luckin Coffee New World Daimaru Department Store officially opened, announcing the birth of the 2th store, which also marked the completion of the opening plan of Little Blue Cup in 218 one week ahead of schedule.
by December 31st, 218, Luckin Coffee had opened 2,13 stores in 22 cities across the country, including 1,897 physical stores and 176 take-away kitchens. The number of end-users was 12.54 million, and 89.68 million cups were sold. The repurchase rate of users in three months is more than 5%.
According to the reporter of Securities Daily, the Little Blue Cup has been stationed in well-known office buildings and university campuses in China. In addition, Luckin Coffee completed two financing projects on July 11th, 218, of which, the A-round financing was USD 2 million, and the B-round financing was USD 2 million on December 12th of the same year.
in January, 219, Luckin Coffee announced that it would open 2,5 new stores nationwide, with a total of more than 4,5 stores, surpassing Starbucks in terms of the number of stores and cups.
in February p>219, Luckin Coffee announced that it would gradually settle in 18 large and medium-sized cities such as Shijiazhuang, Shenyang, Guiyang and Zhuhai by the end of April, adding 22 cities that opened last year, and the number of cities in China will reach 4 by then.
on April 1, 219, Luckin Coffee (China) co., ltd added a piece of chattel mortgage information. The mortgagee is Zhongguancun Technology Leasing Co., Ltd., and the amount of secured creditor's rights is 45 million yuan. Ruixing's chattel collateral is coffee machine, milk box and powder bin, and the items belong to stores in Beijing, Shanghai, Guangzhou, Shenzhen and other places.
on April 18th, 219, Luckin Coffee received $15 million in new investment, including $125 million from the private equity fund managed by BlackRock, and the post-investment valuation of Luckin Coffee was $2.9 billion.