Luckin is being investigated in the US for defrauding investors amid pressing concerns to recoup a dropoff in sales as a result of Covid-19.
Naixue’s Tea, one of China’s largest tea beverage chains, is reportedly looking to raise $400 million in a US IPO as early as this year.
Luckin responded Monday to fraud allegations from an anonymous report publicized by short seller Muddy Waters on Friday.
Luckin looks to fund its aggressive growth tactics including a vending machine initiative, and expansion into other consumables and overseas markets.
Luckin Coffee is offering a $400 million bond and issuing new shares less than a year after its Nasdaq IPO.
Michael Norris from Agency China talks earnings. They go over the quarterly reports from Alibaba, JD, and Tencent, as well as Luckin Coffee’s very impressive report, which sent their stock soaring.
The results reflect an improved cost control strategy.
The coffee upstart is expanding aggressively across product categories and markets.
Luckin Tea will launch a separate app and a mini-program focused on lower-tier cities.
This is the first time Luckin has sold branded merchandise as it evolves its marketing and branding strategy.