LUCKIN COFFEE INC (NASDAQ:LK) Q2 2019 Earnings Conference Call Transcript

Aug 14, 2019 • 08:00 am ET

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LUCKIN COFFEE INC (NASDAQ:LK) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, welcome to Luckin Coffee Second Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode during management's prepared remarks. And there will be a question-and-answer session to follow. Today's conference is being recorded.

At this time, I would like to turn the call over to Mr. Bill Zima at ICR for opening remarks and introductions. Please go ahead, sir.

Executive
Bill Zima

Hello, everyone, and thank you for joining us on today's call. Luckin Coffee announced it's second quarter 2019 financial results earlier today. The press release is now available on the company's IR website at investor.luckincoffee.com.

Today you will hear from Charles Lu, Co-Founder and Chairman of Luckin Coffee; Jenny Qian, Co-Founder and CEO; and Reinout Schakel, CFO and CSO. We will be referring to a slide presentation on today's call, which can be found at the link in the press release we had issued this morning and on the company's IR website investor.luckincoffee.com.

During this call, the company will be making some forward-looking statements regarding future events and results. These statements are made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including but not limited to statements about the company's beliefs and expectations are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the company's filings with the SEC.

With respect to any non-GAAP measures discussed during today's call, the accompanying reconciliation information relating to those measures can be found in the earnings release issued earlier today.

With that said, I'd now like to turn the call over to Charles Lu, Chairman of Luckin Coffee. Charles, please go ahead.

Executive
Charles Zhengyao Lu

Okay. Thank you, Bill. And welcome everyone to our second quarter 2019 earnings conference call. First, I would like to congratulate the team on a strong performance during the second quarter. I'm very pleased with the progress we have made across all of our key metrics. I would also like to thank all our investors and partners for their support.

China's coffee market is highly under penetrated. With our distinguished value propositions of high quality, high affordability and high convenience we believe we have adjusted the pain point for the Chinese coffee market, which will be -- we have significantly increased mass market consumption for coffee. We are very excited about the growth opportunity ahead of us and are very focused on the step by step execution.

Now I will turn the call over to Jenny to discuss our second quarter in detail. Jenny, go ahead.

Executive
Jenny Zhiya Qian

[Foreign Language] Okay. Fine. You translate for me.

Executive
Unidentified Speaker

I'll do the translation for Jenny. Thank you all for attending Luckin Coffee's first earnings call after our successful IPO. It is a good [Indecipherable] to have the opportunity to interact with you and discuss our performance during the second quarter. I would like first to take this opportunity to thank all of our investors, partners and our customers for their