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21st Century Business Herald reporter He Hongyuan and intern Tian Keyi report

Luckin’s product strategy has changed.

On August 12, 2024, the brand launched the "Send 100 Million Cups of 9.9 Afternoon Tea" campaign, where consumers can buy Jasmine Light Milk Tea at a discounted price of 9.9 yuan after 4 p.m. every day. The day before, the company announced that Liu Yifei was the global brand spokesperson and chief recommendation officer for tea drinks at Luckin Coffee.

On August 5, Luckin Coffee launched the new product Qingqing Jasmine Light Milk Tea mentioned above. The company disclosed that in the first week of listing, the sales volume of Qingqing Jasmine exceeded 11 million cups.

According to Yang Fei, co-founder and chief growth officer of Luckin Coffee, afternoon tea is largely to enrich the beverage menu during the afternoon and evening, which is not the peak coffee season. This is consistent with the survey conducted by the 21st Century Business Herald reporter. In the afternoon, Luckin faces a rapid decrease in orders, and even in the afternoon, baristas begin to prepare for the closing of the store.

Right now, Luckin Coffee obviously hopes that the downturn will last as little as possible as the company is facing performance pressure.

According to the financial report, in the second quarter, Luckin's revenue was 8.403 billion yuan, a year-on-year increase of 35.5%; its net profit was 871 million yuan, a year-on-year decrease of 13%. Last quarter, Luckin was in a loss state.

The decline in net profit is obviously related to the decline in same-store sales. In the second quarter, Luckin's self-operated stores saw a 21% decline in same-store sales, mainly due to the price war, when the company's customer price dropped from 15 yuan to around 13 yuan under the 9.9 yuan discount. In addition, due to the increase in the number of stores, the number of cups per store has decreased year-on-year.

As of the end of June 2024, Luckin had 19,961 stores, with a net increase of 1,371 in the second quarter, of which self-operated stores increased by 857 to 13,056, and franchise stores increased by 514 to 6,905. This rate slowed down significantly from the previous quarter. In the first quarter, Luckin had a net increase of 2,342 stores. Among them, the number of directly-operated stores increased by 1,571, and the number of franchise stores increased by 771.

Therefore, for Luckin Coffee, selling more and achieving economies of scale is the key to saving profits.

Objectively speaking, there is still room for the price of tea drinks to increase.

On August 12, the Shanghai Composite Consumer 80 Index closed at 4205.82, up 0.41%.

Consumer Personnel

Hongdou shares: Chairman Dai Minjun resigned and Zhou Hongjiang took over

On August 12, Hongdou Co., Ltd. announced that the company's chairman Dai Minjun resigned due to work adjustments. The company's board of directors selected Zhou Hongjiang as the new chairman, and his term of office is consistent with the ninth board of directors. Zhou Hongjiang has served as the manager of the Nanjing and Beijing branches of Hongdou Group, the deputy director of the company's shirt factory, and the director of the first suit factory. He is currently the chairman of the company.

agriculture

Average pork prices rise in agricultural product wholesale markets nationwide

On August 12, according to the monitoring of the Ministry of Agriculture and Rural Affairs, as of 14:00 on the same day, the average price of pork in the national agricultural product wholesale market was 26.78 yuan/kg, up 2.3% from last Friday.

The latest news from the Ministry of Agriculture and Rural Affairs: my country ranks first in the world in terms of the total amount of agricultural germplasm resources preserved

On August 12, the Ministry of Agriculture and Rural Affairs released the latest news. Since the beginning of this year, my country has focused on varieties urgently needed for agricultural production, accelerated the precise identification of germplasm resources and the breeding of new varieties, increased support for seed industry advantage enterprises, and further strengthened the protection of seed industry intellectual property rights. The seed industry revitalization action has achieved a number of basic and iconic results. In the first half of this year, the protection of germplasm resources has made a historic breakthrough. The census of agricultural germplasm resources has been fully completed. 139,000 new crop germplasm resources and 1.19 million livestock and aquatic genetic materials have been collected. Together with the original preserved resources, the total amount of agricultural germplasm resources preserved in my country ranks first in the world.

Food & Beverage

The first live broadcast of Moutai Maotai Liquor sales exceeded one million, and the layout of online channels strengthened channel power

On August 10, according to incomplete statistics, the "Moutai Maotai Liquor Flagship Store" opened live on Douyin at 8:10 on August 10, attracting many fans to stop and pay attention. Statistics show that on that day, the sales of the Maotai Maotai Liquor Flagship Store exceeded 1 million yuan, and the product was exposed 1.8383 million times in total.

Yili shares: The year-on-year decline in raw milk prices is expected to narrow in the second half of the year

On August 10, according to China Fund News, many investors repeatedly asked Yili Group management at the reception day: "When is this round of (milk) raw milk downward cycle expected to bottom out?" In response, Zhao Lin, general manager of Yili's investor relations department, said that the milk supply in the first half of 2024 was relatively sufficient, and the price of raw milk fell year-on-year. In the second half of 2024, the company expects that with the further improvement of dairy product consumption, the year-on-year decline in raw milk prices is expected to narrow.

Nanqiao Food: Net profit in the first half of the year increased by 37.58% year-on-year

On August 12, Nanqiao Food released its semi-annual report. The company achieved operating income of 1.566 billion yuan in the first half of 2024, a year-on-year increase of 0.26%; and achieved net profit attributable to shareholders of listed companies of 128 million yuan, a year-on-year increase of 37.58%.

FOOD

Taoli Bread: Net profit in the first half of the year fell 0.6% year-on-year

On August 12, Taoli Bread released its 2024 semi-annual report, achieving operating revenue of 3.021 billion yuan in the first half of the year, a year-on-year decrease of 5.79%; net profit attributable to shareholders of listed companies was 289.9 million yuan, a year-on-year decrease of 0.6%.

Kudi Coffee adjusts its franchise strategy, with service fees increasing in a step-by-step manner

On August 9, Kudi Coffee announced the fee collection rules for its franchise convenience stores. The first category is single-store cooperation, and the minimum service fee is 8,000 yuan in monthly gross profit. The service fee rate for the 8,000-12,000 yuan range is 10%, and for every additional 4,000 yuan thereafter, the service fee rate increases by 5%, 15%, 20%, and 25% in sequence, until the monthly gross profit reaches more than 20,000 yuan, and the service fee rate is capped at 30%. The second category is franchise cooperation, and the minimum service fee is 12,000 yuan in monthly gross profit. For every additional 8,000 yuan, the service fee rate also increases by 5%, until the monthly gross profit reaches more than 40,000 yuan, and the service fee rate is capped at 30%. Kudi Coffee's standard store service fee starts at a higher amount, at 20,000 yuan in monthly gross profit. For example, for stores with a monthly gross profit between 20,000 and 30,000 yuan, the service fee rate is 10%, and then increases in a step-by-step manner.

E-commerce retail

Meituan Running Errands: Qixi Festival gift orders increased by 33%

According to 36Kr on August 12, during the Chinese Valentine's Day this year, errand-running and other instant delivery services saw a peak in orders. Meituan's errand-running data showed that the number of orders related to Chinese Valentine's Day gifts increased by 33% year-on-year, with flower and gift delivery orders accounting for the majority. In addition, the demand for personalized and customized services such as helping to buy gifts in stores, queuing at popular restaurants, and redeeming group purchase coupons also increased significantly.

Express Logistics

State Post Bureau: China's express delivery development index was 393.9 in July, up 11.8% year-on-year

On August 12, the State Post Bureau released the China Express Development Index Report for July 2024. According to calculations, the China Express Development Index for July 2024 is 393.9, an increase of 11.8% year-on-year. Among them, the development scale index, service quality index and development capability index are 508.8, 564.7 and 218.6 respectively, an increase of 31.1%, 0.7% and 7.3% year-on-year respectively, and the development trend index is 62.5. In July, the express delivery industry maintained a stable and positive development trend, the application of intelligent equipment was accelerated, cross-border services continued to be optimized, and the development efficiency was steadily improved.

Textiles and Apparel

The country's largest down jacket market is experiencing off-season sales

On August 12, according to the WeChat public account "Pinghu Release", Pinghu China Garment City, the largest and most influential down jacket market in China, sold 1.6 million down jackets in three days, with more than 4,500 merchants purchasing, up to 2,000 people at peak times, and sales reaching 320 million yuan. The reason behind the off-season purchase of clothes is the price difference. The off-season live broadcast sales of down jackets have set off a craze, which has gradually changed from clearing inventory to a marketing tool, but the surge in sales in the short term may overdraw consumer demand and impact the autumn and winter market.

Beauty and Fashion

A large number of microneedle cosmetics in South Korea are involved in false and exaggerated propaganda. It is estimated that the scale of South Korea's functional cosmetics market will exceed 140 billion yuan

On August 11, according to CCTV Finance, South Korean regulatory authorities recently investigated the promotional pages of microneedle-related cosmetics on the Internet and found that more than 80% of them contained false and exaggerated propaganda. For example, statements such as "microneedles can enter the deep layer of the skin", "promote cell growth", and "detoxify the skin" are beyond the definition of cosmetics and can easily mislead consumers to treat cosmetics as medicines. In recent years, the scale of South Korea's functional cosmetics market has grown rapidly and is expected to reach 28.4 trillion won (about 149.1 billion yuan) this year, 3.8 times that of 2018.

Travel

Two-way low-altitude passenger route from Shanghai Pudong to Kunshan, Jiangsu Province launched on a trial basis

On August 11, Xinhua News Agency learned from the Shanghai Municipal Economic and Information Commission that Shanghai Xinkong Helicopter Co., Ltd. recently piloted a two-way low-altitude taxi passenger service from Pudong International Airport to Kunshan City Terminal. According to estimates, it used to take 4 hours and 30 minutes in advance to take a domestic flight from Kunshan, Jiangsu to Pudong International Airport, and 5 hours and 30 minutes in advance to take an international flight. The opening of the low-altitude passenger route has greatly shortened the time to only 1 hour and 30 minutes in advance for domestic flights and only 2 hours in advance for international flights. It is expected that the route can carry 20,000 to 30,000 passengers per year.

From January to July, the national railway carried more than 2.5 billion passengers

On August 12, according to the WeChat public account of "China Railway", from January to July this year, the national railway carried 2.522 billion passengers and the passenger turnover was 945.453 billion person-kilometers, an increase of 15.7% and 10.6% year-on-year respectively, both setting a historical high for the same period. The national railway transportation is safe, stable and orderly.

Qunar: We have received free refund and change policies for tickets from Air China and China Eastern Airlines covering multiple destinations in Japan

On August 12, according to The Paper, affected by the earthquake in Japan, on August 12, the online travel platform Qunar released a refund and change policy: As for air tickets, as of August 12, Qunar has received free refund and change policies from Air China and China Eastern Airlines for tickets to many places in Japan. The specific refund and change policies of each airline are slightly different. For details, please check the Qunar Travel app or the official announcement of the airline. Qunar will continue to pay attention to the update of the refund and change policy, and strictly follow the regulations of the airline to assist passengers in handling ticket changes and refunds.

Film and Television Entertainment

2024 summer movie box office exceeds 9 billion yuan

On August 10, according to CCTV News, as of 18:57 on August 10, the total box office (including pre-sales) of the 2024 summer season (June-August) exceeded 9 billion yuan. "Catch the Doll", "Silent Killer" and "A Small Shop at the Edge of the Cloud" temporarily ranked the top three in the box office list of the period.