Luckin Coffee prepares for U.S. relisting five years after accounting scandal

A return to Wall Street takes shape

Luckin Coffee is working toward a return to a major U.S. stock exchange after reporting quarterly revenue of 15.3 billion yuan, a rise of 50.2 percent from a year earlier. Five years after an accounting scandal forced its removal from Nasdaq, China's largest coffee chain by store count has told investors and local officials that it is preparing for an eventual relisting.

As of December 16, 2025, Luckin has given no firm timetable. Executives say their immediate priorities remain running the business, expanding its stores and strengthening the brand in China and overseas. The ambition to return to Wall Street sits alongside a retail expansion that has taken the company beyond 29,000 stores worldwide and into New York City.

Jinyi Guo, Luckin's co founder and chief executive, outlined the listing effort at an entrepreneurs gathering hosted by the Xiamen municipal government. Luckin is headquartered in Xiamen, and Guo described a U.S. return as a step that could raise the city's profile and support the company's international ambitions.

Under the municipal government's guidance, we are actively pushing the process of relisting on a U.S. main board.

A main board means a major stock exchange, such as Nasdaq or the New York Stock Exchange. Luckin's shares currently trade in the United States over the counter, outside those exchanges. Returning would bring the company back into the market from which it was removed in June 2020.

Luckin's recovery therefore has two connected parts: a rapidly growing coffee business and an effort to rebuild confidence in its financial reporting. Strong sales help explain why a return is being considered. Audits, internal controls and regulatory requirements will also shape whether it can happen.

From rapid growth to fabricated sales

Luckin was founded in 2017 and built its business around an app, quick pickup stores and delivery. Its rapid rise challenged Starbucks in China and took it to a Nasdaq listing in 2019, just two years after its founding.

An internal investigation in 2020 found that employees had fabricated more than 2.2 billion yuan in sales during 2019, roughly $310 million at the time. Fabricated sales meant revenue had been recorded that did not reflect real purchases, undermining the financial picture presented to investors.

Nasdaq delisted Luckin in June 2020. The company later agreed to pay a $180 million civil penalty to resolve charges brought by the U.S. Securities and Exchange Commission. Its shares moved to over the counter trading in the United States, where they still change hands.

The scandal also brought changes at the top. Then chief executive Qian Zhiya and chief operating officer Jian Liu were fired. Guo took the helm and led a financial restructuring under U.S. Chapter 15 proceedings, which wrapped up in 2022.

The main dates show how the proposed return follows several years of rebuilding:

• 2017: Luckin was founded with an app centered model built around pickup and delivery.
• 2019: The company listed on Nasdaq. Its later internal investigation found fabricated sales during that year.
• June 2020: Nasdaq delisted Luckin following the accounting scandal.
• 2022: Its restructuring under U.S. Chapter 15 proceedings concluded, and BDO China became its auditor.
• April 2025: Centurium Capital founder David Li became chairman.
• July 2025: Luckin opened its first two New York City shops.
• December 16, 2025: Luckin was working toward a U.S. relisting while operating five New York stores.

New leadership and tighter financial controls

Centurium Capital, a private equity firm, became Luckin's largest shareholder and installed new governance. David Li's appointment as chairman in April 2025 signaled preparations for another phase of engagement with capital markets, the markets where companies raise money from investors.

Luckin introduced new internal controls, stricter reporting at individual stores and changes to its incentive structures. Those measures addressed how the business records its performance and how employees are rewarded. The company says compliance is a priority alongside growth.

BDO China replaced a former auditor in 2022 and has audited Luckin since then. An auditor examines a company's financial statements, making that role central to the reliability of the figures investors use to judge a business.

Luckin also changed how it approached its stores. It concentrated on efficient formats with a heavy emphasis on pickup and used data to guide its menu. The aim was to increase sales volume at each store while keeping costs in check.

Guo's restructuring and the changes in ownership, leadership and reporting form the corporate side of the recovery. The retail side depends on a different set of choices: compact shops, frequent product launches and prices that appeal to consumers looking for value.

The numbers behind the recovery

Luckin reported revenue of 15.3 billion yuan for the quarter ended September 30, 2025, up 50.2 percent from the same period a year earlier. Sales at its self operated stores that were included in the same store comparison rose 14 percent, reversing a double digit decline the previous year.

Same store sales track performance at existing outlets rather than simply counting the extra revenue generated by newly opened shops. Luckin's increase therefore adds another dimension to its expansion: comparable stores were also selling more than a year earlier.

Monthly transacting customers reached a record 110 million. This measure counts customers making purchases, and it shows the scale of the audience Luckin has reached through its pricing, seasonal drinks and fast delivery.

Luckin had 26,206 stores at midyear and surpassed 29,000 during the third quarter. Using 29,000 as the comparison point, that represents an increase of more than 2,794 stores, or more than 10.7 percent, from the midyear total. Expansion accelerated in lower tier cities and transport hubs.

Shaun Rein, a market analyst who has tracked consumer brands in China for two decades, described Luckin's recovery as a standout in recent Chinese business history.

Luckin is one of the great turnaround stories in Chinese business history.

Rein has pointed to Luckin's technology stack, the digital systems supporting its business, and aggressive pricing as the twin forces that put pressure on rivals and widened its customer reach. Those strengths have helped the chain build roughly three outlets for every Starbucks location in China.

How the coffee model drives volume

Luckin routes orders through its app and partner platforms, takes cashless payments and operates mostly compact pickup sites designed for speed. Its model makes a quick purchase central to the customer experience, with delivery extending its reach beyond people who walk into a store.

Central kitchens and a standardized supply chain support a menu that changes quickly with social media trends. Seasonal drinks give customers new reasons to order, while a consistent supply system helps the company serve the same products across a large network.

Daily deals and coupons reward frequent buyers. Sharp pricing has helped Luckin attract consumers seeking value across Chinese cities, contributing to high foot traffic and a steady flow of new customers.

Discounts also come with a tradeoff. A store may sell more drinks while earning less on each one. Luckin's approach has helped set off a price war across China's coffee market, making the balance between sales volume and profit at individual stores a central issue.

Compact locations, delivery integration and data guided products are intended to keep the operation efficient. The business challenge is to turn a large customer base and a growing store network into dependable earnings while prices remain under pressure.

The regulatory steps for a U.S. return

Chinese companies seeking a new overseas listing must file with the China Securities Regulatory Commission under rules that took effect in 2023. Luckin's proposed return would also involve U.S. requirements for detailed financial disclosures and audited accounts.

U.S. markets require those accounts to be audited by a firm registered with and overseen by the Public Company Accounting Oversight Board. The audits must be available for inspection. Access to audit work has been a source of regulatory tension between China and the United States in recent years.

Luckin's audit history will face scrutiny. In July 2025, the U.S. audit watchdog permanently revoked the registration of Centurion ZD CPA, a firm that had worked on companies with operations in China. The failures cited included a lack of fraud risk assessment in a 2021 audit tied to Luckin.

A fraud risk assessment examines where an auditor should look for possible deliberate misstatements. That issue is especially relevant to a company rebuilding after fabricated sales. Luckin has used BDO China since 2022, and its listing effort will require reliable controls and transparent reporting that can withstand inspection.

Luckin's statement that compliance is a priority places financial discipline alongside expansion. A return to a major exchange would involve scrutiny of how its numbers are produced and checked, as well as the strength of the coffee business itself.

What a relisting could change for investors

Luckin is valued at roughly $10.9 billion in the U.S. over the counter market. A return to a main board could involve moving its American depositary shares to Nasdaq or the New York Stock Exchange, a process known as uplisting, or making a fresh public offering.

American depositary shares are the securities through which investors trade an interest in Luckin in the United States. The possible routes described for a return would put those investments on a major exchange or bring the company back through a new offering of shares.

A major exchange listing could expand liquidity, meaning investors' ability to buy and sell shares, and attract more analyst coverage. It could also give Luckin shares it can use in future fundraising or employee incentive plans.

Luckin would face the daily requirements of U.S. exchange rules and closer investor scrutiny. A successful return would mark another milestone in its rehabilitation and signal acceptance of its progress on controls and disclosure by auditors and regulators.

A broader investor base could potentially lower the cost of raising money for expansion in China and overseas. The financial appeal of that access helps explain the company's interest in relisting, even while executives keep their immediate focus on operations.

New York tests a model built in China

Luckin entered the U.S. retail market in July 2025 with two compact stores in Manhattan. It has since added three more New York City locations, bringing the total to five. Executives have said more U.S. sites are planned for 2026 and that menus will be adapted to local tastes.

The New York shops emphasize quick pickup and mobile ordering. Their format contrasts with the larger cafe layouts common on American streets, placing speed and convenience at the center of Luckin's pitch.

Starbucks has concentrated in China on premium experiences where customers sit down, together with loyalty rewards in higher tier cities. Luckin has expanded through smaller sites, tight delivery integration and aggressive store openings. The chains often serve different needs and occasions rather than competing through identical shops.

New York presents a different operating test. It is a dense market with high rents and an established supply of cafes. Labor rules, permits and real estate costs differ sharply from China, so Luckin's U.S. stores must show they can serve enough customers and earn consistent margins without heavy subsidies.

Five shops give Luckin a presence on Starbucks' home turf, while the planned additions in 2026 will extend the test. Whether low prices and digital ordering can win repeat customers is central to making the format work beyond its initial Manhattan locations.

A crowded market puts margins under pressure

Industry tallies show branded coffee outlets across East Asia increasing by 18 percent over the past year to around 180,000 stores. China alone added more than 20,000 net new shops, helping create a much more crowded market for chains competing for everyday purchases.

Domestic coffee brands have spread through provincial cities and university districts. Formats that are relatively inexpensive to open have supported that growth, alongside a rising number of consumers treating coffee as a daily routine rather than an occasional purchase.

Steep discounts and delivery bundles help attract new buyers, but they also put pressure on profitability. The price of green coffee, the beans before roasting, has swung widely in recent seasons, while milk and cup costs have risen.

Luckin's scale can offset part of that squeeze. Sustained discounting still weighs on margins at individual stores, making cash flow protection a continuing concern even as customer numbers grow.

Investors weighing a U.S. return have two immediate business tests to follow: whether Luckin's stores in China remain economically strong if the price war persists, and whether its U.S. pilot can become a repeatable format outside Manhattan. Those results will shape the reception of any relisting as much as the size of the network.

Key Points

• Luckin is preparing for a return to a major U.S. exchange, with no firm timetable as of December 16, 2025.
• Revenue for the quarter ended September 30 rose 50.2 percent to 15.3 billion yuan. Same store sales at self operated outlets increased 14 percent.
• Monthly transacting customers reached a record 110 million, and the worldwide network surpassed 29,000 stores.
• The 2020 scandal involved more than 2.2 billion yuan in fabricated 2019 sales and led to delisting and a $180 million SEC penalty.
• Centurium Capital is the largest shareholder. Its founder, David Li, became chairman in April 2025.
• BDO China has been Luckin's auditor since 2022. Chinese filing rules and U.S. audit and disclosure requirements are central to a return.
• Luckin operates five New York City stores and plans additional U.S. locations in 2026.
• Price competition in China and the economics of U.S. expansion remain key tests for the business.