Luckin Coffee Inc. LKNCY, 27.60% stock jumped 14.2% in Wednesday trading after the Chinese-based coffee purveyor released its restated fourth-quarter 2019 financial results. Luckin Coffee “substantially completed” an internal investigation last year that found financial misconduct started in April 2019 resulting in inflation of 2019 net revenue by RMB2.12 billion (approximately $328 million, by today’s conversion).
For the fourth-quarter 2019, the company now says revenue was RMB1.049.9 million (US$150.8 million), up from RMB465.4 million the previous year. Net loss was RMB1,128.5 million (US$162.1 million), or RMB4.72 (US$0.64) per share, after a loss of RMB669.0 million, or RMB10.64 per share. Adjusted loss per share was RMB4.48 (US$0.64). Luckin stock has gained 24.1% for the year to date while the S&P 500 index SPX, 0.07% is up 14.4% for the period.