Introduction:From financial fraud delisting to now surpassing 20,000 stores, Luckin Coffee has undergone five years of comprehensive rectification, with its market value rebounding to $10.9 billion. This article provides an in-depth analysis of its latest progress toward relisting on the U.S. main board, explores the strategic significance of its New York store expansion, and reveals the potential move by major shareholder Centurium Capital to acquire the UK’s Costa brand—how it could bolster global branding and rebuild confidence in the capital markets.
At the 2025 Xiamen Entrepreneurs Day conference, Luckin Coffee’s co-founder and CEO Guo Jin Yi officially signaled a key development: under the guidance of the Xiamen Municipal Party Committee and Municipal Government, the company is actively preparing to relist on the U.S. main board. This chain coffee brand, once shaken by a financial scandal that stunned the capital markets, was forcibly delisted from NASDAQ in June 2020 after a five-year period of comprehensive internal reforms. Now, with more than 20,000 stores, it has surpassed Starbucks China, and its latest valuation stands at$10.9 billion.
Looking back to May 2019, Luckin went public on NASDAQ as the “first Chinese new retail coffee stock,” only to become a cautionary tale in the industry just a year later when an anonymous report exposed$310 million in inflated revenue. An investigation by the U.S. Securities and Exchange Commission (SEC) revealed accounting fraud between April 2019 and January 2020, ultimately resulting in combined penalties and settlements of approximately RMB 2.5 billion. This included a $180 million administrative fine and $175 million in compensation for a class-action lawsuit by investors.
Following the delisting crisis, a management reshuffle led by Centurium Capital marked a turning point—original founding members such as Lu Zhengyao exited, and internally promoted Guo Jin Yi took over as CEO and initiated sweeping reforms. The latest data shows that as of November 2024, Luckin’s store network has expanded toover 20,000 locations, not only surpassing Starbucks in the Chinese market but also tentatively restarting its international expansion by opening two flagship stores in New York this July.
Notably, the strategic location of Luckin’s New York outlets is adjacent to Starbucks’ core business districts, seen by the industry as a sign of escalated competition. Although the company has officially stated there is “no confirmed timeline for listing,” Guo Jin Yi has publicly emphasized that with all historical issues resolved and stable operations, relisting on the U.S. main board will be a “milestone with international influence.” Market analysts note that the push for this listing aligns well with the timing of its global store count milestone.
Meanwhile, Bloomberg reported, citing sources familiar with the matter, that major shareholder Centurium Capital is evaluating the possibility of bidding for the well-known UK chain brand Costa. The recent indication of a sale from Coca-Cola Group has sparked speculation about Luckin leveraging this to strengthen its global narrative. While no specific acquisition structure has been confirmed by any party involved, the industry generally believes that successfully acquiring Costa assets would significantly enhance Luckin’s brand presence and supply chain capabilities in the European market.
From the depths of delisting to today’s large-scale recovery, Luckin’s transformation offers key insights for Chinese companies listed overseas: rigorous financial compliance reconstruction, precise localization expansion strategies, and the resource integration capabilities of strategic investors together form the foundation of its return to the capital markets. Observers predict that if the U.S. regulatory environment remains stable, this coffee company—which once set the record for the fastest IPO—could formally file its prospectus within the next 12–18 months.
The above content is compiled by CoffeeHunters, a coffee news website.
