Luckin Coffee responded to the 45 million mortgage: to maximize the value of assets,

"We have just completed the B round of financing and have enough cash in hand." Only four months after Luckin Coffee co-founders Yang Fei and CMO made a high-profile speech, Luckin Coffee couldn't wait to get 45 million yuan of financing from Zhongguancun by mortgaging coffee machines, milk boxes and powder bins, which triggered market doubts.

For a time, there were various voices in the market that there was something wrong with Ruixing's funds, and "sale and leaseback" beautified the cash flow data to prepare for listing.

"Sale and leaseback" financing 45 million pounds

On April 1 day, according to the industrial and commercial information, Lujin Coffee (China) Co., Ltd. added a piece of chattel mortgage information. The mortgagee is Zhongguancun Technology Leasing Co., Ltd., and the amount of secured creditor's rights is 45 million yuan. The chattels of Ruixing are all coffee machines, milk boxes and powder bins, and the goods belong to shops in Beijing, Shenzhen, Shanghai and Guangzhou, among which the time limit for the debtor to perform the debt is 20 19 from March 27th to March 3rd, 2020.

Ruixing adopts "sale and leaseback" in the field of financial leasing, that is, it sells the equipment it bought back to the leasing company to get cash, and then rents it back for use. During the lease term, the ownership of the equipment belongs to the financial leasing company. In this way, Ruixing gets an income, which is equivalent to a sum of money, and then pays the rent to the other party every month, which is equivalent to paying the interest corresponding to the financing.

This kind of financial leasing itself is not uncommon. It is the most common and basic form of non-bank finance in the world. It is more common in heavy asset industries such as aviation and heavy machinery, and generally not common in fast-moving industries. It is also in line with the idea of Ruixing's unconventional FMCG industry operation.

However, while Ruixing has invested heavily in expansion and raised hundreds of millions of dollars, and has always stressed that the company's account is very sufficient, it suddenly needs to "mortgage" the coffee machine to melt tens of millions of RMB, which is really in sharp contrast.

In this regard, Shen Meng, executive director of chansons Capital, believes that "Lujin Coffee belongs to fast-moving consumer goods and needs strong cash flow support; On the other hand, continuous low-price competition requires strong financial support. Therefore, we will do our best to make good use of every penny and will not let any investment become a silent cost, so we will mortgage all assets as financing guarantee. "

It lost 800 million in the first nine months of last year.

So, is Luckin Coffee really short of money?

Qian, the founder and CEO of Lujin Coffee, publicly stated at the beginning of 20 18: "In order to expand rapidly, 10 billion yuan has been prepared for Lujin Coffee."

By subsidizing users on a large scale through burning money, big publicity and "going to the bar", Starbucks' popularity in the coffee market has been rising all the way, and its expansion speed is amazing. It has opened nearly 2,000 stores a year, and its goal is to open 2,500 more stores in the coming year, surpassing Starbucks in both the number of stores and the number of cups, and becoming the largest coffee chain brand in China.

Under the mode of burning money subsidies and rapid expansion, the loss in the first nine months of 2065438+2008 was 800 million, which made people question its development strategy.

However, after several rounds of financing, Luckin Coffee does not need to worry about losses for the time being. According to public information, on April 5, 2008+2065438, Ruixing announced the completion of tens of millions of angel rounds of financing. In July 1 1, 2065438, Ruixing announced the completion of the A round of financing of 200 million US dollars, with a post-investment valuation of 1 billion US dollars; On 20 18 12 12, Ruixing announced the completion of the $200 million Series B financing, with a post-investment valuation of $2.2 billion.

At the strategic conference of 20 19, Ruixing said that the losses are still under control and the company's cash flow is still enough to support three to five years. Ruixing also said: "The loss is in line with expectations. It is our established strategy to get customers quickly through subsidies. It is very worthwhile to obtain the market scale and speed this year with moderate subsidies. "

However, the money will run out one day. Whether it is from expanding stores, retaining existing users, or stabilizing the current sales level, Ruixing's loss problem may be protracted.

Suspected of preparing for listing

Selling your own coffee machine and renting it back, in the analysis of insiders, there are usually two situations. First, Ruixing has a strong bargaining power with machine suppliers, obtaining these machines at ultra-low prices, or simply customizing lower-end machines; Second, this time Ruixing made a huge compromise to the financial leasing company for financing, just to get the money faster.

Just financial leasing can bring "beautification" to the finance of listed companies. A senior financial auditor said that such an operation can beautify the cash flow data, and it is "rare" to complete the financial lease quickly before submitting the financial statements related to listing. However, this does lead to a decrease in assets and an increase in cash in the statement.

The news that Ruixing is short of money to seek listing financing is not new. Earlier, some media reported that Luckin Coffee was actively preparing to go public with a valuation of $3 billion.

The above-mentioned senior financial auditor also said that if the company keeps books in compliance, the current accounting standards will define this behavior as "after-sale leaseback" business. In the balance sheet, the fixed assets sold are not allowed to be recognized at one time, and should be amortized to the income statement year by year in the following years. The unrecorded income of this part of the sold assets will be separately explained in the notes. But in the cash flow statement, there will be the illusion that cash flow is improving.

Shen Meng thinks: "At present, it is a critical moment for Internet coffee companies like Luckin Coffee. If you can't get out of the Red Sea as soon as possible and attach great importance to the user data you have obtained, then you can't rule out taking the road of OFO. "

Luckin coffee shop