Research on the Motivations and Identification of Financial Fraud in Luckin Coffee

Zixi Yu ()
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Zixi Yu: Guizhou University of Finance and Economics Western Michigan College

A chapter in Proceedings of the 2026 11th International Conference on Financial Innovation and Economic Development (ICFIED 2026), 2026, pp 155-162 from Springer

Abstract: Abstract This paper takes Luckin Coffee (2020-2024) as the research object. Through a coupled analysis of financial indicators and marketing activities, it adopts quantitative research methods to reveal the mechanism of the effect of marketing innovation on financial performance. The study identifies that, during its post-fraud restructuring phase from 2020 to 2023, Luckin Coffee significantly enhanced its operational efficiency by leveraging digital private domain operations to reduce customer acquisition costs from 56 yuan to 18.5 yuan per person (a 67% decrease). Concurrently, a best-selling product strategy increased the average transaction value from 9.7 yuan to 15.2 yuan (a 56.7% rise), while the marketing expense ratio was optimized from 31.7% to 11.9%. These operational improvements directly contributed to a 19.8 percentage-point increase in net profit margin, generating a marginal return of 6.8 yuan per yuan of marketing investment. Furthermore, the paper provides an in-depth analysis of the motives behind and identification mechanisms for its earlier financial fraud (2019-2020), offering critical insights and references for investor risk prevention.

Keywords: Financial Analysis; Luckin Coffee; Financial Fraud (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6239-642-5_17

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DOI: 10.2991/978-94-6239-642-5_17

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