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

DOI

10.2991/978-94-6239-642-5_17How to use a DOI?

Keywords

Financial Analysis; Luckin Coffee; Financial Fraud

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.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Zixi Yu
PY  - 2026
DA  - 2026/04/29
TI  - Research on the Motivations and Identification of Financial Fraud in Luckin Coffee
BT  - Proceedings of the 2026 11th International Conference on Financial Innovation and Economic Development (ICFIED 2026)
PB  - Atlantis Press
SP  - 155
EP  - 162
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-642-5_17
DO  - 10.2991/978-94-6239-642-5_17
ID  - Yu2026
ER  -