Hextar Industries Berhad (HIB), a Malaysian public company, is diversifying its business through Global Aroma Sdn Bhd (GASB), a wholly owned subsidiary, to introduce the Luckin Coffee brand very soon in Malaysia through a franchising cooperation with Luckin Coffee Holding Singapore Pte Ltd.
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Hextar Industries announced on Friday that this partnership provides GASB with the right to franchise, launch, and manage coffee shops under one of China’s largest coffee brands, Luckin Coffee, across the country, getting Malaysians acquainted with a new approach to coffee.
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Luckin Coffee was established in 2017 and announced it had 21,343 cafés in operation worldwide by the third quarter of the financial year 2024/2023 Q3 FY.
In Q3 FY2024, it added 1,382 net stores or a 6.9 percent rise in units from Q2 FY2024. According to Luckin Coffee’s financial statement for Q3 FY2024, the firm posted a net income of 1,302.6 million RMB, which is $180.06 million.
Currently, Luckin Coffee has a strong team with more than 300 million cumulative customers in China and Singapore. The monthly average transacting customer count touched 79.8 million in Q3 FY2024 and had a voluminous YoY growth of 36.5%.
It is a great achievement that Luckin Coffee opened 20,000 stores in Beijing in July 2024.
Hextar said the partnership with Luckin Coffee is a significant milestone for HIB as it leverages the accelerating growth of one of the world’s fastest-growing coffee chains. This is also a perfect opportunity for HIB, as it has vast potential in the rapidly progressing F&B industry. Thus, HIB will create new income-generating opportunities and add a new, high-tech approach to coffee consumption.
Eddie Ong, a major shareholder of Hextar Industries, said, “The partnership with Luckin Coffee unlocks new growth opportunities and marks a significant milestone for Hextar Industries Berhad. HIB’s expansion of the Luckin Coffee brand name into the Malaysian market is a strategic investment that I am confident will deliver excellent returns.”
“We have equally ambitious plans for Luckin Coffee in Malaysia, inspired by the brand’s tremendous growth. We aim to replicate this success by expanding aggressively across the country. We believe that bringing this success story to Malaysia will not only widen our portfolio but also tap into the thriving F&B market here, making it a highly worthwhile investment for both Luckin Coffee and Malaysian consumers.”
“The coffee culture is growing rapidly, and with Luckin Coffee’s value-driven pricing and technology-driven approach, we are confident that this move will drive significant growth for HIB, positioning us for long-term success.”
Dr. Jeff Lim Chee Lip, Chief Executive Officer of Global Aroma Sdn Bhd, added, “Our goal is to make Luckin Coffee a household name nationwide, and we are committed to delivering an exceptional coffee experience that truly resonates with Malaysian consumers.”
Dr. Jinyi Guo, Chairman and Chief Executive Officer of Luckin Coffee, said, “We are delighted to collaborate with Hextar Industries Berhad to jointly facilitate the launch of Luckin Coffee stores in Malaysia, which marks a significant step forward for Luckin Coffee’s international expansion.”
GASB aims to open several Luckin Coffee stores in Malaysia by the first quarter of 2025.
These outlets will introduce Malaysian consumers to the Luckin Coffee brand, which is a coffee innovation based on technology.
Using Luckin Coffee’s data-orientated strategy and successful business model, Hextar said GASB will target a significant portion of the domestic coffee market to improve customer experiences through simple, technological solutions.
Luckin Coffee’s entry comes at a time when Malaysians are experiencing an increasing number of both domestic and international coffee chains and outlets. Local and international car segment coffee brands are planning for a greater market share than US brands, and Starbucks is continuously evidencing boycotting during the war between Israel and Gaza.
About Luckin Coffee
Luckin Coffee was founded in 2017 and is based in Xiamen, China. Luckin Coffee is the pioneer of a technology-driven new retail model to provide coffee and other products of high quality, high affordability, and high convenience to our customers. Its mission is to be part of everyone’s everyday life, starting with coffee.
