Ladies and gentlemen, welcome to Luckin Coffee's fourth quarter and full year 2023 earnings conference call. All participants will be in listen-only mode during management's prepared remarks, and there will be a question-and-answer session to follow. Today's conference is being recorded. At this time, I would like to turn the call over to Ms. Alicia Guo, the head of investor relations of Luckin Coffee, for prepared remarks and introductions. Please go ahead, Alicia.
Hello everyone, and thank you for joining us on today's call. Luckin Coffee announced its fourth quarter and full year 2023 financial results earlier today. Today you will hear from Dr. Jinyi Guo, chairman and CEO of Luckin Coffee, and Ms. Jing An, CFO of Luckin Coffee. After the company's prepared remarks, the management team will conduct a question-and-answer session based on questions submitted via the company's webcast. We will be referring to a slide presentation on today's call, which can be found via a conference call webcast link, as well as on the company's IR website. The IR website link is investor.luckincoffee.com. During today's call, the company will be making some forward-looking statements regarding future events and results. Statements that are not historical facts, including but not limited to statements about the company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties.
Further information regarding these and other risks is included in the company's filings with the SEC. With respect to any non-GAAP measures discussed during the call today, the accompanying reconciliation information related to those measures can be found in the earnings press release issued earlier today. During today's call, Dr. Guo will speak in Chinese, and his comments will be translated into English. Now I would like to turn the call over to Dr. Jinyi Guo, Chairman and CEO of Luckin Coffee. Dr. Guo, please go ahead.
大家好，欢迎参加今天的业绩沟通会，感谢各位对瑞幸咖啡的持续关注与支持。我是瑞幸咖啡的董事长兼CEO郭景一。2023年对公司是极具里程碑意义的一年。规模上，瑞幸咖啡门店数量在去年的基础上翻倍，再创新高。业绩上，面对激烈的行业竞争环境，瑞幸咖啡凭借独特的商业模式、层出不穷的产品创新以及规模优势，收入再创新高。整体利润水平健康可控，符合公司预期及战略发展方向。本季度，瑞幸持续回馈消费者，通过万店同庆优惠活动，让更多的消费者以更优惠的价格享受到了高品质咖啡。我们的新交易用户数再创历史新高，也成功打造了多个爆款产品，刷新了瑞幸单品销售记录。未来，我们还将按照既定战略稳步推进，在回馈客户的同时不断扩大市场份额，持续为消费者带来高品质、高便利性、高性价比的优质咖啡，推动中国咖啡市场持续向前发展。
Hello everyone, welcome to today's earnings conference call, and thank you for continuing to support Luckin Coffee. I am Luckin's Chairman and CEO, Jinyi Guo. 2023 was a significant milestone year for Luckin Coffee. In terms of scale, the number of Luckin Coffee stores doubled from the previous year, reaching a new record high. In terms of performance, despite facing intense industry competition, Luckin Coffee achieved another year of record-breaking revenue thanks to its unique business model, continuous product innovation, and scale advantage. The overall level of profit remained healthy and manageable, aligning with our expectations and the direction of our strategic development. In the fourth quarter, Luckin Coffee continued to reward consumers through the 10,000-store celebration event promotion, allowing more consumers to enjoy high-quality coffee at preferential prices. Meanwhile, our number of new transacting customers also reached a historical high.
We successfully created several blockbuster products, breaking records for single-item sales at Luckin Coffee. Going forward, we will continue to steadily progress according to our established strategy while expanding market share and consistently providing consumers with high-quality, affordable, and convenient coffee offerings. By doing so, we aim to drive continuous development of the Chinese coffee market while simultaneously rewarding our customers.
具体来看，四季度瑞幸收入同比增速强劲。由于季节性、万店同庆优惠活动以及激烈的行业竞争环境等因素影响，利润增速有所回落，但符合公司预期。其中，总净收入70.6亿元同比增长91.2%，营业利润率3%，自营门店利润率13.5%，同店销售增长率13.5%。净增门店数为2,975家，月均交易用户数突破6,200万。更详细的财务数据稍后CFO安静会和大家进行分享。
Specifically, Luckin Coffee experienced robust year-over-year revenue growth in the fourth quarter. However, due to factors such as seasonality, promotional events like the 10,000-store celebration event, and intense industry competition, the profit growth rate experienced a decline in line with the company's expectations. The total net revenue reached RMB 7.06 billion, marking a 91.2% year-over-year increase. The operating profit margin stood at 3%, with a self-operated store operating profit margin of 13.5%. Same-store sales growth was 13.5%, with 2,975 net new store openings. In addition, monthly average transacting customers surpassed 62 million. Our CFO Jing An will share further financial details later on this call.
回顾2023全年，瑞幸取得突破性进展，在中国咖啡市场创造了多个令人欣喜的成绩。我们的收入规模突破200亿，营业利润超过30亿，较2022年大幅增长。2023年，我们新开门店数超过8,000家，总门店数超过16,000家，持续巩固中国门店数量最多的连锁咖啡品牌地位。同时，我们的累计交易用户数已达2.3亿，处于行业绝对领先地位。这些成绩的取得离不开陪伴着瑞幸一路向前的股东投资人、合作伙伴，以及勤勤恳恳坚守岗位、默默奉献的近11万名瑞幸伙伴。在此，我们对各位表示由衷的感谢。
Looking back at 2023, Luckin Coffee made breakthrough progress, achieving several remarkable milestones in the Chinese coffee market. Our revenue surpassed RMB 20 billion, with operating profits exceeding RMB 3 billion, achieving significant growth compared to 2022. In 2023, we opened over 8,000 new stores, bringing our total store count to over 16,000, reinforcing our position as the coffee chain brand with the largest number of stores in China. Meanwhile, our total cumulative transacting customers reached 230 million, firmly placing us in a leading position in the industry. These achievements would not have been possible without the support of our shareholders, partners, and the dedication of nearly 110,000 Luckin employees who have accompanied us every step of the way, working diligently to drive the company forward. We express our heartfelt gratitude to all of you.
四季度，瑞幸咖啡净增2,975家门店，国内总门店数共计16,218家，持续领跑市场。其中，自营门店10,598家，联营门店5,620家。随着中国咖啡市场竞争加剧，我们会在持续关注客户需求和门店质量的同时，继续加密高线城市门店数量，并通过联营模式加速拓展下沉市场，进一步扩大市场份额。预计2024年，瑞幸咖啡门店数将突破2万家。从海外市场发展看，四季度新加坡门店已达30家，在三季度基础上新增12家。未来我们也将持续加密新加坡市场，不断优化门店模型，同时关注东南亚等海外市场，让全世界更多的消费者品尝到瑞幸的高品质咖啡。
In the fourth quarter, Luckin Coffee added 2,975 new stores, bringing the total domestic store count to 16,218, maintaining our leading position in the market. Among the total number of stores, there were 10,598 self-operated stores and 5,620 partnership stores. As competition intensifies in the Chinese coffee market, we will continue to closely monitor customer demands and store quality. Additionally, we plan to further increase the number of stores in high-tier cities and accelerate expansion into lower-tier city markets. Through the partnership model to expand our market share, we anticipate that by 2024, the number of Luckin Coffee stores will surpass 20,000. In terms of the development of our overseas market, in the fourth quarter, Luckin Coffee has reached a total of 30 stores in Singapore, adding 12 new stores from the third quarter.
In the future, we will continue to expand our footprint in the Singapore market, optimizing our store model while also eyeing other overseas markets, including but not limited to Southeast Asia. Our goal is to allow more consumers to enjoy our high-quality coffee worldwide.
产品方面，2023年瑞幸咖啡推出102款新产品，商品售卖数超过20亿件，限制饮品数超过19亿杯。截止2023年年底，瑞幸咖啡有8个SKU销量破亿。此外，酱香拿铁刷新瑞幸单品记录，全年售出4,583万杯，单品销售额突破9亿元，并获得2023泰媒体年度高品质产品奖等多个行业大奖。未来，我们将坚持产品创新，持续为客户提供更高品质、更有获得感的消费体验。在门店加速布局和产品不断创新的双重作用下，本季度瑞幸新增交易用户数超过2,600万，月均交易客户数突破6,200万。2023年，全年新增交易用户数超9,500万，再创历史新高。我们在新用户不断增长的同时，也持续进行品牌推广，不断深化咖啡文化普及。今年，瑞幸咖啡成为澳网中国及东南亚官方独家咖啡合作伙伴。
In terms of product, Luckin Coffee launched 102 new products in 2023. The number of total items sold in 2023 exceeded 2 billion, with the number of freshly brewed drinks sold surpassed 1.9 billion cups. By the end of 2023, Luckin Coffee had eight SKUs, with sales exceeding 100 million units. In addition, the Jiangxiang Flavored Latte broke our single-item sales record, selling 45.83 million cups throughout the year. This resulted in its single-item sales revenue surpassing RMB 900 million and earning numerous industry awards, including the 2023 EDGE Awards Annual High-Quality Product. Moving forward, we will continue to uphold product innovation, consistently providing customers with higher quality and more satisfying consumption experiences. Thanks to the dual effect of accelerated store expansion and continuous product innovation, Luckin Coffee acquired over 26 million new transacting customers during this quarter, with our average monthly transacting customers exceeding 62 million.
Throughout 2023, we had more than 95 million new transacting customers, marking another historic high. Along with the continuous growth of new customers, we have been consistently promoting our brand and deepening the popularization of coffee culture. This year, Luckin Coffee became the Australian Open's official coffee partner in China and Southeast Asia.
伴随着业绩持续向好，瑞幸也更加积极地投入到企业社会责任工作当中，推动公司工艺品牌建设与工艺实践的开展。2023年夏天，受台风杜苏芮影响，河北省涿州市受洪涝灾害影响严重。瑞幸咖啡通过中国乡村发展基金会捐赠500万元，用于涿州地区紧急救援、社区卫生防疫、受灾群众过渡安置以及受灾地区灾后重建等工作。12月19日，甘肃临夏州鸡石山县6.2级地震，瑞幸再次通过中国乡村发展基金会捐赠500万元，成为餐饮连锁行业最早响应救灾需求的企业之一。2023年，我们在可持续领域获得了一系列的荣誉和奖项。未来，瑞幸咖啡将以数字化基因为抓手，以促进公司良性发展为起点，协同合作伙伴与消费者持续进行可持续发展实践，引领行业进步，与年轻一代消费者共创可持续价值，凝聚力量，以赴美好明天。以上是四季度业绩的主要情况。下面，请CFO安静向大家介绍财务数据。
Along with the continuous improvement of our operational and financial performance, Luckin Coffee is also actively involved in corporate social responsibility measures, driving the development of the company's public welfare brand and the execution of public interest initiatives. This past summer, due to the impact of Typhoon Doksuri, Zhuozhou City in Hebei Province suffered severe flooding. Luckin Coffee donated RMB 5 million through the China Foundation for Rural Development to support emergency rescue, community health and epidemic prevention, and transitional resettlement of affected populations, as well as post-disaster reconstruction. On December 19, 2023, following the 6.2 magnitude earthquake in Jishishan County, Linxia Hui Autonomous Prefecture, Gansu Province, Luckin Coffee once again donated RMB 5 million through the China Foundation for Rural Development, becoming one of the earliest enterprises in the restaurant chain industry to respond to disaster relief needs.
In 2023, our sustainable developments were well recognized, and we have received a series of honors and awards. Going forward, leveraging our digital DNA, Luckin Coffee will start from facilitating healthy company development and collaborate with partners and customers to continuously practice sustainable development, leading the industry's progress. Together with the younger generation of customers, we aim to create sustainable value and unite our strength towards being a force for a brighter future. These are the key highlights of our performance in the fourth quarter. Next, I would like to invite our CFO, Jing An, to present the financial data and commentary.
谢谢谨一。 Good morning, afternoon, and evening, everyone. Thank you for joining us today. I'm Jing An, the CFO at Luckin Coffee, and today I will be sharing information regarding our fourth quarter and the full year 2023 financial performance. Before we start, I would like to extend my heartfelt thanks to our dedicated team, loyal customers, esteemed partners, and investors for their continued support. Now, I will take some time to highlight our 2023 fourth quarter and the full year financial result in detail. Let's start with our financial highlights. Despite the impact from seasonality, we are pleased to see that our fourth quarter 2023 results continued to exhibit strong year-on-year business growth. In the fourth quarter of 2023, our total net revenues reached nearly RMB 7.1 billion, reflecting a remarkable 91.2% increase from the same quarter of 2022.
This growth was driven by various factors, including an increase in productive sales, rapid expansion of stores in operation, and a surge in monthly transacting customers. Revenue from self-operated stores in the fourth quarter reached RMB 5.1 billion, representing an increase of 89.2% from RMB 2.7 billion in the same quarter of 2022. Same-store sales growth for self-operated stores in the fourth quarter of 2023 reached 13.5%. Additionally, revenues from partnership stores in the fourth quarter of 2023 amounted to RMB 1.8 billion, a substantial 109.1% increase from the same quarter in 2022. Operating income in the fourth quarter was RMB 212.7 million, with an operating income margin of 3%. Well, our financial achievements in the fourth quarter of 2023 are in line with our expectations. Our primary strategic priority is to remain focused on expanding our market share to serve more customers.
This strategic approach aligns with our dedication to providing an enhanced experience for a growing customer base, solidifying our positions in the market, and ensuring sustainable long-term success. As we reflect on the fiscal year 2023, our journey has been defined by remarkable growth and unwavering commitment, with total net revenue soaring to nearly RMB 25 billion, representing an impressive 87.3% increase from fiscal year 2022. Our focus on expanding market shares and assuring our ever-growing customer base has been the cornerstone of our success. Revenues from self-operated stores in the fiscal year 2023 were RMB 17.9 billion, which represents an 82.7% year-over-year increase. Same-store sales growth for self-operated stores in fiscal year 2023 achieved an impressive 21%. Revenues from partnership stores in fiscal year 2023 were RMB 6.2 billion, representing a substantial 102.8% increase from fiscal year 2022.
Operating income for fiscal year 2023 reached RMB 3 billion, with an operating income margin of 12.1%. By upholding our commitment to providing exceptional service and expanding our reach, we are positioned for the continued success in the dynamic landscape of the coffee industry. We prioritize expanding our market share resulting in 2,975 net new store openings and a quarter-over-quarter store unit growth rate of 22.4%, concluding the fourth quarter with 16,248 stores. As of the end of the fourth quarter, we and our partners operated our business in more than 300 cities across China and in one overseas market. We believe that our expansion into new cities is a strong reflection of our commitment to diversify our geographic presence and capture new market opportunities.
For the full year of 2023, in the pursuit of excellence, we opened 8,034 new stores, achieving a remarkable year-over-year store unit growth rate of 97.8%. Our dedication to providing exceptional service and enriching the coffee experience has propelled us forward, making fiscal year 2023 a testament to our commitment to market leadership and sustainable growth. In the fourth quarter of 2023, average monthly transacting customers reached 62.4 million, a substantial 154.2% increase from the fourth quarter of 2022. This notable increase highlights the popularity of our brand and the increasing interest in our products. Average monthly transacting customers in fiscal year 2023 were 48.4 million, representing an increase of 124.1% from 21.6 million in fiscal year 2022.
As we continue to focus on enhancing the customer experience, this remarkable increase in monthly transacting customers reflects the success of our customer-centric approach and the effectiveness of our strategy in reaching and engaging a wider audience. Looking ahead, we are positioned to leverage this momentum, implementing innovative initiatives to further elevate customer satisfaction, foster brand loyalty, and continue our trajectory of impressive growth in the coming quarters. Next, I would like to spend some time on the details of our margin profiles. On a group level, our reported overall operating margin in the fourth quarter of 2023 was 3%, compared to 8.5% in the same period last year. The drop in our profitability profile was mainly driven by the decrease in average selling price as we continue to offer 10,000-store celebration event campaigns.
As we ascribed to weak traffic in the winter season, well, the decrease was to some extent offset by the benefits of economies of scale. However, we are pleased to see our reported operating margin for the full year of 2023 reached 12.1%, compared to 8.7% in last year. We believe the full-year margin improvements were largely driven by our active approach to introduce new products and attracting new customers, operating efficiency, and scale benefits. Meanwhile, we reported a net profit margin of 4.2% in this quarter, compared to 1.5% in the same period last year. In the fourth quarter, we reported an income tax benefit of RMB 31 million, resulting from the release of a valuation allowance against deferred tax assets in the fourth quarter, thanks to the largely reduced uncertainty of the company's business performance.
After a certain number of the company's operating entities have turned accumulative losses into cumulative profits, for the full year of 2023, our net profit margin increased to 11.4% from 3.7% last year. From a store level view, our store level operating profit margin of self-operated stores was 13.5% and 22.2% in Q4 and the fiscal year 2023, respectively. Meanwhile, overall operating expenses increased as a result of our business expansion. We are pleased to see our expenses ratio continue to be more efficient and resilient due to economies of scale and our technology-driven operations during this quarter. Our general and administrative expenses, as a percentage of revenue, decreased from 11.1% in the fourth quarter of last year to 8% in the fourth quarter of this year due to scale benefits.
On an absolute value basis, our G&A expenses increased by 36.6% year-over-year, as we spent more on payroll costs, expenditures for office suppliers, R&D expenses, and tax surcharges and stamp duties as a result of a business expansion. Well, G&A expenses increase were offset by a decrease of share-based compensation for restricted share units and options issued to management and employees. Compared to last year, we spent 1.3 times more on sales and marketing expenses as we continued to strategically invest in branding to increase brand awareness, enlarge product education coverage, and bolster our current positioning through various channels, attracting new customers and retaining current customers. Meanwhile, in this quarter, we spent more on commission fees to third-party delivery platforms, which is in line with increased delivery orders.
We recorded a negative RMB 41.5 million, about a negative $5.8 million of loss and expenses related to the previously reported fabricated transactions and related restructuring, as the company wrote off approximately $6.3 million, about RMB 44.7 million in the fourth quarter of 2023, following the final settlement with certain underwriters relating to defense costs, including but not limited to attorneys' fees and expenses incurred in investigating and defending the fabricated transactions and restructuring. The company had successfully completed its provisional liquidation in March 2022. Last but not least, let's talk about our balance sheet and cash flow statements. During the fourth quarter, we had a net operating cash outflow of RMB 926.7 million, compared to a net operating cash inflow of RMB 48.3 million in the same quarter of 2022.
This is mainly due to the increased purchase of raw materials to meet our rapid footprint expansion and business growth, as we fully redeemed the offshore notes in 2022 following the restructuring and paid the federal class settlements. We now have no interest bearing debt, and we ended 2023 with about RMB 3.8 billion of cash in bank and on hand, including cash and cash equivalents, restricted cash, term deposits, and short-term investment. We will continue to review our liquidity requirements on an ongoing basis to ensure that we can meet all our business needs and provide additional growth potential. We have confidence that our expanding market presence and solid cash position, together with our strategic capital allocation approach, can create exceptional shareholder return while maintaining balance sheet flexibility to fund our critical investments and create a competitive advantage.
Finally, I would like to thank the entire team for their hard work and execution, which drove our strong 2023 results. Well, we expect volatile market dynamics and competition to continue in the China coffee market. We remain confident in the market opportunities and our strategy as we look to 2024. Our current pricing strategy and business expansion plans, combined with our strategic promotional calendars and innovative product offerings, provide us with competitive advantage in the market as well as additional growth potential. I will now turn it over to Jing An for concluding remarks, followed by Q&A.
瑞幸咖啡创造了一个又一个的里程碑，是瑞幸伙伴团结奋斗的结果。当然，也离不开广大消费者的厚爱、合作伙伴的支持与投资人的信任。目前，中国咖啡市场已进入高速发展的重要战略机遇期。面对激烈的行业竞争，瑞幸作为中国咖啡市场的领导品牌，将通过不断加速门店网络布局、加大供应链布局投入，持续强化数字化优势，优化成本提升效率，进一步扩大和巩固领先优势，形成绝对的市场主导地位，实现高速、健康、可持续的业绩增长。未来，我们将持续关注业务增长和市场份额，为客户、股东及其他利益相关方提供长期价值，也会更加关注社会责任，践行可持续发展实践。我们希望用更优质的产品、更优惠的价格，为大家提供好喝不贵的咖啡。我们的愿景是创造世界级咖啡品牌，也一直在向着成为一家基业长青的世界级百年品牌而努力。最后，公司负责公共事务与战略合作的高级副总裁吴刚先生将因个人原因离职。我们借此机会感谢他在过去几年中做出的重要贡献，并祝愿他在未来的工作中一切顺利。
Luckin Coffee has achieved one milestone after another, a result of the combined efforts of our hardworking employees, love of our customers, support of our partners, and trust of our investors. At present, China's coffee industry has entered a critical stage of high-growth strategic opportunities.
Despite fierce industry competition, Luckin Coffee, as a leading brand in the coffee market in China, is committed to accelerating store network expansion, investing in supply chain development, strengthening digital advantages, optimizing costs, and improving efficiency. All these efforts aim to further expand and solidify our competitive advantages, ultimately building an absolute market-leading position while also achieving long-term healthy, high-speed, and sustainable growth. Going forward, we will continue to focus on business growth and market share, delivering long-term value for our customers, shareholders, and other stakeholders. Additionally, we will remain focused on social responsibility and practice sustainable development. We will continue to deliver better quality and better prices and provide customers with coffee that is delicious and affordable. Our vision is to create a world-class coffee brand, and we're delivering as we work towards that goal. Lastly, Mr.
Gang Wu, our Senior Vice President currently in charge of public affairs and strategic cooperation, will be departing from the company for personal reasons. We would like to take this opportunity to thank him for his significant contributions for the past few years and wish him all the best in future endeavors. Ladies and gentlemen, we will now begin the Q&A session. I will turn the call over to Alicia Guo at Luckin Coffee, who will moderate today's Q&A session. Thank you. Now, let's begin with the first question. How does the company view the significant drop in profit in Q4, and are there plans for pricing adjustment?
感谢您的提问。基于公司持续回馈客户和拓展市场的战略决策，受到季节性因素影响，产品组合结构调整，次季度的利润有所回落。这既是行业的客观规律，也完全符合公司的战略预期。我们对本季度的业绩成果总体满意。本季度，瑞幸咖啡月均交易用户数超过6200万，2023年新增用户数超过9000万。中国咖啡行业正处在高速增长的战略机遇期，行业竞争也日益激烈，发展格局远未完全成形。基于以上判断，我们会密切关注市场变化，持续聚焦客户价值，希望通过为消费者提供高品质的产品，并采取更科学、更友好的定价策略，降低用户的决策成本，进一步扩大用户基数，持续提升消费频次。在目前竞争加剧的环境下，瑞幸作为中国咖啡市场的领导者，将会坚持目前的发展策略和定价策略，长期回馈客户，扩大市场份额。我们有信心持续巩固市场领先地位，努力创造长期价值。
Thank you for your question. Based on the company's strategic decisions to continuously reward customers and expand the market, our fourth-quarter profits experienced a decline due to seasonal factors and adjustments in product portfolio structure.
This decline aligns with both the objective industry trends and the company's strategic expectations. The company is satisfied with the overall performance and results in this quarter. In the fourth quarter, our average monthly transacting customers exceeded 62 million, and new transacting customers exceeded 90 million in 2023. China's coffee industry is experiencing rapid growth with huge growth potential and surging competitiveness, and the market is far from saturated. Based on these assessments, we will closely monitor market changes, continue to focus on customer value, and aim to provide high-quality products while using scientific and user-friendly pricing strategies to further reduce the decision-making cost for users, expand our user base, and enhance overall consumption frequency.
Facing the current intensified competition, Luckin Coffee, as the market leader, will continue with our current store expansion and pricing strategies and commitment to providing long-term returns to our customers to further enlarge our market share. We're confident that we can maintain and solidify our market-leading position and strive for long-term value.
Thank you, Dr. Guo. Let's move on to the next question. In 2024, is the company continuing the store expansion strategy from 2023?
感谢您的提问。目前中国咖啡市场仍然处于初步发展阶段。随着中国城镇化率的持续稳定提升，限制咖啡的消费人群规模基数庞大且稳定增长。在咖啡市场教育的作用下，消费者的咖啡饮用习惯将会被进一步培养。瑞幸作为行业头部代表，引领了中国咖啡产品的本地化改良，降低了咖啡的接受门槛。虽然从门店数量来看，瑞幸咖啡已经是中国咖啡赛道的第一品牌，但无论从行业发展的阶段以及用户消费习惯的培育来看，咖啡赛道依然还是有很大的拓展空间。2023年，瑞幸净增门店8034家。门店的迅速扩张带来了新用户的迅速增长以及规模效应。回顾过去几年的数据，中国消费者的咖啡消费习惯培养确实存在着周期性特点，但是在瑞幸独特的产品创新能力、品牌价值体验、门店网络覆盖等方面的优势持续推动下，中国咖啡市场已呈现加速发展趋势。也正是这些待成长的客户构成了我们敢于持续拓店的强大客户基础。2024年，我们将在密切关注门店利润表现的同时，持续高速门店拓展，积极应对市场竞争，更好地满足客户需求。
Thank you for your question. The current coffee market in China is still in the early stages of development. As China's urbanization rate continues to rise steadily, the consumer base for freshly brewed coffee is large and steadily growing. Benefiting from coffee market education, consumer habits related to coffee consumption will be further cultivated.
As the leading representative in the industry, Luckin Coffee has spearheaded the localization and improvement of coffee products in China, thereby lowering the barriers to coffee acceptance. Although in terms of the overall store counts, Luckin Coffee has already become the top brand in China's coffee industry, there is still significant room for expansion in the sector, both in terms of the current stage of industry development and the cultivation phase of consumer habits. In 2023, Luckin Coffee had 8,034 net new store openings. Rapid store expansion brings the rapid growth of new customers and skill benefits. Reflecting on data from the past few years, the coffee consumption habits of Chinese customers exhibit cyclical patterns. However, driven by Luckin Coffee's unique advantages, including product innovation, brand experience, and extensive store network coverage, the coffee market in China has shown an accelerated development momentum.
It is precisely these potential new growth customers that form the strong customer base that emboldens us to continue expanding our store presence. In 2024, while closely monitoring store profitability, we will continue rapid store expansion, proactively respond to market competition, and better meet customer demands.
Thank you, Dr. Guo, Ms. An. That is all the time we have for today's earnings conference call. We thank you for your participation on today's call. We look forward to providing you with regular business updates, and look forward to speaking with you again next quarter.
This concludes our call today. You may now disconnect.