Ladies and gentlemen, welcome to Luckin Coffee second quarter 2022 earnings conference call. All participants will be in the listen-only mode during management 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 Mr. Bill Zima at ICR for opening remarks and introductions. Please go ahead, sir.
Hello, everyone, and thank you for joining us on today's call. Luckin Coffee announced the second quarter 2022 financial results earlier today. A press release is now available on the company's IR website at investor.lkcoffee.com. Today you will hear from Jinyi Guo, Chairman and CEO of Luckin Coffee, and Reinout Schakel, CSO 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. Again, the IR website link is investor.lkcoffee.com. During this 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. During today's call, Dr. Guo will speak in Chinese and his comments will be translated into English. At this time, I would like to introduce Alicia Guo, Luckin Coffee's new investor relations director. Alicia, please go ahead.
Thank you, Bill. Hello, everyone. Thank you for joining today's call. My name is Alicia and I am the IR director of Luckin Coffee. I joined the company in July and look forward to communicating with you moving forward.
Thank you, Alicia. I would now like to turn the call over to Dr. Jinyi Guo, Chairman and CEO of Luckin Coffee. Dr. Guo, please go ahead.
大家好，欢迎各位参加今天的电话会，也感谢各位对瑞幸咖啡的持续关注和支持。我是瑞幸咖啡的董事长兼CEO郭谨一，很高兴和大家分享二季度的业绩成果。在刚刚过去的二季度，疫情形势非常复杂，餐饮零售行业受到了很大冲击。我们在上海、北京等几十家门店也在不同时期出现不同程度闭店。但即便在这样的环境下，瑞幸咖啡依然实现了业绩历史高速增长。历史问题处理方面，继一季度成功完成债务重组后，美国联邦集体诉讼和解已于近日获得了美国联邦法院的最终批准，这标志着境外股东集体诉讼的绝大部分潜在风险得到了彻底释放，具有重要的里程碑意义。这些成绩的取得是因为我们更加明确地聚焦和专注于咖啡赛道，更是公司长期发展战略和价值观的具体体现。我们认为中国的咖啡市场是有极高潜力的增量市场，上行空间极为广阔。我们希望通过每一杯咖啡给消费者带来一份幸运和美好的体验。我们努力通过求真务实、品质至上、持续创新、非我莫属和互信共赢的价值观，创造一个世界级咖啡品牌，让瑞幸成为人们日常生活的一部分。
Hello everyone, and welcome to today's conference call. Thank you for your ongoing support of Luckin Coffee. I'm Jinyi Guo, Chairman and CEO of Luckin Coffee. I'm pleased to share with you our second quarter results. The ongoing COVID-19 situation in the second quarter remains very challenging for the catering and retail industry. Many of our stores in Shanghai, Beijing and other cities in China experienced temporary closures at different times. Despite these circumstances, Luckin Coffee still achieved rapid growth and an improved profitability profile. In regard to dealing with historical issues, following the successful completion of the restructuring of our financial indebtedness in the first quarter, the U.S. Federal Court recently granted final approval of the securities class action settlement. This marks an important milestone for Luckin Coffee as it resolves the overwhelming majority of the company's potential exposure related to the offshore class action lawsuits.
These achievements are the result of our strong focus on the coffee business, which embodies our long term development strategy and values. We believe that the Chinese coffee market has substantial upside potential with significant opportunities. We hope to bring lucky moments and excellent experiences to consumers through every cup of coffee in an effort to make Luckin Coffee a part of people's everyday lives. We strive to create a world-class coffee brand by adhering to the value of integrity, craftsmanship, innovation, ownership and cooperation.
借今天沟通会的机会，我宣布一项高管任命变动。大家知道Reinout先生自加入瑞幸以来，一直担任公司首席财务官兼首席战略官职务。下一步，Reinout的工作重心将有所转移，他将继续担任公司首席战略官CSO，更加专注于公司长期发展战略和其他重要工作。公司于今天正式宣布了这项任命。过去两年，Reinout和我们一起在挚爱时刻始终团结一心，并肩战斗，共克时艰。他作为核心成员参与完成了境外重组，创造性地解决了多项历史问题。同时，他还带领财务团队重建其职能，成功为公司财务条件重回常态化打下了坚实基础。在此，我要对Reinout过去两年的辛勤付出和不懈努力表示最真挚的感谢，也相信Reinout能够继续发挥更重要的作用，为瑞幸创造更大的价值。公司的首席财务官CFO一职将由我们的团队新成员安静女士正式接任。安静为中国人民大学经济学学士，斯坦福大学管理学硕士，曾任达达集团等多家上市公司的CFO，也曾担任普华永道审计师职务。财务专业功底扎实，职业经历非常丰富。我相信安静的加入将进一步加强公司财务中心的组织能力，快速提升业务财务一体化协同水平，推动瑞幸发展再上新台阶。
I would first like to discuss an important update regarding our management team that we announced in a separate press release earlier today. Reinout Schakel, who has served as our Chief Financial Officer and Chief Strategy Officer since joining, will transition to the role of Chief Strategy Officer. In his new role, Reinout will be focusing on our long term development strategy as well as taking on other important strategic assignments. Over the past two years, Reinout has been instrumental in helping Luckin Coffee through our darkest moments. As a core member of the senior management team, Reinout worked tirelessly to complete our overseas restructuring and solve a number of historical problems. He also led the restructuring and reorganization of our finance team and functions over that same period and paved the way for our return to normalize the financial reporting.
I would like to express my sincere gratitude to Reinout Schakel for his hard work and dedication. We believe Reinout Schakel will continue to play an important role in creating substantial value for Luckin Coffee. With this news, we're also delighted to welcome Miss Jing An to our management team and succeed Reinout Schakel as Luckin Coffee's new Chief Financial Officer. Miss An has extensive financial expertise and a rich professional background. She received a bachelor's degree in economics from Renmin University of China and a Master in management from Stanford University. Prior to joining Luckin Coffee, she served as the CFO of publicly listed companies including Dada Group, as well as previously serving as an auditor at PricewaterhouseCoopers.
With Ms. An on board, I am confident that Luckin Coffee will further enhance its financial organization capabilities, further improve the level of business and financial integration and coordination, and Ms. An will help take us to a new level.
二季度，面对疫情冲击，我们仍然实现了逆势增长，多项指标再创佳绩，其中总净收入33亿元，同比增长72.4%。自营门店利润率30.6%，同店销售增长率为41.2%。净增门店数615家，月均交易客户数达到2,070万，同比增长68.6%。业绩的持续增长主要得益于爆款产品的连续推出，门店的持续高速扩张以及交易客户数的稳步提升。稍后，Reinout会对公司的业绩做更详细的分享。
In the second quarter, despite the continuing impact from COVID-19, we achieved a growth and strong results in many metrics. Total net revenue was CNY 3.3 billion, representing a year-over-year increase of 72.4%. Self-operated store profit margin was 30.6% and the same store sales growth was 41.2%. The number of net new store opening was 615. The average number of monthly transacting customers reached 20.7 million, a year-over-year increase of 68.6%. The continuous growth in performance was mainly attributable to the ongoing launch of popular products, rapid expansion of our store footprint, and an increase in the number of transacting customers. Reinout Schakel will share more details on the company's results later during the call.
随着业务发展进入良性轨道，我们将更加积极主动地承担社会责任，持续推进可持续发展战略的落地。我们坚信，持续创造客户价值和社会价值是瑞幸咖啡长远发展的重要基石。七月份，经董事会批准，瑞幸咖啡可持续发展委员会正式成立。我们的董事大征资本合伙人陈伟豪、Michael Chen和我共同担任委员会联席主席。今年四季度，我们计划发布公司治理方面的相关报告，系统回顾过去两年瑞幸咖啡在公司治理、文化价值观及其他重点议题方面脱胎换骨的变化，让外界更加了解瑞幸咖啡在历史切割、治理提升、内控合规等方面所做的不懈努力。
With the business back on track, we will more proactively address social responsibility and implement our sustainable development strategy. We firmly believe that the ongoing creation of both customer value and social value is an important cornerstone for the long-term development of Luckin Coffee. In July, our board of directors approved the establishment of our Sustainable Development Committee. I will co-chair the committee along with our director, Michael Chen, a partner at Centurium Capital. In the fourth quarter of this year, we plan to publish a report on corporate governance with a systematic review of Luckin Coffee's transformation over the past two years in terms of our corporate governance, as well as our cultural values and other important topics. This will help stakeholders better understand we have completely recreated our value and culture with improved corporate governance and internal compliance controls, among other efforts.
技术驱动方面，瑞幸依托技术优势打造的数字化能力是与传统餐饮企业的最显著区别。二季度有两项技术成果与大家分享。一是历时五个季度打造的混合双云项目，于今年六月底顺利完成并上线运行，达成了支撑500万单日订单量的技术体系目标，同时也具备未来支撑千万日订单的拓展能力。这是技术架构的重要里程碑。二是为了进一步提升业务和财务体系透明度，持续强化业务和财务数据真假，我们正在推进创造性地将区块链技术引入业务及财务数据管理中，利用区块链多方参与、不可篡改、可追溯等特性，将关键控制环节和重要数据实时上链存储，以强化业务及财务控制的可靠性，并推动业务及财务控制水平的有效提升。这也使得瑞幸成为餐饮消费行业中将区块链引入运营及财务系统的先行者。
We believe our technological advantage sets us apart from traditional food and beverage companies. There were 2 technical achievements in the second quarter I would like to share with you. The first is the hybrid multi-cloud project that we built with 5 quarters' efforts. We successfully launched this project at the end of June and achieved our target of supporting 5 million orders on a daily basis, which also has the potential to support 10 million daily orders in the near future. This is an important milestone in our technical architecture. Second, to further improve operational and financial transparency and continuously strengthen the reliability of our operational and financial data, we are introducing blockchain technology into our operational and financial data management system.
Using multi-party participation, non-tampering, traceability and other characteristics of the blockchain, key control slots and important data are stored on a chain in real time to ensure the reliability of our operational and financial controls while improving the effectiveness of our management. Luckin Coffee is committed to become the pioneer in introducing blockchain into operational and financial systems in the food and beverage industry.
二季度，全国各地疫情形势复杂，我们持续面临挑战。本季度我们在全国平均每天约670家门店临时关闭。四至五月，全国每天平均临时闭店数量约900家。同时，各地交通的管控要求也给供应链及仓储体系带来了挑战。在如此复杂和困难的环境下，二季度我们的业绩仍然实现逆势增长，得益于围绕着人、货、场三支柱，发挥了品牌势能、新品研发、门店布局等方面的优势。人的角度，瑞幸已经成为越来越多年轻人的首选咖啡品牌。2022年二季度，瑞幸咖啡月交易客户数实现增长，达到2,070万。货的角度，持续进行产品创新，推出爆款产品。我们在四月上新的椰云拿铁，二季度销量达2,400多万杯，门店总收入高达4亿元。利用多地布局，分城分仓的网格式供应体系，同时采用设置临时仓库等硬质处置方式，在疫情期间充分保障了供应。场的角度，对于疫情期间不得堂食的消费场景，瑞幸自取模式受影响较小。以自体门店为主的门店结构、数字化门店管理系统，使得房租和人力成本更为节约高效。在此，我要感谢疫情下坚守岗位的近32,000名瑞幸伙伴，也感谢广大客户对瑞幸咖啡的厚爱和支持。
In the second quarter, we continued to face a challenging operating environment across the country. We had an average of around 670 temporary daily store closures in China during this quarter. In April and May, that number was around 900 stores nationwide. At the same time, the local government's restriction on transportation also brought challenges to our supply chain and logistics systems. Despite a complex and challenging environment, we continue to show strong momentum driven by our advantages in branding, product R&D and store layout, and supported by our three pillars of people, products and places. From the perspective of people, Luckin Coffee is becoming the coffee brand of choice for more and more young people. Our average monthly transacting customers have increased to about 20.7 million during the second quarter of 2022.
From the perspective of product, Luckin Coffee continued to innovate and launch popular products. In April, we launched the Coconut Cloud Latte, which sold over 24 million cups in the second quarter and contributed RMB 400 million in gross revenue across our store formats. During the pandemic, our supply chain department made full use of our existing grid-based warehouse network in multiple locations, quickly setting up emergency warehouses, transfer stations and other measures to ensure sufficient supply. From the perspective of space, although we experienced indoor dining restrictions during the pandemic, our pickup business model was less impacted. As we mainly operate through small-scale grab-and-go stores, combined with advances in intelligent store management system, we can achieve increasing efficiency in terms of store rental and labor structure.
I would like to express my most sincere gratitude to our nearly 32,000 Luckin employees who have worked so hard through challenging times and to our customers for their ongoing love and support for Luckin Coffee.
在品牌营销和增长方面，瑞幸始终坚持专业、年轻、时尚、健康的品牌调性。二季度，我们成功打造了爆款椰云拿铁，并通过夏季冰咖啡活动成功吸引了更多消费者。二季度新增用户数超过千万，公号粉丝目前已达三千多万，私域用户突破两千八百万。通过建立多个自有用户流量池，以数据和技术驱动，多渠道触达用户，不断拉新、留存、提频，实现了左右程效的精细化用户管理，推动了业绩增长。
In terms of brand marketing and sales growth, we have built our brand based on professionalism, youth, fashion and wellness. In the second quarter, we successfully introduced our popular Coconut Cloud Latte and attracted more new customers with our summer iced coffee season campaign. For the second quarter, the number of new transacting customers exceeded 10 million. At the same time, our official account has over 30 million subscribers and over 28 million users in our private traffic pool. By establishing multiple self-owned traffic pools driven by data and technology, we have managed to reach users through multiple marketing channels and continuously attract and retain new users. In return, this has allowed us to more effectively increase customer engagement, further driving our strong performance.
从产品侧来看，我们持续强化专业加好喝。对于专业方面，我们持续深耕咖啡供应链。二季度，瑞幸第二家咖啡烘焙工厂昆山工厂已签订完成了投资协议，设计产能三万吨，计划今年年底开始动工。通过推出云南普洱精品咖啡，大幅度提升了普洱咖啡的知名度。瑞幸也已成为云南咖啡生豆的最重要买家之一。咖啡供应链的不断加大投入，有利于保持原材料品质稳定，有效提升成本控制能力，这将是我们最大的竞争优势之一。对于好喝的追求，源自于数字化研发机制与策略。通过建立一套完善的数字化研发体系，已经形成了从前端业务数据到后台创新研发相互支撑的良性循环，具备了持续打造爆款的能力，不断吸引年轻消费者。
In terms of our product strategy, our focus on professionalism and good flavor is critical to our development and success. The pursuit of professionalism in the coffee industry goes hand in hand with our ongoing investment in a professional coffee supply chain. In the second quarter, we signed an investment agreement for our second coffee roasting facility in Kunshan, designed for a capacity of 30,000 tons and is expected to start construction at the end of 2022. By launching Yunnan specialty coffee, we have significantly raised the popularity of China Pu'er coffee, and Luckin became one of the most important buyers of Yunnan green coffee beans. The ongoing investment to expand the coffee bean supply chain is conducive to maintain raw material quality and effectively improving cost control capabilities, which is expected to be one of our greatest competitive advantage in the long term.
The pursuit of good flavor is illustrated by our accelerating digitalization of R&D mechanism and strategy. Through a comprehensive digital R&D framework, we have achieved a virtuous circle of combined front-end operational data and back-end product development, increasing our ability to offer innovative and popular products and attract young customers.
根据行业公开信息，瑞幸已经成为中国门店数量最多的连锁咖啡品牌之一，并还将持续保持高速增长。截至二季度，我们共计拥有门店7,195家，二季度门店净增数615家。银川、西宁等新增直营城市的新开门店业绩表现非常强劲。未来，我们会持续坚持直营加联营并进的门店策略。一方面通过直营门店在高线城市持续加密布局，另一方面通过联营模式快速下沉到更广阔的低线市场。中国的咖啡市场具有极为广阔的空间，我们对未来的门店拓展充满了信心。下面请Reinout向大家详细介绍二季度的财务数据。
Based on publicly available information, Luckin Coffee has become one of the largest coffee networks in China in terms of the number of stores and keeps growing. As of June 30, 2022, we had 7,195 stores in total, with 615 stores newly opened during the second quarter. We saw strong performance from our newly opened self-operated stores in newly entered cities, such as Yinchuan and Xining. Going forward, we will continue to maintain our store expansion strategy through a balanced mix of self-operated stores and partnership stores. While we expect to continue our expansion into top-tier cities through our self-operated stores, we also intend to quickly enter lower-tier cities through our partnership store model. We believe there is a great potential in China's coffee market, and we're confident in our future store expansion.
At this time, I would like to turn the call over to Reinout Schakel to discuss our financial performance during this quarter.
Thank you, Jinyi Guo, and also thank you for your kind words. Welcome, everyone, to today's call. I would like to start today by welcoming Ms. Jing An as our new Chief Financial Officer of Luckin Coffee. We're all very excited to have an executive of her caliber on board, and I believe her appointment comes at the exact right time in the company's evolution. Ms. Jing An brings over 17 years of corporate finance and management experience to Luckin Coffee, and with her wealth of experience, she is the right person to lead our finance team going forward and bring Luckin Coffee to an even higher level. I look forward to working closely together with Ms. Jing An to ensure a smooth transition of finance and accounting responsibilities as I move into my new role as Chief Strategy Officer.
I feel incredibly privileged that I was given the opportunity to lead the reorganization of our finance team and functions, as well as our offshore financial restructuring, which now have been both successfully completed. I would like to thank Jinyi Guo, our board, our management team, and our shareholders for their trust and support. Our outstanding Luckin employees continue to deliver every day, including our finance, internal audit, legal and compliance, internal controls, and investor relations teams, who have shown exceptional dedication, perseverance, and hard work. For all of us that have been on this journey together, we know it has been a great challenge, but I think we can be incredibly proud of what we have achieved so far. I certainly know I am.
Now that we've placed the company back on a path towards sustainable long-term growth, we believe the company is now in a position of strength with significant growth opportunities ahead. In my role as Chief Strategy Officer, I will strive to continue to support Luckin Coffee in reaching more important milestones, principally focusing on long-term strategic planning, helping identify and execute growth opportunities, and leading the execution of Luckin Coffee's capital market strategy. I will now turn to our Q2 performance. Like last quarter, I would like to provide some context on the current COVID-19 situation in China and the impact on our business. During the second quarter, the negative impact of the COVID-19 pandemic on the company has gradually lessened. In particular, following the lifting of COVID-19 related restrictions in Shanghai starting June 1.
To provide some perspectives, we had an average of 900 temporary daily store closures during April and May 2022, and this number reduced to just over 150 temporary daily store closures during June, and even further decreased to around just under 100 during the month of July. Despite these encouraging improvements, the impact on our financial results in the second quarter was nonetheless substantial, and we anticipate that our operations will continue to be negatively affected by pandemic-related market pressures for the foreseeable future. The lack of visibility from this uncertain, unclear operating environment means we are not providing any forward-looking guidance at this time. Despite these pandemic-related headwinds, and as Jin Yi mentioned earlier, we have been able to deliver yet another quarter of outstanding financial and operational results. Here are some of the quarterly highlights.
Our reported operating profit margin was over 7%, a material improvement compared to last year and also last quarter. We reported CNY 3.3 billion of net revenues, an increase of more than 70% compared to the same period last year, and both of our store formats reported strong top-line growth. Our self-operated stores reported same store sales growth of over 40%, and partnerships grew by almost 180%. This was due to very strong demand for our products and supported by our innovative product development strategy, highlighted by the success of our Coconut Cloud Latte. We also saw substantial growth in transacting customers.
We acquired more than 10 million new customers in the quarter, a quarterly record high, as well as an increase in the average monthly transacting customers to close to 21 million, an increase of almost 70% year-over-year. We are very pleased with our results as these clearly demonstrate our strong momentum and we believe further validates our business model. In terms of store growth, we opened 650 net new stores, an acceleration compared to the first quarter, to meet the ever-growing demand of our products and in anticipation for the summer month, which are seasonally our strongest month.
We now have a nationwide footprint of close to 7,200 stores as of June 30, 2022, which provide us with significant benefits of scale. In terms of store mix, we opened 322 net new partnership stores and entered into 11 new lower tier cities. For our self-operated stores, we opened 293 net new stores and entered into 3 new lower tier cities. As I mentioned earlier, we saw a further material improvement in our profitability profile during the second quarter. Specifically, we achieved a store level margin of over 30% for our self-operated stores in our seasonally strong second quarter. This is the highest store level margin we have achieved since our inception and a notable improvement compared to the 23.1% achieved in the same period last year.
For our partnership stores, we do not disclose any metrics on profitability. However, as can be seen from our partnership store revenue breakdown in the 6-K filed earlier today, revenue contribution from profit sharing, one of the contributors to partnership revenue and profit, increased by 261% year-over-year to CNY 105 million during the quarter. In terms of our overhead expenses, the trends are also favorable due to benefits of scale. Our general administrative expenses increased by around CNY 55 million year-over-year, which reflects our continued investment in our business. However, as a percentage of revenue, these expenses decreased from 15% in Q2 last year to 10.4% this quarter. Same for our sales and marketing expenditures.
If we remove the impact of free cups, we increase our spending by CNY 30 million compared to last year as we spend more on advertising and commission fees to third party delivery platforms. As a percentage of revenues, these expenses decreased from 4.7% in Q2 last year to 3.9% this quarter. As I mentioned last quarter, our current organization is built to support our future growth, and we currently expect these expenses to further decrease as a percentage of revenues over the coming years if we can continue to deliver growth. There are two other areas I would like to point out on this call.
First, as you can see from the 6-K we filed earlier today, we booked an impairment loss of long-lived assets of CNY 221.8 million, which is around 6.7% of net revenues during the quarter. This impairment relates to a full and final impairment of our Luckin Coffee Express machines. In the short term, we believe the Chinese coffee market is still at an early development phase, and unmanned coffee machines mainly serve needs of more mature coffee consumers, which we believe will take more time. Now, compared to our store operations, which have huge growth potential, the cost benefit analysis does not stack up for Luckin Express at this time.
Although we will continue to operate some machines in select cities, further optimize the business model and monitor market demand, we do not expect these operations to reach profitability in the foreseeable future, resulting in a full impairment. Apart from the impairment, the impact on our financials is minimal given the limited scale of this business. Secondly, and in line with expectations, there's been a further reduction of losses and expenses related to the restructuring since the provisional liquidation of the company in the Cayman Islands was completed in March 2022. Now before I discuss our balance sheet and liquidity, first, a brief update on the status of the U.S. securities litigation and their impact on our financial statements.
As Jinyi Guo mentioned earlier during the call, we've made substantial progress in resolving outstanding U.S. securities litigation. The federal class action settlement, which resolved the overwhelming majority of the company's potential exposure, received final approval from the federal court overseeing the case on July 22. We funded a $175 million settlement amount into an escrow account prior to June 30, 2022, which is reflected in our latest cash position and therefore have fulfilled all our obligations under this settlement. We were also able to make substantial progress in resolving the remaining opt-out securities litigation, which is reflected in an increase in our provision for equity litigants in the second quarter as filed in our 6-K.
If we look at our operating cash flow, during the quarter, we had a positive operating cash flow of RMB 619 million, which is just over $90 million after stripping out the payment of $175 million to the federal class. Our operating cash flow, excluding the settlement payment, increased by more than 70% compared to the same quarter last year and easily covers our capital expenditures during the quarter, which amounted to just under RMB 70 million. Following the payment of the federal class settlement, our cash position remains very strong, with close to RMB 4.5 billion of cash and cash equivalents as of June 30, 2022.
We have a healthy balance sheet, and we'll continue to review our liquidity requirements on an ongoing basis to ensure that we can meet all of our business needs and continue to further optimize our capital structure. That ends my prepared remarks for today. Thank you to all shareholders for your trust and support, and I look forward to continuing our dialogue in my new role together with Alicia Guo, who recently joined us as the head of investor relations at Luckin Coffee. I'll now turn it over to Jinyi Guo for concluding remarks, and then we'll have Q&A.
Uh,
未来我们将更好地与消费者、投资人、监管部门及社会各界开展深度交流，持续专注企业发展的长期价值。我们将全力以赴，努力把瑞幸打造为一个基业常青的百年品牌，一个世界级的咖啡品牌，努力实现公司业绩的长期、健康、高速、可持续的增长。谢谢大家。接下来我们进入问答环节。
Finally, I would like to thank all of our stakeholders again for their ongoing attention and long-term support of Luckin Coffee. The long-term development of Luckin Coffee is directly tied to our shareholders and investors, as well as the support of our customers and the entire society. We look forward to having meaningful conversations with our customers, investors, regulatory authorities, and other stakeholders as we continue to focus on creating long-term value for them. We remain committed to building Luckin Coffee into a long-standing world-class coffee brand and achieve sustainable, healthy, and long-term growth. Thank you. Now we would like to open the floor to questions.
Ladies and gentlemen, we will now begin the Q&A session. I'll now turn the call over to Alicia Guo at Luckin Coffee, who will moderate today's Q&A session.
Thank you, operator, and thanks for all of those who submitted your questions online. We truly have had an overwhelming response since filing our pre-announcement last week. Due to the volume of the question, we have on a best efforts basis, tried to categorize your question and selected those questions that have been asked most frequently. Due to the time limitation, we have only been able to select five questions this quarter. We will endeavor to continuously engage with all of our investors in an open and constructive dialogue, and strive to address all of your key questions over time. In no particular order, let's start with the first question. Product development and success of our new products seems to have materially contributed to your recent operational success. Can you tell us more about your R&D process and also how sustainable this is? Dr.
Guo, could you take the first question, please?
感谢提问。我们的数字化、体系化的研发机制是产品成功上新的核心。瑞幸通过将各种原料和口味数字化，量化追踪饮品的流行趋势，组成了基础菜单，得出了产品组合，并且通过菜单管理、产品研发、测试优化等流程，一方面保持了菜单结构的总体稳定，另一方面持续创新，满足消费者快速变化的口味偏好。通过这套方法论，过去两年，瑞幸成功推出了一系列广受好评的产品，平均每个季度上线约35款产品。这其中厚乳拿铁、生椰拿铁上市以来销量均超过一亿杯，还有近30个产品销售超千万。这些产品获得了许多荣誉，也受到了各界的好评。在研发过程中，供应链体系也至关重要。通过加大对咖啡供应链的投入，整合上下游，既保持了原材料优质稳定，又有效提升了成本控制能力。从物流角度，通过分城分仓的网格式共用体系，既持续提高物流效率，又避免了由于交通封控导致的门店物料短缺，有力地保障了产品持续上线。我们相信，凭借这套创新研发机制和供应链及物流体系的加持，瑞幸能够持续保持行业领先的产品创新能力。谢谢。
Thanks for your question. Our digital and systematic R&D process is the key to our product development success. We digitalize all raw materials and tastes in order to track beverage trend, build the basic menu, and derive numerous product combinations. Through the integrated process that covers menu management, R&D, testing, and optimization, we're able to stabilize the overall menu structure and consistently innovate to meet changing preferences of our customers. With this mechanism, we have successfully launched a series of popular products over the past two years with an average of 35 new products launched each quarter. For example, Velvet Latte and Coconut Milk Latte have sold over 100 million cups respectively since their launch. Nearly 30 other products have sold over 10 million each, and many of them have received numerous awards and widely praised by our customers.
Our supply chain also plays an important part in the sustainability of our R&D process. We have been investing in the coffee supply chain as well as working on upstreams and downstream integration, which not only ensures the quality and stability of raw materials, but is also more cost effective. In terms of logistics, by taking advantage of our grid-based warehouse network in multiple locations, we have been able to not only continuously improve our efficiency, but also avoid the negative impact on our raw material supply from traffic lockdowns.
This in turn guarantees product delivery and continued product launches. With the support of this innovative R&D system as well as supply chain and logistics system, Luckin can maintain its industry-leading position in terms of product R&D. Thank you, Dr. Guo. Let's move to the next question. Like-for-like sales has been very strong over the last quarter.
Can you give us some guidance on key drivers, price versus items sold, as well as any guidance on how to look at this longer term? Do you think you can keep that momentum in Q3 and beyond?
Maybe I'll take that one, Alicia. Thanks for the question. We're very pleased with the progress that we've made so far, especially since mid-2020, under the revised strategic plan and our current leadership. Now, this plan included a very detailed review of our store portfolio, tightening of our store opening criteria, review of our pricing strategy and really focusing on the core competencies, the strengths of our product development, store operations, and of course, our brand. The results speak for themselves. Since the start of 2021, we reported SSSG for our self-operated stores between 40% and 95%, over six consecutive quarters, despite the impact of COVID. Now, this quarter, we reported SSSG for our self-operated stores just over 40%.
If we break down that growth into its components, it's fair to say that this quarter, the majority of that growth was from an increase in the average items sold to store per day, reasons already discussed on the call today, and to a lesser extent, from increase in price point. Now, we will not provide any forward-looking guidance on this call, but what I can say is that, as I'm sure everyone will appreciate, these types of growth percentages are unusual and also due to the comparative periods for the 2021 results, when we're in the middle of implementing many of our strategic initiatives. Now, we do expect these percentages to normalize over time. Now, in terms of our pricing strategy, our affordability proposition is an important differentiator in growing our market share and expanding our customer base further.
More importantly, we are profitable at these prices, as demonstrated by our store level margins during the quarter. I therefore do not foresee a substantial change in our pricing strategy in the foreseeable future. We will, of course, closely monitor general inflationary pressures, including any increases in prices of raw materials. Now, in terms of items sold to store, we continue to see substantial room for growth. As mentioned by Jinyi Guo earlier, we have a very strong product development team and philosophy and a large customer base in a market that's growing very, very quickly. It's also clear that when we look at the overall penetration rate of coffee consumption, despite recent high growth, it is still a fraction of more developed coffee markets.
Finally, in addition, we will continue to roll out new stores in both existing and new cities, continuously launch new products, and also further increase our brand awareness going forward, which I hope will in turn reflect on our revenue growth and profitability profile. Thank you.
Thanks, Reinout. We have the next question about transacting customers continues to grow and is currently at around 20 million, a material increase year-over-year. What are the main initiatives on attracting new customers, and what can you tell us in terms of maintaining those customers going forward? Can Dr. Guo take this question, please?
Uh,
Second, the continuous rollouts of our store network to bring our services and products closer to customers. As of the end of second quarter, we had 7,195 stores in total, covering more than two hundred and thirty cities. With our current footprint, we're able to provide services in different consumption scenarios where our customers want to be met, such as offices, buildings, shopping malls, schools and transportation centers. Third, continued success in product R&D. For instance, we launched a series of products like Coconut Milk Latte and the Coconut Cloud Latte, which were major drivers for attracting new customers. In terms of maintaining loyal customers, we adopt three main strategies.
First, through continuously investing in the coffee supply chain and upholding product quality to bring our customers with products and services with a stable quality and affordability, we can improve the stickiness of our customers. Second, focus on the changes in customer demand and continuously launch more innovative and popular products. Third, continuously increasing the purchase frequency by using promotion strategies such as private traffic operation, customer differentiation and membership system, and focusing on core metrics such as customer retention and the repurchase rate, realizing a sustainable growth. Thank you, Dr. Guo. Our next question is: What is the company's capital market strategy, and can you tell us if and when there will be a relisting on the main board? What are the key factors driving that decision? I wonder if you could please provide further color on this.
Thanks, Alicia, and thanks for this question. It's certainly a question that we get quite regularly, including from the online submissions, so I'm happy to address it here to the extent I can. First of all, as we have expressed on several occasions, I do think it's important to reiterate, the company is and remains committed to U.S. capital markets. Now, the priority for us is providing sustainable long-term value for our shareholders by executing on our business strategies and delivering outstanding products and services to our customers. We're also very focused on maintaining a strong balance sheet and a measured approach to capital allocation, maintaining strong internal controls over our financial reporting to ensure we operate with the utmost integrity and act responsibly to resolve all of our historical issues.
With the establishment of our new ESG sustainability committee, we also want to ensure that we can give back to our communities and operate in a socially responsible manner. Now, these are all the factors that are within our control and while we've made significant progress and will continue to focus on going forward. Now, specifically in relation to our capital market strategy, to the extent we have further updates to share, we will provide them. The board and management team will continue to monitor all relevant developments and take actions it believes are in the best interest of the company and our stakeholders. Thank you.
Thanks, Reinout Schakel. The last question is: The company have entered many lower-tier cities through partnership stores in Q2. What is the company's overall network expansion plan in terms of geographic and high/low-tier city distribution? Thank you for the question. Our self-operated stores are mainly located in Tier 1 and Tier 2 cities. Partnership stores mainly covers the lower-tier cities. Those two store models are highly complementary to each other. Self-operated stores are located in the more matured markets with higher density, where there are still numerous available locations to be selected. These markets have room to further expansion, where we can reduce costs in a timely fashion by leveraging increasing economy of scale. On the other hand, cities in early development stage of coffee consumption are suitable for a partnership store. Those cities are normally geographically scattered with challenging site selection as well as cost control.
By leveraging our advantage of the local partners as well as the remote intelligent monitoring measures, we can quickly penetrate the lower tier cities while ensuring product quality and effectively reducing our overhead costs. Based on our site selection digital analysis system, we believe that the market is far from saturated with many potential new locations for Luckin stores driven by the promotion of coffee consumption. Going forward, we will continue to maintain a reasonable pace of opening new stores based on the same assessment criteria we have been using, focusing on both store counts and quality. In Tier One and Tier Two cities, we'll continue to increase store density and rapidly penetrate in lower tier cities to further improve store coverage and better meet consumer needs. Thank you, Dr. Guo. 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.