Luckin Coffee Seek Nasdaq Return Five Years After Accounting Scandal
Luckin Coffee is active pursuing a return to the main board of the Nasdaq Stock Market, CEO Guo Jinyi confirmed on Nov. 2, signaling a potential conclusion to one of the most volatile corporate restructuring efforts in the Chinese consumer sector.
Speaking at a government event in Xiamen, Guo stated the company is "actively pushing" for the relisting. The move comes more than five years after the coffee chain was expelled from the Nasdaq following the disclosure of fabricated sales totaling RMB 2.2 billion ( $307 million). Since its delisting in mid-2020, Luckin shares have traded on the Over-the-Counter (OTC) "Pink Sheets" market.
Despite its regulatory history, Luckin has cemented its status as China’s largest coffee chain. The company now operates over 26,000 stores, with a market capitalization of approximately 11.7billion. Its share price has recovered to 36.40, a more than 26-fold increase from its historic low.
Restructuring and Compliance Overhaul
The path to relisting follows a multi-year overhaul of the company’s governance and balance sheet. Luckin settled with the U.S. Securities and Exchange Commission for $180 million in 2022, completed bankruptcy restructuring, and fully repaid creditors by October 2023. In 2024, it became one of the first Chinese issuers to pass a field audit by the US Public Company Accounting Oversight Board (PCAOB) under new protocols.
Management figures associated with the fraud, including founders Lu Zhengyao and Qian Zhiya, have been ousted. The current board is controlled by Centurium Capital, which holds nearly 38% of voting rights, with independent directors comprising more than half of the seats. The company has also appointed BDO as its auditor.
According to market projections, Luckin has largely addressed the prerequisites for a return to the main exchange, with the filing of Form 10 registration documents remaining as the primary hurdle. Under an optimistic timeline, a relisting could occur by the first half of 2026.
Valuation and Liquidity
A return to the Nasdaq is expected to address the liquidity constraints of the OTC market, which restricts participation from many institutional funds and ETFs. Luckin currently trades at a price-to-earnings (PE) ratio of approximately 10 times. By comparison, peers Starbucks Corp. and The Coca-Cola Co. trade at roughly 20 and 23 times, respectively.
Institutions estimate that a main board listing could drive a valuation rerate to a multiple of 18–22 times, potentially lifting the share price to a range of $55 to $70.
Slowing Domestic Growth and Overseas Expansion
The push for a U.S. listing comes as Luckin faces headwinds in its home market. Domestic same-store sales growth slowed to 6.8% in the third quarter of 2025, a record low, while price competition has compressed gross margins from 18% in 2023 to 15.3%.
To sustain growth, the company is pivoting to international markets, a strategy that carries significant costs. In Singapore, the company reported a net loss exceeding 76% over a nine-month period ending mid-2024, with operating expenses far outstripping revenue.
In June 2025, Luckin opened two locations in Manhattan, New York, entering Starbucks' home turf. While these stores have reportedly gained traction among younger demographics with daily sales between $1,000 and $3,000, operating costs in New York are estimated to be significantly higher than in China. The company plans to leverage a 30,000-ton roasting facility in Kunshan, Jiangsu province, to supply the North American market and mitigate supply chain costs. Analysts view reaching break-even in the U.S. by 2028 as a critical pivot point for the company's global valuation.
Regulatory Risks Remain
Despite the operational turnaround, political risks persist. While the PCAOB inspections are currently proceeding, legislative proposals in the U.S. Congress regarding the future structure of the audit watchdog could introduce new uncertainty for Chinese issuers in 2026. However, market observers note that the immediate probability of the relisting being derailed remains low as the relevant proposals are currently stalled in the Senate.