Malaysia-listed Hextar Industries secured Luckin Coffee’s master franchise in Malaysia

Listed in Malaysia Hextar Industries Berhad has partnered strategically with Luckin Coffee Holding Singapore Pte Ltd to introduce the Luckin Coffee brand to Malaysia through its subsidiary, Global Aroma Sdn Bhd (GASB).

Through this partnership, GASB will have the sole authority to create, open, and run coffee shops across the country under the well-known “Luckin Coffee” brand, bringing Malaysians a contemporary coffee experience, Hextar Industries said in a statement on Friday.

Founded in 2017, Luckin Coffee currently has 21,343 locations worldwide as of the third quarter of 2024 (Q3FY2024). Compared to Q2FY2024, the company added 1,382 new net stores in Q3FY2024 alone, representing a 6.9 percent unit growth. Luckin Coffee reported RMB1,302.6 million ($180.06 million) in net income for the third quarter of FY2024.

Currently employing a large workforce, Luckin Coffee has served more than 300 million customers in China and Singapore. In Q3FY2024, the company’s average monthly transacting customers amounted to 79.8 million, a strong 36.5 percent increase from the previous year.

When Luckin Coffee opened its 20,000th location in Beijing in July 2024, it marked an important milestone.

According to Hextar, the collaboration with Luckin Coffee is a crucial move for the business as it takes advantage of the quick growth of one of the fastest-growing coffee brands globally. Hextar Industries is also making significant progress as it takes advantage of the enormous potential in the rapidly expanding F&B industry to create new revenue streams and provide customers with a modern, technologically advanced coffee experience.

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. Hextar Industries’s expansion of 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 Hextar Industries, 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.”