Chinese coffee chain startup Luckin Coffee reported on Wednesday a net loss of 681.3 million yuan (about 97 million U.S. dollars) in the second quarter, compared with 333 million yuan in the same period last year.

Shares of the Nasdaq-listed company slumped by more than 16 percent in New York on Wednesday after it reported the first financial report since its IPO in May.

The total net revenue from products stood at 870 million yuan in Q2, representing an almost seven-fold increase year on year, primarily driven by more transacting customers, higher effective selling prices and more products sold.

Luckin's average monthly transacting customers increased by 410.6 percent year on year to 6.2 million in Q2.

"We have substantially reduced our store operating loss as a percentage of net revenue as a result of benefits of scale and increased bargaining power, operating efficiency from technology and higher store throughput," said Luckin CEO Qian Zhiya, adding the company is on track to reach its store level break-even point during the third quarter of 2019.

For the third quarter, Luckin expects net revenue from products to be between 1.35 to 1.45 billion yuan.

Luckin had 2,963 stores in China at the end of Q2. Previously, the company announced its plan to open more outlets, with the number of stores to top 4,500 by the end of 2019. About 10,000 outlets are expected to be in operation by the end of 2021.

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