KUALA LUMPUR (Nov 29): Hextar Industries Bhd (KL:HEXIND) said on Friday it has signed an agreement to bring in Chinese coffee house chain Luckin Coffee to Malaysian shores.

The company will have the exclusive rights to develop, open, and operate coffee shops under the Luckin Coffee brand nationwide in Malaysia, Hextar said in an exchange filing. The rights would be for 10 years, with possible renewal for two successive five-year terms.

The company plans to expand Luckin Coffee aggressively across the country, Datuk Eddie Ong Choo Meng, a major shareholder of Hextar Industries, said in a statement. "We have equally ambitious plans for Luckin Coffee in Malaysia, inspired by the brand's tremendous growth,” he said.

The master development and operating agreement signed by Hextar unit Global Aroma Sdn Bhd with Luckin Coffee Holding Singapore Pte Ltd follows a report by The Edge in June that Luckin Coffee plans to partner a Bursa Malaysia-listed firm for its debut in the country.

Founded in 2017 and headquartered in Xiamen, Luckin Coffee operated 21,343 stores globally as of the third quarter of 2024. In the third quarter alone, the company opened 1,382 new stores.

Luckin Coffee opened its first overseas locations in Singapore on March 31, 2023. By the end of that year, 30 outlets had been opened in the country.

For its foray into Malaysia, the plan is to open the first store by the first quarter of 2025.

The entry of Luckin Coffee comes at a time of heightened competition from a rising number of coffee brands and outlets competing to fill in the gap left by Starbucks, as the American franchise faces protracted consumer boycotts due to Middle East tensions.

"We believe that bringing this success story to Malaysia will not only widen our portfolio, but also tap into the thriving food and beverage market here, making it a highly worthwhile investment for both Luckin Coffee and Malaysian consumers," said Ong.

Hextar Industries is mainly involved in manufacturing, formulation, distribution and trading of fertilisers, as well as the supply and distribution of quarry products and machinery.

The board will have to seek shareholders' approval for the business diversification — if it anticipates that the revenue derived from the new venture may contribute 25% or more of its net profit, or potentially divert 25% or more of its net assets.

At Friday's noon market break, shares of Hextar Industries were up one sen or 2.08% at 49 sen, with a market capitalisation of RM1.35 billion ahead of the announcement

This post has been edited by premier239: Nov 29 2024, 05:05 PM

Cant wait to try

Hope the prices can be like mixue

unlikely since coffee is inherently expensive. cost of machines plus beans. Tea can buat pukal and yet charges almost as coffee based drinks, they're the ones that overcharging not the coffee shops.

lol penny stock king

Strong competition here like GIGI, ZUS & HWC, we'll see.

hextar? with no background in fnb? cable kuat o

**Field**	**Details**
**Company Name**	GLOBAL AROMA SDN. BHD.
**Registration Number**	1574222M / 202401028374
**Nature of Business**	- Retail sale of food, beverages, and tobacco products via stalls or markets
	- Retail sale of tea, coffee, soft drinks, mineral water, and other beverages
	- Export and import of a variety of goods without any particular specialization (n.e.c.)
**Date of Registration**	2024-07-15
**State**	Selangor

Very fast...

This post has been edited by plouffle0789: Nov 29 2024, 05:19 PM

In china..is cheap tho thts why thy are so popular .

I hope LC can undercut thm

Forcing others to lower their prices

undercut but coffee taste like shit also no use.

Thts why need to try first

luckin and starbucks is the biggest competitor ler.
makes no sense for Starbucks franchise holder to get luckin as well.

in china, where there's a Starbucks, luckin will open one next to it.
it's that aggressive.

vtan portfolio mostly western company also.

they just need to have stock available.
mixue RM2 ice cream always no stock. but bigger & pricier sundae cup size available. wtf.

starbucks lagi gg after luckin masuk

isn't HWC more atas?

won't last long
the one in thailand already lingkup and many have said it doesn't even taste good

if latte Rm5 , shit also ppl buy, most just need it for daily consumption

if only they can be as good as coffee bean

Competition is good. But i hope we won't be getting toxic fake shit with luckin

dis guy sure got cable with the mainland side lah

if not who so dumb appoint company with zero expertise to represent u