CHINA's Luckin Coffee became the nation's dominant coffee chain last year, outpacing America's Starbucks in annual sales, reports Caixin.

The Xiamen-based company posted quarterly net revenue of CNY7.06 billion (US$980 million), representing an increase of 91 per cent from a year ago in a growing and increasingly competitive China market. Net income rose more than four times year on year to CNY296.4 million in the same period.

The latest revenue figures in the three months through December brings Luckin's total sales in 2023 to CNY24.86 billion, surpassing Starbucks' comparable annual sales of $3.16 billion in China, making it the biggest coffee chain in the country.

Luckin's earnings include revenue from its still small overseas operations, including 30 stores that opened in Singapore last year.

The rapid rise of Luckin comes as price-sensitive Chinese are opting for value products as the turmoil in the property market and concerns about job security dent consumer confidence. Luckin sells coffee for as little as CNY9.9 a cup while most Starbucks coffee is priced at more than CNY30.