On the evening of June 26th, 2020, Luckin Coffee official website announced that it had formally decided to withdraw its request for holding a hearing on the 24th, and no longer sought to withdraw its decision to delist from Nasdaq. Nasdaq General Counsel's Office has officially informed Ruixing that the company's shares will be suspended when the market opens on June 29th. After the expiration of the appeal, Nasdaq will submit a formal delisting notice. As soon as the news came out, Ruixing plunged more than 30% before the market. At present, its share price is only 2. 1 USD/share, and its market value is only 532 million USD. As of press time on 26th, Ruixing fell by more than 50%, which triggered the fuse three times, and the stock price approached a record low. Really? Star enterprise? Ruixing has more than 5,000 stores, which has also set a record? /kloc-listed in October/August? The fastest speed, why to this point today? Many netizens who eat melons speculate whether it is affected by the epidemic. The answer is no! One of the reasons why Ruixing has come to this day is that its cost has never come down. The cost of Luckin Coffee consists of six parts: raw material cost, store operation cost, depreciation cost, marketing cost, management cost and opening cost. This is exactly the same as many fitness chain brands. In the early days, many fitness brands put their main energy and cost on marketing, emphasizing sales and ignoring operation. A large number of pushers and leaflets bombed, which brought high costs, but the effect was very limited.

Another big problem of Ruixing, I believe everyone can feel it. Is that continuous? Burning money subsidies? Behavior, and the strategy of rapid expansion regardless of profit and loss. Although Ruixing's expansion is fast, it is obvious that the store profits can't keep up with the overall development, or even appear? Sell a single and lose a single? Situation.

Let's look back again. On June 5438+1October 3 1 this year, a well-known short-selling institution, Muddy Water, issued an anonymous report. In this 89-page report, the investigators hired 92 full-time and 14 18 part-time investigators, stationed in more than 900 stores across the country, and collected 25,843 shopping receipts, a large number of internal WeChat chat records, and related people. Finally, the analysis results given in this report are as follows: in the third and fourth quarters of 20 19, the daily sales of stores were exaggerated by at least 69% and 88%; At the same time, by exaggerating advertising expenditure and falsely reporting the proportion of other commodities except coffee, the fact that a single store lost money was concealed. Finally, on the evening of April 2, investors waiting for Luckin Coffee's annual report waited for an announcement that they exposed financial fraud. After the fraud incident, the chairman of the company apologized to the public many times and took various measures to prevent the capital chain from breaking and painstakingly maintained the operation of Ruixing. ?