Luckin Coffee is a new coffee chain brand, which developed well a few years ago, but something happened suddenly this year. First, it was revealed that Ruixing Company's data was fraudulent. Later, he was accused of making false transactions in Luckin Coffee, and was exposed by insiders that the company falsely invoiced and inflated income, costs and expenses. After a series of things came out, the regulatory authorities began to investigate Luckin Coffee.
First, there may be false transactions in the company, and there are problems in the investigation of audit institutions. When Luckin Coffee was audited, the auditors found that there were great problems in the financial statements of the company in the second to fourth quarters. During this period, Luckin Coffee inflated its income, cost and expenses, and false transactions increased the transaction volume by about 2.2 billion, resulting in vicious competition in the industry. After the incident, Luckin Coffee's stock plummeted for a time, causing irreparable losses.
The board of directors fired two executives, and the founder of Luckin Coffee took over the company again. After Luckin Coffee's accident, Luckin Coffee Company began to investigate, and later found that the CEO and CFO of the company had poor management problems, so the board of directors decided to adjust the positions of senior staff of the company and asked two senior executives to resign from the board of directors. After the CEO resigned, the founder of the company temporarily served as acting CEO. At the same time, the company also received a notice from the exchange asking Luckin Coffee to withdraw from the market, and it was not long before Luckin Coffee announced that it would withdraw from the market in the United States.
3. Although Luckin Coffee announced its delisting, Luckin Coffee will not close its doors and will not affect the business of its stores. Although Luckin Coffee has been delisted, it does not affect the store operation of Luckin Coffee, and many stores in China are still operating normally. The China Banking Regulatory Commission also said that a good market environment needs common maintenance, and at the same time, he supported relevant departments to investigate and deal with economic crimes and resolutely crack down on financial fraud. Relevant personnel involved in judicial issues will be handed over to judicial organs for further handling.