China’s Luckin Coffee Slumps On Fake Data News

65
963

China’s Luckin Coffee Slumps On Fake Data News

Shares in Luckin Coffee have slumped after the company said one of its top executives and other employees had faked sales figures.

The Chinese coffee chain has now suspended its chief operating officer Jian Liu and staff reporting to him.

It comes after the company appointed a special committee to investigate issues in its financial statements for 2019.

Luckin, which competes with Starbucks, had been one of China’s few successful US stock market listings last year.

The Nasdaq-listed company said its investigation had found that fabricated sales from the second quarter of last year to the fourth quarter amounted to about 2.2bn yuan ($310m; £250m). That equates to about 40% of its estimated annual sales.

It also said that it still needed to investigate and verify other costs and expenses that were substantially inflated during the same period.

At the same time Luckin warned investors that they should no longer rely on its previous financial statements that had showed the company’s rapid growth.

The company had 3,680 stores as of the end of September, according to its third quarter 2019 earnings release. That represents an almost six-fold increase since June 2018.

Presentational grey line

Did Luckin’s sky-high ambitions cause its current problems?

Luckin has been open about wanting to take on the likes of Starbucks and other big coffee chains. The trouble is that, once you make such a declaration, for many that can become the standard you are measured by and have an impact on the buying and selling of shares.

For some time, critics have questioned the financial data coming out of Luckin, especially in terms of how much revenue could be raised from the volume of coffee it sells.

That’s because the proportion of coffee sold at its advertised price is thought to be small.

Luckin offers sales discounts so regularly (like pretty much every day) that many customers have claimed on social media that they have never paid full-price for one of their coffees.

In one way that doesn’t matter. If you’re selling your coffee for more than it costs to make it there’s profit to be made.

However, Luckin has set the bar higher than that by saying it would swamp Starbucks in China and maybe it’s this self-applied pressure which has steered it into these rough seas.

Presentational grey line

Luckin’s US stock market value had almost tripled since its debut in New York in May, topping $50 a share earlier this year.

Mr Liu has been Luckin’s chief operating officer since May 2018.

In recent months though investors had begun to become wary that there may be some serious issues at the company after an anonymous report alleging that it had made up some of its numbers.

Sport Set For Hectic Year Approaching 2021

Earlier this year the high-profile short-seller Muddy Waters Research started betting against the company’s shares, citing a report that alleged that Luckin had fabricated financial and operating figures from the third quarter of last year.

At the time, Luckin strongly denied the allegations, describing them as “misleading and false”.

Luckin’s shares ended Thursday’s trading session down by more than 75% at $6.40 after hitting a record low of $4.90 earlier in the day.

China’s Luckin Coffee Slumps On Fake Data News

65 COMMENTS

  1. Oh my goodness! an impressive post dude. Thanks However I am experiencing issue with ur rss. Don?t know why Unable to register for it. Is there any individual obtaining the same rss trouble? Anyone that understands kindly respond. Thnkx

  2. I just like the helpful information you provide on your articles. I’ll bookmark your blog and take a look at again right here frequently. I am moderately sure I will learn a lot of new stuff proper right here! Good luck for the following!

  3. I believe that is among the most important information for me. And i am satisfied reading your article. But wanna observation on some normal things, The website style is ideal, the articles is in reality excellent : D. Excellent job, cheers

  4. I have read a few good stuff here. Certainly worth bookmarking for revisiting. I surprise how much effort you put to create the sort of fantastic informative site.

  5. Great post. I was checking continuously this weblog and I’m impressed! Very useful info specially the final part 🙂 I maintain such information much. I was looking for this particular information for a very long time. Thank you and best of luck.

  6. We wanted to create a store where our customers can come to us and tell us their needs so we can help them find exactly what they are looking for.\n\nWe work tirelessly to find top quality products to bring you at a price you can afford

  7. That is really attention-grabbing, You are a very skilled blogger. I have joined your rss feed and stay up for in search of extra of your excellent post. Additionally, I have shared your website in my social networks!

  8. Just search for your favorite pornstar or porn video and you will find great quality content, PornValor updates daily videos of the hottest pornos such as Brazzers, Bangbros, VIXEN, Tushy, reality Kings, Naughty America, Fake taxi, Girlsdoporn and more, Just search for your favorite pornstar or porn video and you will find great quality content, Its no wonder PornValor has the best xxx videos from the hottest studios. Whether your looking for stepmom or sister pornos.

  9. Magnificent site. A lot of useful info here. I am sending it to several friends ans also sharing in delicious. And certainly, thank you on your effort!

  10. Thanks for any other fantastic post. The place else could anyone get that type of information in such an ideal way of writing? I have a presentation subsequent week, and I am on the look for such info.

  11. I precisely wished to thank you so much once again. I am not sure the things I could possibly have followed without the points discussed by you over such subject matter. It truly was a alarming case in my position, however , considering this specialised way you resolved the issue made me to weep with contentment. I am just thankful for this support and then pray you are aware of a powerful job you are getting into educating people today via your blog post. I’m certain you haven’t come across all of us.

  12. Hi there, just became alert to your blog through Google, and found that it is truly informative. I am going to watch out for brussels. I will appreciate if you continue this in future. Lots of people will be benefited from your writing. Cheers!

  13. hey there and thank you for your info – I’ve certainly picked up something new from right here. I did however expertise several technical points using this web site, as I experienced to reload the site lots of times previous to I could get it to load properly. I had been wondering if your web host is OK? Not that I am complaining, but slow loading instances times will sometimes affect your placement in google and could damage your high quality score if ads and marketing with Adwords. Well I’m adding this RSS to my e-mail and could look out for much more of your respective intriguing content. Make sure you update this again soon..

  14. Hi, Neat post. There’s an issue together with your website in web explorer, would test this… IE still is the marketplace leader and a big component to folks will miss your excellent writing because of this problem.

  15. A fascinating discussion deserves comment. I think that you should create extra on this topic, it might not be a taboo subject yet normally people are not nearly enough to talk on such topics. To the next. Thanks

  16. Greetings! This is my 1st comment here so I just wanted to give a quick shout out and tell you I genuinely enjoy reading your articles. Can you suggest any other blogs/websites/forums that go over the same subjects? Thank you!

  17. You could definitely see your enthusiasm in the work you write. The world hopes for more passionate writers like you who are not afraid to say how they believe. Always follow your heart.

  18. Hello, I think your site might be having browser compatibility issues. When I look at your blog in Ie, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, very good blog!

  19. Get help to stop drinking. Helping women quit drinking alcohol. Coach Mary Wagstaff. Feel better, mind, body and soul. Mindfulness based coaching and alcohol recovery. Yoga for recovery.

  20. Great post. I was checking constantly this blog and I am impressed! Extremely helpful information specifically the last part 🙂 I care for such info much. I was seeking this particular info for a very long time. Thank you and best of luck.

  21. Get help to stop drinking. Helping women quit drinking alcohol. Coach Mary Wagstaff. Feel better, mind, body and soul. Mindfulness based coaching and alcohol recovery. Yoga for recovery.

  22. Thanks for the sensible critique. Me and my neighbor were just preparing to do a little research on this. We got a grab a book from our area library but I think I learned more from this post. I am very glad to see such fantastic information being shared freely out there.

  23. I simply wanted to construct a simple message in order to thank you for the awesome concepts you are showing here. My extensive internet investigation has now been paid with sensible knowledge to share with my company. I ‘d mention that many of us website visitors are very blessed to be in a decent place with very many wonderful professionals with very beneficial things. I feel very fortunate to have seen your entire web page and look forward to really more cool minutes reading here. Thank you again for everything.

  24. Usually I don’t learn post on blogs, however I would like to say that this write-up very pressured me to check out and do so! Your writing style has been surprised me. Thanks, very great article.

  25. I would like to thnkx for the efforts you’ve put in writing this website. I am hoping the same high-grade blog post from you in the upcoming as well. In fact your creative writing abilities has inspired me to get my own site now. Actually the blogging is spreading its wings quickly. Your write up is a good example of it.

  26. My husband and i were so lucky when Jordan managed to deal with his web research from your precious recommendations he made in your weblog. It is now and again perplexing to simply continually be giving out facts which often many others might have been trying to sell. Therefore we do know we need the website owner to thank for that. Those illustrations you have made, the easy blog menu, the friendships you can give support to engender – it is most superb, and it’s making our son in addition to the family consider that the theme is pleasurable, and that is particularly mandatory. Thank you for all!

  27. Hello, you used to write wonderful, but the last few posts have been kinda boring… I miss your tremendous writings. Past several posts are just a little bit out of track! come on!

  28. I’m not sure why but this weblog is loading extremely slow for me. Is anyone else having this issue or is it a problem on my end? I’ll check back later on and see if the problem still exists.

  29. Your style is very unique compared to other folks I’ve read stuff from. Many thanks for posting when you have the opportunity, Guess I will just bookmark this site.

  30. Hi, so much we bookmarked your write-up – Gulvafslibning | Kurt Gulvmand congratulationsAnyway our prayers go with the people in and around the tidal wave we hope your are OK and comfortable too Enjoy your day Flash Factory

  31. Simply desire to say your article is as astonishing. The clarity in your post is simply great and i could assume you are an expert on this subject. Fine with your permission let me to grab your RSS feed to keep up to date with forthcoming post. Thanks a million and please keep up the enjoyable work.

  32. Arx Nimbus’ Thrivaca Risk Analytics Platform provides the first financially-relevant Digital Risk Profile for the enterprise, underwriters and brokers. Using a patented algorithm developed in collaboration with leading universities, the DoD and federal regulators, Thrivaca consolidates industry historical analysis, your latest analyses and assessments, proprietary vulnerability scans, audit data and actuarial mathematics to produce a complete and detailed valuation of enterprise-wide digital risk, and the top sources of current carrying cost.

  33. It’s a pity you don’t have a donate button! I’d certainly donate to this fantastic blog! I suppose for now i’ll settle for book-marking and adding your RSS feed to my Google account. I look forward to brand new updates and will talk about this website with my Facebook group. Talk soon!

  34. Hello There. I found your blog using msn. This is a very well written article. I’ll make sure to bookmark it and return to read more of your useful info. Thanks for the post. I’ll certainly comeback.

LEAVE A REPLY

Please enter your comment!
Please enter your name here