Luckin Coffee, China’s Starbucks wannabe, plunge on Nasdaq after executive was suspended for making

[Rusty]

After seeing like a million threads about Chinese companies here I really don't know why no one has posted this earlier.
This is really big news involving China's biggest coffee chain and is also relevant to the international market as it WAS listed on the NASDAQ.

How come none of our Chinese friends who are constantly posting non stop have not posted this?
Could it be that their only job is post pro China propaganda?
NO, I must be crazy, Chinese friends would never stoop to only pro China propaganda on PDF.

Side note, I have actually had their coffee. It wasn't bad. No Starbucks but I would drink it any day.

https://edition.cnn.com/2020/05/21/business/luckin-founder-nasdaq-apology-intl-hnk/index.html


Hong Kong (CNN Business)Luckin Coffee's co-founder says he is losing sleep over Wall Street's decision to delist his company, and that he'll do what he can to ensure its survival.

Lu Zhengyao apologized this week for the scandal that has been plaguing the company once hailed as China's homegrown rival to Starbucks (SBUX).
Luckin (LK) admitted earlier this year that a good portion of its 2019 revenues were fabricated. Its shares collapsed following the revelations, falling more than 75% before being halted on April 6.
"I've been in deep pain and remorse," Lu said in a statement on Wednesday, which was widely reported by multiple Chinese media outlets, including The Paper and China Business Network, both owned by state-controlled corporations.
"I can't sleep at night. If the company is delisted, it will surely face more difficulties and increased pressure," he added.
privacy policy.

Luckin Coffee's co-founder insisted he "didn't play tricks" in order to cheat investors.
Luckin declined to comment.
Nasdaq informed the company of its plans to remove the company's shares from the exchange in a May 15 notice, according to Luckin.
The Xiamen-based company said on Monday that it has requested a hearing on the delisting notice, and the stock will remain on Nasdaq until the hearing, which should take place within the next 30 to 45 days.


Luckin Coffee fires CEO and COO after accounting scandal
Lu, who is also chairman of the company's board, insisted he "didn't play tricks" in order to cheat investors. He asked for people from all walks of life to go easy on Luckin Coffee and support the company, noting that "tens of thousands of employees are still working hard."
Whatever happens, Lu said he will "spare no effort" in minimizing shareholders' losses.
Shares in the company resumed trading on Wednesday, and fell nearly 36%. Its stock is currently worth $2.82 — less than the price of a Luckin latte in China.

 

[masterchief_mirza]

Tim Horton is the best bar none. Just can't stand the queues.

 

[Rusty]

Tim Horton is the best bar none. Just can't stand the queues.

Not so much in Canada any more.

There was a time where it was top, but now it's owned by a Brazilian company and quality has declined a lot.

 

[masterchief_mirza]

Not so much in Canada any more.

There was a time where it was top, but now it's owned by a Brazilian company and quality has declined a lot.

That's remarkable. Globalisation screwed up again.

 

[Hamartia Antidote]

After seeing like a million threads about Chinese companies here I really don't know why no one has posted this earlier.

https://defence.pk/pdf/threads/star...es-by-end-of-year.570726/page-4#post-12203612

 

[cloud4000]

Well US is planning to kick out Chinese -- and other foreign companies -- if they fail to allow US regulators to review their financial statements. Currently, the standards for domestic and foreign firms are miles apart.

 

[Rusty]

https://defence.pk/pdf/threads/star...es-by-end-of-year.570726/page-4#post-12203612

Thank's for cross posting.

Kind of weird that none of our Chinese friends have an opinion on the fraud when the other thread talking about how great this company is, went to 5 pages.

 

[Hamartia Antidote]

Thank's for cross posting.

Kind of weird that none of our Chinese friends have an opinion on the fraud when the other thread talking about how great this company is, went to 5 pages.

Well I agree with them that Luckin had a great "unstaffed strategy".

1) Falsify accounting
2) cause your stock/bonds to tank
3) Have your CEO kicked out
4) have your company delisted
5) layoff employees

= magnificent "unstaffed strategy"

 

[letsrock]

Scandals do not take away from the fact that Luckin has a great product and excellent operations and scaled up rapidly. It was a wall street darling due to that. The scandal is accounting one and is shameful. Clearly some of the top management have been too immature to understand the ramfications of such plain dishonesty.

 

[Viet]

After seeing like a million threads about Chinese companies here I really don't know why no one has posted this earlier.
This is really big news involving China's biggest coffee chain and is also relevant to the international market as it WAS listed on the NASDAQ.

How come none of our Chinese friends who are constantly posting non stop have not posted this?
Could it be that their only job is post pro China propaganda?
NO, I must be crazy, Chinese friends would never stoop to only pro China propaganda on PDF.

Side note, I have actually had their coffee. It wasn't bad. No Starbucks but I would drink it any day.

https://edition.cnn.com/2020/05/21/business/luckin-founder-nasdaq-apology-intl-hnk/index.html


Hong Kong (CNN Business)Luckin Coffee's co-founder says he is losing sleep over Wall Street's decision to delist his company, and that he'll do what he can to ensure its survival.

Lu Zhengyao apologized this week for the scandal that has been plaguing the company once hailed as China's homegrown rival to Starbucks (SBUX).
Luckin (LK) admitted earlier this year that a good portion of its 2019 revenues were fabricated. Its shares collapsed following the revelations, falling more than 75% before being halted on April 6.
"I've been in deep pain and remorse," Lu said in a statement on Wednesday, which was widely reported by multiple Chinese media outlets, including The Paper and China Business Network, both owned by state-controlled corporations.
"I can't sleep at night. If the company is delisted, it will surely face more difficulties and increased pressure," he added.
privacy policy.

Luckin Coffee's co-founder insisted he "didn't play tricks" in order to cheat investors.
Luckin declined to comment.
Nasdaq informed the company of its plans to remove the company's shares from the exchange in a May 15 notice, according to Luckin.
The Xiamen-based company said on Monday that it has requested a hearing on the delisting notice, and the stock will remain on Nasdaq until the hearing, which should take place within the next 30 to 45 days.


Luckin Coffee fires CEO and COO after accounting scandal
Lu, who is also chairman of the company's board, insisted he "didn't play tricks" in order to cheat investors. He asked for people from all walks of life to go easy on Luckin Coffee and support the company, noting that "tens of thousands of employees are still working hard."
Whatever happens, Lu said he will "spare no effort" in minimizing shareholders' losses.
Shares in the company resumed trading on Wednesday, and fell nearly 36%. Its stock is currently worth $2.82 — less than the price of a Luckin latte in China.

That can never work at the beginning.
Chinese trink tea. They hardly trink coffee.

 

[Rusty]

That can never work at the beginning.
Chinese trink tea. They hardly trink coffee.

This used to be true but Starbucks has really changed Chinese culture.
Drinking coffee is seen as western and sophisticated.
And it is big business now.
I think CNBC did a video on this, but too lazy to look for it now.

 

[Viet]

This used to be true but Starbucks has really changed Chinese culture.
Drinking coffee is seen as western and sophisticated.
And it is big business now.
I think CNBC did a video on this, but too lazy to look for it now.

Ok I searched the news.
It says the average mainland Chinese trink 3 cups of coffee. Per year.
That is less than I trink when being in office. Per day.

People should never buy if the story is unsound. Alibaba share runs super good, Tencent not good.

 

[Rusty]

Ok I searched the news.
It says the average mainland Chinese trink 3 cups of coffee. Per year.
That is less than I trink when being in office. Per day.

People should never buy if the story is unsound. Alibaba share runs super good, Tencent not good.

for sure, but you have to remember that China has more then a billion people and most of them live in the villages.

But if you only take the large cities into account it's a different story.

Also, I drink 3 cups a day.... >.<

 

[Viet]

for sure, but you have to remember that China has more then a billion people and most of them live in the villages.

But if you only take the large cities into account it's a different story.

Also, I drink 3 cups a day.... >.<

It’s a cultural habit though. China is famous for tea culture similar to Japan. But right, as we see young chinese adopt western culture with coffee. How’s Pakistan?

 

[Genghis khan1]

Scandals do not take away from the fact that Luckin has a great product and excellent operations and scaled up rapidly. It was a wall street darling due to that. The scandal is accounting one and is shameful. Clearly some of the top management have been too immature to understand the ramfications of such plain dishonesty.

I am wondering the same, despite the mess up, neither the coffee nor the customers disappears . This may be the best time to buy their stock, but risk is way too high.