Luckin Coffee, the Chinese coffee house that got delisted from Nasdaq in early July over a revenue fabrication scandal, received its first financial penalty from Chinese authorities since an investigation was launched in April to probe its falsified balance sheet, with more tickets to come, local media reported.
On Tuesday morning, the State Administration for Market Regulation of China announced administrative penalties against Luckin Coffee (China) Co., Ltd., along with 44 third-party companies that played a role in the case, with fines totaling to RMB 61 million (USD 8.83 million).
In February, Luckin was accused of accounting tricks by short-seller Muddy Waters. The company first denied but later confirmed after a three-month internal investigation in July that its management has inflated net revenues by USD 300 million during 2019.
The once high-flying “Starbucks challenger” officially stopped trading on Nasdaq on June 29 after a one-year rollercoaster, following the stock exchange’s delisting notification, KrASIA reported.
More on Luckin please read: Exclusive | Luckin Coffee to lay off half of headquarters staff following fraud scandal
This article is part of KrASIA’s “Key Stat” series, where KrASIA picks and presents the most significant figures of the day’s technology and business world.
