Luckin Coffee Reports Findings Of Internal Investigation

(RTTNews) - Luckin Coffee Inc. announced its Special Committee of the Board has completed its independent internal investigation. The Special Committee has found that the company's net revenue in 2019 was inflated by approximately RMB 2.12 billion. Evidence shows that the company's former Chief Executive Officer, Ms. Jenny Zhiya Qian, former Chief Operating Officer, Jian Liu and certain employees participated in the fabricated transactions and funds were funneled to the company through a number of third parties.

The Board terminated its former Chief Executive Officer and former Chief Operating Officer. The Board resolved to require Charles Zhengyao Lu to resign as a director and the chairman of the Board and a meeting of the Board will be held on July 2, 2020 to consider the proposal to remove Charles Zhengyao Lu, as a director and the chairman of the Board. The company is in the process of terminating relationships with all third parties involved in the fabricated transactions.