Luckin Coffee released an apology on its official Weibo account today, saying that the executives and employees involved have been suspended and the company has commissioned a thorough investigation by the special committee and an independent third party appointed by Luckin Coffee.
Luckin Coffee said it 'sincerely apologizes to the public and will take all necessary remedial measures to avoid any problems arising from the financial fraud.' The company will also reflect on repentance and strengthen internal control compliance.
Meanwhile, Luckin Coffee will continue to operate as normal, stabilizing its staff and stores.
Luckin Coffee's chairman, Lu Zhengyao, responded that tens of thousands of employees in stores across the country were still operating normally and needed to be cheered up at this special time. They were innocent.
Click to review: Scandal Hits Luckin Coffee, Shares Down 75%, but Orders Still
Chinese securities regulator said Friday that it pays close attention to and strongly condemns the accounting fraud by Luckin Coffee Inc.
A listed company, no matter where it is listed, shall strictly abide by the laws and norms of the relevant market and perform its obligation of information disclosure truthfully, accurately and completely, the China Securities Regulatory Commission (CSRC) said in an online statement.
The CSRC will, in accordance with the laws and relevant arrangements for international securities regulatory cooperation, resolutely crack down on securities fraud and effectively protect the rights and interests of investors, said the statement.
Editor: Crystal H