On the evening of May 19, Luckin Coffee announced that it was delisted by the NASDAQ Listing Qualification Examination Department. Nasdaq listed two reasons for delisting: false transactions caused public interest problems; In view of the business model related to false transactions, the company failed to publicly disclose significant information in the past.
Lu, chairman of Luckin Coffee, issued a signed statement in the early morning of May 20, saying: "It is unexpected that Nasdaq asked the company to withdraw from the market without waiting for the final investigation results. I am deeply disappointed and sorry about this. " (For the full text of Lu's personal statement, please see the end of the article.)
Lu's love confession is sincere and concise. Show Lo, who happened to be frustrated in love, also wrote a 10,000-word confession on the day of 520. In contrast, literary talent is the real judge. Lu's confession of love for investors is much better than that.
The only problem is that Show Lo's article is written in simplified Chinese, so Grace Chow, who is heartbroken, can understand it. Yao Zheng's articles are also written in simplified Chinese. I wonder if heartbroken American investors can understand.
A year ago, Luckin Coffee, which was successfully listed in the United States, set a record for the fastest listing in the world. And if there is no accident, Luckin Coffee will also set the fastest delisting record for Nasdaq. Come and go in a hurry
0 1 shenzhou system can continue Luckin Coffee?
Although Lu made a painstaking statement that every penny he got from the capital market was spent on physical industry investment, the business logic of Rising Coffee is established and will continue to maintain the business of offline stores. In his original words, it is: "I am by no means deceiving investors with' concept games'. I really want to make the enterprise bigger and better and create value for society! "
But it is true that after Luckin Coffee's capital market bubble was punctured, the physical industrial chain was also unsustainable.
On May 1 1, documents submitted by Luckin Coffee showed that Capital Research Global Investors (CRGI), the former third largest shareholder of Ruixing, had cleared all the shares of Ruixing. The shareholding ratio of Joy Capital, the former largest shareholder, dropped significantly from 16. 13% to 5%, and Dushong Capital, the former second largest shareholder, also cleared its position on April 3.
In Betrayal, Rui Xing still has a lot of money to pay back.
According to a law firm, Luckin Coffee still faces a class action lawsuit. Based on the time period from the beginning of 2020 to the present, it is roughly estimated that the total compensation that Ruixing will suffer from class action lawsuit is about11200 million US dollars, equivalent to 75.4 billion yuan.
In addition, due to the exposure of financial fraud, a mandatory prepayment notice was issued on behalf of six institutions. This "borrowing" sentiment is getting more and more serious, which will also make the capital chain more tense.
Lu Yaozheng said in a public statement: "If the company withdraws from the market, the difficulties and pressures it will face will continue to increase, but in any case, I will try my best to maintain the operation of the store and try my best to recover the losses of shareholders and let the Ruixing brand go on."
However, with the current burning rate of Ruixing, it is almost impossible to maintain it without the support of the capital market. Although we are frantically raising funds.
Ruixing now relies on the automobile-related sector. Lu's subsidiary is seeking to sell its limited partner's rights and interests worth 65.438 billion yuan (654.38+0.445438 billion US dollars) in Dacheng Capital Fund.
In April this year, UCAR plans to transfer its 39.25% stake in Hebei Happiness Consumer Finance, with an estimated transfer price of 250 million yuan. After the completion of this transaction, UCAR will no longer hold the equity of Hebei Happiness Consumer Finance.
The thunderstorm in Luckin Coffee will also accelerate the speed of hollowing out and scrapping Baowo cars. The first batch of debt-paying assets of Beijing Baowo has been delivered, and the physical assets include machinery, equipment and vehicles in fixed assets, with a book value of 2.9 billion yuan.
As for whether this is a drop in the bucket effort or a signal to pack up and leave, it will take time to review.
Nasdaq tightens listing rules
Nasdaq's proposal to amend the listing rules has been submitted to the US Securities and Exchange Commission (SEC) and is currently awaiting approval from the SEC. This is consistent with many media concerns that Luckin Coffee may affect China's reputation.
The revision of Nasdaq rules includes three aspects:
First of all, based on the company's audit quality and the qualification of audit institutions, Nasdaq put forward new listing requirements; Secondly, Nasdaq puts forward new listing requirements for companies in specific regions; Third, Nasdaq put forward new specific requirements for the management of specific companies.
Generally speaking, Nasdaq will strengthen the audit of companies that they think are problematic.
Many people think that this is aimed at China companies, but in fact, as long as China companies are in good business and financial conditions and pay attention to corporate governance, they should not be affected by the new Nasdaq rules. As the saying goes, a straight foot is not afraid of a crooked shadow. It can't be said that many companies that fish in troubled waters have been affected by listing on Nasdaq, but that China has been targeted.
In short, the choice of the future is very important for Canadian citizens, because "judicial assistance between Canada and the United States is almost equivalent to wearing a pair of pants." It depends on whether you want to be a Canadian version of Jia Yueting.
It will be interesting if China and the United States finally exchange Jia Yueting and Lu.
The following is the full text of the personal statement:
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.