Before the US stock market on April 2, Luckin Coffee issued an announcement that the special committee appointed by the board of directors showed that the company's chief operating officer Liu Jian and some of its subordinates engaged in certain misconduct since Q2 2019, and the

Picture source @Visual China

text｜Waidaodao

1.8% off drinking Luckin Coffee , and buy Luckin stocks at 18% off. Today, Luckin Coffee is on the verge of collapse.

2.2 billion yuan mean? As of the first nine months of September 30, 2019, Luckin's total revenue was only 2.9 billion.

So, Luckin Coffee flash crash. The stock price once plummeted by more than 80% before the market, and the stock price plummeted by 78.55% after the market, and the circuit breaker was hit five times during the session and trading was suspended. Influenced by Luckin Coffee, another Hong Kong-listed company in Lu Zhengyao , Shenzhou Car Rental , also plunged sharply today, with an opening price of HK$4.15, and the stock price reached HK$1.2, a drop of more than 70%. As of now, , China Auto Rental, has been suspended.

Some netizens said, "The light of domestic products has cut American foreign leeks into pieces." Unfortunately, Luckin not only cut foreign leeks, but also suppliers of large and small that are tied to its global supply chain. And the Chinese stocks listed in the list of , which caused disasters to fall from the sky and lost all face.

At such a darkest moment, Lu Zhengyao, Luckin Coffee’s official Weibo and other executives all issued a shout of “Today you need to be full of vitality” on your Moments or Weibo. This may lead to "full vitality" as the first buzzword of the year.

is just the meaning of this, which is intriguing.

The confused investment institution

In the second half of 2018, an investor from an investment institution expressed his feelings to the media, "I want to invest in Luckin Coffee, but I can't get into that game at all." But now I guess he will be very glad that he failed to get into the game. .

For a long time, Luckin has always been centered on Lu Zhengyao. The prospectus shows that the top five shareholders of Luckin Coffee are: Lu Zhengyao Family Trust holds 30.53% of the shares; Qianzhiya Family Trust holds 19.68% of the shares, Mayer Investments Funds holds 12.4% of the shares; Dazhen Capital holds 11.9% of the shares; Happy Capital Holds 6.75% of the shares.

Among them, Lu Zhengyao's sister is the controller of Mayer Investments Funds, and the two own a total of 42.93% of the company's equity. As for the other shareholders, the controllers of Dazhen Capital and Yuyue Capital are Li Hui and Liu Erhai respectively. It is worth mentioning that a Snowball user revealed that Liu Erhai, the Luckin Salary Committee, had resigned a few days ago, and as early as January 8, Dazhen Capital had reduced its holdings by 38.4 million shares, and it reduced its holdings three days ago. 44.16 million shares. Where is Liu Jian, who was pushed to the forefront of

? In fact, I do not hold any shares, only own 47,408 shares. In other words, as a COO, he bypassed the company's CEO with his own strength, avoided the company's CFO, concealed a number of senior executives and most of the employees in the company, and successfully fabricated such a shocking lie.

can be called the best disguiser for "hiding merits and fame".

But what’s pitiful is the many investors attracted by Luckin’s fake performance. Wind data shows that at the end of the third quarter of 2019, Luckin Coffee had 94 institutional investors. By the end of 2019, 158 institutional investors held Luckin Coffee's stock, of which 91 were newly entered in the fourth quarter. , the total number of shares held reached 460 million, accounting for 23.93% of the total share capital.

was also when the third quarter report was released. Luckin announced that the company's net product revenue in the fourth quarter was expected to be between 2.1 and 2.2 billion yuan. Investors didn't know that this was Luckin's fictional data, so they naturally entered happily.

Luckin’s capital story also touched the wealthy banks. Announcement on January 7, 2020 showed that Luckin Coffee received a revolving loan of up to 60 million yuan from Pudong Development Bank as a working capital; it had a loan of up to 300 million yuan in Tibet Trust; and Everbright Financial Leasing Co., Ltd. A coffee machine rental agreement with a total amount of 350 million yuan was signed. As of September 30, 2019, the repayment obligation has not been fulfilled.

is facing huge class action lawsuits from investors and heavy debts from banks. Luckin, who has revealed that it is likely to be bankrupt and difficult to repay.

suppliers have become unfortunate by chance

If Luckin has been a crazy capital game from the beginning, then the investors involved are definitely not innocent. They are just paying for Luckin’s fraud and fraud. There are also a large number of industrial chains that do business in the industry. Upstream and downstream merchants.

In May last year, Qian Zhiya held a massive global partner conference in Xiamen. She said that while Luckin is developing rapidly, it also attaches great importance to product quality and user experience, and insists on choosing only the top 10% of the industry Leading suppliers cooperate. Among them, famous domestic and foreign companies such as Louis Dreyfus, Swiss Schaerer, Swiss Franke, French MONIN, DHL and SF Group have all established blue partner alliances with Luckin.

Luckin has always been proud of its supply chain, and even brought this rigor to other product lines.

For example, Qingshi uses well-known domestic and foreign suppliers such as Baikafer, Baimai, and COFCO Group . 100% NFC freshly squeezed juice chooses NFC juice top brand " Zero Degree Fruit Fang " as partners, lunch salad The suppliers are also well-known factories such as Baikalver, Yunong, and Sanquan.

But in this industrial chain, the larger the scale, the higher the bargaining power, and suppliers and Luckin cooperation have checkout cycles, which is insecure for the industry. Before Luckin revealed, they were most worried about the capital chain. A milk supplier said, "We are worried all day long that Luckin will break the capital chain and lose all our money. But with a sense of luck, we will cooperate with Luckin with the help of this east wind to increase sales."

There are many suppliers who have this mentality. For example, Jihong Co., Ltd., a local supplier of Luckin Coffee paper bags and cartons, had revenue of 671 million yuan in the first quarter of 2019, a year-on-year increase of 58.96%; achieved a net profit of 72.8143 million yuan, a year-on-year increase of 284.89%, and the profitability of new businesses is higher than that of traditional businesses. .

's momentum for growth today may become a burden of debt.

Recalling that after LeTV and Ofo burst, they all had problems with defaulting on supplier payments, bank loans, landlord rent and employee wages, and some of the debts have not even been paid off. This time, Luckin revealed that it had made fraud, and some companies that had not settled the payment for the goods were probably in a mess and were preparing to go to Luckin to ask for an explanation. In fact, in addition to suppliers, franchisees also suffer losses. Last year, Luckin launched a new brand of Xiaolu Tea, adopting a franchise model. Many franchisees have invested a lot of money in site selection, store rental, decoration, and employees. Now, Luckin closed its doors on a large scale is a high probability event, and they themselves don’t know where these franchisees will go.

Chinese stocks listed in the United States relive the "fake nightmare"?

2012 may be the year that Lu Zhengyao, chairman of Shenzhou Car Rental , was reluctant to recall. In this year, the IPO application documents of Shenzhou Car Rental were just submitted to . The US Securities Regulatory Commission was "out of the world". What comes is countless doubts about its business model and company's key data. After repeated consideration, on the eve of the listing, Shenzhou Car Rental suddenly announced the suspension of IPO, and Lu Zhengyao left sadly.

I have to ask why the road to listing of in China Car Rental is so bumpy, largely because it encountered a sensitive period during the roadshow. First, the US Securities and Exchange Commission sued Kaiyuan Auto and 11 investors for suspected illegal manipulation of stock trading volume. Later, Journey World was suspected of financial fraud and voluntarily delisted from New York Stock Exchange . The US market's distrust of Chinese stocks listed in the US has exploded.

However, no one expected that 8 years later, Lu Zhengyao, who was originally a victim of the distrust crisis in Chinese stocks, would actually be involved in another Chinese stocks in Chinese stocks caused by data fraud.

Chinese stocks have also suffered generally. As of Thursday's U.S. stock market close, Luckin Coffee absolutely led the decline with 75.57% among Chinese stocks, including Secoo, Xinerfu, Suntech Institution, Eggshell Apartment, Renren, NIO , Hexindao, Fangtianxia, More than 50 Chinese stocks including Qudian , NetEase Youdao, Fangduoduo and other companies have experienced significant declines.

Xu Guangxun, who was the chief representative of the China region of the Nasdaq Stock Exchange and the managing director of Asia, said in an interview that although I always tell them when I communicate with American investment institutions, I always tell them that the bad companies of Chinese stocks listed in the United States are not allowed to be heard by them. It is a few, and there are many good companies.But the negative effects of a bad company are also endless. People are used to generalization, and they will say that you, like Luckin, are all from China.

Many institutional investors in the industry also believe that "this will undoubtedly bring a negative impression on China's innovative stocks."

When Shenzhou Car Rental went public in the United States, we saw that many Chinese stocks were delisted due to financial fraud. According to statistics at that time, nearly one-quarter of Chinese stocks were affected by the Chinese stocks. Financial doubts of varying degrees. However, in recent years, as a large number of high-quality Internet companies emerge, this distrust is gradually fading.

Now Luckin has a shocking scam, revealing itself that from its establishment to its listing, Luckin has created the fastest record of domestic companies - 18 months. It took 18 months to let the world see China's coffee brand; from its listing to its destruction, Luckin took another 10 months to refresh the courage and bottom line of data fraud, allowing everyone to see a company running wildly.

[Titanium Media Author Introduction: Waidaodao, new media in the Internet and technology circle. WeChat public account with the same name: wddtalk. This article is an original article, and any form of reproduction without retaining the author's relevant information is not allowed. 】