Luckin Coffee’s business model was built on outselling its rivals by expanding its outlets at breakneck speed and offering deep discounts. Photo: Reuters
Luckin Coffee’s business model was built on outselling its rivals by expanding its outlets at breakneck speed and offering deep discounts. Photo: Reuters

Beijing watchdogs to punish Luckin Coffee, related firms after confirming US$300 million accounting fraud

  • Ministry of Finance says it will take punitive action against Luckin, after its investigation confirmed the coffee chain’s accounting fraud
  • Announcement from two regulators places the beleaguered coffee chain in the spotlight again after the scandal led to its delisting from Nasdaq

Luckin Coffee’s business model was built on outselling its rivals by expanding its outlets at breakneck speed and offering deep discounts. Photo: Reuters
Luckin Coffee’s business model was built on outselling its rivals by expanding its outlets at breakneck speed and offering deep discounts. Photo: Reuters
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