BEIJING, January 7, 2021 — Luckin Coffee Inc. (the ‘Company’) (OTC:LKNCY) today issued the following statement regarding allegations against Chairman and CEO, Dr. Jinyi Guo, made by certain employees in a complaint letter sent to the Company’s Board of Directors.
The Company commented:
On January 4, 2021, Luckin Coffee’s Board of Directors received a letter from certain employees containing allegations against the Company’s Chairman and CEO, Dr. Jinyi Guo. The Board immediately formed an independent committee, led by one of the joint provisional liquidators and joined by two independent non-executive directors, to conduct an investigation into the claims and the circumstances of the letter. The Board and independent committee are taking this matter seriously.
Importantly, the allegations in the letter are unrelated to the conduct previously disclosed on April 2, 2020, and the authors of the letter do not assert that the alleged conduct had any material impact to the Company’s reported financial data. Dr. Guo denies all of the allegations set out in the received letter.
The Company’s new leadership team has developed an updated business plan that has resulted in top line and store profitability growth in 2020, overcoming significant financial and operational challenges. Luckin Coffee’s positive momentum continues under the new management team, with 35.8% year-over-year net revenue growth in the third quarter of 2020 and over 60% of stores achieving positive profitability in November 2020.
Luckin Coffee remains focused on growing its core coffee business and is committed to its long-term growth targets. The Board and management team will continue to take actions to deliver profitable returns while fostering a company-wide culture that focuses on delivering product and services with high quality, high affordability and high convenience to our customers, encouraging innovation, and holding one another accountable.’
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the ‘safe harbor’ provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as ‘will,’ ‘expects,’ ‘anticipates,’ ‘future,’ ‘intends,’ ‘plans,’ ‘believes,’ ‘estimates,’ ‘potential,’ ‘continue,’ ‘ongoing,’ ‘targets,’ ‘guidance’ and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the ‘SEC’), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties, including Joint Provisional Liquidators. Any statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the expense, timing and outcome of existing or future legal and governmental proceedings, investigations in connection with the Company; the outcome and effect of the ongoing restructuring of the Company’s financial obligations; the Company’s growth strategies; its future business development, results of operations and financial condition; the effect of the non-reliance identified in, and the resultant restatement of, certain of the Company’s previously issued financial results; the effectiveness of its internal control; its ability to retain and attract its customers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with its suppliers and business partners; trends and competition in China’s coffee industry or China’s food and beverage sector in general; changes in its revenues and certain cost or expense items; the expected growth of China’s coffee industry or China’s food and beverage sector in general; PRC governmental policies and regulations relating to the Company’s industry; the potential effects of COVID-19; and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.
About Luckin Coffee Inc.
Luckin Coffee Inc. (OTC:LKNCY) has pioneered a technology-driven retail network to provide coffee and other products of high quality, high affordability, and high convenience to customers. Empowered by big data analytics, AI, and proprietary technologies, the Company pursues its mission to be part of everyone’s everyday life, starting with coffee. The Company was founded in 2017 and is based in China. For more information, please visit investor.luckincoffee.com.
Investor and Media Contacts
Luckin Coffee Inc. IR
Email: [email protected]
Bill Zima / Fitzhugh Taylor
Phone: +1 646 880 9039
Luckin Coffee Inc. PR
Email: [email protected]
Ed Trissel / Jack Kelleher
Joele Frank, Wilkinson Brimmer Katcher
Phone: 212 355 4449
Luckin Coffee Inc. published this content on 07 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 January 2021 14:25:09 UTC