Luckin Coffee Delays Its Annual Report, Citing Pandemic
(Bloomberg) -- Luckin Coffee Inc., the Chinese chain that was already facing an accounting probe, plans to delay its annual report because of the impact of the coronavirus pandemic.
The retailer, which has shares that trade in the U.S., is taking advantage of a Securities and Exchange Commission order allowing virus-hit companies to postpone their financial statements. In a filing Wednesday, Luckin said Chinese quarantines, travel restrictions and limited access to office buildings have made it difficult to prepare its year-end report. The deadline was April 30.
Luckin, which has emerged as a key competitor to Starbucks Corp. in China, said earlier this month that its board was investigating reports that senior executives and employees fabricated transactions. The revelation sent its U.S. shares down as much as 81% on April 2.
The company suspended Chief Operating Officer Jian Liu and said investors shouldn’t rely on financial statements for the nine months ended Sept. 30. The transactions in question, which occurred last year, totaled about 2.2 billion yuan ($310 million).
Luckin said it began closing most of its stores in late January as the coronavirus outbreak escalated in China. With the government gradually lifting restrictions across the country, the company has been able to resume some operations. As of March 31, approximately 85% of its self-operated stores had reopened, Luckin said in the filing.
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