Luckin Coffee Inc., a pioneer in coffee vending and a competitor to Starbucks in China which recently entered into a restructuring support agreement with shareholders, announced its restated unaudited financial results for the second and third quarters ended June 30, 2019 and Sept. 30, 2019, as well as the unaudited results for the fourth quarter ended Dec. 31, 2019, according to a press release.

On March 19, 2020, in light of certain issues raised to the company's board of directors during the audit of the consolidated financial statements for the fiscal year ended Dec. 31, 2019, the board formed a committee to oversee an internal investigation.

The committee found that the fabrication of transactions began in April 2019 and that, as a result, the company's net revenue in 2019 was inflated by approximately RMB 2.12 billion ($33 million) and its costs and expenses were inflated by RMB1.34 billion ($21 million) in 2019.

Total net revenues were RMB1.05 billion ($150.8 million) in the fourth quarter, representing an increase of 125.6% from RMB 465.4 million ($72.07 million) in the fourth quarter of 2018. Net revenues growth was primarily driven by a significant increase in the number of transacting customers, an increase in effective selling prices and the number of products sold.

Net loss was RMB1.13 billion ($162.1 million) compared to RMB 669 million ($103.6 million) in the fourth quarter of 2018. Non-GAAP net loss was RMB 1.09 billion ($156.2 million) compared to RMB 650.7 million ($100.8 million) in the fourth quarter of 2018.

Basic and diluted net loss per ADS was RMB 4.72 (64 cents) compared to a loss of RMB 10.64 ($1.65) in the fourth quarter of 2018. Non-GAAP basic and diluted net loss per ADS was RMB 4.48 (64 cents) compared to a loss of RMB 4.80 (74 cents) in the fourth quarter of 2018.

Copyright © 2021 Networld Media. All rights reserved., source Industry News