From the opening of the first store in Beijing on June 20 17 to May 20 19, Luckin Coffee successfully landed on Nasdaq in just two years, which is a national glory. However, just one year after listing, Luckin Coffee suddenly delisted from Nasdaq, which will also set a record for the fastest delisting of China stock market.
Luckin Coffee said at the beginning of its establishment that compared with the United States, China's coffee market obviously has a huge demand. Qian Ceng, founder and CEO of Luckin Coffee, said that the coffee market in China is now on the eve of the outbreak. The data shows that China's per capita coffee consumption is only about 4 cups per year, which has great development potential compared with 750 cups in Europe, 400 cups in the United States, 200 cups in Japan, 200 cups in South Korea and 200 cups in Hong Kong. However, according to the survey report released by Surabaya Research Company, Ruixing's long-term business model is flawed. Ruixing's statement about China's coffee demand is wrong. China consumes an average of 86 milligrams of caffeine a day, similar to other Asian countries, but 95% of caffeine intake comes from tea. Therefore, the coffee market in China is very small, and a large part of it has been replaced by tea, with only moderate growth.
Under the double pressure of capital market and stock price, Luckin Coffee has been unable to maintain its previous level. Perfect data? Subsequently, Luckin Coffee's 2.2 billion yuan financial fraud surfaced, causing its share price to continue to fall. On the evening of April 7, Beijing time, Luckin Coffee was officially suspended, and its share price fell to $4.39 per share. Some insiders predict that Luckin Coffee will not only face huge salary in the future, but also face the end of bankruptcy.
As expected, Ruixing went public in a hurry in just over ten months. Although it can be called a miracle in the industry, there are many ways to expand the market, but Luckin Coffee just chose the wrong way to burn money to make false accounts, which led to the current ending. By simple and quick means to achieve the desired effect, the result can only be nothing.
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