On May 1, the Wall Street Journal reported that He Gang, chief technology officer of Ruixing Coffee (Nasdaq: LK), resigned for personal reasons.
The Wall Street Journal quoted informed sources as saying that He Gang had left the company on Thursday (April 30). According to previous media reports, He Gang joined Ruixing Coffee in September last year. He used to be vice president of technology and president of JD.com, CEO of Shanda Cloud Computing and vice president of Shanda Group, head of Amazon development, and chief R & D manager of Microsoft Advertising Center. And the chief software development engineer of the database.
This is also after Rui Xing Coffee’s self-exposure of financial fraud, another important person left. On April 23 this year, Thomas Meier, an independent director of Ruixing Coffee, submitted his resignation to the company. Meyer also served as a member of the audit committee of Ruixing Coffee’s board of directors.
Rui Xing Coffee is headquartered in Xiamen, Fujian, and started trial operation in January 2018. In November 2017, Qian Zhiya stepped down as the director and COO of China UCAR, left the business and established Ruixing Coffee. Through its “crazy” store opening and user subsidies, Ruixing Coffee, which has been established for two years, not only quickly established a foothold in the Chinese coffee market, but also landed on NASDAQ in May 2019 with the fastest IPO of Chinese stocks.
On April 2 this year, Ruixing Coffee submitted a document to the US Securities and Exchange Commission (SEC), claiming that self-examination found that the company ’s chief operating officer (COO) Liu Jian made financial fraud , Involving a transaction value of approximately 2.2 billion yuan, the company’s board of directors established a special committee to conduct an internal investigation. In addition, a number of law firms in the United States initiated class actions against them, accusing Ruixing Coffee of making false and misleading statements that violated US securities laws.
After the news came out, Ruixing Coffee’s stock price plummeted. Since Nasdaq asked Ruixing Coffee to provide more information, the stock has been suspended since April 7, and its final transaction price is $ 4.39, with a market value of only $ 1.1 billion.
According to Peng Mei News, foreign media reports have been cited before, and people familiar with the matter said that the US SEC is investigating the financial fraud of Ruixing Coffee employees. The China Securities Regulatory Commission has also publicly stated that since Ruixing Coffee has exposed its financial fraud, it has expressed its solemn position and communicated with the US Securities Regulatory Commission on cross-border regulatory cooperation matters. China Securities Regulatory Commission also said that the US Securities Regulatory Commission has made a positive response.