Will those who dance with the times be abandoned by the times?
Editor’s note: This article comes from the WeChat public account “China-Europe Business Review” (ID: ceibs-cbr) .
Author | Wang Zongbai
Editor in charge | Wang Zongbai
Ruixing Coffee, which was about to be delisted by NASDAQ, went out of the market again after the resumption of trading. The cumulative rise of 86% on the 26th and 27th of Eastern Time, the market value recovered from the low of 350 million US dollars after the resumption of trading to 6.5 Near 100 million US dollars, the turnover rate is as high as 80%.
Earlier, the company received a written notice from the US Securities and Exchange Commission that the Nasdaq Exchange decided to delist the company. Ruixing Coffee plans to request a hearing in this regard, and will continue to be listed on the Nasdaq until the results of the hearing are released. Hearings are usually scheduled 30 to 45 days after the request.
The “deferred execution” brought by the hearing was exposed with a new round of scandals. On the 29th, according to the “Wall Street Journal” report, Ruixing Coffee increased sales by selling vouchers to the chairman and controlling shareholder’s affiliated company. On the other hand, no new progress has been announced for Ruixing ’s self-examination results. There is not much time left for Rui Xing.
Are people who dance with the times also abandoned by the times?
After obtaining firm evidence from Hunshui Company, Ruixing admitted to the fraudulent transaction of 2.2 billion RMB, because if it does not recognize it, it will be delisted directly. This triggered a collapse in market value.
40 days after the incident, on the evening of May 12, Ruixing Coffee announced the termination of the positions of CEO Qian Zhiya and COO Liu Jian, appointed Vice President Guo Jinyi as acting CEO, and tried to “reorganize the company’s organizational structure Shape the company’s value culture, strengthen internal control to ensure legal compliance, and make every effort to maintain business stability. ” The major media commented that Lu Zhengyao “lost his car”, “raised puppets” and “cut his nails”.
On May 19th, the news that the Nasdaq exchange informed Ruixing Coffee that it must be delisted came out. Subsequently, Ruixing issued an announcement saying that it had received a delisting notice on the 15th, but it is still working hard. Large-scale layoffs and closure of Rising Coffee are also in progress.
In Lu Zhengyao’s own words, his business philosophy has always been “shoot first and then aim.” Fifteen years ago, he did n’t think about how the UAA United Auto Club would make a profit.