Caixin Global – Latest China News & Headlines

Home >


CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

Fashion E-Retailer Mogu Gets Livestreaming Lift in Otherwise Dismal Quarter
Chinese-Focused Food Delivery App HungryPanda Raises $70m
Trending in China: Should Chinese School Employees be Punished for Celebrating Thanksgiving?
China Exempts Tesla Model Y from Purchase Tax
GL Ventures Leads $265m Series C Round in Chinese SaaS Edtech Firm EEO
In 165 countries, China's Beidou eclipses American GPS
China On Cusp of Becoming Third Ever Country to Collect Lunar Samples as Chang’e 5 Prepares for Moon Landing Among Bidders for Japanese Skincare Brand Fancl’s Asian Business: Reuters
Trending in China: Did Sichuan Forget to Tell Chongqing About Their Joint Olympic Bid?
Alibaba’s Healthcare Unit Finds Tonic for Profits
Trending in China: Beijing Tackles Parking Shortage With Shared Spaces
Chinese Wireless Telecoms Operators Join Forces to Build 5G Base Stations to Reduce Costs
Ruhnn, Another U.S.-Listed Chinese Company Looks to Go Private
Unicorns surge to 500 in number as US and China account for 70%
Trending in China: Social Media Comes Out in Support of High Quality Fakes
Xiaomi-Backed IoT-Enabled Appliance Maker Sees Revenues Grow While Profits Slump
Chinese Startup WeRide Reports Promising Robotaxi Results
Trending in China: God recalls his hand – tributes to Maradona from Chinese social media after his death
Tesla to Manufacture Electric Car Chargers in China
China Restricts Livestreaming Spending and Blocks Underage Users from Tipping Performers
Luckin Refutes Short Seller's Fraud Allegations

By Ding Yi / Feb 04, 2020 01:50 PM / Business & Tech

Photo: VCG

Photo: VCG

Luckin Coffee has come under the spotlight recently due to an anonymous report alleging that the coffee maker has fabricated its financial figures.

The unattributed 89-page report was posted on Twitter on Friday by short seller Muddy Waters Research, who said they considered it “credible”. The report claimed that the number of items sold per Luckin store per day was inflated by at least 69% in the third quarter of 2019 and 88% in the fourth quarter of 2019, based on 11,260 hours of store video that the report’s authors said they had viewed.

However, another short seller, Citron Research, defended Luckin and questioned the accuracy of the report. In a tweet posted on Saturday, Citron said that app download figures, other data and calls with competitors confirm Luckin’s financial numbers.

On Monday, Nasdaq-listed Luckin responded with a statement denying all fraud allegations. Luckin said in the statement that the methodology of the anonymous report is flawed, the evidence is unsubstantiated, and the allegations are merely unsupported speculations and malicious interpretations of events. “All the company’s key operating data, including the number of items per store per day, items per order and effective selling price, are tracked in real time and can be verified,” Luckin added.

However, the report has made Luckin’s stock take a dive, falling today to $31, down from around $50 on January 17. Meanwhile, Luckin is under sales pressure as the coronavirus epidemic has forced the coffee chain to temporarily shut down many of its stores in China.

In January, Luckin said it operated about 4,500 outlets in China at the end of 2019, edging ahead of archrival Starbucks to become the country’s biggest coffee chain.

Contact reporter Ding Yi (

Related: Luckin Now Has More Coffee Shops in China Than Starbucks, Data Shows
Share this article
Open WeChat and scan the QR code