Luckin Coffee Anonymous - GMT Research

1 Luckin Coffee : Fraud + Fundamentally Broken Business Executive Summary When Luckin Coffee (NASDAQ: LK) ( Luckin or the Company ) went public in May 2019, it was a fundamentally broken business that was attempting to instill the culture of drinking Coffee into Chinese consumers through cut-throat discounts and free giveaway Coffee . Right after its USD 645 million IPO, the Company had evolved into a fraud by fabricating financial and operating numbers starting in 3rd quarter 2019. It delivered a set of results that showcased a dramatic business inflection point and sent its stock price up over 160% in a little over 2 months.

numbers starting in 3rd quarter 2019. It delivered a set of results that showcased a dramatic business inflection point and sent its ... “unmanned retail” strategy, which is more likely a convenient way for management to siphon large amount of cash from the company. Red Flag #5: Luckin’s independent board member, Sean Shao, is/was on the ...

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