Nasdaq informs China's Luckin Coffee it plans to delist it
HONG KONG/NEW YORK (Reuters) - Luckin Coffee Inc (LK.O) said on Tuesday that Nasdaq Inc (NDAQ.O) has given it notice that it plans to delist it from the U.S. stock exchange a month after the Chinese coffee chain disclosed that some of its employees fabricated sales accounts.
The move underscores Nasdaq’s renewed focus on the auditing standards of companies on its bourse. This week it tightened its listings rules with an eye to curbing initial public offerings (IPOs) of Chinese companies that are closely held by insiders and are not transparent about their accounting, Reuters reported on Monday.
Luckin said in early April that as much as 2.2 billion yuan ($310 million) in sales last year were fabricated by its chief operating officer Jian Liu and other staff, who had been suspended while the company carried out its investigation.
The falsified numbers equate to about 40% of Luckin’s annual sales projected by analysts, according to Refinitiv IBES data.