Sino-Singapore Jingwei client, April 7th, on the morning of the 7th, Hong Kong stock Shenzhou Car Rental issued a clarification announcement that the company does not hold any American depositary shares or other securities of Ruixing Coffee, and does not participate in any business of Ruixing Coffee transaction.
The announcement also stated that although Lu Zhengyao was the shareholder and chairman of Ruixing Coffee, he resigned as the company's chief executive officer and changed his position as a non-executive director in April 2016, and has not participated in the daily management of the group since then. In addition, Rui Jian Coffee's chief operating officer Liu Jian has ceased to serve as the department director of the company since 2015.
Picture taken from the Shenzhou car rental announcement
Shenzhou Car Rental also announced that the company is committed to establishing and maintaining an effective risk management and internal control system; the company ’s audit and compliance committee holds a quarterly meeting to review the company ’s financial performance, financial reporting system, risk management and internal Control system; the company's financial statements are prepared in full compliance with applicable accounting principles and are reviewed or reviewed by the company's auditors (if applicable).
At the same time, Shenzhou Rent-a-Car has applied to the Stock Exchange to resume trading of shares from 9:00 am on April 7.
On April 2, local time in the United States, Ruixing Coffee exposed its financial fraud, saying that from the second quarter of 2019, the company ’s chief operating officer and director Liu Jian and several employees who reported to him engaged in misconduct, including fabrication of certain transactions. . The information determined in the preliminary stage of the internal investigation shows that from the second quarter of 2019 to the fourth quarter of 2019, total sales related to false transactions were approximately 2.2 billion yuan.
On the same day, Ruixing Coffee plunged 81.6% at the opening, triggering "melting" 8 times during the session. As of the close, it reported $ 6.40 per share, a decrease of 75.57%.
Wind data shows that the actual controller of Ruixing Coffee is Lu Zhengyao, who is also the chairman of the board of directors of Shenzhou Car Rental. Involved in Ruixing Coffee, on April 3, the stock price of Shenzhou Car Rental Co., Ltd. plummeted, and the intraday drop was nearly 70%. At 10:14 in the morning, the company suspended the suspension. Before the suspension, it reported 1.96 Hong Kong dollars / share, a decrease of 54.42%.
On April 5th, Lu Zhengyao, chairman of Ruixing Coffee, said in the WeChat circle of friends that he was very ashamed and distressed since the accident and made him very self-blaming. "No matter what the final result of the independent committee's investigation is, I will assume my due responsibilities."
Lu Zhengyao said, "The company has run too fast in the past two years, causing a lot of problems. Now I have fallen violently. As the chairman of the board, I blame it! I sincerely apologize to everyone through the circle of friends."
Shen Meng, executive director of Xiangsong Capital, pointed out that if Ruixing Coffee has performance fraud, then there will be three directions in the follow-up: first, Ruixing Coffee will encounter a class action; second, the relevant person in charge of Ruixing Coffee, not just the current The few thrown out will face the possibility of criminal investigation and even prosecution and sentence; the third is Ruixing Coffee or will be forced to delist. (Sino-Singapore Jingwei app)