Rui Xing revealed that the performance fraud initially involved 2.2 billion yuan. The China Securities Regulatory Commission strongly condemned that it would check the relevant situation according to law.

Due to the sudden collapse of the ordering system, a Beijing store was unable to order beverages, and the staff went to the door to rest and ventilate

On the afternoon of April 3, Ruixing Coffee dived straight ahead of the market, and the decline expanded by more than 21% to $ 5. As of 19:40 on April 3, Beijing time, US stocks have not yet opened, and Ruixing Coffee rose slightly less than 1% before the market. The day before, Ruixing Coffee issued an announcement before the market, exposing the company's financial fraud and forging transactions of about 2.2 billion yuan.

Self-exposed fraud

Ruixing US stocks plunged over 85%

On April 3, Ruixing Coffee, who presented a US stock "black swan", finally experienced a nightmare-like trading day after eight times of intraday fuse.

On the evening of April 2, Ruixing Coffee issued an announcement, exposing that it had engaged in counterfeiting transactions in the second quarter to the fourth quarter of 2019, involving sales of 2.2 billion yuan. The Beijing Youth Daily reporter learned that as of the close of the day, Ruixing Coffee fell 75.57% to $ 6.40. Before that day, Ruixing Coffee once plunged more than 85%, which was jokingly said by netizens that "1.8% off drinking coffee and 1.8% off buying stocks."

According to the previous financial report issued by Ruixing Coffee, its revenue in the first three quarters of 2019 was 478.5 million yuan, 909.1 million yuan, and 1.542 billion yuan, respectively. In the third quarter financial report, Ruixing predicted that the fourth quarter net revenue is expected to be between 2.1 billion and 2.2 billion yuan.

According to this data, the 2.2 billion yuan amount fraudulently produced by Ruixing Coffee is equivalent to the total revenue in the fourth quarter, and is equivalent to 43% of the annual revenue of Ruixing Coffee in 2019. Therefore, it is not difficult to understand why Ruixing's announcement quickly shook the market.

On April 3, the China Securities Regulatory Commission issued a statement on the official website that the China Securities Regulatory Commission paid close attention to Ruixing Coffee ’s financial fraud and strongly condemned the company ’s financial fraud.

The Beijing Youth Daily reporter learned that the Securities Regulatory Commission stated that no matter where it is listed, listed companies should strictly abide by the laws and rules of the relevant market and fulfill their information disclosure obligations in a true, accurate and complete manner. The China Securities Regulatory Commission will verify relevant situations in accordance with relevant arrangements of international securities regulatory cooperation, resolutely crack down on securities fraud, and effectively protect investors' rights and interests.

The reporter of the Beijing Youth Daily learned that Ruixing Coffee is registered in the Cayman Islands, issuance of securities by overseas regulators and is listed on the NASDAQ stock market in the United States.

Field visit

Because the online ordering system collapsed

"I don't know if this kind of fraud will cause Ruixing to close the door directly. I just recharged it, and I don't know if it can be refunded." For many consumers who have not invested in US stocks, they are more worried about the Swiss recharge they have just recharged. Fortunately, the coffee purse will be "cut with leeks" because of this matter.

The Beiqing Daily reporter visited some stores of Ruixing at more than 10 am on April 3 and found that they are all operating normally. Using WeChat Mini Program or Ruixing's own APP to place an order, you can also use coffee coupons in Ruixing Coffee Wallet to deduct the amount. However, the speed of taking food was much slower than usual. Some stores also have run-up orders. Some store staff said that the amount of orders placed on that day was several times higher than usual. News from Guangzhou, Shanghai and other places also said that Ruixing had a run on the locality. And consumers who order in the morning also said that it was mainly for the consumption of previously purchased vouchers.

The Beiqing Daily reporter found that compared with the past, Ruixing Coffee received more orders, and some customers went directly to the store to ask whether the capital market situation would affect the store's operation, and asked whether they could refund the recharged card coupons. The store staff said that the card coupon problem can only consult the customer service hotline. However, a reporter from the Beijing Youth Daily called Ruixing Coffee's customer service hotline, but for a long time the "customer service representative was busy" and was unable to connect to manual customer service.

At noon on April 3, Ruixing Coffee App and applet both went down, the system prompts "request abnormal, network abnormal", unable to place orders on the pages of nearby stores. At about 12 noon on the same day, Ruixing WeChat Mini Program already appeared in a state of flash collapse. At about 13:30, the Ruixing applet and App could no longer be opened normally. Regarding this matter, Ruixing officially stated, "The peak of noon, the APP collapsed, and the little brother of the programmer is in urgent emergency repair."

"The store is now closed and nothing can be ordered." At 14:15 on April 3, at the Ruixing store in the center of Beijing and Macau, the clerk said to a female customer who wanted to enter the store. There are no other customers in the shop except for the staff. Occasionally a customer enters the store and is also advised to return. A reporter from the Beiqing Daily subsequently visited a number of Ruixing, and all said that they could not order. At a Ruixing store, a reporter from the Beijing Youth Daily saw that about two or thirty bags of drinks were placed in the store. The clerk said it was ordered and not delivered.

A SF staff member for Ruixing takeout delivery said that the store had hundreds of orders in the morning and they were too busy to do it. Currently, the system is crashing and she is also waiting for the dispatch. The store clerk also went out to rest. A staff member said that he came to help too. This morning is busier than these two days, but now I can't see the order and can't make it.

The Beiqing Daily reporter found that the small program has been restored around 15 o'clock and can continue to order food. At the same time, buying coffee coupons can also be used for checkout.

chain reaction

Four "Shenzhou Department" listed companies affected

As of yesterday's close, the New Third Board of China Shenzhou UCAR fell over 21.75%. Closed at 10.04 yuan. Hit a record low.

According to market analysis, both China UCAR and Ruixing Coffee were forged by a group of people in China. Since one company falsified, the brand reputation of other companies will also be implicated. UCAR and Ruixing still have cross-shareholdings, and the entire founding team of Ruixing is also from Shenzhou UCAR.

Hong Kong stock company Shenzhou car rental plunged 70%, which was once more than Ruixing Coffee. It has been suspended for an emergency. The stock price is fixed at HK $ 1.96, a 54.42% drop, and the market value is only HK $ 4.1 billion.

At 11:48 yesterday, Shenzhou Car Rental issued an announcement on the Hong Kong Stock Exchange that the company's shares temporarily stopped trading at 10:14, pending the publication of a clarification announcement that may constitute inside information of the company.

As of May 17, last year, the fourth largest shareholder of Ruixing was Lu Zhengyao, holding 25.75% of the shares. According to the data from Tianyan, Lu Zhengyao is also the major shareholder and chairman of the board of directors of Shenzhou Car Rental. There are more links between Ruixing and Shenzhou Car Rental: Liu Jian, the COO and director of the company that was exposed to financial fraud last night, was born in Shenzhou Car Rental. According to public information, from 2008 to 2015, Liu Jian served as the deputy director of the China Car Rental Vehicle Management Center and the head of revenue management; from 2015 to 2018, he served as the head of the revenue management of China UCAR; from May 2018, he served as Ruixing Coffee COO. More than Liu Jian, Ruixing's entire management team comes from the Shenzhou Department. Qian Zhiya, founder of Ruixing, also served as COO of China UCAR.

It is not only the China Department that is seriously injured, Hong Kong stock China Holdings and A-share Focus Media have also been affected to varying degrees.

Hong Kong stock Legend Holdings plunged 5.77% yesterday. At the close, the stock price was 8.86 Hong Kong dollars, a record low of nearly 5 years since listing.

According to China Auto Rental's 2019 annual report, Lenovo Holdings is the second largest shareholder of China Auto Rental, which holds a 26.59% stake in the company. The largest shareholder is Lu Zhengyao, the chairman of Ruixing Coffee and the chairman of the board of directors of China Rent a Car, holding 29.76% of the shares.

A-share Focus Media opened lower and lowered yesterday. As of the close, it fell by 5.67% to close at 4.16 yuan. The stock price approached the lowest price of 4.1 yuan after returning to A-shares. This appeared on March 30. As of the close, there was no record low.

Ruixing Coffee, a major customer, revealed that the counterfeit transaction was 2.2 billion yuan. Several investors asked whether the Focus Media business was affected by the incident on the interactive platform. The company has not yet responded.

Focus Media's performance in 2019 has fallen sharply. From the performance report, the annual revenue in 2019 is 12.136 billion yuan, a decrease of 16.60% compared with the same period in 2018; the net profit attributable to shareholders of listed companies is 1.875 billion yuan, a decrease of 67.80% year-on-year.

According to Focus Media's 2018 annual report, brands such as China Car Rental, Are You Hungry, Ruixing Coffee, Kuaigou Taxi and others chose Focus Media as their offline core media? Text / Reporter Zhang Xin Liu Shenliang co-ordinating / Yu Meiying

Photographer / Reporter Zhang Xin