Rui Xing apologized that the senior executives and employees involved have been suspended and will disclose the investigation results to the public and take all necessary remedial measures as soon as possible
Reporter (Reporter Zhang Xin) On the afternoon of April 5, after the chairman of Ruixing Coffee Lu Zhengyao apologized for the company's 2.2 billion false transactions in the WeChat circle of friends, Ruixing Coffee official Wei also issued an apology statement. Ruixing said that Ruixing Coffee would like to express its most sincere apology to the public for the suspected financial fraud and its extremely bad impact. The executives and employees involved have been suspended for investigation.
On April 2, Ruixing announced that its COO Liu Jian and some employees had forged transactions worth about 2.2 billion yuan. Since the announcement, only two trading days, Ruixing's stock price has plummeted from $ 26.2, and it has fallen by about 80%. The stock price is currently reported at $ 5.38.
It was Ernst & Young that was responsible for the audit work of Ruixing Coffee that prompted Ruixing Coffee to conduct an internal investigation. In the process of auditing Ruixing Coffee's 2019 annual financial report, Ernst & Young found that some of Ruixing Coffee's management personnel increased the company's income, costs and expenses during the relevant period through false transactions from the second quarter to the fourth quarter of 2019. . Ernst & Young reported to Ruixing Coffee Audit Committee. The board of Ruixing Coffee therefore decided to set up a special committee to take charge of relevant internal investigations. Ernst & Young further stated that the current annual audit of Ruixing Coffee in 2019 is still in progress.
Ruixing said in an apology statement issued on April 5th that Ruixing Coffee would like to extend its most sincere apology to the public for the suspected financial fraud and its extremely bad impact. The executives and employees involved have been suspended for investigation. The board of Ruixing Coffee has commissioned a special committee composed of independent directors and its appointed third-party independent agency to conduct a comprehensive and thorough investigation. The company will disclose the investigation results to the public as soon as possible and take all necessary remedial measures to avoid all problems caused by this matter. For any personnel involved, the company will reserve the right to take legal measures, will not cover up, and will not condone! The company will also deeply reflect on confession and strengthen internal control compliance. At the same time, the company will continue to serve the society, maintain normal operations, and stabilize employee and store business.
The Beijing Youth Daily reporter learned that at noon on the same day, regarding Ruixing Coffee ’s 2.2 billion financial fraud, Lu Zhengyao, chairman of Ruixing Coffee, said in the WeChat circle of friends, "I personally blame myself. No matter what the final findings of the independent committee, I will Take on 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 have to blame! I sincerely apologize to everyone through the circle of friends. .. I accept all doubts and criticisms and will do my utmost to recover the loss. "
In addition, the reporter of the Beijing Youth Daily learned that the next day after the disclosure of the forged 2.2 billion yuan transaction, which is April 3, Ruixing Chairman Lu Zhengyao's circle of friends said: "Today we must be full of vitality! Come on! The same remarks and pictures also appeared on the Weibo of Ruixing Coffee and some senior executives. The move caused netizens to argue that Ruixing Coffee had no regrets about the fraud.
As of press time, Ruixing Guanwei did not delete the “full of vitality” Weibo. Lu Zhengyao said that the "full of vitality" remarks previously released were to cheer up the small partners, operate stably, and continue to serve customers.