China-Singapore Jingwei client, May 13th, late at night on May 12, Beijing time, according to documents submitted by Ruixing Coffee to the US Securities and Exchange Commission (SEC), the company's board of directors has terminated the CEO Qian Zhiya And Chief Operating Officer (COO) Liu Jian, and received two applications for withdrawal from the board of directors. According to the company's internal investigation, in addition to Qian Zhiya and Liu Jian, the company also suspended the work of six other employees who participated in or learned about financial fraud, or required them to take leave.

  Credit Suisse coffee announcement screenshot

  According to the announcement, Ruixing Coffee's board of directors has appointed director and senior vice president Guo Jinyi as the company's acting CEO, and appointed Cao Wenbao and Wu Gang as directors of the board. After the change of board members, the remuneration committee of the board was composed of Shao Xiaoheng, Liu Erhai and Guo Jinyi, of which Shao Xiaoheng served as chairman.

  According to Ruixing Coffee, Cao Wenbao has served as the company's senior vice president since June 2018, responsible for store operations and customer service. Before joining the company, Cao Wenbao had more than 23 years of experience in McDonald's China, and served as vice president and president of McDonald's China and manager of the North District.

  On the evening of April 2 this year, Ruixing Coffee announced that there were counterfeit transactions between the second quarter and the fourth quarter of 2019, involving sales of approximately 2.2 billion yuan. The company's board of directors has set up a special committee to be responsible for investigating issues during the fiscal year 2019 financial report audit. The announcement also stated that it will release more information about internal investigations in due course and is committed to taking appropriate measures to improve internal control.

  After the news of financial fraud was revealed, Ruixing Coffee's stock price plummeted. Due to the need to wait for more information to be disclosed, the stock has been suspended from April 7th, its final transaction price is $ 4.39, and the market value is only $ 1.1 billion. (Sino-Singapore Jingwei APP)