Ruixing Coffee's internal investigation was basically completed, and Lu Zhengyao resigned as chairman

　　The Sino-Singapore Jingwei client July 1 reported that the internal investigation of Ruixing Coffee has come to an end.

　　According to the official announcement of Ruixing Coffee on the 1st, the internal investigation was basically completed. The Ruixing Coffee Special Committee found that the forgery transaction began in April 2019. The net revenue in 2019 was exaggerated by about 2.12 billion yuan, and the costs and expenses in 2019 were exaggerated by 1.34 billion yuan.

　　Screenshot of Ruixing Coffee official website

　　It is reported that during the internal investigation, the Special Committee and consultants reviewed 550,000 documents collected from more than 60 custodians, interviewed more than 60 witnesses, and conducted extensive forensic accounting and data analysis tests.

　　The survey found that the fraudulent transaction began in April 2019, so the net income of Ruixing Coffee in 2019 was exaggerated by about 2.12 billion yuan , respectively 250 million yuan in the second quarter of 2019, 700 million yuan in the third quarter, and the fourth 1.17 billion yuan in the quarter. In addition, the company's costs and expenses were exaggerated by 1.34 billion yuan in 2019, which were 150 million yuan in the second quarter of 2019, 520 million yuan in the third quarter, and 670 million yuan in the fourth quarter.

　　According to the announcement, the counterfeit party of Ruixing Coffee transferred the funds of the forgery transaction to the company through some third parties connected with the employees and/or related parties of the company. The company is terminating its relationship with all third parties involved in counterfeit transactions.

　　In addition, Ruixing Coffee’s board of directors fired former CEO Qian Zhiya and former COO Liu Jian on the grounds that they were involved in counterfeit transactions. In addition, the board of directors will meet on July 2 to consider the proposal to dismiss the duties of director and chairman of Lu Zhengyao; another 15 employees will be subject to other disciplinary actions. (China-Singapore Jingwei APP)