Sinonews Client Beijing, July 2 (Xie Yiguan) On the evening of July 1, Ruixing Coffee issued an announcement that the special committee of the board of directors had basically completed an independent internal investigation of the fraudulent issues disclosed by the company in April 2020. The former CEO and former COO participated in it, and it started in April 2019.
Screenshot of Ruixing Coffee Announcement.
According to the announcement, during the internal investigation, the Special Committee and its consultants reviewed more than 550,000 documents collected from more than 60 custodians and interviewed more than 60 witnesses. Found that the company's counterfeit transactions began in April 2019, and the net income in 2019 was boasted about 2.12 billion yuan, of which 250 million yuan in the second quarter, 700 million yuan in the third quarter, and 1.17 billion yuan in the fourth quarter; In 2019, the cost of the company increased by 1.34 billion yuan, of which 150 million yuan in the second quarter, 520 million yuan in the third quarter, and 670 million yuan in the fourth quarter.
Ruixing Coffee said that the evidence found by the Special Committee so far shows that the company’s former chief executive officer (CEO) Qian Zhiya, former chief operating officer (COO) Liu Jian and certain employees who reported to them participated in the counterfeit transaction and supported the counterfeit transaction The funds flowed into the company through a number of third parties related to the company’s employees or related parties.
"The board of directors fired Qian Zhiya and Liu Jian based on evidence of their involvement in counterfeit transactions." Ruixing Coffee said that at the same time, the board of directors decided to dismiss 12 other employees, including previously suspended employees, who were in Qian Zhiya and Liu Jian. Participate in or understand false transactions under the command of The other 15 employees will be subject to other disciplinary actions. In addition, the company is terminating all third-party relationships related to counterfeit transactions.
On the evening of May 12, Ruixing Coffee, a safe haven, announced the termination of the positions of CEO Qian Zhiya and Chief Operating Officer Liu Jian, and appointed Guo Jinyi as acting CEO. Six other employees who participated in or knowingly fabricated transactions were suspended or resigned.
According to the data of Tianyancha, recently, Ruixing Coffee E-commerce (Pingtan) Co., Ltd. has undergone industrial and commercial changes. Qian Zhiya stepped down as the company’s legal representative, executive director and general manager, and was replaced by acting CEO Guo Jinyi.
It is worth noting that Ruixing Coffee's board of directors also recommended that Lu Zhengyao resign as the company's director and chairman, and held a board of directors on July 2 to formally review the proposal. Ruixing Coffee's board of directors said that the removal of Lu Zhengyao was a requirement of most members of the board of directors and was based on the findings and recommendations of the special committee.
On June 20, Ruixing Coffee issued a notice to hold an extraordinary general meeting on July 5. Discussions included the dismissal of director appointments of independent directors Sean Shao, Li Hui and Liu Erhai, as well as the appointment of chairman Lu Zhengyao.
On June 29, Ruixing Coffee's stock has been officially suspended from NASDAQ for delisting. Ruixing Coffee, which was delisted in just 13 months of listing, may be facing greater personnel upheaval. (Finish)