China News Service, July 31. According to the website of the China Securities Regulatory Commission, according to investigations, Ruixing Coffee's domestic operating entities and related management personnel, related third-party companies, and Ruixing Coffee's domestically associated NEEQ listed companies Shenzhou UCAR Co., Ltd., Beijing Hydropower Technology Co., Ltd. has illegal activities. Recently, the China Securities Regulatory Commission has delivered an advance notice of administrative penalty to the parties involved. If the relevant responsible subject is suspected of committing a crime, it will be transferred to the public security and judicial organs for further accountability.
The Ministry of Finance, the State Administration of Market Supervision, and the Securities Regulatory Commission will impose administrative penalties on Ruixing Coffee's domestic operating entities and related responsible persons, a number of third-party companies that assist in fraud and false propaganda, two NEEQ affiliated companies, and related responsible persons.
In April this year, Luckin Coffee Inc. (Luckin Coffee Inc.) exposed itself to financial fraud and received widespread attention. In accordance with the State Council’s Financial Commission’s "zero tolerance" requirements for financial fraud in the capital market, the China Securities Regulatory Commission, together with the Ministry of Finance, the State Administration of Market Supervision and other departments, have suspected violations of laws and regulations against Ruixing Coffee's domestic operating entities, related parties and related third-party companies. The conduct was filed for investigation, and in accordance with the International Organization of Securities Regulatory Commission (IOSCO) cross-border supervision cooperation mechanism arrangements, it cooperated with the US securities regulatory authorities to carry out cross-border investigations.
At present, the above-mentioned work has made important progress. Investigations by relevant departments showed that Ruixing Coffee’s domestic operating entities and related managers, and related third-party companies fictitious transactions, inflated revenues, costs, expenses, false propaganda, etc., violated China’s "Accounting Law" and "Anti-Unfair Competition" The relevant provisions of the Law. Ruixing Coffee’s domestically-linked NEEQ listed companies Shenzhou UCAR Co., Ltd. and Beijing Hydropower Yiwei Technology Co., Ltd. violated the relevant regulations of my country's Securities Law.
Severely cracking down on financial fraud in the capital market and protecting the legitimate rights and interests of investors is the common responsibility of the global securities regulatory authorities. The CSRC will fully implement the “zero tolerance” requirement of the State Council’s Financial Committee on illegal and criminal acts in the capital market, continue to strengthen close collaboration with domestic and foreign regulatory and law enforcement agencies, and steadily advance the investigation and disposal of Ruixing Coffee’s financial fraud incidents in accordance with the law, and severely crack down on them. Do not tolerate, and resolutely maintain a fair and just market order and the rule of law and a healthy market ecology.