Ex-Luckin chairman Lu Zhengyao becomes judgment debtor for third time, faces fine of $ 188 million

0

According to public information published on China’s Law Enforcement Information Disclosure website, ex-chairman of Luckin Coffee, Lu Zhengyao, was placed on the list of judgment debtors by the Higher People’s Court on Wednesday. Beijing Municipality, forcing him to pay around 1.2 billion yuan ($ 188 million) in fines. .

This is the third time Lu has been declared a judgment debtor this year. In January, the prominent businessman was forced by Beijing Municipal Intermediate People’s Court No. 4 to pay 1.367 billion yuan ($ 214 million). In March, he was ordered to pay 936 million yuan ($ 167 million) by the Beijing Municipal Higher People’s Court.

After graduating from college, Lu embarked on a diverse entrepreneurial career launching numerous businesses which later propelled him to become one of China’s 500 richest people.

In December last year, Luckin Coffee, a major competitor to Starbucks in the Chinese market, was fined $ 180 million for overestimating its 2019 net sales and underestimating its losses. In February, the Beijing-based coffee chain filed for Chapter 15 bankruptcy in New York.

After stepping down as chairman of the board in July last year, Lu joined forces with former Luckin Coffee partners, including former CEO Qian Zhiya, Vice Chairman Li Jun and Vice President Zhou Bin, launching a new brand of noodle restaurants in early April. , calling it “the last battle” of his life.

SEE ALSO: Former Luckin President Charles Lu Launches New Business: Restaurant Chains

Shejian Technology, which Lu founded in January, is set to open its first set of noodle restaurants under the Qu Xiaomian brand, and will adopt a more cautious expansion strategy than the much more ambitious model notoriously pursued by Luckin. “The noodles are just the start. In the future, there will be several subcategories such as braised pork rice, ”a Shejian Technology employee told Chinese media Tech Planet.

CAR Inc., which Lu founded in 2007, went public on the Hong Kong Stock Exchange in 2014. However, the company was delisted from the National Equities Exchange and Quotations in March for non-disclosure of its 2019 financial report.

In 2020, Lu stepped down as chairman and non-executive director of ride-sharing startup UCar. The company’s total revenue in 2020 reached 6.124 billion yuan ($ 959 million), down 20.4% year-on-year. Due to the mandatory acquisition of Indigo Glamor Company Ltd., UCar announced that it will be delisted from the Hong Kong Stock Exchange on July 8. UCar CFO Cao Guangyu once said that “Luckin Coffee’s accounting fraud is leading directly to our funding difficulty right now.”


Source link

Share.

About Author

Leave A Reply