FILE PHOTO: A cup of 'Luckin Coffee,' coffee is poured during the company's IPO at the Nasdaq Market site in New York, U.S., May 17, 2019. REUTERS/Brendan McDermid/File PhotoBrendan McDermid/Reuters
China’s Ministry of Finance will impose administrative penalties on Luckin Coffee after it confirmed an accounting fraud that forced the onetime market player to delist from Nasdaq.
The ministry completed its inspections into Luckin Coffee (China) and Luckin Coffee (Beijing), which found Luckin booked 2.25 billion yuan ($322.60 million) of sales through fake coupons from April 2019 to the end of last year, it said in a statement on its website on Friday.
It also found Luckin inflated sales by 2.12 billion yuan during that period. Costs were inflated by 1.2 billion yuan while profits were inflated by 908 million yuan, it added.
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