In response to the news that Ruixing coffee was asked to delist by Nasdaq, Lu Zhengyao, chairman of Ruixing coffee, issued a statement in the early morning of May 20, saying that Nasdaq asked the company to delist before the final investigation results, which was unexpected, and I am deeply disappointed and regretted.
In his statement, Lu Zhengyao first apologized to investors, all Ruixing employees and customers for the adverse impact of the incident. However, he believes that Ruixing has dealt with the relevant responsible persons, reorganized the board of directors, updated the management and actively carried out rectification in the first time according to the phased survey results, but NASDAQ asked the company to delist before the final survey results, which is unexpected, and I am deeply disappointed and regretted.
He also said that he firmly believed that the business model and business logic of Ruixing coffee were established, and that the annual revenue of Ruixing coffee has continued to grow since its operation. My style may be too radical, the enterprise runs too fast, which also leads to many problems, but I do not cheat investors by concept. Lu Zhengyao said that the funds obtained from pledging Ruixing coffee shares are all used to support the operation and development of its enterprises, not for personal waste, not to transfer assets, and is willing to accept any investigation.
At present, Ruixing coffee is suspended. In addition, on May 12, the board of directors of Ruixing coffee terminated the positions of CEO Qian Zhiya and coo Liu Jian, asked them to resign from the board of directors and received the resignation.
Prior to the suspension, Ruixing coffees share price had fallen 89% this year.
The following is the full text of Lu Zhengyaos statement:
1. Once again, I sincerely apologize to all investors, all employees and customers for the adverse impact of Ruixing coffee incident! Based on the respect for the investigation of the special committee, I have never responded to any medias query on my own about the Ruixing coffee incident, and therefore let my friends who helped me start my business bear many unnecessary charges. At the same time, I solemnly apologize to them and believe that the final investigation can give everyone an objective and fair evaluation.
3. In the past 20 years since I started my business, I have successively participated in the establishment of Shenzhou car rental, Shenzhou special car and Ruixing coffee, all of which are well-known brands in various fields. Through model innovation and technology application, I have provided real products and services for the majority of users, and also solved the employment of tens of thousands of employees. I have always been in the front line of industry. My style may be too radical and the enterprise runs too fast, which also leads to many problems. But I do not cheat investors with the concept. I really want to make the enterprise bigger and better and create value for the society! Whenever I see people holding small blue cups in their hands, I feel proud.
4. I firmly believe that Ruixing coffees business model and business logic are established. Since its operation, Ruixing coffees annual revenue has continued to grow. At present, despite the double blow of the epidemic and fraud, thousands of Ruixing stores are still trying to adhere to the operation, tens of thousands of employees are still working diligently, Ruixings product reputation is very good and brand toughness, sincerely ask all sectors of society to give tolerance and support, I thank you here!
5. Since I started my business, almost all of the money I earned has been invested in the real enterprises. The money I got from pledging Ruixing coffee stock has also been used to support the operation and development of its various enterprises. It has not been used for personal extravagance, nor for the transfer of assets. I am willing to accept any investigation on this. 6. Over the past month, I have been in deep pain and remorse, unable to sleep at night. If the company delisted, the difficulties and pressure will continue to increase, but no matter what, I will try my best to maintain the store operation, try my best to recover the loss of shareholders, so that the brand of Ruixing can go on. Finally, once again sincerely apologize to all sectors of the society for the adverse impact of the incident! Lu Zhengyao May 20, 2020 Japanese source: daily economic news editor in charge: Yang Bin_ NF4368