Prior to this, with the investigation of counterfeiting of 2.2 billion yuan of Ruixing coffee, Lu Zhengyaos Shenzhou Department stepped out and tried to cut the relationship with Ruixing, but Lu Zhengyao himself was recently blamed.
Last month, according to internal documents and public records, Ruixing coffee sold coupons to enterprises related to Lu Zhengyao and his creation of Shenzhou car rental and Shenzhou Youche, which can exchange tens of millions of cups of coffee in total, pushing its book operating income to a level far higher than the actual income.
Nearly two weeks ago, media reported that people close to the supervision disclosed that the central government had obtained the mandatory e-mail of Ruixing Chairman Lu Zhengyao about the companys financial fraud, and Lu Zhengyao would be prosecuted, which is likely to face criminal prosecution. People close to Ruixings self inspection team also said that Chinas State Administration of market supervision and the Ministry of Finance had a lot of evidence of Ruixings fraud after the investigation. In terms of tax, Ruixing paid tax for falsely increasing transactions.
Lu Zhengyao has resigned as chairman and non-executive director of the companys board of directors and will no longer be a member of the companys nomination committee, the Shenzhou car rental announcement said on Wednesday. Media quoted industry commentators as saying that the Shenzhou Department is speeding up the cutting of the connection with Ruixing coffee, and Lu Zhengyaos resignation from the Shenzhou car rental position is the latest step in its self-help measures.
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