First of all, after the outbreak of fraud, we changed the previous strategy of large-scale and rapid expansion, opened new stores only in some areas that could maintain profitable operation, closed stores with relatively poor operating conditions, suspended international business, and significantly slowed down the unmanned retail and e-commerce business launched at the beginning of the year.
Secondly, we accelerated the launch of new products. After April 2, we launched nearly 60 products, launched a number of new series of products, and adjusted and upgraded some light food products according to market sales feedback.
Thirdly, the discount has been greatly adjusted. From the previous discount of 1.80% and 3.8% to the current discount of 4.80%, more attention has been paid to the user value brought by private domain traffic, and the strategy of community operation has been adopted. More than 9000 wechat communities have been established, and leisure time discount has been launched to boost sales.
Under the influence of these measures, the above-mentioned people said that lucky has achieved relatively stable operation after the fraud incident, and will maintain such operation strategy until it is profitable.
Ruixing coffee issued an announcement on the evening of May 12 to adjust the management and organizational structure of the company. The former CEO and coo involved in fraud were terminated. Guo Jinyi, co-founder, served as chairman and CEO and entered the board of directors. Cao Wenbao and Wu Gang were elected as directors of the company.
After that, with the continuous progress of fraud investigation, lucky coffee received two delisting notices from Nasdaq, and then decided to give up holding a hearing and officially delisted.
On July 17, with the formal appointment of the provisional liquidator by the court of the Cayman Islands, lucky coffee finally had the opportunity to negotiate and restructure the companys debts on a relatively stable platform and ensure its daily operation.
In the future, although the business of lucky coffee has returned to stability, the change of its board of directors continues.