China: Luckin Coffee apologises for alleged fraud

Luckin Coffee on Sunday apologised and pledged to strengthen controls after an internal investigation found hundreds of millions of dollars of fake sales last year, wiping about 75 per cent off the company’s market value.

Lu Zhengyao, the company’s chairman, said on social media that he was “ashamed” and “accepted all questions and criticisms”, while promising to do his best to recover the losses. Mr Lu backed the start-up in 2017 as it aimed to take on Starbucks in China and remains one of its largest shareholders.

“I personally blame myself. Regardless of the final findings of the independent committee, I will bear the responsibility that I ought to,” Mr Lu said in a post widely reprinted by local Chinese media on Sunday.

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(Photo: Bloomberg)

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