Rumored to be back on the NASDAQ listing, Luckin Coffee said the report was untrue

Beijing News (reporter Wang Ziyang) On January 20, it was reported that Luckin Coffee, which is currently trading in the US stock powder single market (an over-the-counter trading market that provides services for companies that do not meet the listing conditions), is studying plans to re-list on the NASDAQ, which may be carried out as soon as the end of this year. In response, Luckin Coffee said that the report was untrue.

According to the Financial Times, before the proposed re-listing, Luckin Coffee held a meeting with investors and advisors to discuss other capital raising options. The company's management changes and recent growth suggest the company may remain attractive to investors, people familiar with the matter said.

It is worth noting that in April 2020, Luckin Caffeine caused widespread discussion for financial fraud, and subsequently, it was delisted from nasdaq and entered the "powder single market". In the powder market, Luckin Coffee continues to trade. Or affected by the news of its return to nasdaq, its stock price rose more than 16% on January 20.

Luckin Coffee filed for bankruptcy protection in the U.S. in 2021 to restructure its debt while continuing its business. Once the bankruptcy proceedings are completed, the company can move forward with plans to re-list. Previously, Luckin Coffee issued three consecutive announcements, announcing that it had reached a number of "milestones" in restructuring plans and capital market disclosures. However, there are fewer cases of returning to NASDAQ from powder, and Luckin Coffee still faces no small difficulties in debt restructuring, domestic litigation, market supervision and other aspects.

According to luckin coffee's financial report, the company's net income in 2020 was RMB4,033.4 million (US$618.1 million), an increase of 33.3% compared to 2019, and growth was achieved despite the impact of the new crown pneumonia epidemic in 2020, mainly driven by the increase in the average selling price of Luckin coffee products.

Beijing News reporter Wang Ziyang

Edited by Li Yan Proofreader Wang Xin