Financial fraud “thunderbolt”: Ruixing coffee delisted, Kangmei Pharmaceutical’s daily limit!

Original title: Financial fraud “thunderbolt”: Ruixing coffee delisted, Kangmei Pharmaceutical’s daily limit! Source: Middle Class House
Fraud has become the hottest word in the capital market!
In China, two companies have recently made fraudulent achievements and gained a great reputation. One is Ruixing Coffee, which was founded in Xiamen, Fujian, and originated in China. It is listed on NASDAQ in the United States. One is Kangmei Pharmaceutical, which was founded in Puning, Guangdong, started with traditional Chinese medicine and listed on the Shanghai Stock Exchange.
Both companies have become hot topics due to fraudulent performance. However, the same person has different lives.
Ruixing Coffee’s stock fell to slag, Xiamen headquarters announced a 50% job cut, and was forced to delist by NASDAQ.
Kangmei Pharmaceutical was only fined 600,000 yuan, and the next day it came out, the opening limit was pulled and the daily limit closed.
The Chinese company, which is also a financial fraud, has a completely different fate. What are the mysteries?
One
Ruixing Coffee is a famous “Quickshooter”.
Trial operation on January 1, 2018, officially opened on May 8, and will be listed on the Nasdaq in May 2019. Starbucks, the flagship of Ruixing Coffee, was established in 1971 and was only listed on NASDAQ in 1992. Ruixing spent 1 year doing Starbucks for 21 years.
Come fast, go fast!
On January 31, 2020, a muddy water institution in the United States that made money by shorting stocks published a 89-page report of Ruixing Coffee. They have done a lot of research and have paid a lot of money.
They hired 92 full-time and 1,418 part-time researchers, squatted at 981 coffee shops in Ruixing Coffee, collected 25,000 tickets and 10,000 hours of video recording, and modeled and analyzed these data.
Finally, they concluded that the actual number of orders for Ruixing is less than the published data, and the average business of each store increased by 69% in the third quarter of 2019 and 88% in the fourth quarter.
The muddy water institutions in the United States are notoriously ruthless, as long as they are targeted, they will be injured if they die. After such a heavy report was issued, Ruixing’s stock began to fall sharply.
At first, Rui Xing still had a hard mouth, and he didn’t admit it. On February 3, Rui Xing issued a clarification announcement, blaming the investigation method of muddy water for flaws and unconfirmed evidence.
Anyone with a discerning eye knows that this method of investigation by muddy water institutions cannot be done by ordinary audit companies, and its authenticity can be imagined.
Finally, Rui Xing couldn’t stand it. On April 2, Ruixing revealed that its performance was fraudulent, and its performance was falsely increased by 2.2 billion yuan. After all, the paper will not cover the fire. Instead of being caught by the US Securities Regulatory Commission, it is better to take the initiative to expose it. In order to be frank and lenient, and resist strictness.
However, frankly, this does not exist in the US stock market.
On the day of Ruixing’s self-reported performance fraud, Ruixing’s stock price fell from 26 US dollars to a direct avalanche to 6 US dollars, plunging by 75%; subsequently, the stock price plunged again by 35% to US $ 4.3. Since then, Ruixing has suspended trading for more than a month.
On May 20th, NASDAQ informed Ruixing Coffee that it must be delisted and delisted!
Ruixing boss Lu Zhengyao was unwilling to accuse Nasdaq of waiting for the results of the investigation to unilaterally announce that Ruixing delisted. And asked to spend 10,000 US dollars, held a hearing to keep the listing status.
Prior to the hearing, Ruixing Coffee resumed trading and the stock price once again fell into avalanche, which fell to $ 2 yesterday. From its highest value of $ 42.77, there was only a little scum left.
Rui Xing’s general situation is gone. Delisting is a stubborn decision. The hearing is just a dying struggle. In the personal statement, boss Lu bluntly said: I have been in deep pain and self-blame for the past month, and I ca n’t sleep at night. If the company withdraws from the market, the difficulties and pressure it faces will continue to increase.
Boss Lu burst into tears, as if he was wronged, but would n’t you know that as a boss is such a big thing?
What boss Lu really feared was a series of chain reactions after Rui Xing left the market. Personal pledged equity bursts, Ruixing’s capital chain breaks, and investors’ blood is lost. No matter which one, boss Lu can drink a pot.
This is not the most terrible, the most terrible is the endless class actions of investors in the United States, and the imprisonment of the responsible person.
American leeks are not so easy to harvest. Investors are the number one in the US capital market. In terms of protecting the interests of investors, the US legal system is very sound, and class actions are enough for counterfeiters to pay a heavy price.