The Ministry of Finance completed the inspection of the accounting information quality of Ruixing Coffee Company’s domestic operating entities

Original title: The Ministry of Finance completed the inspection of the accounting information quality of Ruixing Coffee Company’s domestic operating entities Source: Supervision and Evaluation Bureau
July 31, 2020 Source: Bureau of Supervision and Evaluation
In accordance with the “Accounting Law of the People’s Republic of China”, the Ministry of Finance has organized its forces to deal with Luckin Coffee (China) Co., Ltd. and Luckin Coffee ( Since the establishment of Beijing) Co., Ltd., the quality of accounting information has been inspected, and 23 related companies and financial institutions have been inspected. So far, the inspection is basically complete.
The inspection found that from April 2019 to the end of 2019, Ruixing Coffee Company increased its transaction volume by 2.246 billion yuan (RMB, the same below) through the fictitious commodity certificate business, and inflated its revenue by 2.119 billion yuan (accounting for 5.15 billion yuan of disclosed revenue. 41.16%), inflated costs of 1.211 billion yuan, and inflated profits of 908 million yuan.
In the next step, the Ministry of Finance will impose administrative penalties on the financial fraud of Ruixing Coffee’s main operating entities in accordance with the law, and promptly disclose the punishment results to the public.