Ruixing Coffee: Except for the unopened stores that have achieved overall breakeven, it is expected to achieve overall profitability in 2021

Futu News reported on August 10 that an insider close to Ruixing Coffee revealed that on the weekend of August 8 just past, Ruixing Coffee, which is deeply involved in financial fraud, held the 2020 “Mid-Year National meeting”. Judging from the business situation disclosed at the meeting in the first half of the year, there are quite positive signals. The business data released inside the meeting showed that as of July, the cash flow of Ruixing Coffee’s single store has been positive. Due to the impact of the epidemic, there are currently more than 300 university stores that are temporarily closed, but excluding unopened stores , Luckin Coffee has achieved overall breakeven. More importantly, based on the current operating conditions, management expects that overall profitability will be achieved in 2021.
However, Ruixing Coffee has recently experienced board turmoil. On the evening of August 3, Ruixing Coffee issued an announcement stating that it had received the resignation of directors Jie Yang and Ying Zeng, and the decision took effect immediately.
In addition, Luckin Coffee also announced that the company has received requests from Lucky Cup Holdings Limited and Fortune Cup Holdings Limited to convene an extraordinary general meeting of shareholders. The two companies proposed to resume Sean Shao’s directorship. As of July 30, 2020, the above two companies collectively hold no less than 10% of the company’s total voting rights.
To this end, Ruixing Coffee will hold a special shareholders meeting on September 2 to vote on Shao Xiaoheng’s return proposal.