BEIJING: Embattled Chinese chain Luckin Coffee is among a raft of 45 companies hit with a combined fine of nearly $9 million over a scandal involving false sales figures, China’s market regulator said Tuesday.
Luckin — Starbucks’ rival in China — had boosted transactions last year through fake coupons by 2.25 billion yuan ($330 million) and inflated its revenue by some 2.12 billion yuan, according to an earlier probe by the finance ministry.
The scandal led to the company being delisted from New York’s Nasdaq and the removal of top executives.
On Tuesday, China’s State Administration for Market Regulation said investigations found that Luckin, with the help of other companies, had falsely increased its 2019 sales revenue, costs and profit margins, and imposed a combined fine of 61 million yuan.
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