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BRIEF-Luckin Announces The Substantial Completion Of The Internal Investigation

July 1 (Reuters) - Luckin Coffee Inc:

* LUCKIN ANNOUNCES THE SUBSTANTIAL COMPLETION OF THE INTERNAL INVESTIGATION

* LUCKIN COFFEE INC - SPECIAL COMMITTEE HAS FOUND THAT FABRICATION OF TRANSACTIONS BEGAN IN APRIL 2019

* LUCKIN COFFEE INC - COMPANY’S NET REVENUE IN 2019 WAS INFLATED BY APPROXIMATELY RMB 2.12 BILLION

* LUCKIN COFFEE INC - COMPANY’S COSTS AND EXPENSES WERE INFLATED BY RMB 1.34 BILLION IN 2019

* LUCKIN COFFEE - BASED ON ITS WORK, SPECIAL COMMITTEE HAS FOUND THAT FABRICATION OF TRANSACTIONS BEGAN IN APRIL 2019

* LUCKIN COFFEE INC - BOARD TERMINATED FORMER CEO AND FORMER COO BASED ON EVIDENCE DEMONSTRATING THEIR PARTICIPATION IN FABRICATED TRANSACTIONS

* LUCKIN COFFEE INC - BOARD RESOLVED TO REQUIRE CHARLES ZHENGYAO LU TO RESIGN AS A DIRECTOR AND CHAIRMAN OF BOARD

* LUCKIN COFFEE INC - COMPANY IS IN PROCESS OF TERMINATING RELATIONSHIPS WITH ALL THIRD PARTIES INVOLVED IN FABRICATED TRANSACTIONS

* LUCKIN COFFEE - FUNDS FABRICATED TRANSACTIONS WERE FUNNELED TO CO THROUGH NUMBER OF THIRD PARTIES ASSOCIATED WITH CO EMPLOYEES AND/OR RELATED PARTIES

* LUCKIN COFFEE INC - AN ADDITIONAL 15 EMPLOYEES ARE SUBJECT TO OTHER DISCIPLINARY ACTIONS

* LUCKIN COFFEE INC - COMPANY IS IN PROCESS OF TERMINATING RELATIONSHIPS WITH ALL THIRD PARTIES INVOLVED IN FABRICATED TRANSACTIONS

* LUCKIN COFFEE INC - HAS IMPLEMENTED SEVERAL IMMEDIATE ENHANCEMENTS TO ITS FINANCE FUNCTIONS

* LUCKIN COFFEE INC - ENGAGED AN INTERNAL CONTROLS CONSULTANT TO EVALUATE EXISTING CONTROLS ENVIRONMENT

* LUCKIN COFFEE INC - CHARTERING AN INTERNAL AUDIT FUNCTION TO TEST AND EVALUATE ITS CONTROL FUNCTIONS

* LUCKIN COFFEE INC - WILL ALSO STRENGTHEN ONGOING COMPLIANCE TRAINING TO ITS EMPLOYEES

* LUCKIN COFFEE - FURTHER RESOLVED TO TERMINATE 12 OTHER EMPLOYEES WHO PARTICIPATED IN, AND/OR HAD KNOWLEDGE OF, FABRICATED TRANSACTIONS

* LUCKIN COFFEE - MEETING OF BOARD WILL BE HELD ON JULY 2 TO CONSIDER PROPOSAL TO REMOVE CHARLES ZHENGYAO LU, AS DIRECTOR AND CHAIRMAN OF BOARD

* LUCKIN COFFEE INC - INFLATED NET REVENUE IN 2019 CONSISTED OF RMB 0.25 BILLION IN Q2, RMB 0.70 BILLION IN Q3, AND RMB 1.17 BILLION IN Q4 Source text for Eikon: Further company coverage:

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