Disgraced Chinese coffee chain Luckin Coffee, along with more than 40 other firms involved in the deception, has been fined almost US$9 million for falsifying its financial records.
According to reporting, China’s finance ministry has previously found Luckin to have booked RMB2.25 billion in sales via counterfeit coupons between April and December last year, as well as having inflated its reported revenues, costs, and profits.
China’s market regulator found Luckin to have flouted Chinese regulations and misled the public over the period in question.
“We have carried out an overall rectification on the related issues,” said a representative from the firm in acknowledging that Luckin respected the regulator’s decision. “We will further improve our operations according to related laws and regulations.”
Luckin was formerly considered a likely competitor against Starbucks within the territory.