Luckin Coffee denies reports of Hong Kong listing

China-based coffeehouse chain Luckin Coffee has denied reports of the company pursuing a Hong Kong listing.

Photo credit: Luckin Coffee

The firm issued a statement following the South China Morning Post’s report on its Hong Kong listing. Luckin Coffee said it would “remain committed to the US capital markets.”

While the China-based company clarified that it is not currently pursuing a Hong Kong listing, it will track the developments in capital markets and evaluate all avenues to deliver value to its stakeholders.

In April, Luckin Coffee emerged from bankruptcy proceedings two years after it was hit with a US$180 million penalty by the US Securities and Exchange Commission for fabricating reports of millions of dollars in revenue.

The firm was also reportedly planning to relist its shares in the US by the end of this year, after being expelled from Nasdaq over the fabrication of its income statement.

See also: Lessons from the Luckin fiasco

The revelations of fraud in Luckin Coffee were first published in early 2020 by short seller Muddy Waters, which accused the coffeehouse chain of having an “inherently flawed” business model and inflating sales.

The company posted a revenue of US$381.7 million in the fourth quarter of 2021, with 353 net new store openings, bumping up its total store count to 6,024.

Jinyi Guo, Luckin Coffee’s chairperson and CEO, said the company’s completion of the provisional liquidation played a major role in advancing its growth strategy, enabling it to operate from a position of greater financial strength.