three rounds of fina ncing total ing USD 550 . The Luckin Coffee news has also potentially exposed more rotten eggs. According t o public informati on, since the financing of. The Beijing-based company, which claims to have over 100 million users, was accused by activist short sellers Wolfpack Research and Muddy Waters in April of inflating its 2019 revenue by up to 44 . iQiyi's revenue rose 52% in 2018, but decelerated to 16% growth in 2019 . Iqiyi has provided no solid evidence to defend itself besides an indignant statement denying all the accusations, but neither has it made a sudden confession like fellow short-seller prey Luckin Coffee. Luckin breaks through the traditional mode and creates the miracle of the new retail mode of coffee.We analyze this new retail mode from different aspects: Luckin爷s operating strategy, competitor, SWOT analysis and so on, and we also give some suggestions that can help Luckin deal with some potential problems and seize the opportunity. . But within a year of its founding in 2017, one of the biggest VC firms in China, Joy Capital, as well as the Singapore sovereign wealth fund GIC, had put serious . Luckin Coffee: Fraud + Fundamentally Broken Business . Success is being a change agent for the greater good at work, home and globally. 'The Netflix Of China' Inflating Numbers Since Before IPO, Short Seller That Warned Against Luckin Coffee Says Tuesday, April 7, 2020 - 11:21pm | 476 Luckin Coffee's sudden admission of financial fraud has touched off a short-selling bonanza for US-listed Chinese stocks. iQiyi was founded as a subsidiary of Baidu in 2010. The following is a road map through BEKE's multivariate fraud. Executive Summary. Two more US-listed Chinese companies are under scrutiny for allegedly inflating their financial data, less than a week after Luckin Coffee admitted to a US$310 million accounting fraud, in a . Please be advised that WPR,LLC, Wolfpack Research (WPR) is a research and publishing firm, of general and regular circulation, which falls within the publisher's exemption to the definition of an "investment advisor" under Section 202(a)(11)(A) - (E) of the Securities Act (15 U.S.C. This paper took Luckin Coffee's financial statement data in 2017 and 2018 as the research object. gillem-tulloch iceberg-research blue-orca-capital j-capital luckin-coffee wolfpack-research grizzly-research hindenburg-research viceroy-research-group bit-digital-inc douyu-international-holdings-ltd tyro-payments-ltd nearmap-ltd ehang-holdings-ltd sos-ltd culper-research ebang-international-holdings-inc diginex-ltd so-young-international-inc . After the Luckin Coffee fraud scandal, the short-selling trend of Chinese stocks also follows. When Luckin Coffee (NASDAQ: LK) ("Luckin" or the "Company") went public in May 2019, it was a fundamentally broken business that was attempting to instill the culture of drinking coffee into Chinese consumers through cut-throat discounts and free giveaway coffee. China's second accounting scandal in less than a week is underscoring concern over lax corporate governance at some of the country's fastest-growing companies. Research and development expenses were RMB19.8 million (US$2.9 million), up 40.0% from RMB14.1 million in the third quarter of 2019. Last month, short seller Wolfpack Research issued a report saying that the company has inflated revenue since . The Wolfpack report claimed Iqiyi had also blown up its expenses, the prices it pays for content, other assets, and acquisitions "in order to burn . The stock of Luckin Coffee plunged by over $5.5 billion after the company admitted on April 2 that its chief . All Wolfpack Research articles in Compliance Week. However, nine months after its IPO on NASDAQ, Luckin was accused of accounting fraud but did not confessed to the allegations until two months later. Wolfpack Research Is Short EH. 31-Jan LK Luckin Coffee (瑞幸咖啡) Muddy Waters Research USD 9bn 5-Feb LK Luckin Coffee (瑞幸咖啡) Ash IIIuminations Research USD 9bn 13-Feb WUBA 58.com (58同城) Grizzly Research USD 9bn 20-Feb CAN Canaan (嘉楠耘智) Marcus Aurelius Value USD 0.9bn 24-Feb GSX GSX Techedu (跟誰學) Grizzly Research USD 10bn Executive Summary. In 2½ years, Luckin rose from nothing to become China's biggest coffee chain with 4,500 shops, outnumbering Starbucks in the world's most populous country. Luckin's coffee tastes average, but it is unbelievably cheap. Editor: Ben Armour Global financial research firm Wolfpack Research issued a public report stating . 'The Pack' works together, looks ahead, and does everything positive to succeed. The Luckin Coffee fraud scandal was a "great morality tale" for markets, and more needs to be done to protect American investors from such cases, said an analyst, who called a bill to delist . At the beginning of its establishment, Wolfpack had shorted U.S. telecommunications and technology company GTT Communications and storage solution provider Smart Global Holdings Inc. GTV and Revenue Inflation. While Wolfpack was known as a result of recent short on "Netflix of China . Luckin Coffee's spectacular downfall , as US-listed Chinese companies find themselves under increasing scrutiny. Wolfpack Research is a global financial research & due diligence firm dedicated to protecting investors by ensuring a balance in the financial ecosystem. 15 of which have seen their share prices fall by more than 66 per cent and six have delisted. China's embattled coffee delivery startup Luckin has reached a settlement with the U.S. Securities and Exchange Commission, agreeing to pay a $180 million penalty to settle charges that it . The unit was initially co-funded by Rhode Island-based Providence Equity Partners, but Baidu bought out Providence's share in 2012 to take . Luckin Coffee stock fell more than 94% in the fallout . A short seller firm has accused Chinese video-streaming platform Iqiyi of reporting inflated revenue figures and user numbers in 2019, following just days after US-listed Luckin Coffee's explosive revenue fraud disclosure on Thursday. "We assisted Wolfpack with comprehensive research into iQIYI . In January, Block announced he was shorting the . Source: Wolfpack Research report Last year, in addition to a joint report with Muddy Waters against Luckin Coffee, Wolfpack Research also released short reports on Chinese companies including Baidu-owned streaming platform iQiyi, and news . The false financial statements were first reported by short seller Muddy Waters Research in January, which Luckin denied at the time. Details: Muddy Waters Research tweeted a link to a Wolfpack Research report on Tuesday, alleging that Iqiyi had inflated its 2019 revenue by 27% to 44% and overstated user numbers by 42% to 60%. His recent bets include one against another Chinese company, Luckin Coffee. 1.2 Financial Ratio Analys is. PARTIES . On the same day, the US-based short seller and securities analysis firm released a short-selling report, accusing Chinese video-streaming platform Iqiyi of inflating its 2019 revenue by up to . Luckin Coffee's spectacular downfall , as US-listed Chinese companies find themselves under increasing scrutiny. After Luckin Coffee, Streaming Service IQIYI Is The Next Chinese Company Facing An SEC Probe Over Inflated Earnings . 77d(a)(6) (the "Securities Act"). Luckin Coffee: Fraud + Fundamentally Broken Business . The core parties in this case include: Luckin Coffee Inc. (Luckin) Three months after Muddy Waters Research sounded the alarm on Luckin Coffee Inc - ADR (NASDAQ: LK), the firm is now accusing popular Chinese online video platform IQIYI Inc (NASDAQ: IQ) of . It is not illegal in China to steal from US investors," Dan David, the founder of Wolfpack Research, said in an interview with Bloomberg TV on April 7. 研 究).Citron Research is a short seller which only has one official full-time employee, Andrew Edward himself. . Short Seller That Targeted Luckin Coffee Takes Aim at China's iQIYI In a report released Tuesday morning, the firm Wolfpack Research claims that iQIYI (ticker: IQ)was committing fraud well before its initial public offering in 2018 and has continued to do so. It claimed that China's well-known video stock iQIYI was committing fraud well before its IPO in 2018 and has . Muddy Waters Research, the due diligence firm responsible for first exposing Luckin Cofee's scandal, has backed Wolfpack Research and endorsed a short position on iQiyi. Its founder Dan David has been engaged in due diligence for many years. This site uses cookies. Research, which you may download from the Muddy Waters Research's website. Allegations about the 'Netflix of China' follow on the heels of Luckin Coffee's fraud disclosure. "When Luckin Coffee went public in May 2019, it was a fundamentally broken business that was attempting to instill the culture of drinking coffee into Chinese consumers through cut-throat discounts and free giveaway coffee," begins an 89-page anonymous report shared by short-seller firm Muddy Waters. Shares of another China-based company Luckin Coffee, Starbuck's biggest rival in China, were delisted from the Nasdaq in June after the coffee chain admitted to fabricating its sales figures for 2019. Despite Muddy Waters Research staking its credibility on Wolfpack's claim, the short report fell short of being utterly convincing. . When Luckin Coffee (NASDAQ: LK) ("Luckin" or the "Company") went public in May 2019, it was a fundamentally broken business that was attempting to instill the culture of drinking coffee into Chinese consumers through cut-throat discounts and free giveaway coffee. Similar to Luckin Coffee, this is a real business with significant amounts of fraud. Wolfpack Research says IQ inflated its 2019 revenue by 27-44%, representing $1.15 billion to $1.87 billion. Last month . Luckin Coffee, once hailed as China's homegrown rival to Starbucks, has filed for bankruptcy in the United States less than a year after the company admitted that millions of dollars in sales had . Short-selling specialist Muddy Waters Research, run by Carson Block, said this Jan. 31 in a tweet that it had taken a short position in Luckin Coffee stock. The scrutiny of Chinese companies intensified following the Luckin Coffee scandal. 4. Bloomberg reports (porous paywall):. Muddy Waters Research, an early investor in Wolfpack, backed the research. Leilei Li * National Institute of Standards and Technology, Boulder, CO 80305 USA *Corresponding author: b9054934@newcastle.ac.uk . Keywords: Brand, Marketing strategy, Luckin Coffee, Consumer behavior. In the weeks since it admitted to fabricating over half of its claimed revenue, a short-seller firm called Wolfpack Research made similar accusations against iQiyi, while TAL Education has admitted to smaller-scale inflated figures. Research on the brand marketing strategy of Luckin Coffee . Now, the SEC is investigating. 3. iQiyi. Luckin Coffee, 37.9% of float. Wolfpack Research, and accused the NASDAQ-listed Chinese video streaming company iQiyi of making up its 2019 revenue by up to 44 . Wolfpack Research, which was founded in June 2019, posted a bearish report on Chinese news feed platform Qutoutiao in December, only to promptly find itself refuted with concrete facts and numbers. The increase was mainly due to continued investment in new . Welcome to ComplianceWeek.com. After Luckin Coffee saw its shares plunge last week after a financial fraud scandal sparked by a short seller's report, China's leading video-streaming platform iQiyi Inc. has found itself targeted by another short seller.. Wolfpack Research's report claimed iQiyi "was committing fraud well before its IPO in 2018 and has continued to do so ever since," estimating it inflated its 2019 . Luckin Coffee Inc., was selling. This scandal caused wide concerns, not only on Luckin but also two related firms. China's upstart Luckin Coffee wowed investors with astonishing growth and an ambitious narrative that it was a successful challenger to Starbucks in the making.And then it all blew up in an unexpected way. Good Luckin Introduction Our research shows us that iQIYI, Inc. ("IQ") was committing fraud well before its IPO in 2018 and has continued to do so ever since. Please be advised that WPR,LLC, Wolfpack Research (WPR) is a research and publishing firm, of general and regular circulation, which falls within the publisher's exemption to the definition of an "investment advisor" under Section 202(a)(11)(A) - (E) of the Securities Act (15 U.S.C. Muddy Waters said it had received an . Good Luckin". The Xiamen, China-based Luckin Coffee was in May ordered to delist from the Nasdaq after an internal investigation found the company's chief operating officer and other employees reported . Short Seller That Targeted Luckin Coffee Takes Aim at China's iQIYI. Bad Luckin: After crashing 83%, Nasdaq stopped trading in Luckin Coffee's shares today. 77d(a)(6) (the "Securities Act"). Wolfpack Research alleged iQiyi inflated its 2019 revenue by approximately 8 billion yuan ($1.13 billion) to 13 billion yuan ($1.98 billion) — or between 27% to 44%. Details: Muddy Waters Research tweeted a link to a Wolfpack Research report on Tuesday, alleging that Iqiyi had inflated its 2019 revenue by 27% to 44% and overstated user numbers by 42% to 60%. Activist firm Wolfpack Research released a report on Tuesday, . Wolfpack Research is a new company established in May 2019, based in New York. Luckin Coffee was extolled as the Chinese challenger of Starbucks. It has been one month since short seller Wolfpack Research accused Chinese video-streaming platform Iqiyi of inflating 2019 revenue by up to 40%. Wolfpack Research's team on the ground found no signs of production equipment in the Yunfu facility. TAL Education, an education service provided, subsequently admitted it had previously fabricated sales. Baidu ( BIDU 2.81% ) spun off iQiyi, one of the top video streaming platforms in China, in an IPO two years ago. Luckin was kicked off the . Right after its $645 million IPO, the company had "evolved into a fraud by fabricating . When Luckin Coffee (NASDAQ: LK) ("Luckin" or the "Company") went public in May 2019, it was a fundamentally broken business that was attempting to instill the culture of drinking coffee into Chinese consumers through cut-throat discounts and free giveaway coffee. Luckin Coffee's IPO was completed in mid-May 2019 and raised $561 million. This 12-year-old firm has published more than 150 short reports and attacked 20 Chinese companies in six years. China streaming platform iQiyi has also been accused of fraud by short seller Wolfpack Research, but has described the report as "unsubstantiated" and "misleading". Executive Summary. . The short sellers timed their release to coincide with the Chinese New Year, ensuring that U.S. markets would open before the company had time to publish a rebuttal. Shares of both Luckin and TAL have suffered. . Details: Muddy Waters Research tweeted a link to a Wolfpack Research report on Tuesday, alleging that Iqiyi had inflated its 2019 revenue by 27% to 44% and overstated user numbers by 42% to 60%. Shares of Iqiyi Inc., a Beijing-based Netflix-like streaming service by Baidu, plunged early Friday after the company said it's . Wolfpack Research alleged in a report that iQiyi, which is majority owned by Chinese search giant Baidu, overstated revenue for 2019 through a number of means, including the way it booked revenue . Luckin Coffee ousts chairman, names new CEO Wolfpack referred back to the Luckin saga in its report in April, concluding its research by stating: "If what we've said thus far doesn't concern you . In a Tuesday report, short sellers Muddy Waters and Wolfpack Research said iQiyi's 2019 revenue numbers are inflated by at least $1.13 billion. This case describes revelations of fraud at Luckin Coffee, beginning with an anonymous report in January 2020 and continuing with the company's admission in April 2020 that it had inflated its revenues by 2.2 billion RMB ($310 million), almost half its reported revenue, in the last three quarters of 2019. Wolfpack Research said the company inflated revenue by up to 44%. But investors should still take Wolfpack and Muddy Waters' research with a grain of salt. (SEC) after research and due-diligence firm Wolfpack Research found . > Will iQIYI be the Next Luckin in the fallout does everything positive to succeed > Research. Its $ 645 million IPO, the company has inflated revenue since diligence... 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