Mediaboss Marketing

BEIJING, July 01, 2020 (GLOBE NEWSWIRE) -- Luckin Coffee Inc. (the Company) (OTC: LKNCY) announced that its Special Committee of the Board of Directors (the Special Committee), with the assistance of its advisors, Kirkland & Ellis International LLP and FTI Consulting, has substantially completed its independent internal investigation (the Internal Investigation) into the issues disclosed in the press release issued by the Company on April 2, 2020.

The Special Committee was formed on March 19, 2020 and authorized by the Board of Directors (the Board) to access documents, records and information of the Company, and to conduct interviews with any employee, officer and director, as the Special Committee deemed appropriate. In the course of the Internal Investigation, the Special Committee and its advisors reviewed over 550,000 documents collected from over 60 custodians, interviewed over 60 witnesses, and performed extensive forensic accounting and data analytics testing.

Based on its work, the Special Committee has found that the fabrication of transactions began in April 2019 and that, as a result, the Companys net revenue in 2019 was inflated by approximately RMB 2.12 billion ( consisting of RMB 0.25 billion in the second quarter, RMB 0.70 billion in the third quarter, and RMB 1.17 billion in the fourth quarter.) The Companys costs and expenses were inflated by RMB 1.34 billion in 2019 (consisting of RMB 0.15 billion in the second quarter, RMB 0.52 billion in the third quarter, and RMB 0.67 billion in the fourth quarter).

Evidence discovered to date demonstrates that the Companys former Chief Executive Officer, Ms. Jenny Zhiya Qian, former Chief Operating Officer, Mr. Jian Liu and certain employees reporting to them participated in the fabricated transactions and that the funds supporting the fabricated transactions were funneled to the Company through a number of third parties associated with the Company employees and/or related parties.

Following the Special Committees recommendations, the Board terminated its former Chief Executive Officer and former Chief Operating Officer based on evidence demonstrating their participation in the fabricated transactions. In addition, the Board resolved to require Mr. Charles Zhengyao Lu to resign as a director and the chairman of the Board and a meeting of the Board will be held on July 2, 2020 to consider the proposal to remove Mr. Charles Zhengyao Lu, as a director and the chairman of the Board. The proposed resignation and removal regarding Mr. Charles Zhengyao Lu was requested by the majority of directors of the Board, and based on findings presented by and the recommendations of the Special Committee. The Special Committee based its recommendations regarding Mr. Charles Zhengyao Lu on documentary and other evidence identified in the Internal Investigation and its assessment of Mr. Charles Zhengyao Lus degree of cooperation in the Internal Investigation. The Board has further resolved to terminate 12 other employees who, at the direction of the former Chief Executive Officer and former Chief Operating Officer, participated in, and/or had knowledge of, the fabricated transactions, including previously suspended employees. An additional 15 employees are subject to other disciplinary actions. In addition, the Company is in the process of terminating relationships with all third parties involved in the fabricated transactions.

In connection with the Special Committees findings,the Company has implemented several immediate enhancements to its finance functions and engaged an internal controls consultant to evaluate the existing controls environment and recommend enhancements to detect and prevent misconducts in the future. The Company is chartering an internal audit function to test and evaluate its control functions.The Company will also strengthen ongoing compliance training to its employees.

The Special Committee may continue to perform certain additional investigation steps if additional relevant information becomes available.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of Section21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as will, expects, anticipates, future, intends, plans, believes, estimates, potential, continue, ongoing, targets, guidance and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the SEC), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about the Companys beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Companys growth strategies; its future business development, results of operations and financial condition; its ability to understand buyer needs and provide products and services to attract and retain buyers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to rely on merchants and third-party logistics service providers to provide delivery services to buyers; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with merchants; trends and competition in Chinas e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of Chinas e-commerce market; PRC governmental policies and regulations relating to the Companys industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in the Companys filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

About Luckin Coffee Inc.

Luckin Coffee Inc.(OTC: LKNCY) has pioneered a technology-driven retail network to provide coffee and other products of high quality, high affordability, and high convenience to customers. Empowered by big data analytics, AI, and proprietary technologies, the Company pursues its mission to be part of everyones everyday life, starting with coffee. The Company was founded in 2017 and is based inChina. For more information, please visit investor.luckincoffee.com.

Investor and Media Contacts

Investor Relations:Luckin Coffee Inc. IREmail:ir@luckincoffee.com

Bill Zima / Fitzhugh TaylorICR,Inc.Phone: 646 880 9039

Media Relations:Luckin Coffee Inc. PREmail:pr@luckincoffee.com

Ed Trissel/Jack KelleherJoele Frank, Wilkinson Brimmer KatcherPhone: 212 355 4449

See original here:
Luckin Announces the Substantial Completion of the Internal Investigation - GlobeNewswire

The dynamic nature of digital advertising markets and the types of concerns identified by the Competition and Markets Authority (CMA) in its market study are such that existing laws are not suitable for effective regulation. It is therefore recommending a new pro-competition regulatory regime to govern the behaviour of major platforms funded by digital advertising, like Google and Facebook.

This recommendation to government is the result of a year-long examination of the markets. The CMA used its statutory information gathering powers to lift the lid on how advertising revenue drives the business model of major platforms.

UK expenditure on digital advertising was around 14bn in 2019, equivalent to about 500 per household. About 80% of this is earned by just 2 companies: Google and Facebook. Google enjoys a more than 90% share of the 7.3 billion search advertising market in the UK, while Facebook has a share of over 50% of the 5.5 billion display advertising market. Googles revenue per search has more than doubled since 2011, while Facebooks average revenue per user has increased from less than 5 in 2011 to over 50 in 2019.

The services provided by Facebook and Google are highly valued by consumers and help many small businesses to reach new customers. While both originally grew by offering better services than the main platforms in the market at the time, the CMA is concerned that they have developed such unassailable market positions that rivals can no longer compete on equal terms:

Their large user base is a source of market power it means that Facebook is a must-have network for users to remain in contact with each other, and enables Google to train its search algorithms in ways that other search engines cannot.

Each has unmatchable access to user data, allowing them to target advertisements to individual consumers and tailor the services they provide.

Both use default settings to nudge people into using their services and giving up their data for example Google paid around 1.2bn in 2019 to be the default search provider on mobile devices and browsers in the UK, while Facebook requires people to accept personalised advertising as a condition for using their service.

Their presence across many different markets, partially acquired through many acquisitions over the years, also makes it harder for rivals to compete.

Each of these factors individually presents a potential barrier to new competition, but together they work to reinforce each other and are extremely difficult to overcome.

These issues matter to consumers. Weak competition in search and social media leads to reduced innovation and choice, as well as to consumers giving up more data than they would like. Further, if the 14bn spend in the UK last year on digital advertising is higher than it would be in a more competitive market, this will be felt in the prices for hotels, flights, consumer electronics, books, insurance and many other products that make heavy use of digital advertising. The CMA found that Googles prices are around 30% to 40% higher than Bing when comparing like-for-like search terms on desktop and mobile.

Google and Facebooks market positions also have a profound impact on newspapers and other publishers. The CMA has found that newspapers are reliant on Google and Facebook for almost 40% of all visits to their sites. This dependency potentially squeezes their share of digital advertising revenues, undermining their ability to produce valuable content.

The scale and nature of these issues mean that a new pro-competition regulatory regime is needed so that users can continue to benefit from innovative new services; rival businesses can compete on a level playing field and publishers do not find their revenues unduly squeezed. The CMAs proposals are consistent with those made by Professor Jason Furman in his report for the government.

The CMA has proposed that within the new regime a Digital Markets Unit should have the ability to:

enforce a code of conduct to ensure that platforms with a position of market power, like Google and Facebook, do not engage in exploitative or exclusionary practices, or practices likely to reduce trust and transparency, and to impose fines if necessary.

order Google to open up its click and query data to rival search engines to allow them to improve their algorithms so they can properly compete. This would be designed in a way that does not involve the transfer of personal data to avoid privacy concerns.

order Facebook to increase its interoperability with competing social media platforms. Platforms would need to secure consumer consent for the use of any of their data.

restrict Googles ability to secure its place as the default search engine on mobile devices and browsers in order to introduce more choice for users.

order Facebook to give consumers a choice over whether to receive personalised advertising.

introduce a fairness-by-design duty on the platforms to ensure that they are making it as easy as possible for users to make meaningful choices.

order the separation of platforms where necessary to ensure healthy competition.

Whilst this recommendation is UK-focused, many of the problems that the CMA has identified are international in nature. It will therefore continue to take a leading role globally in relation to these issues as part of the CMAs wider digital strategy.

CMA Chief Executive Andrea Coscelli said:

Through our examination of this market, we have discovered how major online platforms like Google and Facebook operate and how they use digital advertising to fuel their business models. What we have found is concerning if the market power of these firms goes unchecked, people and businesses will lose out. People will carry on handing over more of their personal data than necessary, a lack of competition could mean higher prices for goods and services bought online and we could all miss out on the benefits of the next innovative digital platform.

Our clear recommendation to government is that a new pro-competitive regulatory regime be established to address the concerns we have identified and regulate a sector which is central to all our lives.

Safeguarding peoples control over their data is paramount to privacy as well as to the healthy operation of the market, so the CMA has worked with the Information Commissioners Office (ICO) to examine the impact of privacy regulation on the market.

The General Data Protection Regulation is still in its early stages and the CMA is concerned that big platforms could be interpreting it in a way which favours their business models, instead of in a way which gives users control of their data. For example, big platforms might share user data freely across their own sizeable business ecosystem, while at the same time refusing to share data with reputable third parties which could have a detrimental impact on smaller players. The CMAs market study advocates a competitive-neutral approach to implementing privacy regulation, so that the big platforms are not able to exploit privacy regulation to their advantage. It will be working with the ICO and Ofcom further to address these issues through the Digital Regulation Cooperation Forum, the details of which were also published today.

The CMA, working with the ICO and Ofcom, is today formally launching a Digital Markets Taskforce. The Taskforce, originally commissioned by the government, will build on the conclusions of the market study, as well as looking more widely across all platforms to consider the functions, processes and powers which may be needed to promote competition. It will advise government on how a new regulatory regime for digital markets should be designed. To inform its work, the CMA is publishing a call for information, and writing to a number of platforms, seeking views and information. The Taskforce will deliver advice to government by the end of 2020.

The final report can be found in full on the online platforms and digital advertising market study webpage

The CMA is the UKs primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law.

In March the CMA was asked by government to lead a Digital Markets Taskforce, comprising CMA, Ofcom and the Information Commissioners Office to advise government on how a new pro-competition approach should be designed for digital markets. Find out more in the Terms of Reference for this work.

As a result of its clear recommendation for a new regulatory regime, and the ongoing work of the Taskforce, the CMA is not currently recommending making a market investigation reference. However, after the work of the Taskforce has concluded, it will assess whether the actions being taken by the government are sufficient to address the full range of issues identified by its market study, or whether direct action by the CMA is likely to be required.

Media queries should be directed to:press@cma.gov.ukor 020 3738 6460.

See the rest here:
New regime needed to take on tech giants - GOV.UK

Nationalist Party leader Adrian Delia has hit out against government over its attempt to control the media.

Delia was referring to a wrap-around paid advert on this Sundays newspapers, which featured a government explainer on this weeks supplementary budget announced by Prime Minister Robert Abela.

The government is desperate to gain more control and wrap up the truth on newspapers, he said.

The Opposition leader was speaking on party television station NET Television, where he insisted the PN will not be bought.

The Nationalist Party will continue to shout the truth, so that when people buy our newspapers, they understand the truth, he said.

It is time we removed government propaganda from our newspapers, so that people read the truth of what is happening in our country.

Adrian Delia spoke about the partys restructuring, stating the reform is intended to strengthen the partys message of solidarity, not change its beliefs.

On Saturday, the PN leader mooted the possibility of changing the PNs motto from Religio et Patria to Gas-Servizz Tiegek (for your service).

We are a party of truth, which believes in delivering our message honestly and as transparent as possible, he said.

He explained that throughout numerous meetings, the PN has listened and discussed with everyone, while not shying away from accepting all forms of criticism.

Delia said that at times he became emotional in realizing the love and loyalty some people have towards the party, even at times when the party abandoned them.

We want to reflect this love in our statute, because we want to create a space where people voice their concerns and have a say in the formation of party policy, he said.

The individual is what the party is based on.

On the appointment of the new police commissioner, Delia said the party will not endorse a false process, insisting the commissioner is appointed through a two-thirds parliamentary majority.

The opposition leader said that the new police commissioner will have a one-year probation period, meaning he could be easily dismissed by the PM in that window.

Delia said the PN has drawn up proposals on the appointment of the President, Chief Justice and police commissioner, with such proposals being available on the public domain.

The PN leader also voiced his concern over the PMs lack of action in removing those linked with corruption.

Is it because the PMs hands are tied? Is it because his consultants wont let him take certain decisions? he asked.

Read more here:
[WATCH] Opposition leader hits out against government over its attempt to 'control the media' - MaltaToday

Tensions have been growing in the Himalayas along one of the world's longest land borders, with New Delhi and Beijing both accusing the other of overstepping the Line of Actual Control (LAC) that separates the two. The territory has long been disputed, erupting into numerous minor conflicts and diplomatic spats since a bloody war between the countries in 1962.

On Saturday, military leaders met at the border to "peacefully resolve the situation in the border areas," according to a statement from India's foreign ministry. Even today, just what occurred on the ground in the highly militarized region remains unclear -- in part because the main body of this distinctly 21st-century conflict has so far mostly played out through propaganda, strategic leaks and aggressive posturing in the media.

Jingoistic rhetoric

"Some used to say that US and Israel were the only countries which were willing and capable of avenging every drop of the blood of their soldiers," Shah said. "(Modi) has added India to that list.''

Defense Minister Rajnath Singh also weighed in Monday, saying: "I would remind everyone, India's leadership will not let our self respect suffer. India's policy is clear, we won't hurt any country's integrity and dignity. At the same time we will not let any country to hurt our integrity."

Long-running dispute

How resolvable those issues actually are is unclear, given they date back decades and are largely fueled by both sides' refusal to accept the other's territorial claims. Tensions grew late last month amid accusations both countries had overstepped the LAC and were reinforcing their military position on the de facto border.

If China's propaganda and very public PLA deployments are designed to persuade India to back off, Delhi may be looking for similar influence in emphasizing and building its international ties, linking the border issue to other disputes China has in the wider Asia-Pacific region.

"(Washington's) offer to help may have emboldened some in India to take a tougher stand against China in order to 'defend its pride'," the paper added.

"Although China's relationship with the US is tense, the international environment for China is much better than it was in 1962 when India started and (was) crushingly defeated in a border war with China," Long wrote. "In 1962, the national strength of China and India were comparable. Today by stark contrast, China's GDP is about five times that of India."

For now, outright aggression is confined to the media. But with tensions running hot despite the efforts of military figures Saturday, the likelihood of this problem going away soon seems highly unlikely.

Read the original post:
India and China's border spat is turning into an all-out media war - CNN

The transfer is happening at a tricky time for Hong Kong, where the real estate sector faces a downturn from ongoing anti-government protests and the COVID-19 pandemic. Despite a 41 per cent jump this month, Chinese Estates shares are down 20 per cent for 2020.

Before marrying Lau in 2016, Chan was a reporter at Apple Daily for several years, where she covered entertainment and made connections with various celebrities around the city. She joined the Chinese Estates group as an associate in 2002, working in its cosmetic business, according to a company filing. Her elder sister, Chan Sze-wan, was appointed chief executive officer of the company in 2015 after joining in 2002. Chan Lok-wan, her younger sister, is an executive director.

Lau, who was convicted of bribery and money laundering in Macau in 2014, came into the political spotlight last year, when his lawyers applied for a judicial review against the government's plans to permit extraditions, including to mainland China and Macau. His legal challenge opened a split between the Hong Kong government and the business community, which deepened as other business leaders came out against the bill. Lau later withdrew the application, and the government ended up scrapping the law in the face of growing protests.

He was sentenced in absentia to five years and three months in prison for his conviction but, with no extradition pact between Hong Kong and Macau, hasn't served jail time -he just hasn't returned to the gambling hub. This week's share transfer to Chan may be a way to protect the stake, said Everbright Sun Hung Kai's Ng.

Loading

"Lau's family is still optimistic about the prospect of Hong Kong and Chinese Estates so the members of the family increased their shareholding," the company said in an email. "Chinese Estates' general operation and policy will remain unchanged. Please do not make any conjectures."

Lau, one of Hong Kong's richest moguls whose early fortune came from making ceiling fans with his brother Thomas, has been known for some of his high-profile relationships with women. His first marriage to Theresa Po Wing-kam ended in the early 1990s. They had a daughter, Jade, and Lau Ming-wai, who is the chairman of Chinese Estates and deputy chairman of Ocean Park, the debt-laden amusement park that is seeking a government rescue plan.

Before marrying Chan, he had a dramatic breakup with his girlfriend Yvonne Lui Lai-kwan that resulted in Lau's printing of a full-page statement in several newspapers to debunk "untrue reports in the media," in which he said he had given her gifts worth more than $HK2 billion over the years, making her a "very wealthy woman." Lau had two children with Lui.

The more shareholding concentration will reduce the possibility of disputes concerning future direction, which would be positive for Chinese Estates' development and also for the shareholders. It's expected that Chan Hoi-wan will be more actively involved in the company.

Nowadays, the 68-year-old mogul keeps a low profile. This year, as most of Hong Kong's richest tycoons declared support for Beijing's controversial national security law, he has not come out publicly on the issue.

One of the few places where he appears is on the Instagram feed of his wife. Chan, who goes by Kimbee on the platform, posts shots to her 182,000 followers with celebrity friends and business elites. As recently as last year, she showed photos of Lau hobnobbing with fellow billionaires, including Jack Ma, China's richest man, and Thomas Kwok, a member of Hong Kong's wealthiest family. She also posts frequently about penguins.

Chan, whose age was given as 40 in a December filing, started accruing assets in 2017, when Lau gave her a retail complex at commercial building The One in Tsim Sha Tsui that he bought for $HK7.8 billion ($1.5 billion). The same year, he transferred most of his stake in Chinese Estates to her. He told Apple Daily that Chan "is not greedy. She is pure, and she is not a bad woman. She has been taking good care of me and my children."

The family fortune is under pressure due to ongoing uncertainty in Hong Kong. Credit:AP

Lau, who has also owned a Boeing 747 jet and has properties in Hong Kong and London, is known for his investments in art, wine and jewellery, and children with Chan have been the recipients of his largesse. He bought them precious stones and named one of them "The Blue Moon of Josephine", after their daughter Josephine. It has the highest possible colour grade of fancy vivid blue, and its pre-sale price was estimated at 34.2 million francs to 53 million francs ($52.3 million-$81.5 million), according to Sotheby's website.

Loading

Despite the health concerns he cited for his transfer of shares to Chan in 2017, they had a third child in 2018.

Chinese Estates' annual report shows that Chan holds her shares as trustee for her minor children, which means they will be among the heirs to one of the world's greatest and most bewildering fortunes. But while they're still kids, their mother will protect them. On Instagram, Chan sometimes covers their faces with penguin emojis.

Bloomberg

Read more here:
Former reporter takes control of fugitive husband's $11.7 billion fortune - Sydney Morning Herald