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Forensic Analyst

Jason Yap, CFA

Forensic Accounting

<p>On 30 June 2021, <a href="https://www.smartkarma.com/entities/luckin-coffee-inc" target="_blank" data-smartkarma-citation="entities:28046:1" rel="noopener">Luckin Coffee (LK US)</a> filed restated financial results which confirmed RMB2.12 billion overstatement in 2019 revenue and RMB1.34 billion overstatement of costs and expenses over the same period.  This article delves deeper into these financial restatements per each line item and highlights the key observations, including a potential read-across to companies adopting similar high growth strategies. </p>

On 30 June 2021, Luckin Coffee (LK US) filed restated financial results which confirmed RMB2.12 billion overstatement in 2019 revenue and RMB1.34 billion overstatement of costs and expenses over the same period.  This article delves deeper into these financial restatements per each line item and highlights the key observations, including a potential read-across to companies adopting similar high growth strategies. 

Luckin Coffee - Restatement of 2019 Financials and Key Observations