Luckin Coffee Announces the Appointment of BDO as Independent Auditor

Rhea-AI Summary

Luckin Coffee (OTC: LKNCY) has appointed BDO China Shu Lun Pan Certified Public Accountants LLP as its new independent registered public accounting firm for the fiscal year ending December 31, 2022, effective immediately. This decision was authorized by the audit committee of the Board of Directors. BDO replaces Centurion ZD CPA & Co., which will assist in the transition to ensure continuity in auditing services.

Positive

• Appointment of BDO may enhance credibility with investors and improve financial transparency.
• Seamless transition from previous accounting firm could minimize disruptions in financial reporting.

Negative

• Change in auditors may raise concerns about continuity and potential gaps in experience.

BEIJING, April 14, 2022 (GLOBE NEWSWIRE) -- Luckin Coffee Inc. (“Luckin Coffee” or the “Company”) (OTC: LKNCY) today announced the appointment of BDO China Shu Lun Pan Certified Public Accountants LLP (“BDO”) as the Company’s independent registered public accounting firm for the fiscal year ended December 31, 2022, effective immediately. The appointment has been approved by the audit committee of the Company’s Board of Directors.

BDO succeeds Centurion ZD CPA & Co. (“CZD”), the Company’s previous independent registered public accounting firm. CZD is committed to working with the Company and BDO to ensure a seamless transition.

Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of Section 21E of the U.S. 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. Luckin Coffee 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 Luckin Coffee’s 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 expense, timing and outcome of existing or future legal and governmental proceedings, investigations in connection with Luckin Coffee; the outcome and effect of the restructuring of Luckin Coffee’s financial obligations; Luckin Coffee’s growth strategies; its future business development, results of operations and financial condition; the effect of the non-reliance identified in, and the resultant restatement of, certain of Luckin Coffee’s previously issued financial results; the effectiveness of its internal control; its ability to retain and attract its customers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with its suppliers and business partners; trends and competition in China’s coffee industry or China’s food and beverage sector in general; changes in its revenues and certain cost or expense items; the expected growth of China’s coffee industry or China’s food and beverage sector in general; PRC governmental policies and regulations relating to Luckin Coffee’s industry; the potential effects of COVID-19; 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 Luckin Coffee’s 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 Luckin Coffee undertakes no obligation to update any forward-looking statement, except as required under applicable law.

About Luckin Coffee
Luckin Coffee (OTC: LKNCY) has pioneered a technology-driven retail network to provide coffee and other products of high quality, high convenience and high affordability to customers. Empowered by proprietary technologies, Luckin Coffee pursues its vision to build a world-class coffee brand and become a part of everyone’s daily life. Luckin Coffee was founded in 2017 and is based in China. For more information, please visit investor.lkcoffee.com.

Investor and Media Contacts

Investor Relations:
Luckin Coffee IR
Email: ir@lkcoffee.com

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

Media Relations:
Luckin Coffee PR
Email: pr@lkcoffee.com

Ed Trissel / Jack Kelleher
Joele Frank, Wilkinson Brimmer Katcher
Phone: 212 355 4449

 

FAQ

Why did Luckin Coffee change its accounting firm?

Luckin Coffee appointed BDO as its independent registered public accounting firm to enhance financial oversight.

What impact could the appointment of BDO have on LKNCY?

The appointment may improve investor confidence and financial reporting, potentially positively affecting LKNCY's stock performance.

Who was Luckin Coffee's previous accounting firm?

Luckin Coffee's previous accounting firm was Centurion ZD CPA & Co.

When will BDO start its role as Luckin Coffee's accounting firm?

BDO's appointment is effective immediately for the fiscal year ending December 31, 2022.