Cloopen: A Clean Cloud, or Still Under Stormy Skies?

Cloud services provider’s investigation confirms revenue inflation last year, while separate, but similar, investigation by retailer Miniso finds no evidence of misleading claims involving its franchise model Key Takeaways: An internal investigation by cloud services provider Cloopen found the company inflated its revenue by about 5% in last year’s second and third quarters The new China-U.S. information-sharing agreement could help restore investor confidence in such U.S.-listed Chinese companies By Doug Young A couple of new announcements involving internal investigations results for two U.S.-listed Chinese companies are showing why we need…

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Luckin Brews Up Hot Results on Rapid Expansion, Diversified Footprint

China’s leading coffee chain’s revenue rose 72% in the second quarter, even as most of its peers reported declines due to Covid-related disruptions Key Takeaways: Luckin Coffee reported strong revenue and profit growth in the second quarter, banking on a rapid expansion and winding down of expenses related to an earlier accounting scandal Company has adopted a hybrid model of using self-operated stores in major cities, while working with partners to open stores in smaller markets By Doug Young Chinese restaurants and coffee shops got hammered in the second quarter,…

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New China Accounting Scandal Flies Under the Radar. And Where There’s Smoke …

Cloud services provider Cloopen disclosed it may have faked up to 80 million yuan in sales last year after being tipped off by its auditor, which later resigned By Doug Young A high-flying Chinese Starbucks imitator called Luckin (LKNCY.US) made global headlines around this time two years ago, tumbling from grace after admitting to massively cooking its books. Now, a much lower-profile, but similar, scandal is brewing at a Chinese cloud services company called Cloopen (RAAS.US), which is saying as much as 10% of its sales in last year’s second…

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Luckin Coffee Nears Major Milestone with Imminent Emergence from Bankruptcy

China’s scandal-tainted Starbucks challenger says liquidators handling its U.S. bankruptcy have filed a motion to formally close the case Key Takeaways: Luckin Coffee said the liquidators handling its U.S. bankruptcy have formally filed to close the case after a recent settlement with holders of $460 million of its convertible notes Development could pave the way for company to relist on the Nasdaq, though the U.S. securities regulator could face pressure to veto such a move By Doug Young   This is one liquid that China’s largest coffee purveyor won’t miss. That’s…

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Mild Manner Coffee Takes on Starbucks in China With ‘Street Coffee’

Newer chains like the ByteDance-backed startup are using small-store format to change the big game in China’s vibrant coffee market Key takeaways: Manner Coffee is at the forefront of a new generation of boutique Chinese coffee chains that are attracting major investment dollars Newcomers are challenging Starbucks with small-store format that slashes rent, labor costs By Jose Qian China’s booming coffee business has made it the second most important market for global giant Starbucks (SBUX.US), behind only its home U.S. market. But it’s also providing fertile ground for new and…

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Scandal-Ridden Luckin in Nascent Coffee Comeback. But Will Investors Take a Sip?

With strong first-half revenues and shares within striking distance of its $17 IPO price, Starbucks challenger could be positioning itself for a big-board relisting Key takeaways: Luckin Coffee’s latest post-scandal financial report shows revenue more than doubled in the first half of the year, as losses narrowed Reformed company’s shares have rebounded to just below their IPO price, as it moves to business model with new focus on franchising By Mia Shanley For better or worse, investors tend to have short memories. That’s especially the case with Luckin Coffee Inc.…

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