The Luckin Coffee financial fraud incident (a fraud of 2.2 billion, they say it was done by the COO... Are so many executives and institutions idiots?) is causing more and more uproar. Today, Focus Media and Hals in the A-share market are also being pushed into the spotlight.
(Image source: Zhihu)
As an advertising supplier for Luckin Coffee, Focus Media was directly named by Muddy Waters, "especially its spending on Focus Media," pointing out that Focus Media was involved in the fraud.
Out of curiosity, I couldn't help but look at Focus Media's annual reports from 2018 to 2019, and I found that in the 2018 annual report, Focus Media mentioned Luckin Coffee as a customer. However, in the 2019 interim report, there was no mention of Luckin Coffee in the entire document. Currently, Focus Media has released its 2019 performance report, but has not yet released its 2019 annual report. I don't know if it will mention Luckin Coffee.
Source: Focus Media 2019 interim report P11
Source: Focus Media 2018 annual report P30
The reason why Hals got caught up in this is obviously because it is Luckin Coffee's main supplier. Looking at their announcement, it was discovered that on September 3, 2019, Hals signed a framework agreement with Luckin Coffee. However, this is only a framework agreement and there is no specific procurement contract. So far, there has been no announcement of a business contract signed with Luckin.
On the day the announcement was made on September 3, 2019, Hals quickly hit the limit up at the opening, but the good times didn't last long. The next day, it quickly fell from its high, with a high volume decline. So far, it has gradually moved away from the high point of 6.45.
Today's actual trading is as follows:
Related articles: