Beijing time on the afternoon of April 9, according tomedia reports, luckin coffee chairman Lu Zhengyao will consider resigning as chairman of Shenzhou car rental, as a result of the case of luckin financial fraud, it is one of a series of measures to convince investors that the group is independent of Luckin. “We think it’s something he’s thinking about, but we can’t comment on what the final decision is,” said Emily Paau, director of investor relations at Shenzhou Car Rentals.
Song Yifan, chief executive of Shenzhou Car Rentals, said Luckin had no equity or business relationship with the car rental company.
Shares in Hong Kong-listed Shenzhou Car Rental plunged more than 50 per cent last week after Luckin revealed an internal investigation found hundreds of millions of dollars in sales were suspected of fraud last year. The company’s shares were suspended on Friday.
Nigel Stevenson, an analyst at GMT Research, an accounting research firm, said that even with Mr Lu’s limited day-to-day involvement, Shenzhou car hire could still be “damaged” by his links to Luckin: “Even as a non-executive chairman, he would still be quite active.” “
Shenzhou Car Rentals returned to trading on Tuesday, with its shares down 10 per cent in Hong Kong on Wednesday afternoon. Shenzhou Auto, which is listed in mainland China, was suspended on Tuesday. Lu Zhengyao holds a substantial stake in Shenzhou Youliang.
It is understood that Luckin has appointed a special committee to oversee the investigation. “Regardless of the final findings of the independent commission, I will take responsibility for it,” Mr Lu said at the weekend.