JCERJournal of Contemporary Educational Research2208-84662208-8474Bio-Byword Scientific Publishing Pty. Ltd.10.26689/jcer.v6i10.4425ArticleLuckin Coffee: A Study of the Reasons for Committing Financial Fraud and Solutions for Getting Out of a Financial Crisishttps://artdesignp.com/journal/JCER/6/10/10.26689/jcer.v6i10.4425Xinyan Jiang20226102022-10-27Luckin Coffee grew rapidly in the past few years and it was the fastest Chinese Concept company go public in NASDAQ. However, its stock price plunged in 2020 due to financial fraud. It is crucial for Luckin Coffee to think about how to recover from the financial fraud and become a business representative of the “new retail” under the Internet model again. To recover from the financial crisis caused and gain profit, Luckin could improve its existing business model by improving product development, strengthening capital management in both marketing and expansion. The internal structure can also be adjusted by diversifying equity and replacing the manager team. Taking Luckin Coffee as an example, this paper analyzes the causes of financial fraud, propose solutions to recover from it, and evaluate the effectiveness of solutions in the context of reality.

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