“On January 4, 2021, Luckin Coffee’s Board of Directors received a letter from certain employees containing allegations against the Company’s Chairman and CEO, Dr. Jinyi Guo. The Board immediately formed an independent committee, led by one of the joint provisional liquidators and joined by two independent non-executive directors, to conduct an investigation into the claims and the circumstances of the letter. The Board and independent committee are taking this matter seriously.

Importantly, the allegations in the letter are unrelated to the conduct previously disclosed on April 2, 2020, and the authors of the letter do not assert that the alleged conduct had any material impact to the Company’s reported financial data. Dr. Guo denies all of the allegations set out in the received letter.

The Company’s new leadership team has developed an updated business plan that has resulted in top line and store profitability growth in 2020, overcoming significant financial and operational challenges. Luckin Coffee’s positive momentum continues under the new management team, with 35.8% year-over-year net revenue growth in the third quarter of 2020 and over 60% of stores achieving positive profitability in November 2020.

Luckin Coffee remains focused on growing its core coffee business and is committed to its long-term growth targets. The Board and management team will continue to take actions to deliver profitable returns while fostering a company-wide culture that focuses on delivering product and services with high quality, high affordability and high convenience to our customers, encouraging innovation, and holding one another accountable.”