Editor’s note: This article is from the wechat official account bowangcaijing (id:bowangcaijing). The author: the seventh stroke. It is reproduced by chuangyebang with authorization

Using miracles to describe Ruixing’s experience in the past three years may be a little exaggerated. However, it is not easy for a physical coffee chain brand to achieve crazy expansion and sharp increase in revenue during the epidemic, and all this also happened when the company’s brand image was damaged due to financial fraud.

A few days ago, Sina Finance said that Ruixing coffee was considering listing in Hong Kong. Soon, Ruixing responded to the listing news.

On May 9, lkncy. US announced that the management of the company focused on providing excellent products and services to customers through the implementation of business strategy. The company remains committed to the U.S. capital market and strives to improve long-term value for shareholders. Ruixing coffee will continue to pay attention to the development of the capital market and evaluate all ways to provide value to stakeholders, but it does not seek to be listed in Hong Kong at present.

According to another person familiar with the matter, Ruixing coffee, which is listed on the US stock powder market, is studying the plan to re list on Nasdaq, which may be carried out as soon as the end of this year.

From the above information, Ruixing really has no intention of going back to Hong Kong for listing, but from another point of view, the news of Ruixing coffee’s return to Hong Kong for listing can be believed by the media and spread, which just shows that Ruixing is no longer the loser who is praised by everyone because of the fraud scandal - people begin to believe that it has the strength to re list.

Time has passed, and the auspicious luck with infinite scenery has come back.

Ruixing’s development experience is enough as a business case. As the company that achieved IPO in the shortest time in the world, the chain coffee brand went public successfully 18 months after its establishment. Fortune and misfortune depend on. After experiencing the high point, Ruixing quickly fell, but miraculously rose rapidly.

On January 31, 2020, muddy water released an 89 page Research Report, pointing directly at the financial fraud of Ruixing coffee. Two months later, the three independent directors of Ruixing coffee disclosed that the company falsely increased sales by 2.2 billion yuan. Affected by this, the company’s share price plunged by 80%. On June 29, Ruixing coffee stock was officially suspended on Nasdaq for delisting.

At that time, even Ruixing’s internal employees began to doubt that the company might not work. But Ruixing seems to have found a solution. On December 17, 2020, the U.S. Securities and Exchange Commission (SEC) has said that Ruixing coffee agreed to pay a fine of $180 million to settle and resume the transaction.

Seven days later, the first financial report submitted by the joint liquidator of Ruixing coffee to the Grand Court of the Cayman Islands showed that the strategic focus of Ruixing coffee has shifted from rapid expansion to targeted expansion, as well as improving profitability and cash flow.

In fact, Guo Jin, the new head of Ruixing, started the plan to close loss making stores early in the morning. In May 2020, Ruixing coffee closed 80 stores in the Beijing market. As of November 30, 2020, the number of Ruixing coffee stores had decreased from 4507 to 3898.

When Ruixing seems to be actively saving himself, Ruixing has an internal fight.

On January 3, 2021, a total of 31 vice presidents, general managers of all branches and core business executives of Ruixing coffee submitted a report letter to Dazheng capital (Ruixing’s largest capital) and the board of directors, collectively requesting the dismissal of Guo Jinyi, the current chairman and CEO of Ruixing coffee.

The reason for removal is:

1、 Corruption, cheating through glove suppliers and damaging the interests of the company;

2、 Abuse of power, eradicate dissidents, Party members and oppress dissidents.

On January 6, Guo Jinyi issued a letter from all staff to respond to the matter. Guo Jinyi believed that the report letter submitted by senior executives was organized and drafted by Lu Zhengyao and Qian Zhiya. Some of the employees involved did not know the truth and were coerced to sign. He said he had asked the board of directors to set up an investigation team.

Then the matter was settled. No matter what the truth is, it is certain that Ruixing is not harmonious internally. With so many executives publicly questioning Guo Jinyi, his work in Ruixing may not be smooth.

However, nothing could stop Ruixing from coming back from the dead.

On April 11 this year, Ruixing coffee announced that the company had completed the financial debt restructuring and completed the procedures in Chapter 15 of the bankruptcy law; Positioning for long-term sustainable growth and profitability; The company is no longer subject to bankruptcy or bankruptcy proceedings in any jurisdiction.

This is a new beginning for Ruixing.

In terms of revenue, Ruixing has also made good achievements in the past two years

Ruixing coffee’s net revenue in 2020 was 4.033 billion yuan, a year-on-year increase of 33.3%; As of December 31, 2020, the cumulative number of trading customers of Ruixing coffee exceeded 64.9 million, compared with 40.6 million in the same period of last year.

By the third and fourth quarter of 2021, Ruixing’s financial report is more bright. The net profit in the third quarter of last year was RMB 5.46 billion, a year-on-year increase of RMB 10.26 billion, with a net profit of RMB 10.26 billion. In the fourth quarter of 2021, the revenue of Ruixing coffee was 2.43 billion yuan, a year-on-year increase of 80.7%; The net profit was 921.3 million yuan.

In 2021, the revenue of Ruixing coffee was 7.965.3 billion yuan, a year-on-year increase of 97.5%; The net profit attributable to the parent company was 686 million yuan.

In terms of the number of stores, the net number of new stores opened by Ruixing coffee in 2021 was 1221, with a year-on-year increase of 25.4%. By the end of 2021, Ruixing coffee had 6024 stores.

On February 15 this year, Guo Jinyi, chairman and CEO of Ruixing coffee, issued an internal letter to 20000 employees of Ruixing. In the internal letter, Guo Jinyi pointed out that in January this year, Ruixing opened about 360 new stores, refreshing the record of Ruixing’s total number of stores in a single month. In 2018 and 2019, Ruixing’s average number of new stores per month was 172 and 208.7 respectively. This means that Ruixing has expanded faster than the most glorious period in the past.

It is worth mentioning that the survival rate of Ruixing stores has not decreased due to the sharp increase in the number of stores opened. According to the data, the survival rate of Ruixing new stores opened for 12 months in 2019 accounted for 63%, while in 2021, this figure increased to 93%.

In terms of store turnover, 2