Chinese beverage chain Luckin Coffee has named Guo Jinyi, a co-founder and the company’s acting chief executive officer as its new chairman and CEO, replacing founder and former chairman Charles Lu.
Why it matters: The power struggle in the topmost ranks of the embattled Chinese coffee chain may finally be drawing to a close. However, its future prospects are gloomy after it was delisted on June 29 following a second warning from the US regulator.
- Lu fought to retain control of Luckin after directors attempted to oust the founder over his alleged involvement in the accounting fraud it admitted in April.
Details: Luckin said in a Monday filing that an extraordinary general meeting of shareholders held July 5 resulted in the removal of four directors, including Charles Lu, from the board.
- Yang Jie and Zeng Ying were appointed during that same meeting as independent directors. On July 12, the board voted to add Cha Yang and Liu Feng to the independent board director list.
- Despite his ouster, Charles Lu is reportedly seeking to stay in control of the company by ensuring his allies are voted to the board.
Context: Guo joined Luckin Coffee in October 2017, working on the construction of Luckin’s logistics and distribution system. Similar to his predecessor, former Luckin CEO Qian Zhiya, he worked with Lu as the assistant to the chairman for auto rental firm Car Inc.
- He previously worked at China’s Ministry of Transport and as a research assistant at the China Academy of Transportation Sciences.