Under the revised Securities Law of China, regulators may have some ability to investigate Luckin, which disclosed wide-scale sales revenue fraud.
This is the first time Luckin has sold branded merchandise as it evolves its marketing and branding strategy.
Luckin is under financial pressures as the startup coffee chain is showing signs of overheating.
Luckin’s announcement comes amid its escalating battle with Starbuck for China’s caffeinated drink lovers.
China fined five community group-buy platforms for price dumping, the “she economy” is on the rise as modern Chinese women power growth.