Research on the Disadvantages of Registration System and the Benign Development Path of Enterprise Delisting Based on Luckin Coffee

UTS Business School, University of Technology Sydney, 2007, Sydney, Australia

^* Corresponding author: Zhanshuo.Fan@student.uts.edu.au

Abstract

Based on the case of Luckin Coffee’s listing, financial fraud, delisting, restructuring and recovery, this paper comprehensively discusses the potential drawbacks of registration system in terms of insufficient information disclosure, lack of market supervision and increase of short-term speculation. This paper deeply analyzes the risks caused by the failure of the registration system to effectively protect the interests of small and medium investors while lowering the listing threshold and reveals how the enterprises under the registration system mislead the market by exaggerating the performance, resulting in significant losses for investors. In addition, this paper discusses in detail how Luckin Coffee’s business model adjustment after delisting, including supply chain optimization, product innovation and digital transformation strategies, can help it regain market trust and achieve profit growth again. Through the analysis of these strategic initiatives, this paper provides useful reference and enlightenment for other enterprises facing similar challenges, especially how enterprises can achieve sustainable development through technological innovation and steady expansion in the fierce market competition.