Luckin Coffee Inc. said Thursday that its co-founder Charles Zhengyao Lu will remain chairman, after the board of directors failed to oust him.
The board announced earlier that it would vote on Thursday to dismiss Lu as a member of the board and chairman. The vote failed to hit the two-thirds threshold to make the move. Luckin didn’t disclose the exact tally.
The attempt was a result of the company’s internal investigation, where Luckin found its 2019 net revenue was inflated by approximately 2.12 billion yuan ($300 million). The company has removed a number of top executives and dozens of employees.
The company’s stock was delisted from Nasdaq and currently trades over the counter.
An extraordinary general meeting led by Lu will be held on July 5. Shareholders will again vote in the meeting for the removal of Lu as well as several other directors, including Sean Shao, Li Hui and Liu Erhai. Zeng Ying and Yang Jie, who were nominated by Lu, will be appointed as independent directors.