Luckin Coffee Files Appeal Against Civil Judgment!

Luckin Coffee Files Appeal in Trust Dispute Case

In a dispute case involving Yousheng (Tianjin) Technology Development Co., Ltd., Yousheng Chengyi (Tianjin) Information Technology Co., Ltd. and Shenzhou Youche Co., Ltd., the plaintiff Luckin Coffee (China) Co., Ltd. has filed an appeal, dissatisfied with the civil judgment.

According to information from the Tianyancha App, on October 27th the Kunming Intermediate People's Court in Yunnan Province served a notice of appeal for the trust dispute case on Yousheng (Tianjin) Technology Development Co., Ltd. and other parties, requiring these companies to bear corresponding responsibilities for the repurchase payment of over 560 million yuan plus interest obligations as stipulated in the first-instance judgment.

Public information shows that Yousheng (Tianjin) Technology Development Co., Ltd. was established on November 15, 2018, registered at the intersection of Hebei Road and Central Avenue in the Airport Business Park East Area of the Tianjin Free Trade Zone (Airport Economic Zone). Its business scope includes computer software technology, development, transfer and consulting services; computer system integration services; and sales of computers and auxiliary equipment, with Li Fumin as the legal representative. Yousheng Chengyi (Tianjin) Information Technology Co., Ltd. has Li Fumin and Jiang Luwen as its legal representatives.

Shenzhou Youche Co., Ltd., for its part, has Lu Zhengyao, the founder of Luckin Coffee, as its legal representative. The company was established on June 27, 2022, and is located at the North Building, 1st and 2nd Floors, Area C, North Nursery Farm of the Beijing Academy of Agricultural Sciences, at the Second Food Factory in Dazhongsi, Haidian District, Beijing. Its business scope includes online ride-hailing operations and software technology development and services.

Case Background

This repurchase payment case was submitted to the court as early as April 27, 2022. The indictment shows that the plaintiff, Luckin Coffee (China) Co., Ltd., requested the court to order the defendant Yousheng (Tianjin) Technology Development Co., Ltd. to pay the plaintiff over 560 million yuan in repurchase payment plus interest. In addition, the defendant Shenzhou Youche Co., Ltd. was asked to bear the litigation fees and preservation costs for the case.

The plaintiff also requested confirmation of its pledge rights over 40.36 million shares of Shenzhou Youche Co., Ltd. held by the defendant, and that the plaintiff enjoy priority in receiving compensation from the proceeds of the disposal of these pledged shares within the scope of the pledge guarantee.

First-Instance Judgment

The first-instance judgment document was served on August 16, 2022. It shows that the first-instance court ruled that the defendant Yousheng (Tianjin) Technology Development Co., Ltd. should pay the plaintiff Luckin Coffee (China) Co., Ltd. over 560 million yuan in repurchase payment plus interest. The plaintiff has the right to priority in receiving compensation from the proceeds of discount, auction or sale of 36.99 million shares of Shenzhou Youche Co., Ltd. pledged by the defendant Yousheng Chengyi (Tianjin) Information Technology Co., Ltd., within a certain amount range.

The court, however, rejected the plaintiff's other litigation requests. The case acceptance fee was 2,929,467 yuan, with 2.9 million yuan to be borne by the defendant Yousheng (Tianjin) Technology Development Co., Ltd. and 29,467 yuan to be borne by the plaintiff Luckin Coffee (China) Co., Ltd.

Appeal Details

The announcement shows that the plaintiff Luckin Coffee (China) Co., Ltd. was dissatisfied with the original civil judgment and filed an appeal. The appeal request is to amend the judgment to order the appellant to bear the shortfall supplement responsibility for the payment obligations under the first and second items of the first-instance judgment against Yousheng (Tianjin) Technology Development Co., Ltd. — that is, the repurchase payment of over 560 million yuan and the corresponding interest.

The plaintiff also requests that the court order the second-instance case acceptance fee to be borne by the appellant Shenzhou Youche Co., Ltd., and that the property preservation fees also be borne by the appellants Shenzhou Youche Co., Ltd. and Yousheng (Tianjin) Technology Development Co., Ltd.

Image source: Internet

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