Source: Visual China

Reporter丨Chen Jing

The sensational Everbright Securities MPS incident has the latest developments.

On June 11, Everbright Securities issued an announcement to disclose the MPS matters and follow-up situation of the wholly-owned subsidiary Everbright Capital.

The announcement shows that JINXINNC. (Cayman Baptist), the subject of overseas project transactions of Shanghai Baptist Fund, filed fraudulent false statements and breach of tax commitments with individuals and institutions such as RICCARDO SILVA ANDREA RADRZZANI, the original seller shareholder of MPS, in the High Court of England and Wales. The litigation claims that the amount involved is approximately US$661 million (approximately RMB 4.2 billion).

Everbright Securities said that the company’s business operations are currently normal.

Originating from MPS, China Merchants Bank and Huarui Bank invested 3.2 billion in total

What is the MPS project? How did Everbright Securities step on the thunder?

The matter dates back to four years ago. This series of disputes are all related to the “Storm” of the British sports copyright company MP&Silva (the “MPS” project) acquired by Baptist Fund, the executive partner of Everbright Baptist in 2016.

Everbright Baptist, a subsidiary of Everbright Capital, serves as the executive partner of Baptist Fund.

In 2016, Everbright Baptist and Baofeng Investment and Shanghai Qunchang launched the Baptist Fund with a fund size of 10 billion and a total maturity of 5 years. According to Tianyan Check, Baptist Fund has a total of 14 investors, of which China Merchants Wealth holds 53.82%, and Everbright Capital holds 1.15%. The executive partners of Baptist Fund are Shanghai Qunchang Financial Services Co., Ltd. and Everbright Baptist Hui, Baofeng (Tianjin) Investment Management Co., Ltd. Huarui Bank and Shenzhen Hengxiang are also partners of Baptist Fund.

In May 2016, Baptist Fund raised 5.2 billion yuan to complete the acquisition of 65% of MPS. MPS used to be the world’s top sports media company, with business covering more than 200 countries and regions around the world, with more than 90 global event property rights, and more than 30 event rights agency partners. LeTV Sports is its largest partner in China. Against LeEco, the Storm Group at the time also aimed at the sports sector, hoping to formally enter the sports industry.

Among the 5.2 billion yuan raised by the Baptist Fund, Everbright Capital contributed 60 million yuan as an inferior investor. The priority investor China Merchants Bank invested 2.8 billion yuan, and Huarui Bank invested 400 million yuan through Aijian Trust; other investors included Zhaoyuan Yongjin invested 600 million yuan, Shenzhen Hengxiang, Baofeng Department and Everbright Capital jointly invested billions .

In October 2017, MPS lost to rival IMG in the Serie A international copyright bid. In the same year, BeIN Sports took away the Ligue 1 copyright from MPS. Since then, MPS has been losing ground in the sports copyright market. Due to the inability to pay copyright fees, some major copyright owners terminated their contracts with MPS early and even took them to court. In October 2018, with the bankruptcy and liquidation order of the High Court of the United Kingdom, MPS became history. The 5.2 billion yuan investment was “flooded” and the investors encountered Waterloo.

Since then, many partners of the Baptist Fund have demanded compensation from the Everbright Department and the Baofeng Department.

In July 2019, Feng Xin, the actual controller of Baofeng Group, was arrested. Baofeng was in deep crisis and could not protect itself. Everbright Capital has become the main claim target of all investors. Everbright Securities’ 2018 annual report shows that the stakeholders of the Baptist Fund’s priority limited partners have presented a letter of replenishment stamped by Everbright Capital, promising that if the priority limited partners cannot exit, they will be funded by the inferior ones. People Everbright Capital assumes the corresponding obligation to make up the difference.

Everbright Capital was sued or arbitrated by China Merchants Bank, Zhaoyuan Yongjin and Huarui Bank, and Shenzhen Hengxiang, and the amount of “debt collection” involved exceeded 4.1 billion yuan. Among them, the amount involved in China Merchants Bank’s lawsuit against Everbright Capital is approximately 3.489 billion yuan, and the amount involved in arbitration applications for Huarui Bank and Shenzhen Hengxiang is 452 million yuan and 168 million yuan respectively. The arbitration initiated by Zhaoyuan Yongjin involved an amount of 100,000 yuan.

On May 31, 2019, Everbright Securities disclosed that the case was at the stage of filing and acceptance, and the impact on Everbright Capital could not be accurately estimated for the time being.

After the MPS incident, Everbright Securities also experienced a series of executive changes.

In April 2019, Xue Feng resigned as chairman and director of Everbright Securities, and Party Secretary Yan Jun replaced Xue Feng as chairman of the company. In January 2020, Liu Qiuming, the original chairman of CM Investment, was newly appointed as the president of Everbright Securities. The former president Zhou Jiannan resigned due to personal reasons. Several senior executives, including the chief risk officer, compliance director, business director and directors of Everbright Securities, have also changed.

Everbright Securities is also constantly trying to hold Storm Group responsible. In April 2020, Everbright Securities disclosed the result of the first instance of the MPS case. The Shanghai Financial Court ruled that Everbright Capital, a wholly-owned subsidiary of Everbright Securities, should pay approximately 3.116 billion yuan to China Merchants Bank and interest from May 6, 2019 to the date of actual settlement. Loss, and bear part of the litigation fees, property preservation fees and other expenses; pay the investment principal of 400 million yuan to Huarui Bank, pay the investment income from January 1, 2018 to the date of actual performance, and bear litigation fees, preservation fees, etc. Currently, Everbright Capital has filed an appeal, and the relevant litigation is still in the process of performing judicial procedures.

MPS risks are fully accrued, and China Everbright is stepping out of the haze

Following a sharp rebound in performance in 2019, Everbright Securities has achieved a three-fold increase in net profit in 2020.

According to the company’s annual performance report released on March 25, the company achieved a total of 15.866 billion yuan in operating income in 2020, an increase of 58% year-on-year, and a net profit of 2.334 billion yuan attributable to the parent, an increase of 311% year-on-year.

However, dragged down by the MPS incident, Everbright Capital has suffered three consecutive years of performance losses in 2020, with losses of 1.634 billion yuan and 2.909 billion yuan in 2018 and 2019, respectively. As of December 31, 2020, Everbright Capital had total assets of 2.980 billion yuan, net assets of 2.442 billion yuan, and losses of 2.069 billion yuan.

Everbright Securities accrued a liability of 1.55 billion yuan for MPS matters in 2020. In the past two years, it has accrued liabilities of 3.011 billion yuan. Up to now, Everbright Securities has accrued liabilities of 4.565 billion yuan for MPS. In the MPS incident, the largest amount of funds contributed by the stakeholders of the two priority partners-China Merchants Bank and Huarui Bank. According to the announcement on the judgment of the first instance disclosed by Everbright Securities, in addition to the priority principal, a certain amount of interest must be paid. However, as far as the current situation of Everbright Securities’ accrued accrual is concerned, Everbright Securities has made a full accrual for this matter.

Everbright Securities stated that since the occurrence of the MPS incident, the company has deeply analyzed the problems reflected in the risk event, focusing on comprehensively recreating the style from improving the risk management system, achieving full coverage of risk management, implementing the responsibilities of relevant personnel at all levels, strengthening professional management and expert decision-making, etc. Control compliance system. The company has carried out a series of risk investigations and rectifications, comprehensively strengthened the management and control of subsidiaries, further built a sound and prudent risk culture, improved the risk compliance system, and improved risk prevention and resolution capabilities. Judging from the 2020 annual results announcement disclosed by Everbright Securities, the company has stepped out of the haze of MPS risk events, the risks have been basically cleared, and the company’s development will become more healthy.

Judgment on Presale Fees Defeat for ticket retailer CTS Eventim

As of: 06/09/2021 5:24 p.m.

Are ticket retailers allowed to keep advance booking fees for concerts that have been canceled due to corona? The Munich Regional Court has declared a clause ineffective that excludes a refund. However, there is no general claim. Several CTS Eventim customers are upset. You had booked a concert at the ticket dealer early on, which was then canceled due to Corona. Nevertheless, CTS Eventim withheld the advance booking fee. Now they want the fee back. The North Rhine-Westphalia consumer center therefore took it to court and sued the company. With success: the consumer advocates were partially right at the Munich I Regional Court. The judges declared ineffective a clause in which the company had excluded a reimbursement of the advance booking fee if the event was canceled or postponed. A corresponding sentence in the general terms and conditions is illegal.

It depends on the contracts

In the opinion of the court, the ticket retailer must bear the risk of an event alone and should not pass costs on to the customers if the event does not take place. After all, the dealer collects a commission if an event goes off successfully, the judges argue. In addition, the amount of the advance booking fee is often not visible in the ticket prices, the court complained. This is not transparent. However, the judgment, which is not yet final, does not mean that all customers are now entitled to a refund of the advance booking fees for the concert that has been canceled due to Corona. That depends on the respective design of the contracts. CTS Eventim would only be responsible for the reimbursement at a commercial agency. Eventim arranges event tickets either through a commercial agency or through an organizer through a commission. In the latter case, the concert promoter would be responsible for the reimbursement. “We are assuming that in a large number of cases Eventim wrongly withheld amounts of money,” said Wolfgang Schuldzinski, board member of the consumer advice center in North Rhine-Westphalia. Now those affected who are in dispute with the group could ask it to pay and refer to the judgment.

CTS Eventim suffers from the lull in concerts

The dispute over the advance booking fee shows how tense the situation in the concert event industry is. The largest German ticket retailer CTS Eventim is suffering from the unusual concerts and events. In the first quarter of this year, sales collapsed by almost 90 percent compared to the same period in the previous year. The Bremen company slipped into the red. The number of employees including temporary workers fell by almost a third. Nevertheless, CEO Klaus-Peter Schulenberg does not give up hope of a new start soon. He relies on the “longing of people to experience culture together”. The more people vaccinated, the greater the chance of concerts.

Russian President Vladimir Putin speaks during a meeting in Moscow. Photo: AFP / VNA Speaking at a joint press conference with Belarusian President Alexander Lukashenko in Moscow on April 22, Putin said that the Kiev government has taken steps to destroy bilateral relations with Moscow over the past time. Prominent among them was the intention of Ukraine to restrict the Russian language, destroying Russian Orthodox Church in Ukraine. “There are many steps to breaking the relationship, which we regret. But if President Zelensky wants to restore relations, we will respond, “Putin said about the prospect of a meeting between the two leaders in Donbass. But according to the Russian President, if it is to discuss the situation in Donbass, the Kyiv government first needs to open meetings with the leaders of the Donetsk Republic and self-proclaimed Lugansk, and then consider direct contact with the party. Tuesday. If it wants to talk about Russia-Ukraine relations, the Russian side is ready to welcome Zelensky in Moscow at any convenient time for the President of Ukraine. Earlier, speaking on April 20, Mr. Zelensky proposed his readiness to meet President Putin in Donbass, amid the outbreak of fighting between Ukrainian soldiers and independence forces in the East.

Author: Zhang Hongquan

According to media reports on April 16th, some citizens in Guangzhou reported that their relatives fell ill after purchasing China Ping An Insurance, and after many twists and turns, they wanted to settle the operation after the operation, but they only received more than 50 yuan. The customer service said it was “wrong calculation” and should pay a total of 537.95 yuan. The amount of claims “increased” from more than 50 yuan to more than 500 yuan, but the parties still found it difficult to accept. (Beijing New Vision Network Baidu Client April 16th)

It’s better to say than to listen. The 2 million claim limit insurance only received more than 50 yuan. Customer service: the wrong number. In fact, this is too ridiculous, is it fooling customers and readers?

What you mean by “calculating the wrong number” means giving less, why don’t you give more?

In reality, there are indeed some insurance companies that promised to fall apart when they applied for insurance. As long as you apply for insurance, you can promise you everything.

However, in the event of an accident or compensation accident, they want to do everything possible to prevaricate the customer, with little or no compensation. For such an insurance company, it is recommended to join the blacklist, and the regulatory authorities cannot ignore it.

If the promises cannot be fulfilled, the black list must be drawn. Regardless of supervision, customers must have a steelyard in their hearts.