VOLUME  III  No. 4 F R I D A Y January  5,  2001

 

EMPEROR  ENTERTAINMENT  GROUP  LTD :
YEUNG  SAU  SHING  –  FORGIVE  AND  FORGET ?

If one believes, fervently, in forgiveness and in the rehabilitation of felons, then an investment in one of the latest Initial Public Offerings (IPOs) of the Hongkong Special Administrative Region (HKSAR) of the People’s Republic of China (PRC) is the card for you. 

Because that is one of the underlying essences, in TARGET’s opinion, of Emperor Entertainment Group Ltd, Code Number 8078, The Growth Enterprise Market of The Stock Exchange of Hongkong Ltd. 

One must want to help to rehabilitate the former crooks in our midst. 

They must be restored to the bosom of society so that they may live a more full and useful life. 

Emperor Entertainment is a company that is controlled to the extent of about 58.07 percent by Mr Albert Yeung Sau Shing, a businessman of the HKSAR, who, in his short lifetime, has seen a lot of ups and downs in his finances… and a lot of ins and outs of courts of various types, notwithstanding one trip to an HKSAR prison. 

Subscribers will recall Mr Albert Yeung Sau Shing’s last claim to infamousness, the one that took place in the middle of 1998 when The Honourable Mr Justice Burrell, Chairman, The Insider Dealing Tribunal of Hongkong, hit him where it really hurt: In his quite deep pockets. 

Mr Justice Burrell, on behalf of the Insider Dealing Tribunal, ordered, on June 8, 1998, that Mr Albert Yeung Sau Shing ‘shall not, without leave of the Court of First Instance of the High Court be a director or a liquidator or a receiver or a manager of the property of a listed company for the period of 2 years with effect from the date of this order.’ 

Mr Justice Burrell, also, ordered Mr Albert Yeung Sau Shing to pay to the HKSAR Government the sum of $HK6,811,400 ‘being the amount of profit gained as a result of the insider dealing …’. 

Mr Justice Burrell further ordered Mr Albert Yeung Sau Shing to ‘pay a penalty of $(HK)10,000,000’ plus ‘pay $(HK)3,882,033.00 being the expenses of and incidental to the inquiry and investigation of his conduct or affairs made for the purpose of the inquiry.’  

Totally, therefore, within a period of just 10 days, the sitting of the Insider Dealing Tribunal, Mr Albert Yeung Sau Shing’s pocket was ‘hit’ to the extent of $HK20.69 million. 

In addition, since this investigation had taken the best part of 5 years to come to the point that the Government of the HKSAR considered that it had a prima facie case against the felon, Mr Albert Yeung Sau Shing, one may speculate that he had had to pay to his lawyers not less than $HK5 million as their fees. 

The Insider Dealing Tribunal sat for 10 days, between April 15, 1998, and May 21, 1998, in order to hear evidence and submissions, allowing it to make a determination as to whether or not Mr Albert Yeung Sau Shing, Miss Kelly Yeung Po Kam, Miss Rebecca Yeung Bo Chow and 2 private, offshore companies, the directors of which were 2 of Mr Albert Yeung Sau Shing’s sisters, had indulged in insider dealings in the Issued Share Capital of Emperor (China Concept) Investments Ltd (Code: 296 – Main Board, The Stock Exchange of Hongkong Ltd). 

The 2 sisters of Mr Albert Yeung Sau Shing are Miss Rebecca Yeung Bo Chow, the sole director of Asian Star Holdings Ltd, and Ms Kelly Yeung Po Kam, the sole director of Kingsday Ltd. 

The only function of these 2 offshore companies, the Tribunal determined, ‘was to trade in Emperor China (Emperor (China Concept) Investments Ltd (Code: 296 – Main Board, The Stock Exchange of Hongkong Ltd) shares.’ 

The Tribunal sat in order to ascertain whether or not insider dealing took place in relation to the listed securities of Emperor China between October 7 and October 11, 1993, both days inclusive. 

Mr Albert Yeung Sau Shing, within 5 days of the start of the Proceedings, stated, through counsel, that he wished to make ‘a full and frank admission of the insider dealing …’. 

That made the Tribunal’s job that much easier, but one may imagine that this ‘full and frank admission’ had taken the best part of 5 years to be admitted and reduced to writing, thereby cooking the Chinese felon’s goose, for good, and costing him in excess of $HK20.69 million. 

The fine and miscellaneous expenses would have been much greater had Mr Albert Yeung Sau Shing determined not to own up to his guilt because, then, the Tribunal would have had to prove its case, point by point; and, that would have taken up much more time than just 10 days. 

Without question, Mr Albert Yeung Sau Shing’s counsel must have cautioned him as to the consequences of not making a full confession of his nefarious ways because the weight of evidence, in the hands of the Tribunal, must have been enormous. 

The background of the case was that, in 1993, Mr Albert Yeung Sau Shing held about 71 percent of the Issued and Fully Paid-Up Share Capital of Emperor International, which, in turn, controlled Emperor China to the extent of about 70.90 percent of its Issued and Fully Paid-Up Share Capital. 

Mr Albert Yeung Sau Shing was considered, and referred to, as ‘the Chairman’ of the Emperor Group, even though he had never been a director or employee of the Emperor Group of Companies. 

On August 17, 1993, publicly listed Guangdong International Trust and Investment Corporation Hongkong (Holdings) Ltd (GITIC) announced that it was interested in acquiring a controlling interest in Emperor China. 

The Tribunal pointed out that, between August 10, 1993 and August 16, 1993, the share price of Emperor China rose from $HK3.85 to $HK6.50 and, for the next 5 weeks, it traded between $HK5 per share and $HK6 per share. 

On September 23, 1993, it was announced that negotiations between GITIC and the Emperor Group ‘had been terminated’ and that ‘there would be no acquisition’

Mr Albert Yeung Sau Shing admitted that he traded in the shares of Emperor China on October 7, 8 and 11, 1993. 

In the PRC, insider dealing is considered a capital crime; in the US, people are, normally, jailed for long terms for the admitted nefarious acts of Mr Albert Yeung Sau Shing. 

In the HKSAR, however, the Authorities are much more lenient on people of the ilk of billionaire, Mr Albert Yeung Sau Shing. 

And now, the investing public of the HKSAR are being offered another chance to invest in a company, controlled by Mr Albert Yeung Sau Shing who, TOLFIN has determined, has not been found guilty of insider trading since the 1998 findings of the Insider Dealing Tribunal.

The Placing and Public Offer

Emperor Entertainment Group Ltd Offered and Placed a total of 96 million, one-cent shares at a Premium of $HK1.07 per share. 

The Company Placed 76.80 million shares and Offered 19.20 million shares to members of the public. 

This Company was established in 1986 under the name of Fitto Entertainment Company Ltd by Mr Jimmy Ip Chi Ming ‘to engage in the production and distribution of karaoke laser discs …’. (Page 44 of the Prospectus) 

In 1994, Hapus Enterprises Ltd, a wholly owned subsidiary of Hongkong Daily News Holdings Ltd, a company controlled by Mr Albert Yeung Sau Shing and listed on The Stock Exchange of Hongkong Ltd (it is now renamed Graneagle Holdings Ltd, Code 147, the Main Board), acquired a 51-percent interest Fitto Entertainment BVI, the then holding company of Fitto Entertain Company. 

By 1997, Fitto Entertainment BVI was 96 percent controlled by Mr Albert Yeung Sau Shing’s Hongkong Daily News. 

Since that time, this group of companies has branched out into recording contracts and management agreements with a number of artistes. 

Mr Albert Yeung Sau Shing acquired the interest as to 96 percent in the Issued and Fully Paid-Up Capital of Fitto Entertainment BVI by way of capitalising Mr Albert Yeung Sau Shing’s loans ... CLICK  TO  ORDER  FULL  ARTICLE  

 

While TARGET makes every attempt to ensure accuracy of all data published, 
TARGET cannot be held responsible for any errors and/or omissions.

  

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