|VOLUME III No. 4||F R I D A Y||January 5, 2001|
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
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
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
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
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
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.
While TARGET makes every attempt to
ensure accuracy of all data published,
TARGET cannot be held responsible for any errors and/or omissions.