Home > Financial channel >                 text

Zhang Lan was sentenced to one year in prison! Changing the nationality to make the extradition into a difficult problem

March 14, 2019 09:55
Author: Lee Desert
source: Financial World Weekly

Oriental Fortune APP

  • Convenient
  • Mobile phone viewing financial news
  • Professional, rich
  • Master the pulse of the market

Read articles on your phone

  • prompt:
  • WeChat sweep
  • Share it with you
  • Circle of friends
Summary
Qiao Jiangnan started in Zhang Lan's small restaurant opened in the early 1990s. At the peak, the valuation was over 20 billion yuan. However, after the listing failed, he changed hands to different employers, and Zhang Lan gradually lost control of the company.

On March 13, according to Hong Kong media reports, Zhang Lan, the grandmother of Star S and the founder of the high-end Sichuan cuisine brand, South Beauty, was sentenced to imprisonment for one year by the Hong Kong court for concealing assets.

Duan and Duan Law Firm subsequently releasedannouncementIt is said that the report was inaccurate. The first trial ended in March 2018. Zhang Lan had appealed to the Hong Kong court in April 2018, but the second trial has not yet been heard.

Qiao Jiangnan started in Zhang Lan's small restaurant opened in the early 1990s. At the peak, the valuation was over 20 billion yuan. However, after the listing failed, he changed hands to different employers, and Zhang Lan gradually lost control of the company.

  Zhang Lanren in Beijing

“Zhang Lanren stayed in Beijing and did not go to jail.” Chen Ruojian, managing partner of Duan and Duan Law Firm, told the “Financial World” weekly that he received a call from Zhang Lan this morning asking for an announcement.

Chen Ruojian pointed out that the plaintiff in the first instance filed five lawsuits, four of which were rejected. The concealed property currently identified is only the lightest one, but he refused to disclose the other four items.

"If the first few items are identified, it is not a matter of one year, but three years and five years," he said.

According to Hong Kong media reports, the Hong Kong court issued an injunction against Zhang Lan in this case, freezing its assets, prohibiting its transfer and sale of assets of approximately US$51 million in Hong Kong and abroad. All of her assets exceeding HK$500,000 must be declare. Zhang Lan's declared assets include her and her company, about 1.21 million US dollars in deposits, 2 vehicles and Beijing's industry, with a total value of 1.28 million US dollars. However, the Hong Kong court found that Zhang Lan did not report the assets within the scope of the injunction to the court. In March 2018, Zhang Lan’s actions were contemptuous of the court and he was recently sentenced to one year’s imprisonment.

The judge of the case stated on February 28 that he had not received any instructions from Zhang Lan to submit a clarification or objection to the High Court's order. The court also repeatedly reminded Zhang's representative lawyer that Zhang's behavior had constituted contempt of court and must be heard in court. And even issued a warrant. Chen Ruojian told the "Financial World" weekly that sentenced to one year imprisonment and Zhang Lan did not appear in court without direct contact, Zhang Lan sent an attorney to appear in court, without the need to be present.

According toSinaReported that at 8:11 in the morning, Zhang Lan responded in a circle of friends: "I am enjoying flowers this morning, and I am fascinated by the entertainment media. I can only smile a little. (My lawyer is preparing to sue these rumors) "The picture is a photo of her in the courtyard with flowers."

It is understood that Zhang Lan had already immigrated to the Caribbean island countries of Saint Kitts and Nevis in 2012. There is no extradition agreement between the country and mainland China and Hong Kong. If the Hong Kong courts upheld the original judgment, then the execution of the judgment will become a major problem. Chen Ruojian said that he has not considered the issue of extradition for the time being and will do his best to prepare for the second instance and be sure to win the lawsuit.

  The entry of CDH, the beginning of the nightmare

In September 2008, South Beauty was developing rapidly. Dinghui created a stake of about 200 million yuan and won 10.526% of the shares. At the same time, the two sides signed a gambling agreement to complete the listing before the end of 2012, which wrote the fate judgment of South Beauty in advance.

At that time, the catering industry was in the capital world. In June 2008, Little Sheep was listed on the Hong Kong stock market; the previous year,QuanjudeThen listed in the A-share market; the following year, Xiang-Ee will land on the A-share. South Beauty has been placed high hopes, Zhang Lan announced that South Beauty "to do the global catering industry LV (Louis Vuitton)", ten years into the world's top 500, twenty years into the world's top 500. With 200 million employees in hand, she plans to add 20 stores in two years, bringing the number of stores nationwide to more than 50 by the end of 2010.

However, the reality is very skinny, this dream only wakes up in 2012.

According to media reports, the financing agreement between CDH and South Beauty has stipulated that if the company can not be listed before the end of 2012, then South Beauty mustRepoThe shares of CDH and guarantee its reasonable return.

In March 2011, South Beauty submitted an application for listing A shares to the China Securities Regulatory Commission. At that time, the catering industry was in a cold in the domestic capital market. In the past two years, no A-share market was successfully listed. This kind of winter has continued until 2017. Market rumors, both the purchasing end and the sales end are cash transactions. The income and cost cannot be reliably measured. The authenticity of the accounting statements, the catering business channel closed. The Jingya Group, which submitted the listing application at the same time, and the Shunfeng Group, which was listed in the queue last year, did not care.Guangzhou RestaurantOther catering companies are also unsuccessful.

On January 30, 2012, the China Securities Regulatory Commission routinely disclosed that the Qiaojiangnan IPO application was terminated and the listing plan was aborted. In April 2012, it was reported that South Beauty will go to Hong Kong IPO in the second quarter, and the financing scale will be 300-400 million US dollars, but no progress has been made since then.

Regarding the experience of dealing with capital, Zhang Lan expressed remorse in an interview with Global Entrepreneur in 2011. She said that the valuation given by Dinghui was low and the help was limited; three months after the financing, The worst of the financial crisis has passed, and the money has not yet been fully paid. She had wanted to retreat the investment, but Ding Hui asked for double returns, and the two sides failed to reach an agreement.

"The introduction of them (Ding Hui) is the biggest mistake of South Beauty, meaningless. Private entrepreneurs pay tuition fees." Zhang Lan said.

She believes that Chinese food is not welcomed by the capital market, because the pursuit of high returns for capital requires the rapid expansion of South Beauty, which makes Chinese food lose its unique charm.

"The capital market wants you to make money. Replicability is popular. If you can't copy it, you won't welcome it."

In any case, in order to speed up the overseas listing, Zhang Lan even changed his nationality to Saint Kitts, a Caribbean island country. On September 17, 2012, he canceled his domestic account.

Later, the change of nationality was disclosed by the media, causing heated discussion.

Zhang Lan responded: "If it is not for the listing of enterprises, why should I give up the identity of the citizens of the People's Republic of China and go to a small island with a temperature of more than 40 degrees? I have to fly 24 hours, a few hundred. It was a place where pirates lived years ago."

  CVC take-up

In 2014, European private equity investment institution CVC officially became the winner of South Beauty.shareholderZhang Lan continued to serve as chairman. According to media reports, CVC acquired an 82.7% stake in South Beauty at a price of US$300 million. According to the exchange rate at the time, the overall valuation of the South China market was about 2.21 billion yuan, slightly higher than the 1.9 billion yuan that CDH invested in 2008.

Next, the business of South Beauty is getting worse.

Because CVC failed to repay about $140 million in loans to the syndicate, on June 23, 2015, the syndicate authorized the representative of Hong Kong Baohua Consulting Co., Ltd. to be a pretty customer.Jiangnan GroupDirector, CVC's appointed representative withdraws, Baohua is a companyReorganizationAnd consulting agencies.

It is reported that the reason for this debt was because CVC’s acquisition of South Korea’s $300 million total cost was $140 million.bankFinancing was obtained, and another $100 million was raised from the public in the form of bonds. CVC itself actually only took out 60 million US dollars. The fact that CVC does not pay back means that it is not willing to sink deeper in the quagmire of South Beauty, allowing banks and other creditors to dispose of South Beauty.

As a result, both sides have a bad relationship. Zhang Lan also publicly accused CVC of not having its consent.PledgeThe 100% equity of South Beauty, including the 13.8% stake held by Zhang Lan.

On March 13, according to reports from the Hong Kong media, CVC took Zhang Lan to court. In the case, the Hong Kong court issued an injunction against Zhang Lan, freezing its assets, prohibiting its transfer and sale of assets of approximately US$51 million in Hong Kong and abroad, and ordering all her assets exceeding HK$500,000 to be declared. The declared assets include shares owned by her and her company, approximately $1.21 million in deposits, two vehicles and the industry in Beijing, with a total value of $1.28 million. However, the Hong Kong court found that Zhang Lan did not report the assets within the scope of the injunction to the court. In March 2018, Zhang Lan’s actions were contemptuous.

Zhang Lan said that CVC filed a lawsuit in the original court of the Hong Kong High Court on March 15, 2017, and filed five contempt charges against Ms. Zhang Lan. In response to CVC's allegations, Zhang Lan hired Hong Kong's famous senior barrister Yu Ruohai to appear in court to defend the case, overturned four, and appealed to the Court of Appeal of the Hong Kong High Court in April 2018.

  Zhang Lan’s Iron Maiden’s past

In 1988, Zhang Lan gave up the distribution of "iron rice bowl", went to work in Toronto, Canada, brushed dishes, and licked beef. On the eve of Christmas 1991, Zhang Lan returned to China with her earned $20,000. The following year, she rented a North.JingdongA 102-square-meter grain store on Four Streets was transformed into “Alan Restaurant, and then opened in Beijing”big hotel"And" Hundred Bird Garden Garden Shark's Fin Seafood Restaurant.

In April 2000, Zhang Lan sold three restaurants, holding 60 million yuan under his arm, and opened the South Beauty Restaurant in the high-end office building of Beijing Guomao.

The high-end positioning allowed Qiao Jiangnan to seize the market opportunity. The first store was designed by a Chinese-American designer at Harvard University's Department of Architecture, and it also advocates that each store has its own style.

Zhang Lan seized the opportunity of China to hold two large international conferences and deepened the color of its high-end dining. In 2006, Zhang Lan founded the Lan Club, which she said was “to the once-in-a-lifetime opportunity of the 2008 Beijing Olympics”. In the Beijing Olympics, South Beauty also served as the only Chinese food service provider, responsible for providing catering services for eight competition venues. In July 2008, before the 2010 Shanghai World Expo, Zhang Lan established Lan Shanghai. Similar to the Beijing Olympics, four branches of South Beauty Park are stationed in the Expo venue.

Lan Club is expensive, according to Zhang Lan, the first Lan Club has a total investment of more than 300 million yuan, costing 12 million yuan to invite the designer of the Bacca-rat Crystal Palace in Paris, Philippe Starck, in the store Lan’s oil painting “Three Gorges New Immigrants”, which was bought at the Poly Auction in 2006, was worth 20 million yuan.

Regardless of the final judgment of the Hong Kong courts, from the beginning of the self-employment in 1991 to the present day, the experience of Zhang Lan’s life is so high that she does not lose her star-wife.

(Article source: Financial World Weekly)

                (Editor: DF376)

you might be interested
  • News
  • stock
  • global
  • Hong Kong stocks
  • US stocks
  • futures
  • Foreign exchange
  • life
    click to see more
    No more recommendations
    • name
    • Latest price
    • Quote change
    • Hand turnover rate
    • Capital inflow
    Please download Oriental Fortune products to view real-time quotes and more data.
    Solemnly declare:Oriental Fortune.com publishes this information in order to disseminate more information and has nothing to do with the position of this website. Oriental Fortune Network does not guarantee the accuracy, authenticity, completeness, validity, timeliness, originality, etc. of all or part of this information (including but not limited to text, data and graphics). The relevant information has not been confirmed by this website, and does not constitute any investment advice for you. According to this operation, the risk is at your own risk.