Everbright Securities Subsidiary Fund's Foreign Lawsuit Results Announced

Everbright Securities MPS project overseas litigation outcome announced.

Overseas litigation outcome announced

On April 2, Everbright Securities released the “Announcement on Developments Related to Matters Concerning Subsidiaries,” which shows that the company previously disclosed the litigation related to the overseas project transaction party JINXIN INC. (Cayman Jinxin) of the Jinxin Fund, and MPS company’s former seller shareholder(s) such as RICCARDO SILVA, ANDREA RADRIZZANI, along with relevant individuals and institutions.

Recently, Cayman Jinxin received the judgment. The High Court of Justice for England and Wales ruled to dismiss all the claims filed by Cayman Jinxin against the defendants RICCARDO SILVA and its special purpose entity RICCARDO SILVA HOLDING DESIGNATED ACTIVITY COMPANY, as well as MARCO AULETTA, regarding alleged fraudulent misrepresentations.

It is understood that the MPS overseas project went through many twists and turns over the years, and with the announcement of the outcome of this overseas litigation, it finally signals that the troubles surrounding the MPS overseas project have come to an end. The announcement shows that the above judgment outcome is expected not to have a material impact on the company’s overall operating performance for the current period and the period after.

Public information shows that the MPS project refers to the “blow-up” incident involving the UK sports media company MP&Silva’s acquisition in 2016. In 2020, the Shanghai Financial Court ruled that Everbright Capital would pay an aggregate of RMB 3.52B to two banks—RMB 3.12B to China Merchants Bank and RMB 400 million to Huarui Bank—for the investment principal.

Previously, Everbright Securities, based on the principle of prudence, estimated potential losses and made cumulative provisions for anticipated liabilities. In 2023, it reached settlement agreements with two domestic banks, reversing some of the anticipated liabilities and increasing non-recurring income. With the fulfillment of the relevant overseas legal procedures this time, the risk has basically been cleared, and the MPS project has no material impact on its current operating performance or future development.

Some industry insiders analyze that now, Everbright Securities is moving forward with a lighter load, closely aligning with the requirements of the “15th Five-Year Plan for 2025–2029,” focusing on the development of its core businesses, and laying a solid foundation for the company’s long-term, stable, and healthy growth.

Revenue in 2025 exceeds RMB 10 billion

Riding the favorable wind from the capital markets, Everbright Securities’ performance in recent years has been fairly solid. On March 26, the company disclosed its 2025 annual report. Total assets, net assets, operating revenue, and net profit attributable to shareholders all increased steadily. For the full year, operating revenue reached RMB 3.72B, up 13%; net profit attributable to shareholders reached RMB 11k, up 22%.

At an earnings briefing held on March 27, Zhao Ling, Chairman of Everbright Securities, said that in 2025, Everbright Securities is anchoring to the strategic goal of “building a first-class China-based service-oriented investment bank,” and, as both the starting point and the endpoint of its work, it insists on serving the real economy. The company’s financing scale for serving the real economy for the year was RMB 95.9 billion, up 10%, reaching a historical high.

In addition, Everbright Securities continues to advance the construction of the “Five Articles” of finance. For example, in the area of technology finance, it supported technology-industry financing underwriting of RMB 29.42 billion, up 43.8% year over year; in green finance, it supported green-industry financing underwriting of RMB 18.09 billion, up 99.9%; in elderly-care finance, it continued to increase the supply of elderly-care financial products, persistently promoting aging-friendly upgrades to the service system, with 54 additional personal pension fund products newly listed, and 11k new accounts opened for personal pension fund trading accounts.

According to Liu Qiuming, President of Everbright Securities, the company’s business clusters develop in a balanced manner. In wealth management, customer total assets exceed RMB 1.6 trillion, setting a new high in nearly five years. In corporate financing, it focuses on the main channel of direct financing; the proportion of equity investment banking services serving “specialized, refined, characteristic and innovative” (SMEs) clients is about 50%; and for debt financing, multiple deal implementations with market-influencing representative projects. In financial innovation, it focuses on enhancing trading capabilities and risk-hedging capabilities, accelerating the advancement of Hong Kong derivatives business, and expanding profit-growth drivers.

Everbright Securities stated that it will remain firmly committed to serving national strategies, the real economy, and people’s livelihoods. It will focus on its main responsibilities and core businesses, serve the “Five Articles” of finance, and achieve its high-quality development by putting functionality first, professionalism at the core, and safety as the foundation, thereby helping build Chinese modernization.

(Editor: Xu Nannan)

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