China's well-known OTA art Dragon Network issued a high-profile statement

Where are you going? The good mood of the web management and the investors who submitted their prospectus a few days ago is now ruined by a paper petition.

October 16, the domestic well-known OTA Dragon Network issued a high-profile statement on the contract dispute matters where the network, in the continued performance of the contract at the same time, the request to go where the net compensation loss of about 146 million yuan.

Art Dragon official said, to where the net without any laws and facts on the basis of unauthorized breach of contract, the early termination of the two sides of the hotel inventory distribution cooperation. In order to protect the interests of the Arts dragon, the art dragon on September 11, 2013 to prosecute where the net, the Court has determined that the first session will be held at the end of October 2013.

In this lawsuit, the Art Dragon asked where to continue to carry out the contract in good faith, restore the hotel inventory distribution cooperation, and compensation for the art dragon caused all the loss.

Where are you going? The network also made changes to the listing documents in the early hours of 16th. Where are you going? In the IPO prospectus, a lawsuit against the Arts Dragon was mentioned, arguing that the outcome of the lawsuit was unpredictable, but if a judge decides where to lose some or all of the losses, it could be a huge loss and could have a substantial negative impact on its operational performance. Analysys International analyst Wu Yu in an interview, said that the art of the prosecution to choose where there is a demand for their interests, but also want to be able to continue and where to cooperate "TTS system", because the "TTS system" import does bring the company to see the flow. While the lawsuit may cause losses to the performance, it should not have an impact on the final listing.

The cause of huge compensation

Where the art Dragon will go the net to the dock is not a whim, the dispute between the two sides has already appeared earlier this year.

At the beginning of April, where to go the network greatly increased the price of Hotel Pay-per-click Business, and forced to promote the hotel online trading system (TTS), triggered by many large OTA, including the Arts Dragon, and the hotel products collectively from where the network off the shelf. Then with the network, to order, mango nets and so on again where to go online line.

The Art Dragon was chosen to respond to the announcement after its first quarterly earnings release in 2013, when CEO Cui said in an interview: "The recent art dragon and where to negotiate with the quality of change, the Art of the Dragon and where to restart cooperation with the time is ripe." ”

Where to go. The "TTS event" between OTA Enterprises appears to have come to an end.

After a short pause in Pay-per-click advertising cooperation, where to go and the Arts Dragon finally returned to the negotiating table, the Arts Dragon also in the May this year and where to designate a subordinate company-Beijing Fun Software Technology Co., Ltd.- Two additional agreements were signed for the resumption of Pay-per-click advertising and the distribution of Hotel inventory.

It is understood that the supplementary agreement, Art Dragon first to provide the front desk to pay hotel inventory, and then provide domestic prepaid hotel inventory and international Hotel inventory, the two sides should separately negotiate the domestic prepaid hotel inventory and international Hotel inventory of the proportion and the settlement process and other provisions, and the written form to be clear.

According to the information provided by the Art Dragon, in the above supplementary agreement, where is the commitment to the sale of art Dragon for the period from July 1, 2013 to December 31, 2013, the hotel stock is at least 900,000 live nights ( These include the period from July 1, 2013 to September 30, 2013 between 450,000 nights and 450,000 nights from October 1, 2013 to December 31, 2013.

The supplementary agreement also expressly agreed that, from January 1, 2014 to June 30, 2016 in the future period, to where to sell the Art Dragon Hotel inventory of the night amount should maintain a certain growth, its growth rate must not be less than where to go last year in the Four Quarter Hotel night volume year-on-year growth rate of 70% If there is no place to reach these night sales targets, then where to go to the unfinished part according to the standard of 27 yuan per night in the next quarter after the start of the 20th compensation to the art dragon, as an advertising cooperation account recharge.

It is reported that where to go at the beginning of September 2013 "Suddenly" terminated the inventory distribution agreement. It is according to the provisions of the above supplementary agreement, the Art Dragon pointed out where should be for the sale of Art dragon from July 1, 2013 to June 30, 2016 in the hotel inventory of at least 5.4 million live overnight, and insufficient part in accordance with the night of 27 yuan standard compensation, so the total compensation price reached about 146 million yuan.

In fact, the art Dragon is more willing to be able to again and where to cooperate. Wu Yu pointed out that the "TTS system" can indeed give the art dragon with the flow.

Does the art dragon still hold strong expectations of where to cooperate and why do you choose to sue at this time? The reporters were unable to get more answers to the arts dragon by the deadline.

or where it's going to cause a performance impact.

For the art of the aggressive measures, where to go to the network, said because the current is in the stage of the period of silence, so there is no reply. To which network to say to reporters, will be at the right time for the Arts dragon prosecution of things to respond.

However, in the 16th revision of the prospectus, where to go to the lawsuit also has its own views.

In the new listing document, where to point out, the September 2013 early termination of the "Stock distribution agreement" with the Arts Dragon, because where to think that the arts dragon failed to meet the obligations under the Agreement, resulting in the purpose of the contract can not be achieved. At the same time, the company believed that the art Dragon failed to put international Hotel inventory on its platform within the agreed time, and that the request to correct the problem had not been answered, so the inventory distribution agreement was terminated in early September 2013.

And for the end of the agreement with the Arts Dragon, where to go does not appear to have a substantial impact on future business operations.

Data show that as of June 30, 2013, where to have 1240 OTA customers, Art Dragon is only one of them. Where are we going? The Inventory distribution agreement is one of the many ways in which the company has been promoting the hotel's information comprehensiveness since the beginning of 2013, and the company has expanded its direct business relationship with the hotel, and has made significant progress in this regard, with approximately 53,360 Hotel customers as of June 30, 2013.

Still, where to go is the worst forecast for the lawsuit.

In the revised listing document, where to go frankly, if a judge decides where to lose some or all of the losses, it may cause a huge loss and may have a substantial adverse impact on its operational performance.

In Wu Yu's view, prosecutions have become commonplace in internet companies, and there are countless cases of cooperation after prosecution, and the art Dragon chooses where to prosecute at this point in time, probably also in order to hold more weight in future negotiations, but this may not ultimately affect where to go on the market.