Where to go. Litigation arising from the early termination of the inventory distribution agreement

Lead: Where to go in the IPO prospectus, special reference is made to the lawsuit caused by the early termination of the "Stock distribution agreement" between the Arts Dragon, where the art Dragon alleges to violate the terms of the contract, and where to find that the art Dragon failed to fulfill its obligations under the agreement, which led to the failure It also stressed that the lawsuit had no substantive impact on its overall commercial and financial performance.

The following are the relevant contents of the prospectus:

Where to? In order to maintain and develop the business, it is necessary to maintain and strengthen the relationship with existing OTA customers, and to establish new customer relationships with other OTA and TSP to ensure the availability of stable travel product information with favorable commercial terms. However, companies may not be able to successfully maintain or strengthen relationships with existing OTA customers.

For example, where to go September 2013 prematurely terminated the "Stock distribution agreement" signed with the Art Dragon, because the former believed that the art Dragon failed to fulfill its obligations under the agreement, which led to the failure of the contract. The earliest inventory distribution agreement period is from May 13, 2013 to June 30, 2016. Inventory distribution agreement where to try new hotel distribution mode, in this mode, the Arts Dragon agreed to at a certain time by the platform to publish their local and international hotel inventory, and according to the CPS Pay Commission, where to agree between July 2013 and December, At least 450,000 nights ' bookings are available for each quarter using these stocks. According to the inventory distribution agreement, if there is no commitment to where to go, it is necessary for the Arts Dragon to provide a booking amount of 27 yuan per night compensation.

Where do you think? The art Dragon failed to put international Hotel inventory on its platform during the agreed time, and the request to correct the problem was not answered, so the inventory distribution agreement was terminated in early September 2013. The termination of the agreement will not have a substantial impact on where to go in the future business operations, because as of June 30, 2013, where to have 1240 OTA customers, Art Dragon is only one of them. and the inventory distribution agreement is one of the many ways that the company has taken to improve the hotel's information comprehensiveness since the beginning of 2013. Where to go the direct business relationship with the hotel has been expanded and significant progress has been made, as of June 30, 2013, with approximately 53,360 hotel customers.

October 2013, where did you get the art dragon on the stock distribution agreement in Beijing on its issue of the civil lawsuit issued by the summons, the art Dragon accused of where to breach the terms of the contract, and advocated (i) about 4.5 million yuan compensation to make up for the so-called loss of art dragon as of September 2013; Enforce inventory distribution agreements for October 1, 2013 and beyond.

Where to go will be sued, and will be in accordance with the inventory distribution agreement to defend their interests. The outcome of this lawsuit is unpredictable, but 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 effect on its operational performance. Despite the initiation of this lawsuit, the art dragon, like other TSP, is still using and will continue to use the standard P4P service to where it is based, and charges on a CPC basis under another contract, which has no material impact on the overall commercial and financial performance, and there is no dispute over the relevant contract.