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Kurfürstendamm is Berlin's most bustling commercial street, lined with world-renowned brand stores, restaurants, theaters, cafés, and cinemas. It's a place that captures your attention and keeps you coming back for more.
The building of Solinter Gambling Company stands on this commercial avenue. This six-story building has a history of over 40 years, experiencing multiple rises and falls in ownership, but it has always maintained its tradition of gambling. From the first to the fourth floor, the building is entirely dedicated to business operations, primarily a casino, complemented by rooms, bars, and restaurants.
The company's conference room is located in the office area on the sixth floor. This 200-square-meter room is where the private equity fund liquidation and dividend distribution meeting is held. Solinter Company has stationed four security guards at both entrances of the conference room corridor. The atmosphere inside is tense and serious, forming a stark contrast to the bustling Kurfürstendamm outside.
All eleven participants in the private equity fund are present, representing the following interests:
Trustees:Ding Yuanying's entrusted capital: 17 million Deutsche Marks (DM) and 18.92 million USDConverted to RMB: 232.664 million yuanRisk Guarantors:Jenny, Chairman of Solinter Gambling Company, Berlin: 3.8 million DMZheng Jianshi, Chairman of China Garden Catering Company, Berlin: 500,000 DMLi Zhijiang, personal representative of Han Chufeng, General Manager of Beijing Zhengtian Commercial Building: 450,000 USDCapital Entrusters:Gerstman, representative of Nitessler International Investment Company, Berlin: 8.5 million DMEngel, representative of Saint Migo Financial Investment Company, Bonn: 4.8 million USDKuzman, representative of M.T.D Trust Investment Company, Berlin: 4 million USDBaker, representative of STYL Venture Capital Company, Berlin: 7 million DM
The meeting is chaired by risk guarantor representative Jenny, a 35-year-old with blonde hair and blue eyes, hailing from a prominent family. She holds a Master's in Law and a Ph.D. in Business Management from the University of Berlin. During her studies at Humboldt University of Berlin, she briefly worked as a model, gracing the runway with her striking figure and beauty. Her melancholic glance by the Rhine River became a classic in the modeling world. After spending nine years at Humboldt University, she took over Solinter Gambling Company, experiencing two brief and unsuccessful marriages. Her impressive academic background and past as a muse for photographers make it hard to associate her with a casino—a traditionally male-dominated domain.
The entire meeting is conducted in German.
Jenny glanced around at the attendees, including their assistants, and delivered her opening remarks: "Gentlemen, after eleven months of operation, Mr. Ding Yuanying has decided to terminate our cooperation due to personal circumstances and capital safety concerns. This is not the outcome we anticipated. As a risk guarantor, I deeply regret this decision. Now, let's have Ms. Xiao Yawen, the trustee representative, report on the business performance and dividend distribution."
Xiao Yawen stood up, politely nodded to the attendees, and began speaking in fluent German: "According to the agreement, the private equity fund established proxy accounts in six stock exchanges across Beijing, Shanghai, and Shenzhen, entering the Chinese A-share market. All funds and profits were directly supervised by the investors, and each instruction from the trustee and every transaction from the investors were confirmed and recorded by the proxies. After eleven months of operation, excluding nine costs such as currency exchange, remittance, account opening, and transactions, the net profit is 42.8 million DM, now deposited in Solinter Gambling Company's account for distribution."
She then distributed the allocation documents to everyone. The distribution figures are as follows:
Private Equity Fund Profit: 42.8 million DM
Private Equity Fund Return on Investment (ROI): 82%
Investor Preliminary Distribution: 42.8 million × 60% (profit-sharing ratio) = 25.68 million DM
Investor ROI: 50.35%
Individual Investor Dividends:
Nitessler International Investment Company: 4.28 million DMSaint Migo Financial Investment Company: 4.35 million DMM.T.D Cultural Investment Company: 3.62 million DMSTYL Venture Capital Company: 3.52 million DM
Trustee Ding Yuanying Preliminary Distribution: 42.8 million × 40% (profit-sharing ratio) = 17.12 million DM
Ding Yuanying Distributable Profit: 17.12 million DM
Ding Yuanying Payment to Risk Guarantors: 17.12 million × 70% = 11.984 million DM
Risk Guarantors ROI: 239.7%
Individual Risk Guarantor Dividends:
Jenny, Solinter Gambling Company Chairman: 11.984 million × 74.5% guarantee share = 8.928 million DMZheng Jianshi, China Garden Catering Company Chairman: 11.984 million × 9.8% guarantee share = 1.175 million DMLi Zhijiang, personal representative of Han Chufeng: 11.984 million × 15.7% guarantee share = 1.881 million DM
Ding Yuanying Dividend: 5.136 million DM
Jenny said, "Gentlemen, the dividend figures have been verified and signed by accountants from all parties. If there are no objections, please sign the documents, and we will proceed with the payments."
No one raised objections, and all participants signed the documents in front of them, which were promptly collected by Solinter Gambling Company staff.
At this point, Gerstman, representative of Nitessler International Investment Company, signaled to speak. He asked, "Mr. Ding, did external forces influence your decision to terminate the fund at its peak performance?"
Ding Yuanying, of medium height and slightly thin, wearing a dark gray suit, looked slightly fatigued but calm. He responded, "No."
Gerstman said, "Firstly, I thank Ms. Jenny and the two gentlemen for their risk guarantees, making our investment possible. However, we didn't participate in the fund for trivial purposes. We aimed to explore certain possibilities, which the fund's 82% profit rate has proven."
Ding Yuanying replied in fluent German, "Clause seven of the agreement states that the fund has no fixed cooperation period to ensure that investors can withdraw if losses approach the 10% guarantee bottom line, and trustees can cease operations if they are not in good condition."
Kuzman, representative of M.T.D Trust Investment Company, shrugged his plump shoulders, "A fleeting romance."
Ding Yuanying explained, "The fund's unique financing and operation nature puts it in a legal vacuum, making it unsuitable for long-term commitments."
Gerstman said, "Some say the Chinese stock market is more like an ATM than a financing market. Mr. Ding is among the few who understand the cultural code of this ATM, and through our cooperation, he has gained initial capital and the ability to attract large-scale capital. We did not participate in the fund for trivial purposes, nor did Mr. Ding terminate cooperation for trivial reasons. We are open to renegotiating cooperation terms, but if Mr. Ding's actions are unethical, it would damage his reputation. If Mr. Ding cannot prove the public interest of his decision, clause twenty-one applies, and I propose a vote."
Clause twenty-one of the private equity fund cooperation agreement is a guarantee condition clause, stating: "If the trustee unilaterally terminates cooperation while the fund has good profit prospects and capital accumulation exceeding 10 million RMB, and over two-thirds of capital representatives vote to believe the trustee has unethical commercial motives, the guarantor reserves the right to freeze the trustee's capital according to the agreement, with a freeze period of no less than two years and no more than three years."
Jenny said, "Gentlemen, those who believe the trustee has unethical commercial motives, please raise your hand."
All investor representatives raised their hands. Among the guarantors, only Zheng Jianshi raised his hand, while Jenny, Li Zhijiang, and Ding Yuanying did not.
Jenny said, "Seven votes in favor, three votes against, motion passed."
Engel, representative of Saint Migo Financial Investment Company, proposed, "I suggest that Nitessler Company representative oversee the trustee's capital freeze."
The proposal passed unanimously.
Engel continued, "Mr. Ding signed an agreement when resigning from World Economic Weekly, restricting him from working in the same industry for five years, with a compensation of 150,000 DM, which he did not accept. For Mr. Ding's reputation, we hope you make the necessary commitment and compensate you 180,000 DM."
Unexpectedly, Gerstman's assistant produced six stacks of Deutsche Marks and a pre-drafted commercial interest protection agreement, indicating contributions from six investors, each providing 30,000 DM.
Zheng Jianshi interjected, "This is obviously premeditated. Gentlemen, isn't this too much?"
Zheng Jianshi, 43, born in Bonn, originally from Anxi, a Buddhist, holds multiple positions such as executive director of the European Chinese Association, secretary-general of the German Fujian Association, and president of the Berlin Anxi Tea Business Association. He runs the "China Garden" branch in Bremen, an Anxi Tea Art House in Berlin, and a trade company named "Sleiterm." He is a well-known figure in the Fujian Chinese community in Europe. He met Ding Yuanying during his studies in Berlin, becoming friends through discussions on tea and Buddhism.
Ding Yuanying took the agreement, read it, and crossed out the compensation clause before signing it. He then stood up and said, "I am not significant enough to be evaluated based on 'personal reputation.' I am honored to have cooperated with the gentlemen here. I kindly request that you allow me to withdraw 136,000 DM from the frozen funds for living expenses."
He handed the cash and agreement to Gerstman.
Gerstman looked at the signature, puzzled, and said, "I see no reason to refuse."
Ding Yuanying sat down, and the room fell into an uncomfortable silence.
Jenny calmly asked, "Does anyone have any further questions?"
No one responded, but everyone's gaze focused on Ding Yuanying, collectively forming a large question mark: Why?
Jenny waited a few seconds before standing up and saying, "In that case, today's meeting is adjourned. Please sign the meeting minutes."
The clerk collected signatures from the representatives.
Jenny warmly said, "Please forgive me for taking a bit more of your time. I propose a toast to our successful cooperation and the opportunity for future collaborations."
Staff members quickly brought trays of red wine into the conference room, respectfully serving each participant.
Jenny raised her glass, "To our successful cooperation and the chance for future collaborations, cheers!"
Everyone, regardless of their feelings, finished their drinks.